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FEDERAL RESERVE BANK O F NEW YORK Fiscal A gen t o f the United States a L r circular No.r4 4 i 2 i January 15, 1957 J Offering of $1,600,000,000 of 91-Day Treasury Bills Dated January 24, 1957 Maturing April 25, 1957 T o all In corporated Banks and Tru st Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice published today: 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 u esday, January 15, 1957. TREASU RY DEPARTM ENT W a sh in gton T h e T reasu ry Departm ent, b y this pu blic n otice, invites tenders fo r $1,600,000,000, o r thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch ange fo r T reasu ry bills m aturing January 24, 1957, in the am ount o f $1,600,142,000, to be issued on a discou nt basis under com petitive and n on com petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated January 24, 1957, and w ill mature A p ril 25, 1957, when the face am ount w ill be payable w ith ou t interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity va lu e). T en ders w ill be received at F ed eral R eserve Banks and Branches up to the clo s in g hour, on e-thirty o ’c lo c k p.m., Eastern Standard tim e, F riday, January 18, 1957. T en ders w ill not be received at the T reasu ry D epartm ent, W a sh in gton . E ach tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the p rice offered must be expressed on the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. F raction s may not be used. It is urged that tenders be made on the printed form s and forw a rd ed in the special envelopes w h ich w ill be supplied b y F ed eral R eserve Banks or B ranches on application th erefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r th eir ow n a ccou nt. T en ders w ill be received w ith ou t deposit from in corpora ted banks and trust com panies and fro m responsible a n d recog n ized dealers in in vestm ent securities. T en ders from others m ust be accom pa n ied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied b y an express guaranty o f paym ent by a n in corporated bank or trust com pany. Im m ediately after the clo s in g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be m ade by the T reasu ry D epartm ent o f the am ount and price range o f a ccep ted bids. T h ose subm itting tenders w ill be advised o f th e accep tance o r rejection th ereof. T h e Secretary o f the T reasu ry exp ressly reserves the righ t to accept o r re je ct any or all tenders, in w hole or in part, and his action in any such respect shall be final. S u b ject to these reservations, n on com petitive tenders f o r $200,000 or less w ithout stated price from any one b idd er w ill be accepted in fu ll at the a vera ge price (in three decim als) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce with the bids must be m ade or com pleted at the F ed eral R eserve Bank on January 24, 1957, in cash or other im m ediately available funds or in a like face am ount o f T reasu ry bills m aturing January 24, 1957. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be m ade f o r differences betw een the par value o f m aturing bills a ccep ted in exch a n ge and the issue p rice o f the new bills. T h e in com e derived fro m T reasu ry b ills, w hether interest or ga in from the sale or other disp osition o f the bills, does not have a n y exem ption, as such, and loss from the sale or other disposition o f T reasu ry bills does n ot have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T h e b ills are subject t o estate, inheritance, g ift or oth er excise taxes, w hether F ed eral o r State, but are exem pt fro m all taxation n o w or hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U n ited States, o r b y a n y loca l ta x in g authority. F o r purposes o f ta xation the am ount o f discou nt a t w hich T reasu ry bills are origin a lly s o ld by the U nited States is con sid ered to be interest. U nder Sections 4 5 4 (b ) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou n t at w hich bills issued hereunder are so ld is n ot con sidered to accrue until such bills are sold, redeem ed or oth erw ise disp osed of, and such bills are exclu ded fro m con sideration as capital assets. A ccord in g ly , the ow n er o f T rea su ry bills (oth er than life insurance com pan ies) issued h ereunder need include in his incom e ta x return on ly the difference between the price pa id fo r such bills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity du rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain or loss. T re a su ry D epartm ent C ircu la r N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con d ition s o f their issue. Copies' o f the circu la r m ay be ob ta in ed from any Federal R eserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Friday, January 18, 1957, at the Securi ties 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, subject to written confirm ation; they may n ot be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other immediately available funds or in tnaturing Treasury bills. A l f r e d H a y e s , President. (CLOSIN G D A Y FO R R E C E IP T OF TE N D E RS IS F R ID A Y , J A N U A R Y 18, 1957) TH IS C IR C U L A R W A S P R IN T E D B EFO RE T H E R E SULTS O F T H E B ID D IN G FO R T R E A S U R Y BILLS DATED JA N U A R Y 17, 1957 W ERE A V A IL A B L E ; TH O SE RESULTS W IL L BE ANNOUNCED A F T E R RELEASE BY THE TREASURY D E PA R TM E N T. (O V E * ) 36 S IM P O R T A N T — Please note that tenders fo r this issue must be received not later than onethirty o ’clock p.m., Eastern Standard tim e, Friday, January 18, 1957. IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate p er 100 and maturity value in paragraph headed “ Com petitive B id.” I f you desire to b id on a n on com p etitive basis, fill in on ly the maturity value in paragraph headed “ N oncom petitive B id .” DO N O T fill in b oth paragraphs on on e form . A separate tender must be used fo r each bid, except that banks submitting bids on a com petitive basis for their own and their customers’ accounts may submit one tender fo r the total amount b id at each price, provided a list is attached showing the name o f each bidder, the amount b id fo r his account, and m ethod o f payment. Forms fo r this purpose w ill be furnished u pon request. Closing time for receipt of tenders is 1:30 p. m., Eastern Standard time, Friday, January 18, 1957 No. TE N D E R FOR 91-DAY TREASURY BILLS Maturing A p ril 25, 1957 Dated January 24, 1957 To F e d e ra l R eserve B ank o f N ew Dated a t ....................... Y ork, Fiscal A gent of the United States. 1957 C O M P E TIT IV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public no tice on January 15, 1957, as issued by the Treasury Department, the undersigned offers N O N C O M PE TITIV E B ID Pursuant to the provisions o f Treasury De partment Circular No. 418, Revised, and to the provisions o f the public notice on January 15, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ............................................ * for a total amount of for a total amount o f $ .............................................. (Rate per 100) (Not to exceed $200,000) $ ....................................................... (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b e lo w : □ (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b e lo w : B y surrender o f maturing Treasury bills □ amounting t o ..................... $----------------------------------□ B y surrender o f maturing Treasury bills amounting t o ..................... $_______________________ By cash or other immediately available funds □ By cash or other immediately available funds * P r ice must be exp ressed on the basis o f 100, with not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated January 24, 1957, and are to mature on A pril 25, 1957. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id d er ........................................................................................................................................... (Please print) By (Official signature required) Street A d d ress (Title) ........................................ (City, Town or Village, P. O. No., and State) I f this tender is subm itted b y a bank f o r the accou n t o f a custom er, indicate the custom er’ s nam e on line b elow : (Name of Customer) (City, Town or Village, P. O. No., and State) IM P O R T A N T IN STR U C T IO N S: 1. N o tender fo r less than $1,000 w ill be con sid ered , and each tender m ust be fo r an even m ultiple o f $1,000 (m atu rity va lu e). 2. I f the person m akin g the tender is a corp ora tion , the tender should be signed by an officer o f the corp oration authorized to m ake the tender, and the sign in g o f the tender by an officer o f the corp ora tion w ill be construed as a rep resentation by him that he has been so authorized. I f the ten der is m ade by a partnership, it should be sign ed by a m em ber o f the firm, w ho should sign in the form “ ............................................................................................................... a copartnership, by a m em ber o f the firm.’ 1 3. T en d ers w ill be received w ithout deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en d ers from others must be accom panied b y paym ent of 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an in corporated bank or trust com pany. 4. I f the language o f this tender is ch anged in any respect, w hich, in the opin ion o f the Secretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Paym ent b y cred it through Treasury Tax and Loan A ccoun t will n ot b e perm itted. TE N T B - -1386-a ( over)
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