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F E D E R A L R E S E R V E BANK O F N EW Y O R K rC ircu la r N o. 4 4 ( i 9 l L M ay 23, 1957 J Fiscal A gent o f the United States Offering of $1,800,000,000 of 90-Day Treasury Bills Dated May 31, 1957 Maturing August 29, 1957 T o all Incorporated B anks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice published today: FOR RELEASE, MORNING NEW SPAPERS, TREASU RY DEPARTM ENT Thursday, May 23, 1957. Washington The Treasury Department, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 90-day Treasury bills, for cash and in exchange for Treasury bills maturing May 31, 1957, in the amount of $1,801,695,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated May 31, 1957, and will mature August 29, 1957, when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Daylight Saving time, Monday, May 27, 1957. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on May 31, 1957, in cash or other immediately available funds or in a like face amount of Treasury bills maturing May 31, 1957. Cash and exchange tenders will re ceive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions o f the United States, or by any local taxing authority. For purposes o f taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1:30 p.m.. Eastern Daylight Saving time, Monday, May 27, 1957, at the Securi ties Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of 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 for 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 (91-day bills dated May 23, 1957, maturing August 22, 1957) Total applied f o r ....... $2,531,567,000 Total accepted........... $1,800,347,000 (includes $310,366,000 entered on a noncompetitive basis and accepted in full at the aver age price shown below) Range of accepted competitive bids: High .................... 99.279 Equivalent rate of discount approx. 2.852% per annum L o w ...................... 99.202 Equivalent rate of discount approx. 3.157% per annum Average .............. 99.211 Equivalent rate of discount approx. 3.122% per annum (22 percent of the amount bid for at the low price was accepted) Federal R eserve D istrict Total A pplied for ... New York ............. Philadelphia ......... Cleveland .............. Richmond ............. Atlanta .................. C h ica g o.................. St. Louis .............. Minneapolis ......... Kansas City ......... Dallas .................... San Francisco T otal .................... ., $ 35,614,000 1,816,013,000 34,585.000 78,433,000 17,588,000 31,200,000 222,099,000 30,551,000 13,275,000 60,183,000 45,011.000 147,015,000 $2,531,567,000 Total A ccep ted $ 25,614,000 1,173,813,000 20,685,000 78,433,000 17,588,000 31,200,000 170.099,000 30,551,000 13,275.000 60,183,000 35,011,000 143,895,000 $1,800,347,000 Please note that the current offering is fo r 90-day Treasury bills. ( over) 37 K I M P O R T A N T — P lea se n ote th a t th is o ffe rin g is fo r 9 0 -d a y T r e a su ry b ills , w h ic h w ill he d a ted Friday, May 31, 1957. I M P O R T A N T — I f y o u desire to b id on a competitive basis, fill in rate p er 1 0 0 and m a tu r ity v a lu e in p a r a g ra p h h e a d e d “ C o m p e titiv e B i d .” I f y o u desire to b id o n a non com petitive b asis, fill in o n ly th e m a tu r ity v a lu e in p a ra g ra p h h e a d e d “ N o n c o m p e titiv e B i d .” DO NOT fill in both paragraphs on one form. A sep a ra te te n d e r m u st b e used fo r e a c h b id , e x c e p t th a t c o m m e r c ia l b an k s su b m ittin g b id s f o r th e ir c u sto m e rs’ accou nts m a y c o n so lid a te c o m p e titiv e ten d ers at the same price a n d m a y c o n so lid a te n o n c o m p e ti tiv e ten d e rs, p r o v id e d a list is a tta c h ed sh o w in g th e n a m e o f e a c h b id d e r , th e a m o u n t hid fo r h is a cc o u n t, a n d m e th o d o f p a y m e n t. F o rm s fo r th is p u r p o se w ill b e fu r n ish e d on req u est. N o ...................................... TENDER FOR 90-DAY TREASURY BILLS Dated May 31, 1957 Maturing August 29, 1957 To F ed eral R eserve B a n k of N ew Dated at Y ork, Fiscal Agent o f the United States. 1957 C O M P E TIT 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 M ay 23, 1957, as issued by the Treasury Department, the undersigned offers .......................................... . * fo r 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 e lo w : □ N O N C O M PE TITIV E B ID Pursuant to the provisions o f Treasury De partment Circular No. 418, Revised, and to the provisions o f the public notice on May 23. 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender By surrender o f maturing Treasury bills (Not to exceed $200,000 for one bidder through all sources) (m aturity 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 ..................... $_______________________ By cash or other immediately available funds * P rice must be expressed on the basis o f 100, w ith not 99.925. □ By surrender o f maturing Treasury bills By cash or other immediately available funds m ore than three decimal places, fo r exam ple, The Treasury bills for which tender is hereby made are to be dated May 31, 1957, and are to mature on August 29, 1957. This tender will be inserted in special envelope marked “ Tender for Treasury B ills” Name of Bidder . . . . (Please print) By (Official signature required) (Title) Street Address ................................. (City, Town or Village, P. O. No., and State) I f this tender is submitted by a bank for the account of a customer, indicate the customer's name on line below : (Name o f Customer) (City, Town or Village, P. O. No., and State) IM P O R T A N T IN STR U CTIO N S: 1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). 2. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a rep resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem ber of the firm, who should sign in the form “ ................................................................................................ a copartnership, by .................................................................................................... . a member of the firm.” 3. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B —1404-a (OVER)
@FedFRASER