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FEDERAL RESER VE BANK O F N EW YORK Fiscal A gent of the United States 0 £ ^erptemb?r 274?956 ] Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury B ills D ated October 4, 1956 M aturing January 3, 1957 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Follow ing is the tex t of a notice published today: F O R RELEA SE, M O RN IN G N E W S PA PE R S, TREA SU R Y D E PA R T M E N T Thursday, September 27, 1956. Washington The Treasury 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 m aturing October 4, 1956, in the amount of $1,600,219,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated October 4, 1956, and will mature January 3, 1957, 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 at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern Daylight Saving time, Monday, October 1, 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 m ust 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 at 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 te iders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to acrapt 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. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on October 4, 1956, in cash or other immediately available funds or in a like face amount of Treasury bills m aturing October 4, 1956. Cash and exchange tenders will re ceive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from T reasury bills, w hether interest o r 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, 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 United States, or by any local taxing authority. F or purposes of taxation the amount of discount at which Treasury 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 amount of discount a t 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 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, whether on original issue or on subsequent purchase, and the amount 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 Department Circular No. 418, Revised, and this notice, prescribe the terms 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. T his Bank will receive tenders up to 2 p.m., E astern D aylight Saving time, M onday, October 1, 1956, a t the Securities Department 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 w ritten confirmation; they may not be submitted by telephone. Paym ent for 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 fr e d H a y e s , President. Results of last offering of T reasury hills (91-day hills dated Septem ber 27, 1956, m aturing D ecem ber 27, 1956) Total applied f o r ........ $2,409,840,000 Total accepted ............ $1,600,515,000 (includes $301,842,000 entered on a noncompetitive basis and accepted in full at the aver age price shown below) Average price.......... 99.245-)-Equivalent rate of discount approx. 2.985% per annum Range of accepted competitive bids: (Excepting three tenders totaling $690,000) H i g h ..................... 99.266 Equivalent rate of discount approx. 2.904% per annum L o w ....................... 99.242 Equivalent rate of discount approx. 2.999% per annum (50 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for .. New York ............... .. Philadelphia ............ Cleveland ................. Richmond ............... C h ica g o ..................... St. Louis ................. Minneapolis ............ Kansas C i ty .............. San F ra n c is c o .......... T o t a l ....................... .. $ 37,080,000 1,726,401,000 39.320,000 63,717,000 14,044,000 37,488,000 222,871,000 36,135,000 13,249,000 50,987,000 43,194,000 125,354,000 $2,409,840,000 Total Accepted $ 26,580,000 1,031,526,000 24,320,000 62,217,000 14,044,000 36,488,000 169,371,000 33,635,000 12,849,000 46,987,000 30,194,000 112,304,000 $1,600,515,000 ( over) IM P O R T A N T — P le a s e n o te t h a t c lo sin g tim e is 2 p .m ., E a s te r n D a y lig h t S a v in g tim e . 36 C Closing time for receipt of tenders is 2 p.m., Eastern Daylight Saving time, Monday, October 1, 1 9 5 6 . IM P O R T A N T — I f y o u d esire to b id o n a com petitive b asis, fill in rate p er 100 and m atu rity 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 v a lu 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 u st b e u sed fo r ea c h b id , e x c e p t th a t bank s su b m ittin g b id s o n a c o m p e titiv e b asis fo r t h e ir o w n an d th e ir cu sto m ers’ accoun ts m ay su b m it o n e ten d e r fo r th e to ta l am ou n t b id at e a c h p rice, p ro v id ed a lis t is a ttach ed sh ow 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 hxs accoun t, an d m eth o d o f p aym 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.............................. T E N D E R FOR 91-DAY TR EA SU RY BILLS D a ted O ctob er 4, 1956 To F ederal R eserv e Bank of N ew Y M atu rin g Jan uary 3, 1957 D ated at ork, Fiscal A gent of the U nited States. 1956 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 P u rsu an t to the provisions of T reas ury D epartm ent C ircular No. 418, Revised, and to the provisions of the public no tice on Septem ber 27, 1956, as issued by the T reasury D epartm ent, the undersigned offers P ursuant to the provisions of T reasury De partm ent C ircular No. 418, Revised, and to the provisions of the public notice on Septem ber 27, 1956, as issued by the T reasury Departm ent, the undersigned offers a noncom petitive tender .............................................* for a total am ount of for a total am ount of $. ( R a t e p e r 100) ( N o t to e x c e e d $200,000) $ ....................................................... (m aturity value) of the T reasury bills therein described, or for any less am ount th at may be aw arded, settlement th erefo r to be made at your Bank, on the date stated in the public notice, as indicated b elo w : (m aturity value) of the T reasury bills therein described, at the average price (in three deci m als) 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 surrender of m aturing T reasury bills am ounting t o ..................... $------------------------------□ By cash or other immediately available funds By surrender of m aturing T reasury bills am ounting t o ..................... $_____________________ □ 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 he T reasury bills for which tender is hereby made are to be dated O ctober 4, 1956, and are to m ature on Jan u ary 3, 1957. This tender will be inserted in special envelope marked “Tender for Treasury Bills.” Name of Bidder .......................................... ( P le a s e p r in t ) By (T itle ) (O ffic ia l s ig n a t u r e r e q u ir e d ) Street Address ........................................ ( C it y , T o w n o r V ill a g e , P . O . N o ., a n d S t a 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 sto 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 P O R T A N T IN S T R U C T IO N 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 tru st 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 T reasury 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 Treasury, is material, the tender may be disregarded. P aym ent b y credit through Treasury T ax and Loan A ccount w ill n o t be perm itted. http://fraser.stlouisfed.org/ E N T B —1370-a Federal TReserve Bank of St. Louis ( ovek )
@FedFRASER