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FED ERAL RE SE R V E BANK O F N EW YO R K
Fiscal Agent of the United States

583

£ CiAuga
usr9’i956

Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury B ills
Dated August 16, 1956

Maturing November 15, 1956

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the tex t of a notice published to d a y :
F O R RELEA SE, M O RN ING N E W S PA PE R S,
TREA SU R Y D EPA R T M E N T
Thursday, August 9, 1956.
Washington
The T reasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for T reasury bills maturing A ugust 16, 1956, in the amount of $1,600,678,000, to be issued on
a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated
August 16, 1956, and will mature November 15, 1956, when the face amount will be payable without interest. They will be
issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity value).
Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern
Daylight Saving time, Monday, August 13, 1956. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
O thers than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be
received without deposit from incorporated banks and tru st companies and from responsible and recognized dealers in in­
vestment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on August 16, 1956, in cash or other immediately
available funds or in a like face amount of Treasury bills m aturing August 16, 1956. Cash and exchange tenders will re­
ceive equal treatement. Cash adjustments will be made for differences between the par value of m aturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes,
whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the
amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under
Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder
are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued
hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original
issue or on subsequent purchase, and the amount actually received either upon sale or redemption at m aturity during the
taxable year for which the return is made, as ordinary gain or loss.
T reasury Department Circular No. 418, Revised, and this notice, prescribe the term s of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 13, 1956, at the Securi­
ties Departm ent of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular
to subm it a tender, and return it in an envelope m arked “Tender for T reasury Bills.” Tenders may be subm itted
by telegraph, subject to written confirmation; they may not be submitted by telephone. Paym ent jor the Treasury bills
cannot be made by credit through the Treasury T a x and Loan Account. Settlem ent must be made in cash or other
immediately available funds or in maturing Treasury bills.
A l f r e d H a y e s , President.
Results ol‘ last offering of T reasury bills (91-day bills dated August 9, 1956, m aturing November 8, 1956)
Total applied f o r ........$2,372,792,000
T otal accepted ............$1,600,242,000 (includes $257,987,000
entered on a noncompetitive basis
and accepted in full at the aver­
age price shown below)
Average price.......... 99.394 Equivalent rate of discount
approx. 2.399% per annum
Range of accepted competitive bids: (Excepting three
tenders totaling $1,450,000)
H i g h ..................... 99.410 Equivalent rate of discount
approx. 2.334% per annum
L o w ....................... 99.383 Equivalent rate of discount
approx. 2.441% per annum
(75 percent of the amount bid for at the low
price was accepted)



Federal Reserve
District

Total
Applied for

B o s to n ..................... . ..
New York .............
Philadelphia ..........
Cleveland ...............
R ich m o n d ...............
A tlanta ...................
St. L o u is .................
M inneapolis............
Kansas C ity ............
Dallas .....................
San Francisco ---T o t a l ....................

...

$

33,167,000
1,704,019,000
29,977,000
47,685,000
19,157.000
34,108.000
240,747,000
33,666.000
15,571,000
35,625.000
46,470,000
132,600,000

$2,372,792,000

Total
Accepted
$

23,167,000
1,016,519,000
14,977,000
42,685,000
19,157,000
34,108,000
186,997,000
33,666,000
14,771,000
35,625,000
45,970,000
132,600,000

$1,600,242,000
( over)

35 V
IM PO R TA N T—If you desire to bid on a com petitive basis, fill in rate per 100 and m aturity
v a lu e in p aragrap h h ea d ed “C o m p etitiv e B id .” I f y o u d esire to b id o n a noncom petitive
b asis, fill in o n ly th e m atu rity valu e in p aragrap h h ea d ed “N o n c o m p e titiv e B id .” DO
N O T fill in both paragraphs on one form . A sep a ra te ten d e r m ust b e u sed fo r ea c h b id ,
e x c e p t th a t b an k s su b m ittin g b id s on a c o m p e titiv e b asis fo r th e ir ow n and th e ir cu sto m ers’
accou n ts m a y su b m it o n e ten d e r fo r th e to ta l a m o u n t b id at e a c h p rice, p ro v id ed a lis t is
a tta ch ed sh o w in g th e n am e o f ea c h b id d er, th e am ou n t b id fo r h is a ccou n t, an d m eth o d
o f p a y m en t. F orm s fo r th is p u rp o se w ill b e fu r n ish e d u p o n requ est.
N o............................

TREASURY BILLS

T E N D E R FOR 91-D^

M aturing Novem ber 15, 1956

D a te d A ugust 16, 1956

Dated a t .......................................................

T o F ederal R eserve B a n k of N ew Y ork ,
F iscal A g e n t o f th e U n ited S tates.

.............................................................

C O M PETITIV E BID

1956

P u rs u a n t to th e p ro v isio n s of T re a s­
u ry D ep a rtm e n t C irc u la r N o. 418, R evised,
an d to th e p ro v isio n s o f th e public no­
tice on A u g u st 9, 1956, as issued by the
T re a s u ry D e p a rtm e n t, the u n d ersig n ed offers

N O N CO M PETITIV E BID
P ursuant to the provisions of T reasury De­
partm ent Circular No. 418, Revised, and to the
provisions of the public notice on A ugust 9,
1956, as issued by the T reasury Departm ent,
the undersigned offers a noncompetitive tender

.............................................. * fo r a to ta l am o u n t of

for a total am ount of $ ..............................................

(R a te p e r 100)

(N o t to exceed $200,000)

$ ......................................................... (m a tu rity value)
of th e T re a su ry bills th erein described, o r for
any less am o u n t th a t m ay be aw arded, settlem ent
th e re fo r to be m ade a t y o u r B ank, on th e date
stated in th e public notice, as indicated b e lo w :
□

(m aturity value) of the T reasury bills therein
described, at the average price (in three deci­
mals) of accepted com petitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below:

By su rre n d e r of m a tu rin g T re a s u ry bills

□

a m o u n tin g t o ...................... $--------------------------------□

By surrender of m aturing T reasury bills

am ounting t o ..................... $_____________________

B y cash o r o th e r im m ediately availab le funds

□

By cash or other immediately available funds

* Price must be expressed on the basis of 100, with not
more than three decimal places, for example, 99.925.

T h e T re a su ry bills for w hich ten d er is hereby made are to be dated A ugust 16, 1956, and are to
m a tu re on N o vem ber 15, 1956.

This tender will be inserted in special envelope marked “Tender for Treasury B ills”
Name of Bidder ........
( P le a s e p r in t )

B y ............................

(O fficial si

re q u ire d )

( T i tle )

Street Address ............
( C it y . T o w n o r V illa g e , P . O . N o ., a n d S ta t e )

If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below:
( N a m e o f C u s to m e r)

( C it y , T o w n o r V illa g e , P . O . N o ., a n d S ta t e )

IM PORTANT INSTRUCTION S:
1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of
$1,000 (m aturity value).
2. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation
authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a rep­
resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem­
ber of the firm, who should sign in the form “ ........................................................................................................ a copartnership, by
........................................................................................................ . a member of the firm.”
3. Tenders will be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of
2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty
of payment by an incorporated bank or trust company.
4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
T reasury, is material, the tender may be disregarded.

P aym ent b y credit through Treasury T ax and Loan Account w ill not be perm itted.


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