The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FE D E R A L R E SE R V E BANK O F NEW YO R K Fiscal Agent of the United States [ Circular No. 4 4 4 8 April 11,1957 Offering of $1,600,000,000 of 91-Day Treasury Bills Dated A pril 18, 1957 Maturing July 18, 1957 To all Incorporated Banks and Trust Companies, and. Others Concerned, in the Second Federal Reserve District: 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, A p r il 11, 1957. TREASURY DEPARTM ENT W a s h in g to n T h e T r e a s u ry D e p 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 erea b ou ts, o f 9 1 -d a y T reasu ry b ills, f o r cash and in e x ch a n g e f o r T r e a s u ry bills m a tu rin g A p ril 18, 1957, in the a m ou n t o f $1,600,483,000, t o be issued on a d isco u n t basis u nder co m 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 A p r il 18, 1957, and w ill m ature J u ly 18, 1957, w h en th e face a m ou n t w ill be p a ya b le w ith o u t in terest. T h e y w ill be issued in bearer fo r m 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 F ed eral 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 c k p.m ., E astern Standard tim e, M o n d a y , A p ril 15, 1957. T e n d e rs w ill n ot be receiv ed at the T r e a s u ry D ep a rtm 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 case o f com p etitiv e ten ders the p rice o ffe re d m u st be ex p ressed on th e basis o f 100, w ith n o t m o re than th ree decim als, e.g., 99.925. F ra ction s m a y n ot be used. I t is u rg ed that ten ders be m a d e o n the p rin ted fo rm s a n d fo rw a rd e d in the special en v elop es w h ich w ill be su p plied b y F ed eral R eserve B anks or B ra n ch es o n a p p lica tion th erefor. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders ex cep t fo r th eir o w n a ccou n t. T en d ers w ill be rece iv e d w ith ou t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers in in vest m en t secu rities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y p a y m en t o f 2 p ercen t o f th e fa ce a m ou n t o f T r e a s u ry bills app lied fo r, u nless the tenders are a ccom p a n ied b y an exp ress gu aranty o f p a y m en t b y an in corp ora ted bank o r tru st 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 era l R e serv e B anks and B ra n ch es, 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 th e T rea su ry D epartm en t o f th e a m ou n t and 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 th e T r e a s u ry e x p re s sly reserves th e rig h t to a cce p t o r re ject any o r all ten ders, in w h o le or 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 o n com p etitiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y on e b idd er w ill be a ccep ted in full* at th e average price (in three decim a ls) o f a ccepted com p etitiv e bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith th e b id s m u st be m a d e o r co m p le te d at the F ed era l R e serv e B a n k on A p r il 18, 1957, in cash o r oth er im m ed ia tely availa b le fu n d s o r in a like fa ce a m ou n t o f T r e a s u ry bills m a tu rin g A p ril 18, 1957. Cash and ex ch a n g e ten d ers w ill rece iv e equal treatm en t. Cash a d ju stm en ts w ill be m a d e fo r d ifferen ces b etw een the par valu e o f m a tu rin g bills a cce p te d in ex ch a n g e a n d th e issue p r ice o f th e n ew b ills. T h e in co m e derived fro m T r e a s u ry bills, w h eth er 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 any exem ption , as such, and lo s s fr o m th e sale o r oth er d isp osition o f T r e a s u ry bills d oes n ot have a n y special treat m en t, as such, under the In tern al R even u e C o d 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 F ed eral o r State, b u t are exem p t fr o m all taxation n o w o r h ereafter im p osed on th e principal o r interest th ereof b y a n y State, o r any o f the p ossession s o f the U n ited States, or b y any lo ca l ta x in g authority. F o r pu rp oses o f ta xation 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 to 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 od 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 o t co n sid ered to a ccru e u ntil such bills are sold, red eem ed o r oth erw ise disp osed o f, and such bills are exclu ded fro m con sidera tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued h ereun 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 f o r such bills, w h eth er on original issue o r o n subsequent purchase, and th e a m ou n t a ctu a lly receiv ed either u p on sale o r red em p tion at m aturity d u rin g the taxable y e a r fo r w h ich the return is m ade, as ord in a ry ga in o r loss. T r e a s u ry D epa rtm en t C ircu lar N o . 418, R evised , and this n otice, p rescrib e the term s o f th e T rea su ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f th e circu la r m a y be ob ta in ed fr o m a n y F ed eral R eserve B a n k o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, April 15, 1957, at the Securities 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, sub ject 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 Tax 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 1 -d a y bills dated A pril 11, 1957, m aturing July 11, 1957) T o t a l a pplied fo r . . .$2,551,435,000 T o t a l a c c e p t e d ......... $1,600,753,000 (in clu d es $378,398,000 en tered o n a n o n c o m p e titiv e basis and a ccep ted in full at th e a vera ge p r ice s h o w n b e lo w ) R a n g e o f a cce p te d co m p e titiv e b id s : (e x c e p t in g fo u r ten ders to ta lin g $780,000) E quivalent rate o f d iscou n t H ig h .................. 99.221 a p p ro x . 3.082% per annum 99.200 E quivalent rate o f d iscou n t Low a p p rox . 3.165% p e r annum E quivalent rate o f discou n t A v e ra g e ........... 99.203 a p p rox. 3.154% p e r annum (26 p ercen t o f the a m ou n t bid fo r at the low p rice w a s a cce p te d ) Federal Reserve District B o s to n ........................ N ew Y o r k .................. P h ila d elp h ia ............. C levela n d .................... R ic h m o n d .................. A tla n ta ........................ C h ica g o ...................... St. L ou is .................... M in n ea p olis ............. K an sas C ity ............. D allas .......................... San F r a n cis co ......... T o ta l ............... . Total A pplied for Total Accepted 31,710,000 1,748,679,000 39,404,000 79,413,000 22,830,000 48,171,000 263,442,000 49,742,000 25,406,000 70,684,000 45,621,000 126,333,000 $ 20 , 210,000 $2,551,435,000 $1,600,753,000 $ ' 930,259,000 24.404.000 74.413.000 22.830.000 43.231.000 199.522.000 49.742.000 24.384.000 62.464.000 36.401.000 112.893.000 ( oveb) 37 E 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 y o u desire to bid on a noncom petitive basis, fill in on ly the m aturity value in paragraph headed "N on com petitive Bid.” D O N O T fill in both paragraphs on one form . A separate tender must 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 submit 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 paym ent. Forms fo r this purpose w ill be furnished upon request. No. T E N D E R FO R 9 1 -D A Y T R E A SU R Y BILLS Dated A p r il 18, 1957 M aturing July 18, 1957 T o F e d e r a l R eserve B a n k o f N e w Y Fiscal Agent o f the United States. Dated at ork, 1957 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 N o. 418, Revised, and to the provisions o f the public notice on April 11, 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 A pril 11, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s .........................................* fo r a fo r a total amount o f $ ............................................... (Rate per 100) 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 elow : □ B y surrender o f maturing Treasury bills (Not to exceed $200,000) (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 below : □ By surrender o f amounting to ................... $_______________________ amounting to □ □ B y cash or other immediately available funds maturing Treasury bills ................... $---------------------------------- B y cash or other immediately available funds *Price must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. The Treasury bills for which tender is hereby made are to be dated April 18, 1957, and are to mature on July 18, 1957. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N am e of B i d d e r ........................................................................................................................................... (Please print) By. (Official signature required) (Title) Street Address (City, Town or Village, P. O. No., 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 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 d er f o r less than $1,000 w ill be con sid ered , and each ten der 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 th e p e r s o n m a k in g th e ten der is a c o rp o ra tio n , th e ten der s h o u ld be sig n ed b y an officer o f th e c o r p o r a tion a uthorized t o m a k e the tender, and th e sign in g o f the ten der b y an officer o f the corp o ra tio n w ill be con stru ed as a represen tation b y h im that he has been s o auth orized. If th e ten der is m ade b y a partnersh ip, it sh ou ld be sign ed b y a m em b er o f th e firm , w h o sh ou ld sign in th e fo r m “ ....................................................................................................., a cop artn ersh ip, b y ........................................................................................................................................., a m em b er o f th e firm .” 3. T e n d e rs w ill be receiv ed w ith ou t d ep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m respon sible and re co g n iz e d dealers in in vestm ent securities. T en d ers 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 fa ce a m ou n t o f T rea su ry bills a pplied for, unless the ten ders 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 ted bank o r trust com p a n y . 4. I f th e la n g u a ge o f this ten der is ch a n g ed in a n y respect, w h ich , in th e op in ion o f the S ecreta ry o f the T re a su ry , is m aterial, th e ten der m a y b e disregarded. "Payment by credit through Treasury Tax and Loan A ccount will not be permitted. T E N T B — 1398-a (o v ek )
@FedFRASER