The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK O F NEW YORK r Circular N o. 4 3 6 1 1 A ugm t 16,1956 J Fiscal Agent of the United States I Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 92-D ay Treasury B ills Dated August 23, 1956 Maturing November 23, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice published to d ay : F O R R E L E A S E , M O R N IN G N E W S P A P E R S , T hursday, A ugust 16, 1956. TREA SU RY D EPA R TM EN T W ashington T h e T reasury D epartm ent, by this public notice, invites tenders fo r $1,600,000,000, o r thereabouts, of 92-day T reasury bills, for cash and in exchange for T reasury bills m aturing A ugust 23, 1956, in the am ount of $1,600,042,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T h e bills of this series will be dated A ugust 23, 1956, and will m ature N ovem ber 23, 1956, when the face am ount will be payable w ithout interest. T h ey 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). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., E astern D aylight Saving time, Monday, A ugust 20, 1956. T enders will not be received at the T reasu ry D epartm ent, W ashington. Each tender m ust be for an even m ultiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, with not m ore than three decimals, e.g., 99.925. Fractions may not be used. I t is urged th at tenders be m ade 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 perm itted to subm it tenders except for their own account. T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in invest m ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury 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 w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competitive bids. Settlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted at the Federal Reserve Bank on A ugust 23, 1956, in cash or other imm ediately available funds or in a like face am ount of T reasury bills m aturing A ugust 23, 1956. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. T he income derived from T reasury bills, w hether 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 T reasury bills does not have any special tre a t m ent, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether 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 U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount a t which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the ow ner of T reasury bills (o th er than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the return is made, as ordinary gain o r loss. T reasury D epartm ent Circular No. 418, Revised, and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. T his Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 20, 1956, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in an envelope marked “Tender for T reasury Bills.” Tenders may be submitted by telegraph, sub ject to w ritten confirmation; they may not be submitted by telephone. Paym ent fo r 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 fund s or in maturing Treasury bills. A l f r e d H ayes, President. R esu lts o f la st offerin g o f T r ea su ry b ills ( 9 1 -d a y b ills d ated A u g u s t 16, 1 9 5 6 , m a tu rin g N o v em b e r 1 5 , 1 9 5 6 ) T o tal applied for . . .$2,421,509,000 T o tal accepted ........ $1,600,084,000 (includes $263,683,000 entered on a noncom petitive basis and accepted in full at the average price shown below) A verage price . . . 99.342 4- Equivalent rate of discount approx. 2.603% per annum Range of accepted competitive bids: (excepting eight tenders totaling $1,425,000) H igh ................ 99.360 Equivalent rate of discount anorox 2 532<£ ner annum nn„ . approx. c.oi&'yo per annum Low ................ 99.334 Equivalent rate of discount approx. 2.635% per annum (93 percent of the am ount bid for at the low price was accepted) Federal Reserve Total District Applied fo r B oston .......................... $ 29,849,000 New Y ork .................... 1,685,910,000 Philadelphia ................ 31,630,000 Cleveland ...................... 65,097,000 Richm ond .................... 17,282,000 A tlanta .......................... 30,190,000 Chicago ........................ 2o7,171,000 S in n ^ 'V * .................... ??’ non M in n e a p o lis.................. 15,264,000 K ansas City ................ 49,487,000 Dallas ............................. 53,708,000 San F ra n c is c o .............. 151,996,000 ------------------T otal .............. $2,421,509,000 Please n o te th a t th e c u r r e n t offering is fo r 9 2 -d a y T re a su ry bills. Total Accepted $ 19,849,000 959,220,000 16,630,000 64,747,000 17,282,000 30,190,000 198,856,000 i J ’S i ’S n 15,264,000 49,487,000 52,638,000 141,996,000 ------------------$1,600,084,000 ( over) 35 W IM P O R T A N T — P lease n o te th a t th is o fferin g is fo r 9 2 -d a y T r ea su ry b ills, w h ic h w ill m a tu re on F rid a y , N o v em b e r 2 3 , 1 9 5 6 , b eca u se T h u r sd a y , N o v em b e r 2 2 , w ill be T h a n k s g iv in g D a y . IM P O R T A N T — I f y o u d esire to b id on a c o m p e titiv e basis, fill in r a te p er 1 0 0 an d m a tu r ity v a lu e in p aragrap h h ead ed " C om p etitiv e B id.” I f y o u d esire to b id on a n o n c o m p e titiv e b asis, fill in o n ly th e m a tu r ity v a lu e in p a ra g ra p h h ead ed " N o n c o m p e titiv e B id.” D O N O T fill in b o th p a ragraphs on one fo r m . A separate ten d er m u st be u sed f o r ea ch b id , e x c e p t th a t b an k s su b m ittin g bids on a co m p etitiv e basis f o r th e ir o w n a n d th e ir custom ers* a cc o u n ts m a y su b m it one ten d e r f o r th e to ta l a m o u n t bid a t ea ch p rice, p ro v id ed a lis t is a tta c h e d sh o w in g th e n am e o f each b id d er, th e a m o u n t b id fo r h is a c c o u n t, a n d m ethod o f p a y m e n t. Form s fo r th is p urpose w ill be fu rn ish ed u p on req u est. No............ TENDER FOR 92-D A Y TREASURY BILLS M a tu rin g N o v em b e r 2 3 , 1956 D a te d A u g u s t 2 3 , 1956 To Dated at F ed era l R eserv e B a n k o f N ew Y ork, 1956 Fiscal Agent of the U nited States. C O M P E T IT IV E B ID N O N C O M P E T IT IV E B ID Pursuant to the provisions of Treasury Departm ent Circular No. 418, Revised, and to the provisions of the public notice on August 16, 1956, as issued by the T reasury Department, the P ursuant to the provisions of T reasury D epartm ent Circular No. 418, Revised, and to the provisions of the public notice on August 16, 1956, as issued by the T reasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s .........................................* for a (R a te per 100) for a total amount of $ ............................................... (N o t to exceed $200,000) total amount of $ .............................. - . . (m aturity value) of the T reasury bills therein described, or for any less amount that may be awarded, settle ment therefor to be made at your Bank, on the date stated in the public notice, as indicated below : By surrender of m aturing T reasury bills (m aturity value) of the T reasury bills therein described, at the average price (in three decimals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : □ By surrender of m aturing T reasury bills amounting to ................... $------------------------------- amounting to ................... $____________________ □ □ □ By cash or other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis o f 100, with not more than three decimal places, fo r example, 99.925. The T reasury bills for which tender is hereby made are to be dated A ugust 23, 1956, and are to mature on November 23, 1956. T his tender will be inserted in special envelope marked “Tender fo r Treasury Bills.” N am e of B i d d e r ---(P lease p rin t) B y. (Official signature required) (T itle ) S treet Address (C ity, Tow n o r V illage, P . O. N o., a n d State) If this tender is subm itted by a bank for the account of a customer, indicate the custom er’s nam e on line below: (C ity, Tow n or V illage, P . O . N o., and State) (N am e o f Custom er) IM P O R T A N T IN S T R U C T IO N S : 1. N o tender for less than $1,000 will be considered, and each tender m ust 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 corpora tion authorized to m ake the tender, and the signiqg of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a m ember of the firm, who should sign in the form “ ........................................................................................... . a copartnership, by ........................................................................................................................... . a m em ber of the firm.” 3. T enders will be received w ithout deposit from incorporated banks and tru st com panies and from respon sible and recognized dealers in investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st 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 a y m e n t b y c re d it th r o u g h T re a su ry T a x and Loan A c c o u n t w ill n o t be p e rm itte d . T E N T B — 1364-a (OVER)
@FedFRASER