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F E D E R A L R E S E R V E BAN K O F N E W Y O R K Circular No. 4 4 5 2 1 April 25, 1957 J Fiscal Agent of the United States Offering of $1,700,000,000 of 91-Day Treasury Bills Dated May 2, 1957 Maturing August 1, 1957 T o all Incorporated Banks and Trust Companies, and O thers 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 25, 1957. TREASU RY DEPARTM ENT W a sh in g to n T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites ten ders fo r $1,700,000,000, 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 atu rin g M a y 2, 1957, in the am ou nt o f $1,700,240,000, t o be issued on a d iscou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated M a y 2, 1957, and w ill m ature A u g u s t 1, 1957, w hen the fa ce am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm o n 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 received at Federal R e serv e Banks and B ran ch es up to the clo s in g hour, on e-th irty o ’ c lo ck p .m ., E astern D a y lig h t Saving tim e, M on d a y , A p ril 29, 1957. T en d ers w ill n o t be received at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m ust 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 o n the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. I t is u rged that tenders be m ade o n the printed form s and forw a rd ed in the special en velop es w hich w ill be supplied b y Federal R eserve Banks o r B ran ch es o n application therefor. O th e rs than b ankin 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 en d ers w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com panies and from 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 r e a s u ry bills applied fo r, unless the tenders are a ccom p a n ied b y an ex p ress guaranty o f paym ent b y an in corpora ted bank o r trust com pan y. Im m ed ia tely after 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 hich pu blic a nn oun cem ent 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 range 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 or rejection th ereof. T h e S ecretary o f the T rea su ry exp ressly reserves the righ t to a ccep t o r reject any or all tenders, in w h ole or in part, and his action in any such resp ect shall be final. S u b ject to these reservations, n on com p etitive tenders fo r $200,000 or less w ith ou t stated price fro m any on e bidder w ill be a ccepted in full at the average price (in three decim als) o f a ccep ted com p etitive bids. Settlem ent for 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 Federal R eserve B ank on M a y 2, 1957, in cash o r oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m aturing M a y 2, 1957. Cash and exch a n ge ten ders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m atu rin g 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 from the sale or oth er disp osition o f the bills, d oes not have any exem p tion , as such, and loss fro m the sale o r oth er d isp osition o f T reasu ry bills d oes n ot have any 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 to estate, inheritance, gift or oth er excise taxes, w hether Federal o r State, but are exem p t fro m all taxation n ow or hereafter im posed o n the principal or interest th ereo f b y any State, o r any o f the possession s o f the U n ited States, or by any loca l taxin g authority. F o r pu rposes o f taxation the am ou nt o f d iscou 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 the Internal R even u e C o d e o f 1954 the am ou nt o f discou n t at w hich bills issued hereunder are so ld is not con sidered to accru e until such bills are sold, red eem ed or oth erw ise disp osed of, 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 rea su ry bills (oth er than life insurance com p a n ies) issued h ereun der need include in his in com e ta x return on ly the difference b etw een the price paid for such bills, w hether on original issue o r o n subsequent purchase, and the a m ou n t actu a lly receiv ed either upon sale or red em ption at m aturity d u rin g the taxable year fo r w h ich the return is m ade, as ordinary gain o r loss. . . T re a su ry D epartm en t C ircu lar N o . 418, R evised , a n d this notice, prescrib e the term s o f the T rea su ry bills and govern the co n d itio n s o f their issue. C op ies o f the circular m ay be ob ta in ed fro m any Federal R eserve Bank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern D a yligh t Saving time, Monday, April 29, 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 , P r e s id e n t. Results o f last offering o f Treasury bills (9 1 -d a y bills dated A pril 25, 1957? m aturing July 25, 1957) T o ta l applied f o r .......... $2,707,255,000 T o ta l a c c e p t e d ...............$1,600,941,000 (in clu des $364,196,000 entered on a n on com p etitive basis and a ccep ted in full at the average price sh ow n b e lo w ) R a n ge o f a ccep ted com p etitive b ids: H i g h ..................... 99.233 E quivalent rate o f discou nt app rox. 3.034% per annum L o w ..................... 99.226 E quivalent rate o f discount app rox. 3.062% per annum A v e r a g e ............... 99.228 E quivalent rate o f discount approx. 3.054% per annum Federal R eserve D istrict Total Applied f o r Total A ccepted 38,810,000 $ 22,720,000 B oston .............................. $ N ew Y o r k ................. .... 1,965.380,000 1,046.683,000 P h iladelphia ................... ri 38,014,000 ' 20,519,000 C leveland ........................ 60,734,000 54,965,000 R ich m on d ........................ 19,868,000 15,963,000 A tlanta ............................ 39.063,000 30.058,000 C h ica go ....... ..................... 251,780,000 168,892,000 St. L ou is .................... . 34,714.000 32,390,000 M in neapolis ................... 16,163,000 15,063*000 K ansas C ity ................... 56,817,000 <" « 4 1,943,000 D allas .............................. . .51,946,000 » 33,282,000 San F r a n cis co ............... 133,966,000 118,463,000 (56 percent o f the am ount bid fo r at the low price was a ccep ted) T o tal ....................... ,.vV $ 2 ,7 0 7 ,2 5 5 ,0 0 0 $ 1 ,6 0 0 ,9 4 1 ,0 0 0 n(OVSfc) 37 G 25F” Tenders w ill be received u p to 1:30 p.m., Eastern D ayligh t Saving time, Monday, A pril 29, 1957. 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 non com petitive basis, fill in only the m aturity value in paragraph headed "N oncom 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 com m ercial banks submitting bids f o r their customers’ accounts may consolidate com petitive tenders at the same price and m ay consolidate noncompeti tive tenders, provided a list is attached show ing the name o f each bidder, the am ount bid f o r his account, and method o f payment. Forms fo r this purpose w ill be furnished on request. N o.. T E N D E R FO R 91 -D A Y T R E A SU R Y BILLS D ated May 2, 1957 M aturing A u gust 1, 1957 Dated a t .............................. T o F ed eral 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 BED Pursuant to the provisions o f Treas ury Department Circular No. 418, Revised, and to the provisions o f the public no tice on April 25, 1957, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular No. 418, Revised, and to the provisions o f the public notice on April 25, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ..... .........................................* for a total amount o f fo r a total amount o f (Rate per 100) $------------------------------------------------ (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : □ By surrender o f maturing Treasury bills amounting to . . . ..................$_____________________ □ (N ot to exceed $200,000 fo r one b id d er through all sources) (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender o f maturing Treasury bills amounting t o ........................$_____________________ By cash or other immediately available funds □ By cash or other immediately available funds * P r ice must be expressed on the basis o f 100, with not tnore than three decimal places, f o r exam ple, 99.925. The Treasury bills fo r which tender is hereby made are to be dated M ay 2, 1957, and are to mature on August 1, 1957. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id der ................................................................................................................. . (Please P rint) By (Official signature required) (T itle) Street A d d ress (C ity, T ow n o r V illage, P . O. No., and State) I f this tender is submitted by a bank (or the account of 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 der fo r less than $1,000 w ill be con sidered, a n d each tender m ust be fo r an even m u ltiple o f $1,000 (m a tu rity va lu e). 2. I f the person m a k in g the tender 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 a uthorized t o m ake the tender, and the sign in g o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a represen tation b y h im that he has been s o authorized. If the tender is m ade b y a partnership, it should be sign ed b y a m em b er 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 receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fro m respon sible and re co g n ize d dealers in in vestm ent securities. T en d ers from 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 express gu aranty o f paym ent b y an in corp ora ted bank or trust com p a n y . 4. I f the language o f this ten der is ch a n ged in a n y resp ect, w hich, 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. Payment by credit through Treasury Tax and Loan A ccount tvill not be permitted. http://fraser.stlouisfed.org/ TENTB—1400-a Federal Reserve Bank of St. Louis ( over)