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FEDERAL RESERVE BANK OF NEW YORK Fiscal A °gent of the U nited States r ci rcu,aruNo;04?°0 1J L D ecem ber 18, 19a6 Offering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury B ills Dated December 27, 1956 Maturing March 28, 1957 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Follow ing is the text of a notice published today: FO R R E L EA SE, M ORNING N EW SPA PE R S, TREA SU RY D EPA RTM EN T Tuesday, December 18, 1956. Washington The T reasury 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 27, 1956, in the amount of $1,600,515,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated December 27, 1956, and will mature M arch 28, 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 a t Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Standard time, Friday, December 21, 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 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 tru st companies and from responsible and recognized dealers in in vestment securities. Tenders from others m ust 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 in accordance with the bids must be made or completed at the Federal Reserve Bank on December 27, 1956, in cash or other immediately available funds or in a like face amount of Treasury bills m aturing December 27, 1956. Cash and exchange tenders will re ceive equal treatm ent. 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. For 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 at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury 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 1 :30 p.m., E astern S tandard time, Friday, December 21, 1956, at the Securi ties D epartm ent of its H ead 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 confirm ation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury T a x and Loan Account. Settlem ent m ust 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. (CLOSING DAY FOR R E C E IP T OF TENDERS IS F R I D A Y , D E C E M B E R 21, 1956) T H IS CIRCULAR WAS P R IN T E D B EFO RE TH E RESULTS OF T H E BIDDING FO R TREASURY BILLS DATED DECEM BER 20, 1956 W ERE AVA ILABLE; THOSE RESULTS W ILL BE AN NOUNCED A FTER RELEASE BY T H E TREAS URY D EPARTM ENT. ( oveb) 36 0 Closing lime for receipt of tenders is 1:30 p. m., Eastern Standard tim e, Friday, December 21, 1956 IM PO R TA N T—Please note th a t tenders fo r this issue m ust be received not la te r th an oneth irty o’clock p.m., E astern S tandard tim e, F riday, D ecem ber 21, 1956. 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 aragraph headed “C om petitive B id.” If you desire to b id on a noncom petitive basis, fill in only th e m atu rity value in p aragraph headed “N oncom petitive B id.” DO N O T fill in both paragraphs on one form . A separate tender m ust be used for each bid, except th a t banks subm itting bids on a com petitive basis for th e ir own and th e ir custom ers’ accounts may subm it one ten d er for the 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 fo r his account, and m ethod of paym ent. Form s fo r this purpose will be furnished upon request. No. T E N D E R FOR 91-DAY TREASU RY BILLS M aturing M arch 28, 1957 Dated D ecem ber 27, 1956 To F ederal R eserv e Bank of N ew Dated at Y ork, Fiscal Agent of the United States. 1956 C O M PETITIV E BID P u rsu ant 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 December 18, 1956, as issued by the T reasury Departm ent, the undersigned offers ............................................ * 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 that may be awarded, 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 ..................... $------------------------------□ N O 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 December 18, 1956, as issued by the T reasury Departm ent, the undersigned offers a noncompetitive tender for a total am ount of $ ................... (N o t to exceed $200,000) (m aturity value) of the T reasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated belo w : □ By surrender of m aturing T reasury bills am ounting t o ..................... $____________________ By cash or other immediately available funds □ 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 December 27, 1956, and are to m ature on M arch 28, 1957. T his tender zuill be inserted in special envelope marked “Tender for Treasury Bills.” Name of Bidder . . . . (P le a s e p rin t) By (O fficial s ig n a tu re re q u ire d ) (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 ustom er) (C ity , T ow n or V illa g e , P . O. N o., a n d S ta te ) IM PO R TA N T INSTRU CTIO N S: 1. No 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 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. T enders 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 tru st 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 Tax and Loan A ccount w ill n o t be perm itted. T E N T B —1382-a ( over)
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