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FED ERAL RESERVE BANK O F NEW YORK r Circular No. 4 4 0 6 1 I January 3, 1957 J Fiscal Agent o f the United States Offering of $1,600,000,000 of 91-Day Treasury Bills Dated January 10, 1957 Maturing A pril 11, 1957 T o all In corporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published tod 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 , T h u rsd a y, January 3, 1957. TREASURY DEPARTM ENT W a s h in g to n T h e T re a su ry D ep a rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,600,000,000, o r th ereabouts, o f 91 -d a y T reasu ry b ills, fo r cash and in e x ch a n g e fo r T rea su ry bills m atu rin g January 10, 1957, in the a m ou n t o f $1,600,272,000, to be issued on a d isco u n t basis under com p etitiv e and n on com p etitiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated J anu ary 10, 1957, and w ill m ature A p ril 11, 1957, w h en the fa ce a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo rm o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill be receiv ed at Federal R eserve B anks and B ra n ch es up to the clo s in g h our, on e-th irty o ’ c lo ck p.m ., E astern S tandard tim e, M on d a y , January 7, 1957. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive tenders the p rice offered m u st be ex p resse d o n th e basis o f 100, w ith n ot m o re than th ree decim a ls, e.g., 99.925. F raction s m ay n ot b e used. It is u rged that ten d e rs be m ade o n the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be supplied b y Federal R eserve B anks o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b a n k in g institutions w ill n ot be perm itted to subm it tenders e x cep t fo r th eir ow n a ccou n t. T e n d e rs w ill be receiv ed w ith o u t dep osit fro m in corp ora ted banks and trust com p a n ies and fro m resp on sib le and re co g n iz e d dealers in in vest m en t securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T r e a s u ry bills a pp lied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t b y an in corp ora ted bank o r trust com p a n y . Im m e d ia te ly a fter th e clo s in g h ou r, ten ders w ill be op en ed at the F ed eral R e serv e B anks and B ra n ch es, fo llo w in g w hich p u b lic a n n ou n cem en t w ill be m ade b y th e T rea su ry D ep a rtm en t o f th e a m ou n t a n d p rice ra n ge o f a ccep ted bids. T h o s e su b m ittin g tenders w ill be a d vised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry e x p re s sly reserves the righ t to a cce p t o r reject any o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b je ct to th ese reservations, n on com p etitiv e tenders for $200,000 or less w ith ou t stated price fro m a n y on e bidder w ill be a cce p te d in fu ll at the a vera ge price (in three decim a ls) o f a ccep ted com p etitiv e bids. Settlem ent fo_r_ a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade o r com p leted at the Federal R eserve Bank on January 10, 1957, in cash o r oth er im m ediately available fun ds o r in a like face a m ou n t o f T rea su ry bills m aturing January 10, 1957. Cash and ex ch a n g e ten ders w ill receiv e equal treatm ent. Cash ad ju stm en ts w ill be m ade fo r d ifferen ces betw een th e pa r valu e o f m a tu rin g b ills a cce p te d in e x ch a n g e a n d the issue p rice o f the n ew bills. T h e in co m e derived fro m T rea su ry bills, w hether interest o r gain fr o m the sale o r oth er d isp osition o f the bills, d o e s n ot have a n y e x e m p tion , as such, and loss fr o m the sale o r oth er d isp osition o f T r e a s u ry bills d oes n ot have any special treat m ent, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er excise taxes, w h eth er Federal o r State, but are exem p t fro m all ta xation n o w o r hereafter im p osed on the principal o r interest th e re o f b y an y State, o r any o f the p oss e s s io n s o f the U n ited States, o r b y a n y lo ca l ta x in g a u th ority. F o r p u rp o s e s o f taxation the am ou n t o f discou n t at w h ich T rea su ry bills are o rigin a lly sold b y the U n ited States is con sid ered t o be interest. U n d er S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C o d e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder are so ld is n ot con sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise disp osed o f, and such bills are exclu ded fr o m co n sid e ra tio n as capital assets. A c c o r d in g ly , the o w n e r o f T r e a s u ry bills (o th e r than life in su ra n ce co m p a n ie s ) issued hereun der need in clu d e in his in com e ta x return o n ly the differen ce betw een the price paid fo r such bills, w h eth er on origin al issue o r o n subsequent pu rch ase, and the a m ou n t actu ally received eith er u pon sale o r red em ption at m atu rity d u rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. T r e a s u ry D epartm en t C ircu lar N o. 418, R evised , and this n otice, p rescrib e the term s o f the T rea su ry bills and go v e rn the co n d itio n s o f th eir issue. C op ies o f th e circu la r m ay be ob ta in ed fr o m a n y F ed era l R eserve B ank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, January 7, 1957, at the Securities Department o f its H ead Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, sub ject 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 Tax and Loan A ccount. Settlement 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 o f last offering o f Treasury bills (9 1 -day bills dated January 3, 1957, m aturing A p ril 4, 1957) T o ta l applied fo r . . .$2,378,534,000 T o ta l a cce p te d ......... $1,600,348,000 (in clu d es $282,880,000 entered on a n on com p etitive basis and a ccep ted in full at the average p r ice sh ow n b e lo w ) R a n g e o f a ccep ted co m p etitive b id s: H ig h .................. 99.187 E quivalent rate a pp rox. 3.216% L o w .................... 99.170 E quivalent rate a pp rox. 3.284% E quivalent rate A v e r a g e ........... 99.175 a p p rox . 3.262% o f discount per annum o f discou nt per annum o f discount per annum (22 p ercen t o f the a m ou n t bid for at the low price w as a cce p te d ) Federal R eserve D istrict ...................... B o s to n N ew Y o r k ............... P h iladelp hia ............. C levelan d .................... R ich m on d .................. A tlanta ...................... C h ica g o ...................... St. L ou is .................... M in n ea p olis ............. K ansas C ity ............. D allas ........................ San F r a n cis co ......... T o ta l ......... Total A pplied f o r $ 30,305,000 1,656,858,000 31,799,000 56,017,000 12,169,000 27,490,000 316,990,000 41,551,000 13,028,000 51,939,000 32,684,000 107,704,000 $2,378,534,000 Total A ccep ted $ 20,305,000 977,228,000 16,243,000 52,117,000 12,169,000 25,390,000 259,680,000 40,751,000 12,528,000 51,939,000 32,684,000 99,314,000 $1,600,348,000 ( over) 36 Q IM P O R T A N T — I f y o u desire to bid on a com petitive basis, fill in rate per 100 and m aturity value in paragraph beaded "C om petitive Bid.'* I f you desire to bid on a noncom petitive basis, fill in on ly the m atu rity value in paragraph headed "N on com p etitive Bid.” D O N O T fill in both paragraphs on one fo rm . A separate tender m ust be used fo r each bid, except that banks subm itting bids on a com petitive basis fo r their ow n and their customers’ accounts m ay subm it one tender fo r the total am ount bid at each price, provided a list is attached showing the name o f each bidder, the am ount bid fo r his accou n t, and method o f payment. Forms fo r this purpose will be furnished upon request. No.......................... TENDER FOR 91-D AY TREASURY BILLS D ated January 10, 1957 To M aturing A pril 11, 1957 Dated at ............................................... F e d e ra l R eserve B a n k o f N ew Y ork, 1957 Fiscal Agent o f the United States. CO M PE TITIV E BID N O N C O M PE TITIV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on January 3, 1957, as issued by the Treasury Department, the Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on January 3, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s .........................................* fo r a for a total amount o f $ ............................................. (Kate per 100) (Not to exceed $200,000) total amount o f $ ........................... ••• (maturity value) o f the Treasury 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 b elo w : □ By surrender o f (maturity value) o f the Treasury bills therein described, at the average price (in three decimals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : maturing Treasury bills □ By surrender o f maturing Treasury bills amounting to ................... $---------------------------------- amounting to ................... $---------------------------------- □ □ By cash or other immediately available funds By cash or other immediately available funds * P r ice must be expressed, on the basis o f 100, w ith not m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills fo r which tender is hereby made are to be dated January 10, 1957, and are to mature on April 11, 1957. This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills” N a m e o f B i d d e r -----(Please print) By. (Official signature required) (Tide) Street A d d ress (City, Town or Village, P. O. No., and State) I f this ten der is su b m itted b y a ba n k fo r the a cco u n t o f a cu stom er, in dicate th e cu sto m e r’s n am e o n lin e b e lo w : (Name of Customer) (City, Town or Village, P. O. No., and State) IM P O R T A N T IN ST R U C T IO N S: 1. N o ten der fo r less than $1,000 w ill be con sid ered , and each ten der m u st be for an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f th e p erson m a k in g the ten der is a corp ora tion , the tender sh ou ld b e sign ed b y an officer o f the co rp o ra tion a u th orized t o m ake th e tender, and the sign in g o f the ten der b y an officer o f th e co rp o ra tio n w ill be con stru ed as a rep resen tation b y him that he has been s o a u th orized . If the ten der is m a d e b y a p a rtn ersh ip, it s h o u ld be sign ed b y a m em ber o f th e firm , w h o sh ou ld sign in the fo r m “ ................................................................................. . a cop artn ersh ip, b y ........................................................................................................................................ . a m em b er o f the firm .” 3. T e n d e r s w ill be re ce iv e d w ith ou t d e p o s it fr o m in co rp o ra te d banks and trust co m p a n ie s and fro m r e s p o n sible and r e c o g n iz e d d ea lers in in vestm ent securities. T e n d e rs fr o m oth ers m u st be a cco m p a n ie d b y p a ym en t o f 2 percent o f the fa ce a m ou n t o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in co rp o ra te d bank o r trust com p a n y . 4. I f the la n g u a ge o f this tender is ch a n ged in any respect, w hich, in the op in ion o f the S ecretary o f the T re a s u ry , is m aterial, th e ten der m ay be disregarded. Paym ent b y cred it through Treasury T a x and Loan A cco u n t will n ot b e perm itted. T E N T B — 1384-a ( over)
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