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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent of the U nited States [ C irc u la r No. 4 3 9 2 "1 N ovem ber 29, 1956 J Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-Day Treasury B ills D ated December 6, 1956 M aturing M arch 7, 1957 To all Incorporated B anks and T ru st Companies, and Others Concerned, in the Second Federal, Reserve D istrict: F o llo w in g is t h e t e x t o f a n o tic e p u b lis h e d t o d a y : FO R RELEA SE, M ORNING N EW SPA PE R S, TREA SU RY D EPA RTM EN T Thursday, November 29, 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 Treasury bills maturing December 6, 1956, in the amount of $1,601,146,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated December 6, 1956, and will mature M arch 7, 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 (maturity 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, December 3, 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 o-f 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. Others 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 trust 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 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 ini accordance with the bids must be made or completed at the Federal Reserve Bank on December 6, 1956, in cash or other immediately available funds or in a like face amount of Treasury bills m aturing December 6, 1956. Cash and exchange tenders will re ceive equal treatment. 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. F or purposes of taxation the amount of discount a t 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 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 o.f. 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 i l l r e c e i v 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 i m e , M o n d a y , D e c e m b e r 3 , 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 f f ic e a n d a t i t s B u f f a l o 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 l o 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 l l 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 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 f r e d H a y e s , President Results of last offering of T reasury bills (91-day bills dated N ovem ber 29, 1956, m aturing F eb ru ary 28, 1957) Total applied f o r ........$2,505,590,000 T otal ac ce p te d ............$1,600,095,000 (includes $282,967,000 - ru-vr-3 entered on a noncompetitive basis and accepted in full at the aver•• age price shown below) Average price.......... 99.198 Equivalent rate of discount approx. 3.174% per annum Range of accepted competitive b id s: (excepting one tender of $150,000) H i g h ..................... 99.250 Equivalent rate of discount approx. 2.967% per annum L o w ....................... 99.189 Equivalent rate of discount approx. 3.208% per annum (one percent of the amount bid for at the low price was accepted) i jsrvc.; Federal Reserve D istrict New York ............... Philadelphia ----Cleveland ................. R ich m o n d ................. A tlanta ..................... C h ic a g o ..................... St. L o u is ................... M in n eap o lis............. Kansas City ............ Total Applied for .. $ .. $2,505,590,000 San F ra n c is c o .......... T o t a l ....................... 40,394,000 1,831,996,000 37,418,000 45,764,000 27,378,000 33,512,000 264,046,000 21,413,000 13,517,000 39,272,000 38,885,000 111,995,000 Total Accepted $ 30,394,000 1,012,976,000 22,418,000 45,764,000 27,378,000 33,512,000 207,571,000 21,413,000 13,517,000 39,272,000 38,885,000 106,995,000 $1,600,095,000 ( over) 36 L IM PO R TA N T—If you desire to bid on a com petitive basis, fill in ra te p er 100 and m aturity value in p arag rap h headed “ C om petitive B id.” If you desire to bid on a noncom petitive basis, fill in only th e m atu rity value in p arag rap h headed “N oncom petitive B id.” DO N O T fill in both paragraphs on one form . A separate ten d er m ust be used for each bid, except th a t banks subm itting bids on a com petitive basis fo r th e ir own and th e ir custom ers’ accounts may subm it one ten d er for th e total am ount bid at each price, provided a list is attached showing th e nam e of each bidder, th e am ount bid for his account, and m ethod of paym ent. Form s for this purpose will be furnished u p o n request. No. T E N D E R FOR 91-DAY TR EA SU RY BILLS D ated D ecem ber To F ederal R eserv e Bank of 6 M aturing M arch 7, 1957 , 1956 N ew Dated a t ....................... Y ork, Fiscal Agent of the U nited States. 1956 C O M PETITIV E BID P ursuant 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 November 29, 1956, as issued by the T reasury D epartm ent, the undersigned offers NO 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 N ovem ber 29, 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 te p e r 100) $ ..................................................... (m aturity value) of the T reasury bills therein described, or for any less am ount th at may be aw arded, settlem ent th erefo r 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 im mediately available funds (N o t to exceed $200,000) (m aturity value) of the T reasury bills therein described, at the average price (in three deci m als) 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 am ounting t o ..................... $_____________________ □ By cash or other immediately available funds * P rice m ust be expressed on the basis of 100, w ith not more than three decimal places, fo r example, 99.925. T he T reasury bills for which tender is hereby made are to be dated December m ature on M arch 7, 1957. 6 , 1956, and are to This tender zvill be inserted in special envelope marked “Tender for Treasury Bills.” Name of Bidder ............................................................................................... (P le a s e p rin t) B y .............................. ................................................ (O fficial s ig n a tu re req u ired ) (T itle ) Street Address .................................... (C ity , T ow n o r V illa g e , 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 am e o f C u sto m er) (C ity , T o w n or V illa g e , P . O . N o., a n d S ta te ) IM PO R TA N T IN STR U C TIO 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. It 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 respcct. 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. T E N T B —1379-a
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