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FED ERAL RESER VE BANK O F N EW YO RK r C ircu lar N o. 4 3 6 3 1 L A u g u s t 23,1956 J Fiscal A gent of the U nited States Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-Day Treasury B ills Dated August 30,1956 Maturing November 29, 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 today: 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 , TREA SU RY D EPA R TM EN T Thursday, A ugust 23, 1956. W ashington T he T reasury D epartm ent, 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 m aturing A ugust 30, 1956, in the am ount of $1,600,060,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T he bills of this series will be dated A ugust 30 1956, and will m ature November 29, 1956, when the face am ount will be payable w ithout interest. T hey 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 a t Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Daylight Saving time, Monday, August 27, 1956. Tenders will not be received at the T reasury 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 m ay not be used. I t is urged th at 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 perm itted to submit 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. T enders 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 payment by an incorporated bank or tru st company. Im mediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which public announcem ent will be m ade 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 with the bids m ust be made or completed at the Federal Reserve Bank on August 30, 1956, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing August 30, 1956. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made 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 o r 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 treat ment, 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 o r State, but are exem pt 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, o r by any local taxing authority. F or 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. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the am ount of discount a t 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 owner of T reasury 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, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption a t m aturity during the taxable year for which the return is made, as ordinary gain or 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. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 27, 1956, at the Securi ties Departm ent of its H ead Office and a t 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 Treasury Bills.” Tenders may be submitted by telegraph, subject to written 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 fu n d s or in maturing Treasury bills. A l f r e d H a y e s , President. R esu lts o f la st offerin g o f T rea su ry b ills (9 2 -d a y b ills d a ted A u g u s t 2 3 , 1 9 5 6 , m a tu rin g N o v em b e r 2 3 , 1 9 5 6 ) T otal applied f o r ......... $2,292,340,000 T otal ac ce p te d ............. $1,600,090,000 (includes $254,533,000 entered on a noncompetitive basis and accepted in full a t the average price shown below) Average price....... 99.280 Equivalent rate of discount approx. 2.818% per annum Range of accepted competitive bids: (Excepting six ten ders aggregating $1,810,000) H ig h ................... 99.297 Equivalent rate of discount approx. 2.751% per annum Low ................... 99.262 Equivalent rate of discount i approx. 2.888% per annum (25 percent of the am ount bid for a t the low price was accepted) Federal Reserve District .... New Y o r k ................. .... Philadelphia ............. Cleveland ................. Richmond ................. St. Louis ................... Minneapolis ............. Kansas City ............. San F ra n cisc o ........... T o t a l ....................... .... Total Applied fo r $ 51,805,000 1,688,794,000 33,939,000 85,687,000 21,028,000 27,821,000 210,905,000 22,437,000 9,975,000 32,527,000 24,040,000 83,382,000 $2,292,340,000 http://fraser.stlouisfed.org/ Please n o te th a t th e resu lts sboum above are fo r 92-d a y T re a su ry bills. Federal Reserve Bank of St. Louis Total Accepted $ 41,805,000 1,069,544,000 18,939,000 85,687,000 21,028,000 27,821,000 162,905,000 22,437,000 9,975,000 32,527,000 24 040 000 83,382,000 $1,600,090,000 ( o v eh ) > -^ C 35 X IM P O R T A N T — I f y o u desire to b id on a c o m p e titiv e basis, fill in r a te p er 100 a n 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 t o b id on a n o n c o m p e titiv e basis, fill in o n ly th e m a tu r ity v a lu e in p a ra g ra p h headed " N o n co m p e titiv e B id .” DO N O T fill in b o th paragraphs on one fo r m . A separate ten d er m u st b e u sed f o r ea c h bid, ex c e p t th a t b a n k s su b m ittin g bids on a c o m p e titiv e basis f o r th e ir o w n a n d th e ir cu sto m ers’ a cc o u n ts m ay su b m it one ten d e r f o r th e t o ta l a m o u n t b id 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 f o r h is a c c o u n t, an d m ethod o f p aym en t. Form s f o r th is purpose w ill b e fu r n ish e d u p on req u est. N o_____________ TENDER FOR 91 -DAY TREASURY BILLS D a te d A u g u s t 3 0 , 19 5 6 To M atu rin g N o v em b er 2 9 , 1956 Dated at F ederal R eser v e B a n k o f N ew Y o rk , Fiscal Agent of the United States. .1956 C O M PE TIT IV E B ID N O N C O M P E T IT IV E B ID Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on August 23, 1956, as issued by the Treasury Department, the P ursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on A ugust 23, 1956, as issued by the T reasury Department, the undersigned offers a npncompetitive tender undersigned offers ------------------------------* for a (B a te per 100) ______________ (m aturity total amount of $value) of the T reasury bills therein described, or for any less amount that may be awarded, settle ment therefor to be made a t your Bank, on the date stated in the public notice, as indicated below : for a total amount of (N o t t o e x ce e d 1200,000) By surrender of maturing Treasury bills (m aturity value) of the T reasury bills therein described, at the average price (in three decimals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : □ By surrender of m aturing T reasury bills amounting t o ........................$----------------------------- amounting t o ...................... .$__ ____ ------- -— -------- □ □ □ 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 fo r which tender is hereby made are to be dated A ugust 30, 1956, and are to m ature on November 29, 1956. This tender will be inserted in special envelope marked “Tender fo r Treasury B ills” Name of Bidder (P le a s e p r in t) B y ........... (O fficial s ig n a tu r e req u ired ) (T itle ) Street Address (C ity , T o w n o r V U lage, P . O. N o., a n d S ta te ) 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 ustom er) (C ity , T o w n o r V U la g e, P . O. N o., a n d S ta te ) 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 m aking 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 signing of the tender by an officer of the corporation will be construed as a representation by him th at he has been so authorized. If the tender is made by a partnership, it should be signed by a m em ber of the firm, who should sign in the form “.................................................................................. ........ a copartnership, by .............. ............................................................................................ a member of the firm.” 3. T enders will be received without deposit from incorporated banks and tru st companies and from respon sible and recognized dealers in investm ent securities. T enders 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 payment 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 r e d it th r o u g h T r e a s u ry T a x a n d Loan A c c o u n t w ill n o t be p e rm itte d . http://fraser.stlouisfed.org/ T E N T B — 1365-a Federal Reserve Bank of St. Louis ( ovek )
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