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FEDERAL RESERVE BANK O F N EW YORK rC ircu la r N o . 4 4 4 5 ] I A p r i l 4, 1957 J Fiscal Agent of the United States Offering of $1,600,000,000 of 91-Day Treasury Bills Dated A p ril 11, 1957 Maturing July 11, 1957 To all Incorporated 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 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 a y, A p ril 4, 1957. TREASU RY DEPARTM ENT W a sh in g ton T h e T re a su ry D epa rtm en t, b y this pu blic n otice, invites tenders fo r $1,600,000,000, or thereabouts, o f 91-day T rea su ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing A p r il 11, 1957, in the a m ou n t o f $1,600,455,000, to be issued on a d iscou n t basis u nder com p etitive and n on com p etitive bid d in g as hereinafter provid ed . T h e bills o f this series w ill be dated A p r il 11, 1957, and w ill m ature Ju ly 11, 1957, w h en the fa c e a m ou n t w ill be payable 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 atu rity v a lu e ). T e n d e rs w ill be received at F ed eral R e serv e Banks 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, A p r il 8, 1957. T e n d e rs w ill n ot b e received at the T rea su ry D epartm en t, W a sh in g ton . E a ch ten der m u st be fo r an even m ultiple o f $1,000, and in the ca se o f com p etitive tenders the price offered m u st be exp ressed on the basis o f 100, w ith n o t m ore than th ree decim als, e. g., 99.925. F raction s m a y n ot be used. It is u rged that ten ders be m a d e on the printed fo rm s and forw a rd ed in the special en velop es w hich w ill be supplied b y F ed eral R eserve B an ks or B ran ch es o n a pp lication th erefor. O th e rs than b ank in g institutions w ill n ot be perm itted to su b m it tenders excep t fo r their ow n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fr o m respon sib le and recog n ized dealers in invest 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 the face a m ou n t o f T rea su ry bills a pplied fo r , unless the tenders are a ccom p a n ied b y an express gu a ra n ty o f paym ent b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely a fter the clo s in g h our, tenders w ill be op en ed at th e F ed eral R eserve B anks and B ranches, fo llo w in g w h ich 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 a m ou n t and price ran ge o f a ccep ted bids. T h o s e subm itting tenders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T rea su ry ex p ressly reserves the righ t to a ccep t o r reject any or all ten ders, in w h ole or in part, and his action in a n y such resp ect shall be final. S u b je ct to these reservations, n on com petitive tenders fo r $200,000 or less w ith ou t stated price fro m any on e b idder w ill be a ccep ted in fu ll at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive 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 or com p leted at the F ed eral R eserve Bank on A p ril 11, 1957, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m aturing A p r il 11, 1957. Cash and exch a n ge ten ders w ill receive equal treatm ent. Cash adjustm ents w ill 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 fr o m T rea su ry bills, w hether in terest or gain fr o m the sale o r oth er disp osition o f the bills, d o e s n ot have any exem ption , a s such, and loss fro m the sale o r oth er d isp osition o f T rea su ry bills does n ot have a n y 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 to estate, inheritance, g ift o r o th e r excise taxes, w hether F ed eral o r State, but are exem pt fro m all taxation n ow o r hereafter im p osed on the principal o r interest th ereo f b y any State, o r any o f the possession s o f the U n ited States, or b y any loca l taxing authority. F o r pu rposes o f taxation the am ou nt o f discou n t at w hich T rea su ry bills are origin a lly sold b y the U nited States is con sid ered to be interest. U n der S ection 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 sold is not con sidered to a ccru e until such bills are sold , red eem ed or oth erw ise disp osed o f, and such bills are exclu ded fro m con sideration as capital assets. A c co r d in g ly , the o w n e r o f T reasu ry bills (o th e r than life insurance com p a n ies) issued h ereunder need in clude in his in com e ta x return on ly the difference betw een the price paid for such bills, w h eth er on original issue o r on subsequent purchase, and the am ou nt actu a lly received either upon sale or redem ption at m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, as ordinary gain or loss. T re a su ry D epartm en t Circular N o. 418, R evised , and this notice, p rescrib e the term s o f the T rea su ry bills and g ov e rn the con dition s o f their issue. Copies o f the circular m ay be obtain ed fro m any Federal R eserve Bank or B ranch. T h is Bank w ill receive tenders up to 1 :30 p.m., Eastern Standard time, M onday, A pril 8, 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 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 (9 2 -d a y bills dated A pril 4, 1957, m aturing July 5, 1957) T o ta l applied f o r .......... $2,365,827,000 T o ta l a c c e p t e d .............. $1,600,272,000 (in clu des $329,386,000 entered on a n on com p etitive basis and a ccep ted in full at the a verage price sh ow n b e lo w ) R a n ge o f a ccep ted com p etitive b ids: 99.241 E quivalent rate o f discount H ig h ............... 2.970% per annum L o w .............. 99.218 E quivalent rate o f discou nt 3.060% p er annum A ve ra g e ........ 99.221 E quivalent rate o f discou nt a p p rox. 3.050% per annum Federal R eserv e D istrict B oston ............................. . N ew Y o r k ..................... Ph iladelphia ................... C levelan d ........................ R ich m o n d ........................ A tlanta ............................ C h ica g o ............................ St. L ou is .......................... M in neapolis ................... K ansas C ity ................... D allas .............................. San F r a n cis co ............... Total Applied f o r $ 32,060,000 1,586,505,000 31,519,000 70,419,000 17,302,000 28,752,000 289,901.000 37,356.000 34,021,000 67,833.000 47,080,000 123,079,000 Total A ccepted $ "21,353,000 981.024.000 16.369.000 65.419.000 16.952.000 26.190.000 201.551.000 37.356.000 31.815.000 61.059.000 33.080.000 108.104.000 (65 p ercen t o f the am ount bid fo r at the low T o ta l ........................ $2,365,827,000 price w as a ccep ted ) http://fraser.stlouisfed.org/ I S P Please note that the results sbotvn above are fo r 92-day Treasury bills. Federal Reserve Bank of St. Louis $1,600,272,000 (o v e r) 37 D IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity value in paragraph headed "C om petitive Bid.” I f you desire to bid on a noncom petitive basis, fill in only the m aturity value in paragraph headed "N on com 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 m ay submit one tender f o r the total amount bid at each price, provided a list is attached showing 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 A pril 11, 1957 M aturing July 11, 1957 Dated at To F ederal R eserve 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 No. 418, Revised, and to the provisions o f the public no tice on A pril 4, 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 A pril 4, 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 1200,000) $......... ...... ......................................... (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: □ By surrender o f maturing Treasury bills (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 amounting t o ........................ $-------------------------------- amounting to ........................$_____________________ □ □ B y cash or other immediately available funds By cash or other immediately available funds * P rice must be expressed on the basis o f 100, with not m ore than three decimal places, f o r exam ple, 99.925. T h e T reasu ry bills for w hich tender is hereby made are to be dated A p ril 11, 1957, and are to mature on July 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 id der ............................................................................................................................................ (P lease P rin t) By (Official signature required) (T itle) Street A d d ress (C ity, T ow n or Village, P. O. N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Name o f Custom er) (City, 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 der fo r less than $1,000 w ill be con sidered, a n d each tender m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the person m a k in g the ten der is a corp ora tion , th e ten der should be sign ed b y an officer o f the co rp o ra tion authorized to m ake the tender, and the sig n in g o f th e tender b y an officer o f the corp ora tion w ill be con stru ed as a representation b y h im that he has been s o authorized. If th e 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 should 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 ers w ill be received w ith ou t dep osit fr o 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 in vestm 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 for, 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 o r trust com p a n y . 4. I f the language o f this ten der is ch a n ged in any resp ect, w h ich , in the op in ion o f the S ecreta ry o f the T reasu ry, is m aterial, the ten der m a y be disregarded. Paym ent b y cred it through Treasury T a x and Loan A cco u n t tvill n ot b e perm itted. http://fraser.stlouisfed.org/ T B N T B — 1 3 9 7 -a (O T E *) Federal Reserve Bank of St. Louis
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