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FE D E R A L R E SE R V E BAN K O F N EW YORK Fiscal Agent o f the United States [ C ir c u la r N o . 4 4 5 4 M a y 2 , 1957 Offering of $1,700,000,000 of 91-Day Treasury Bills Dated May 9, 1957 Maturing August 8, 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 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, M a y 2, 1957. TREASURY DEPARTM ENT W a s h in g to n T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders fo r $1,700,000,000, o r th ereabouts, o f 91-day T rea su ry bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m atu rin g M a y 9, 1957, in the a m ou n t o f $1,700,178,000, to be issued on a d is co u n t basis u n d er 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 M a y 9, 1957, and w ill m ature A u g u st 8, 1957, w h en the face a m ou n t w ill b e p ayable w ith ou t interest. 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 va lu e). T e n d e rs w ill b e receiv ed at Federal R es e rv e B anks and B ra n ch es up to the clo s in g h ou r, on e -th irty o ’ c lo c k p.m ., E astern D a y lig h t S a v in g tim e, M on d a y , M a y 6, 1957. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa 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 tenders the p rice o ffe re d m u st b e ex p ressed o n the basis o f 100, w ith n ot m ore than th ree decim a ls, e.g., 99.925. F raction s m a y n ot b e used. It is u rg ed that ten ders be m ade on the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be supplied b y F ed eral R eserve B an ks o r B ran 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 tenders e x ce p t fo r th eir ow n a ccou n t. T en d ers w ill be re ce iv e d w ith o u t dep osit 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 d ea lers in in vest m en t securities. T e n d e rs fro m o th ers m u st b e a ccom p a n ied b y pa ym 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 a pplied 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 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 the clo s in g h our, ten ders w ill be op en ed at the F ed eral R e serv e B an ks and B ra n ch es, fo llo w in g w hich pu blic a n n ou n cem en t will be m ade b y th e T rea su ry D epa rtm en t o f the a m ou n t a n d p rice ran ge o f a ccep ted bids. T h o s e s u b m ittin g ten ders 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 the righ t to a cce p t o r re je ct a n y o r all tenders, in w h ole or in part, and his a ction in a n y such resp ect shall b e final. S u b ject to th ese reservations, n o n com p etitive tenders for $200,000 o r less w ith ou t stated p rice fro m any on e b idd er w ill be a ccep ted in full at the a vera ge price (in th ree decim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the b id s m u st be m ade o r com p le te d at the F ed eral R eserve Bank on M a y 9, 1957, in cash o r oth er im m ediately available fu n ds o r in a like fa ce a m ou n t o f T rea su ry bills m atu rin g M a y 9, 1957. Cash and ex ch a n g e tenders w ill receiv e equal treatm en t. Cash adju stm en ts w ill b e m ade f o r d ifferen ces b etw een the pa r va lu e o f m a tu rin g bills a ccep te d in ex ch a n g e and th e issue p r ice o f th e n ew b ills. T h e in co m e derived from T rea su ry bills, w hether interest o r gain fro m the sale o r oth er d isp osition o f th e b ills, d oes n ot have any exem ption , as such, and loss fro m the 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, u nder the Internal 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 o th e r excise taxes, w hether F ed eral o r State, but are exem pt fro m all taxation n o w o r h ereafter im p osed on th e principal o r interest th ereof by any State, o r any o f the p ossession 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 p u rp oses o f taxation the a m ou n t o f discou n t at w h ich T rea su ry bills are o rig in a lly sold b y th e U n ited States is con sid ered t o be interest. U nder 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 sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise disp osed of, 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 hereun der need in clu d e in his in com e tax return o n ly the differen ce b etw een the p rice paid f o r such bills, w h eth er on origin al issue o r o n subsequent pu rch ase, and the a m ou n t actu a lly received either u p on sale o r red em ption at m aturity d u rin g the taxable yea 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 epartm en t C ircu lar N o . 418, R evised , and 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 op ies o f the circu la r m a y be ob ta in ed fr o m a n y F ed era l R eserve B ank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, May 6, 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 fo r 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 T a x 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 -day bills dated May 2, 1957, m aturing A u gu st 1, 1957) T ota l applied fo r . . .$2,828,196,000 T ota l a ccep ted ......... $1,701,734,000 (in clu d es $336,250,000 en tered on a n on com p etitiv e basis and a ccep ted in full at the average price sh ow n b e lo w ) R a n g e o f a ccep ted co m p etitive b id s: E q u iva len t rate o f discou n t H ig h .................. 99.241 a p p rox. 3.003% per annum L ow .................. A v e ra g e ........... 99.230 E quivalent rate o f d iscou n t a p p ro x . 3.046% p e r annum 99.232 E quivalent rate o f discou n t a p p rox. 3.039% p er annum (53 percent o f the a m ou n t bid fo r at the low p r ice w as a cce p te d ) Federal R eserve D istrict Total A pplied fo r B o s to n ........................ N e w Y o r k .................. P h iladelphia ............. C levelan d .................. R ich m on d .................. Atlanta ...................... C h ica g o ...................... St. L ou is .................... M in n eap olis .............. K an sas C ity ............. D allas ........................ San F r a n cis co ......... T otal ......... . $ 37,320,000 2,038,386,000 30,831,000 58,942,000 25,603,000 53,959,000 268,778,000 36,180,000 23,117,000 50,459,000 47,692,000 156,929,000 $2,828,196,000 Total A ccepted $ 25,137,000 1,177,497,000 15,184,000 51,302,000 17,994,000 46,866,000 155,231,000 34.452,000 21,727,000 42,538,000 27,541,000 86,265,000 $1,701,734,000 (ovnt) 37 H 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 fo rm . A separate tender must be used fo r each bid, except that com mercial banks subm itting bids fo r their custom ers’ accounts may consolidate com petitive tenders at the same price and may consolidate noncom peti tive tenders, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and method o f payment. Forms fo r this purpose w ill be furnished on request. No............................. T E N D E R F O R 9 1 -D A Y T R E A S U R Y B ILL S M aturing A u gu st 8, 1957 D ated May 9, 1957 To Dated at F e d e r a l R e s e r v e B a n k o f 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 Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on May 2, 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 May 2, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s .........................................* for a (R a te 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 elo w : □ By surrender o f maturing Treasury bills amounting to ............. . . . $ ----------------------------0 for a total amount o f $ (N o t to e x ce e d $200,000 fo r on e b id d e r th rou g h all sou rces) (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 b elow : □ By surrender o f amounting to maturing Treasury bills ................... $_______________________ B y 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, f o r exam ple, 99.925. The Treasury bills fo r which tender is hereby made are to be dated M ay 9, 1957, and are to mature on August 8, 1957. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id d er ...................................................................................................................................... .. (P le a s e p r in t ) By. (O ffic ia l s ig n a tu r e r e q u ir e d ) (T iU e ) Street A d d ress (C it y , T o w n o r V illa g e , P . O . N o ., a n d S ta te ) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N a m e o f C u s to m e r) (C it y , T o w n o r V illa g e , P . O . N o ., a n d S ta te ) IM P O R T A N T IN ST R U C T IO N S: 1. N o ten der fo 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 so n m a k in g th e ten d er is a co rp o ra tio n , the ten der s h o u ld be sig n ed b y an o ffice r o f th e c o r p o r a tion a uthorized to m ake the tender, and the sig n 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 him that he has b een s o authorized. If th e ten der is m ade b y a partnersh ip, it sh ou ld b e sign ed b y a m e m b e r o f th e firm , w h o sh ou ld sign in the fo r m “ ...................................................................................................... a cop artn ersh ip , b y ........................................................................................................................................ . a m em b er o f th e f ir m ” 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 re s p o n sible and re co g n iz e d dealers in investm ent securities. T en d ers fr o m o th ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the fa ce a m ou n t o f T rea su ry bills applied for, unless the tenders are a cco m p a n ie d b y an exp ress gu a ra n ty 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 language o f this ten der is ch a n g ed in a n y resp ect, w h ich , in the op in ion o f the S ecreta ry o f the T re a s u ry , is m aterial, the 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 — 1401-a (O V E S )