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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent o f the United States ° L r Circ»iar n0',^-^3J 8 1 M a y 9, 19a7 O ffe r in g o f $ 1 , 7 0 0 , 0 0 0 , 0 0 0 o f 9 1 -D a y T r e a s u r y B ills D ated M ay 16, 1957 M aturing August 15, 1957 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow ing is the text of 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 , Th ursday, M ay 9, 1957. TREASURY DEPARTM ENT W ash in gton T he T reasu ry D epartm ent, by this public notice, invites tenders for $1,700,000,000, o r thereabouts, o f 91-day Treasu ry bills, fo r cash and in exch ange fo r Treasu ry bills m aturing M a y 16, 1957, in the am ount o f $1,700,491,000, to be issued on a discou n t basis under com petitive and n on com petitive b idding as h ereinafter provided. T he bills o f this series w ill be dated M ay 16, 1957, and w ill mature A u gu st 15, 1957, when the_ face am ount w ill be payable w ith ou t interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity va lu e). T en ders w ill be received at Federal R eserve Banks and Branches up to the closin g hour, on e-th irty o ’c lo ck p.m., Eastern D ayligh t Savin g time, M onday, M ay 13, 1957. T en ders w ill not be received at the T reasu ry D epartm ent, W ash ington. Each tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. F raction s m ay not be used. It is urged that tenders be made on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied by F ed eral R eserve Banks or B ran ches o n application th erefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t for their ow n a ccou nt. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders from others m ust be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank or trust com pany. Im m ediately a fter the closin g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich public announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f a ccep ted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry exp ressly reserves the right to accep t o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reservations, noncom petitive tenders fo r $200,000 or less w ithout stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce with the bids must be made or com pleted at the Federal R eserve Bank on M a y 16, 1957, in cash or oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing M ay 16, 1957. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made for differences between the par value o f m aturing bills a ccepted in exch a n ge and the issue price o f the new bills. T h e in com e derived from T reasu ry bills, w hether interest or gain from the sale o r oth er disp osition o f the bills, does not have any exem ption, as such, and loss fro m the sale or other disposition o f T reasu ry bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T h e b ills are subject to estate, inheritance, g ift or oth er excise taxes, whether F ed eral o r State, but are exem pt from all taxation n o w or hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U nited States, or b y any lo ca l taxing authority. F o r purposes o f ta x ation the am ount o f discou nt at w hich T reasu ry bills are origin a lly s o Id by the United States is con sidered to be interest. Under Sections 4 5 4(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou nt at w hich bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeem ed or otherw ise disp osed of, and such bills are exclu d ed from con sideration as capital assets. A cco rd in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com p a n ies) issued hereunder need include in his incom e tax return on ly the difference between the price pa id f o r such bills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity du rin g the taxable year fo r w hich the return is made, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu la r N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con d ition s o f their issue. Copies o f the circu la r m ay be obtain ed from any Federal R eserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Monday, May 13, 1957, at the Securi ties Department o f its H ead 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 confirm ation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlem ent 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 esu lts o f last o ffe rin g o f T r e a su ry b ills (9 1 -d a y b ills d a ted M a y 9 , 1 9 5 7 , m a tu rin g A u g u st 8 . 1 9 5 7 ) T o ta l applied f o r ......... $2,585,604,000 T otal a c c e p te d .............$1,700,231,000 (in clu des $322,826,000 entered on a noncom petitive basis and a ccepted in full at the a ver age price show n below ) Range o f accepted com petitive bids : H ig h ....................... 99.269 Equivalent rate o f discount approx. 2.892% per annum L o w ......................... 99.259 Equivalent rate o f discount approx. 2.931% per annum A vera ge ................. 99.265 Equivalent rate o f discount approx. 2.909% per annum (77 percent o f the am ount bid for at the low price w as accep ted) Federal R eserve D istrict B oston ............................. N ew Y o rk ..................... Philadelphia ................. C leveland ..................... R ich m on d ..................... A tlanta ........................... C h ica go ......................... St. L ou is ....................... M inneapolis ................. K ansas C ity ................. D allas ........................... San F ra n cisco ............. T o t a l ......................... Total A pplied jo r $ 32,021,000 1,815,554,000 36,810,000 77,264,000 20,278,000 47,095,000 292,768,000 34,892,000 24,241,000 45,591,000 40,670,000 118,420,000 $2,585,604,000 Total A ccepted $ 20,981,000 1,007,424,000 21,610,000 75,914,000 18,733,000 40,065,000 257,178.000 34,892,000 23,895,000 45,591,000 36,578,000 117,370,000 $1,700,231,000 (O V E ») IM P O R T A N T — I f you desire to bid on a com p etitive basis, nil in rate per 100 and maturity value in paragraph headed “ Com petitive B id.” I f you desire to bid on a non com p etitive basis, fill in only the maturity value in paragraph headed “ N oncom petitive B id .” DO N O T fill in both paragraphs on o n e form . A separate tender must be used fo r each bid , except that com m ercial banks submitting bids fo r their customers’ accounts may consolidate com petitive tenders at the same p rice and may consolidate n on com peti tive tenders, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and m ethod o f payment. Form s fo r this purpose w ill be furnished on request. N o ............................... T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S Dated May 16, 1957 T o F e d e r a l R ese r v e B a n k o f N e w Y Fiscal A gent of the United States. Maturing August 15, 1957 Dated at ork, 1957 C O M P E T IT IV 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 May 9, 1957, as issued by the Treasury Department, the undersigned offers ............................................ * for 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 e lo w : □ By surrender o f maturing Treasury bills N O N C O M PE TITIV E BID Pursuant to the provisions o f Treasury De partment Circular No. 418, Revised, and to the provisions o f the public notice on May 9, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender for a total amount o f $ (Not to exceed $200,000 for one bidder through all sources) (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted com petitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b e lo w : amounting t o ..................... $----------------------------------- □ □ amounting t o ..................... $_______________________ B y cash or other immediately available funds * P rice must be exp ressed on the basis of 100, w ith not m ore than three decimal places, fo r exam ple, 99.925. □ By surrender o f maturing Treasury bills By cash or other immediately available funds The Treasury bills fo r which tender is hereby made are to be dated May 16, 1957, and are to mature on August 15, 1957. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id d er . . . . (Please print) B y ................................... .................... .— (Title) (Official signature required) Street A d d ress ...................................... . (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 STR U C T IO N S: 1. N o tender fo r less than $1,000 w ill be con sid ered , and each tender m ust be fo r $1,000 (m aturity va lu e). an even m ultiple o f 2. I f the person m akin g the tender is a corp ora tion , the tender should be signed by an officer o f the corp ora tion authorized to m ake the tender, and the sign in g o f the tender by an officer o f the corp ora tion w ill be construed as a rep resentation b y him that he has been so authorized. I f the ten der is made b y a partnership, it should be signed b y a m em b er o f the firm, w h o should sign in the form “ ............................................................................................................... a copartnership, by ..................................................................................................................... a m em ber o f the firm .” 3. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and fro m respon sible and recogn ized dealers in investm ent securities. T en d ers from others must be accom pa n ied by paym ent o f 2 percent o f the face am ount o f T rea su ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank or trust com pany. 4. I f the language o f this tender is ch anged in any respect, w hich, in the opin ion o f the S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. DB—1402-a (O V E l)
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