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FEDERAL RE SERVE BANK O F N EW YORK r C ircular No. 4 3 9 0 1 L N ovember 21, 1956 J Fiscal Agent o f the United States O ffering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated November 29, 1956 Maturing February 28, 1957 To all Incorporated B anks and T rust Companies, and Others Concerned, in the Second Federal R eserve D istrict: Following is the text of a notice published to d a y : 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 , W ednesday, N ovem ber 21, 1956. TREA SU RY D EPA RTM EN T 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 T reasur 3 r bills, for cash and in exchange for T reasury bills m aturing N ovember 29, 1956, in the am ount of $1,601,205,000, to be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided. T he bills of this series will be dated N ovem ber 29, 1956, and will m ature February 28, 1957, when the face am ount will be payable w ithout interest. T hey will be issued in bearer form only, and in denom inations 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, one-thirty o’clock p.m., Eastern Standard time, Monday, N ovem ber 26, 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 com petitive 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 th at tenders be made on the printed forms and forw arded 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. Tenders 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 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 o r 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 at the average price (in three decimals) of accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted at the Federal Reserve Bank on N ovem ber 29, 1956, in cash or o th er imm ediately available funds or in a like face am ount of T reasury bills m aturing N ovem ber 29, 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 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 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 U nited States, or by any local taxing authority. F o r purposes of taxation the am ount of discount at 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 owner of T reasury bills (o th er than life insurance com panies) 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 o r redem ption 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. T h i s B a n k w ill r e c e iv e t e n d e r s u p t o 1 :3 0 p .m ., E a s t e r n S t a n d a r d t im e , M o n d a y , N o v e m b e r 2 6 , 1 9 5 6 , a t t h e S e c u r i t i e s D e p a r t m e n t o f i t s H e a d O ffic e a n d a t i ts B u f f a lo B r a n c h . P l e a s e u s e t h e f o r m o n t h e r e v e r s e s i d e o f t h i s c i r c u l a r t o s u b m i t a t e n d e r , a n d r e t u r n i t i n a n e n v e lo p e m a r k e d “ T e n d e r f o r T r e a s u r y B i ll s .” T e n d e r s m a y b e s u b m i t t e d b y t e l e g r a p h , s u b j e c t t o w r i t t e n c o n f i r m a t i o n ; t h e y m a y n o t b e s u b m i t t e d b y te l e p h o n e . Paym ent fo r the Treasury bills cannot be made by credit through the Treasury T a x and Loan Account. fu n d s or in maturing Treasury bills. Settlement must be made in cash or other immediately available A lfred H ayes, President. R e s u lts o f la s t o ffe rin g o f T r e a s u r y bills ( 9 0 - d a y b ills d a te d N o v e m b e r 2 3 , 1 9 5 6 , m a tu r in g F e b r u a r y 2 1 , 1 9 5 7 ) Total applied for . . $2,405,477,000 Total accepted ........$1,600,387,000 (includes $295,810,000 entered on a noncompetitive basis and accepted in full at the average price show n below) Average price . . . 99.239 Equivalent rate of discount 3.043% per annum Range of accepted competitive bids: (excepting three tenders totaling $1,825,000) tj.VI, go 260 Fm iivalent rate of discount H ,gh " - 260 960% oer annum T 009™ 22.960% per annum Low ................ 99.234 Equivalent rate of discount 3.064% per annum (20 percent of the am ount bid for at the low price was accepted) Federal Reserve D istrict Boston .......................... New Y ork .................... Philadelphia ................ Cleveland .................... Richmond .................... A*lanta Chicago ........................ ^ L ° u*s ...................... Minneapolis ................ K ansas City ................ Dallas ............................ San Francisco ............ T otal ............ Total A pplied fo r $ 55,683,000 1,679,848,000 29,755,000 94,241,000 27,902,000 27,299,000 239,869,000 23,663,000 9,977,000 46,729,000 42,007,000 128,504*000 $2,405,477,000 Please note th a t the results shown above are for 9 0 -day T reasu ry bills. Total Accepted $ 45,683,000 963,398 000 14,755,000 94,241,000 27,902,000 27,099,000 182,669,000 23,663,000 9,977,000 44,129,000 38 767 000 128,104,000 -----------------$1,600,387,000 ( over) 36 K IM P O R T A N T — I f y o u desire to b id on a com petitive basis, fill in ra te p er 100 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 desire to b id on a noncom petitive 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 h ead ed " N o n c o m p e titiv e B id.” D O N O T fill in both paragraphs on one fo rm . A separate ten d er m u st be u sed fo r each bid, e x c e p t th a t bank s su b m ittin g bids on a co m p etitiv e basis fo r th e ir o w n an d th e ir cu stom ers’ a cc o u n ts m a y su b m it one ten d er fo 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 nam e o f each b id d er, the a m o u n t b id fo r his a c c o u n t, an d m ethod o f p a y m en t. Form s fo r this purpose w ill be fu rn ish ed u p on req u est. No............ T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS D a te d N o v em b e r 2 9 , 1956 To M a tu rin g F eb ru a ry 2 8 , 1957 Dated at .......................................................... F ed er a l R eserv e B a n k o f N ew \ ork, Fiscal Agent of the United States. 19 56 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 ursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on November 21, 1956, as issued by the T reasury Department, the Pursuant to the provisions of T reasury Department Circular No. 418, Revised, and to the provisions of the public notice on November 21, 1956, as issued by the T reasury Department, the undersigned offers a noncompetitive tender undersigned offers .........................................* 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 ................... $____________________ 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 for which tender is hereby made are to be dated November 29, 1956, and arc to mature on February 28, 1957. This tender will be inserted in special envelope marked “Tender fo r Treasury Bills.” N am e of Bidder ............................................................................................................. (P lease p rin t) B y. (Official signature required) (T itle ) Street Address (C ity, Tow n or V illage, P . O . N o., an d S tate) 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 : (N am e o f Custom er) (C ity, Tow n or V illage, P . O . N o., and S tate) 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 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 m ade by a partnership, it should be signed by a member of the firm, w ho should sign in the form “ ..........................................................................................., a copartnership, by ............................................................................................................................. a member of the firm.” 3. T enders will be received w ithout 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 accom panied 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 tlie T reasury, is m aterial, the tender m ay be disregarded. P aym ent b y credit through T reasury T a x and Loan A cco u n t w ill not be perm itted. T E N T B — 1378-a ( over)
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