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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gen t o f the United States r Circular No. 4 4 2 2 1 L & F ebruary 7, 1957 J O ffering o f $ 1 ,7 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated February 14, 1957 Maturing May 16, 1957 T o all In corporated B anks and Trust Com panies, and Others Concerned, in the Second Federal K eserv e D istrict: F ollow ing is the text of 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 h u rsd ay, F ebru ary 7, 1957. TREASU RY DEPARTM ENT W ash ington T h e T re a su ry D epartm ent, b y this public notice, invites tenders for $1,700,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch ange fo r T reasu ry bills m aturing F ebru ary 14, 1957, in the am ount o f $1,601,029,000, to be issued on a discou nt basis under com petitive and n on com petitive b idd ing as h ereinafter provided . T h e bills o f this series w ill be dated F eb ru a ry 14, 1957, and w ill mature M ay 16, 1957, w hen the fa ce 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 aturity va lu e). T en ders w ill be received at F ed eral Reserve Banks and Branches up to the clo s in g hour, on e-thirty o ’c lo ck p.m., Eastern Standard time, M on day, February 11, 1957. T en ders w ill n ot be received at the T reasu ry Departm 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 price offered m ust 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 n ot be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the sp ecia l envelopes w hich w ill be supplied by F ed eral R eserve Banks o r B ran ches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n a ccou nt. T en ders w ill be receiv ed w ith ou t deposit from in corpora ted banks and trust com panies and from respon sible a n d recogn ized dealers in in vestm ent securities. T en ders from others must be accom pa n ied by paym ent o f 2 percent o f the fa ce am ount o f T rea su ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by an in corporated bank o r trust com pany. Im m ediately a fter the closin 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 made 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 the accep tance o r rejection th ereof. T h e Secretary o f the T reasu ry exp ressly reserves the righ t to accep t o r reject any or a ll tenders, in w hole o r in part, and his a ction in any such respect shall be final. S u bject to these reservations, n oncom petitive tenders fo r $200,000 o r less w ithout stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim a ls) o f accepted com petitive bids. Settlem ent for accepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the F ed eral R eserve Bank on February 14, 1957, in cash o r oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing Febru ary 14, 1957. Cash and exch an ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r differences betw een the par value o f m aturing bills a ccep ted in exch a n ge and the issue price o f the new bills. T h e in com e derived from T reasu ry b ills, w hether interest o r g a in from the sa le o r other disp osition o f the b ills, does n ot have any exem ption, as such, and loss from the sale or other disp osition 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 to estate, inheritance, g ift o r oth er excise taxes, w hether F ed eral o r State, but are exem pt from all taxation n o w o r hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U nited States, or b y any lo ca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are o rigin a lly s o ld by the U n ited States is con sidered to be interest. U nder S ections 4 5 4(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou nt at w hich bills issued hereunder are so ld is not con sidered to a ccru e until such bills are sold, redeem ed or otherw ise disp osed of, and such bills are exclu ded from con sideration as capital assets. A cco rd in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com pa n ies) issued hereunder need include in his incom e ta x return only 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 year fo r w h ich the return is made, as ord in a ry gain or loss. T reasu ry Departm ent C ircu lar N o. 418, Revised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con dition s o f their issue. Copies o f the circu la r m ay be ob ta in ed from any F ed eral Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, February 11, 1957, at the Securi ties Department o f its Head 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 fo r 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 maturing Treasury bills. A l f r e d H a y e s , President. Results o f last offering o f Treasury bills (91-day bills dated February 7, 1957, maturing May 9, 1957) T o ta l applied f o r ........ $2,625,974,000 T o ta l a c c e p t e d ............. $1,700,188,000 (in clu des $320,934,000 entered on a noncom petitive basis and a ccepted in fu ll at the aver age price show n b elow ) R ange o f accepted com petitive bids : H i g h ....................... 99.216 Equivalent rate o f discount approx. 3.102% per annum L o w ......................... 99.204 Equivalent rate o f discount app rox. 3.149% per annum A v e r a g e ................... 99.208 E quivalent rate o f discount a p p rox. 3.132% per annum Federal R eserv e D istrict B o s t o n ............................. $ N ew Y o r k ..................... Ph iladelphia ................. C leveland ....................... R ic h m o n d ....................... A tlanta ............................ C h i c a g o ............................ St. L o u i s ......................... M in n e a p o lis ................... K ansas C ity ................. D allas ............................. San F ra n cisco ............. Total A pplied fo r 37,580,000 1,758,575,000 34,839,000 101,624,000 23,619,000 45,563,000 288,792,000 39,202,000 17,547,000 49,901,000 62,657,000 166,075,000 Total A ccepted $ 27,580,000 963,545,000 19,839,000 86,224,000 23,419,000 43,343,000 236,272,000 37,976,000 16,947,000 47,061,000 42,657,000 155,325,000 (8 percent o f the am ount bid fo r at the low p rice was accep ted) T o t a l ....................... $2,625,974,000 $1,700,188,000 ( over) 36 V I M P O R T A N T — I f y o u d e sire to b id o n a com p etitive b a sis, fill in rate p e r 1 0 0 a n d m a tu r ity v a lu e in p a ra g ra p h h e a d e d “ C o m p e titiv e B i d .” I f y o u desire to b id o n a non com p etitive b asis, fill in o n ly th e m a tu r ity v a lu e in p a r a g ra p h h e a d e d “ N o n c o m p e titiv e B i d .” DO N O T fill in both paragraphs on o n e form . A sep arate ten d e r m u st b e u sed fo r ea ch b id , e x c e p t th at b a n k s su b m ittin g b id s o n a c o m p e titiv e b asis fo r th e ir o w n and th e ir c u sto m ers’ accou n ts m a y s u b m it o n e ten d e r fo r th e to ta l a m o u n t b id at e a c h p r ic e , p r o v id e d a list is a tta c h ed sh o w in g th e n a m e o f e a c h b id d e r , th e a m o u n t b id fo r h is a cc o u n t, a n d m e th o d o f p a y m e n t. F o r m s fo r th is p u r p o se w ill b e fu r n ish e d u p o n req u est. N o............................. T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S D a te d F e b r u a r y 1 4 , 1 9 5 7 To F e d e ra l R eserve B a n k o f N ew M a tu r in g M a y 1 6 , 19 57 Dated at Y ork , 1957 F isc a l A g e n t o f the U n ite d States. C O M P E T IT IV E B ID N O N C O M P E T IT IV E Pursuant to the provisions o f Treas ury Department Circular No. 418, Revised, and to the provisions o f the public no tice on February 7, 1957, as issued by the Treasury Department, the undersigned offers ............................................ * for a total amount of (Rate per 100) $ ....................................................... (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 : □ By surrender o f maturing Treasury bills amounting t o ..................... $----------------------------------□ 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 February 7, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender for a total amount o f $ (Not to exceed $200,000) (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted com petitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b e lo w : □ By surrender o f maturing Treasury bills amounting t o ..................... $----------------------------------- By cash or other immediately available funds □ By cash or other immediately available funds * P rice must be exp ressed on the basis o f 100, w ith 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 February 14, 1957, and are to mature on M ay 16, 1957. This tender w ill b e inserted in special en velop e m arked “ T en d er fo r T reasury B ills ” 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, in dicate the custom er’ s nam e on line 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 S T R 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 must be fo r an even m ultiple o f $1,000 (m aturity 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. If the ten der is made by a partnership, it sh ou ld be signed by a m em ber o f the firm , w h o should sign in the form “ ............................................................................................................... a copartnership, by ...................................................................................................................., a m em ber o f the firm ." 3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and fro m respon sible and recogn ized dealers in investm ent securities. T en d ers from others m ust be accom panied b y paym ent o f 2 percent o f the fa ce amount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by an in corpora ted bank or trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. P aym ent b y cred it through Treasury Tax and Loan A ccou n t will n ot b e perm itted. http://fraser.stlouisfed.org/ T E N T B —1389-a (OVER) Federal Reserve Bank of St. Louis
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