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FEDERAL RESERVE BANK O F NEW YORK CiMular No. 4 4 3 1 1 February 28,1957 J Fiscal Agent o f the United States Offering of $1,800,000,000 of 91-Day Treasury Bills Dated M arch 7, 1957 Maturing June 6, 1957 To all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text o£ a notice published today: TREASU RY DEPARTM EN T W a sh in g to n 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, F eb ru a ry 28, 1957. T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,800,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge for T rea su ry bills m aturing M a rch 7, 1957, in m e a m ou n t o f $1,600,005,000, to be issued on a d iscou n t basis under com p etitive and n on com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a rch 7, 1957, and w ill m ature June 6, 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 on ly , and in den om in ation 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 F ed eral R eserve B anks and B ran ch es up to the clo s in g h our, on e-th irty o ’ c lo c k p.m ., E astern Standard tim e, M on d a y , M a rch 4, 1957. T en d ers w ill n ot be receiv ed a t the T rea su ry D epartm en t, W a s h in g to n . E ach tender 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 price offered m u st be ex p ressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m a y n ot be used. It is u rged that tenders be m ade o n the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed eral R eserve B anks or B ran ch es on application th erefor. O th ers than banking institutions w ill n o t be perm itted to su b m it tenders e x cep t fo r their ow n a ccou n t. T en d ers w ill be re ce iv e d w ith ou t d ep o sit fro m in corp ora ted banks and trust com pa n ies and fro m respon sib le and recog n ized dealers in in vest m en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f th e face a m ou n t o f T r e a s u ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp ress guaranty o f p a ym en t b y an in corpora ted bank or trust com p a n y . Im m ed ia tely a fter th e clo s in g h our, tenders w ill be o p e n e d at th e F ed eral R e serv e B anks and B ranches, 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 the T rea su ry D ep a rtm en t o f the am ou nt and price ran ge o f a ccep ted bids. T h o s e su b m ittin g tenders w ill be advised 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 ex p ressly reserves the righ t to a cce p t o r reject any o r all tenders, in w h ole o r in part, and his a ction in any such resp ect shall b e final. S u b ject to these reservations, n on com petitive tenders fo r $200,000 o r less w ith ou t stated price fr o m a n y on e b idd er w ill b e a ccepted in full at the a verage price (in three decim a ls) o f a ccep ted com p etitive bids. S ettlem ent fo r a ccep ted tenders in a ccord a n ce w ith the b id s m u st be m ade o r com p leted at th e F ed eral R eserve B ank on M a rch 7, 1957, in cash o r oth er im m ediately available fun ds o r in a like face am ou nt o f T rea su ry bills m atu rin g M a rch 7, 1957. Cash and ex ch a n g e tenders w ill receive equal treatm ent. Cash adjustm ents w iil be m ade for 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 n ew bills. T h e in co m e derived fro m T rea su ry bills, w hether interest or gain fro m the sale o r oth er disp osition o f the bills, d oes n ot have a n y exem ption , as such, and lo s s fro m the sale o r oth er d is p o sitio n o f T rea su ry bills d oes n ot have a n y special treat m en t, 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 e x cis e taxes, w hether F ed eral o r State, but are exem p t fr o m all taxation n ow or hereafter im p osed o n the principal o r in terest th ereof b y an y State, o r any o f the possession s o f the U n ited States, or b y a n y lo ca l ta x in g authority. F o r pu rp oses o f taxation the am ou n t o f d iscou n t at w hich T rea su ry bills are origin a lly sold b y the U n ited States is con sid ered t o be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f th e Internal R even u e C o d e o f 1954 the a m ou n t o f d iscou n t a t w h ich bills issued hereunder are s o ld is n ot con sidered 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 con sideration as capital assets. A c co r d in g ly , the o w n e r o f T rea su ry bills (oth er than life insurance com p a n ies) issued h ereunder need in clude in his in com e ta x return o n ly the differen ce b etw een th e p rice paid fo r such bills, w h eth er on original issue o r o n subsequent purchase, and the a m ou n t actu a lly receiv ed either u pon sale o r red em ption at m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epa rtm en t C ircular N o . 418, R evised, a n d this n otice, p rescrib e th e term s o f the T rea su ry bills and g ov e rn the co n d itio n s o f their issue. C opies o f the circular m ay be obtain ed fro m a n y F ed era l R eserve Bank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, March 4, 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 for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment f o r the Treasury bills cannot be made by credit through the Treasury T a x 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. R e su lts o f la s t o ffe rin g o f T r e a s u r y bills ( 9 2 - d a y b ills d a te d F e b r u a r y 2 8 , 1 9 5 7 , m a tu r in g M a y 3 1 , 1 9 5 7 ) T o ta l applied f o r .......... $2,741,089,000 T o ta l a c c e p t e d ...............$1,801,620,000 (inclu des $298,822,000 en tered on a noncom petitive basis and a ccep ted in full at the average price show n b e lo w ) R a n g e o f a ccep ted com petitive b id s: (e x ce p tin g tw o ten ders totalin g $300,000) H i g h ..................... 99.200 E quivalent rate o f discou n t a p p rox. 3.130% per annum E quivalent rate o f discou n t L o w ..................... 99.157 a p p rox. 3.299% per annum E quivalent rate o f discou nt A v e r a g e ............... 99.160 a p p rox. 3.288% per annum (89 percen t o f the am ount bid fo r at the low price w as a ccep ted ) Federal R eserv e District Total Applied f o r Total A ccep ted B oston .............................. N e w Y o r k ........................ Philadelphia C leveland ........ R ich m o n d ........ A t la n t a .............. C h ica go ............ St. L ou is .......... M in n eap olis ... K an sas C ity .... D a lla s ................ San F ra n cisco $ 39,826,000 1,967,483,000 44.868.000 61.283.000 18.819.000 46.253.000 267.146.000 26.595.000 11.907.000 65.672.000 48.900.000 142.337.000 5 27,326,000 1,214,868,000 29.868.000 51.283.000 15.819.000 41.843.000 179.976.000 26.595.000 11.507.000 56.672.000 33.900.000 111.963.000 T o ta l ........................ $2,741,089,000 $1,801,620,000 Please note that the results shoum above are fo r 92-day Treasury bills. ( over ) 36 Y IM P O R T A N T — I f you desire to bid on a com p etitive 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 aturity value in paragraph headed "N oncom petitive Bid.” DO N O T fill in b oth paragraphs on one fo rm . A separate tender must be used f o r each bid, except that banks subm itting bids on a com petitive basis fo r their ow n and their customers’ accounts may subm it one tender fo r the total amount bid at each price, provided a list is attached show ing the name o f each bidder, the am ount bid f o r his accou n t, and method o f payment. Forms f o r this purpose w ill be furnished upon request. N o _______________ T E N D E R FO R 9 1 -D A Y T R E A SU R Y BILLS D ated M arch 7, 1957 M aturing June 6, 1957 Dated at T o F e d e r a l R ese rv e B a n k of N e w Y o r k , Fiscal Agent o f the United States. .1957 COM PETITIVE BID N O N C O M PE TITIV E BID Pursuant to the provisions o f Treas ury Department Circular N o. 418, Revised, and to the provisions o f the public no tice on February 28, 1957, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular N o. 418, Revised, and to the provisions o f the public notice on February 28, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ............ ... ....................... ....... * for a total amount o f for a total amount o f $„ (R ate per 100) (N ot to exceed $200,000) $.............................................. ........... (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : □ □ B y surrender o f maturing Treasury bills B y surrender o f maturing Treasury bills amounting t o ........................$-------------------------------- amounting t o ........................$_____________________ [3 Q B y cash or other immediately available funds B y cash or other immediately available funds * P r ic e m ust 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 for which tender is hereby made are to be dated March 7, 1957, and are to mature on June 6, 1957. This tender zvill be inserted in special envelope marked “ Tender fo r Treasury B ills” N a m e o f B id d er ............................................................................................................................................ (P lease P rin t) By (Official signature required) (T itle) Street A d d ress (C ity, T ow n or ViUage, P. O. No., and State) I f this tender is submitted by a bank for the account o f a customer, indicate the customer’ s name on line below: (Name o f Custom er) (C ity, T ow n or V illage, P. O. No., and State) IM P O R T A N T IN STR U C T IO N S: 1. N o ten d er fo r less than $1,000 w ill b e con sidered, a n d each tender m u st b e f o r an even m u ltiple o f $1,000 (m a tu rity value). 2. I f the person m a k in g the tender is a corp ora tion , th e ten der 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 a ke th e tender, and the sign in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a rep resen tation b y h im that he has been s o authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a m e m b e r o f the firm , w h o sh ou ld sign in the fo r m “ ..................................................................................................... a copartn ersh ip, b y ........................................................................................................................ . a m em b er o f th e firm .” 3. T e n d ers w ill b e receiv ed w ith ou t deposit fro m in corp ora ted banks and trust com p a n ies and fro m resp o n sible and re co g n ize d dealers in investm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 percent o f the face am ou nt o f T rea su ry bills applied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in co rp o ra te d ba n k or trust com pan y. 4. I f the la n g u a ge o f this ten der is ch a n ged in any resp ect, w hich, in the op in ion o f the S ecreta ry o f the T reasu ry, is m aterial, th e ten der m a y b e disregarded. Payment b y credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1392-a Federal Reserve Bank of St. Louis ( over)
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