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FE D E R A L R E SE R V E BAN K O F N EW Y O R K Fiscal Agent o f the United States [ Circular N o. 4 4 7 2 May 29,1957 Offering of $1,800,000,000 of 91-Day Treasury Bills Dated June 6, 1957 Maturing September 5, 1957 T o all Incorporated Banks and T rust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published tod a y : TREASU RY DEPARTM ENT Washington F O R R E L E A S E , M O R N IN G N E W SPA P E R S, Wednesday, May 29, 1957. The Treasury Department, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing June 6, 1957, in the amount of $1,800,492,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated June 6, 1957, and will mature September 5, 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, June 3, 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 invest ment securities. Tenders from others must be accompanied by payment of 2 percent o f 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. 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 of 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 June 6, 1957, in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 6, 1957. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of 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 of the United States, or by any local taxing authority. For purposes of 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 of 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, June 3, 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. Paym ent 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 lfred H ayes, President. Results o f last offering o f Treasury bills (9 0 -d a y bills dated May 31, 1957, m aturing A u gu st 29, 1957) Total applied for . . $2,647,760,000 Total a cce p te d ........$1,800,554,000 (includes $286,392,000 entered on a noncompetitive basis , and accepted in full at the average price shown below) Range of accepted competitive bids: (excepting two tenders totaling $300,000) Equivalent rate of discount High ................ 99.216 3.136% per annum Equivalent rate of discount Low ............... 99.185 3.260% per annum Equivalent rate of discount Average ......... 99.189 approx. 3.245% per annum (63 percent of the amount bid for at the low price was accepted) http://fraser.stlouisfed.org/ JSgp3 Federal Reserve Bank of St. Louis F ederal R eserve D istrict Total A pplied f o r Total A ccep ted Boston .............. New York . . . . Philadelphia . . . Cleveland ........ Richmond ........ Atlanta ............. Chicago ........... St. Louis ......... Minneapolis . . . Kansas City . . . Dallas ............... San Francisco . 5 35,409,000 1,978,733,000 35.354.000 71.519.000 10.846.000 34.332.000 247.672.000 25.482.000 9,189,000 47.834.000 24.559.000 126.831.000 5 25,187,000 1,243,304,000 19.244.000 66.519.000 10.846.000 30.804.000 197.932.000 25.086.000 8,652,000 36.615.000 24.559.000 111,806,000 $2,647,760,000 $1,800,554,000 Total ............. Please note that the results shown above are fo r 90 -day Treasury bills. ( over) 37 L 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 noncom petitive basis, fill in on ly the m aturity value in paragraph headed "N on com petitive Bid.” DO N O T fill in both paragraphs on one fo rm . A separate tender m ust be used fo r each bid, except that com mercial banks subm itting bids fo r their customers’ accounts may consolidate com petitive tenders at th e same price and may consolidate noncom petitive tenders, 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 payment. Forms fo r this purpose w ill be furnished on request. N o .................................. T E N D E R FO R 9 1 -D A Y T R E A SU R Y BILLS Dated June 6, 1957 T o F ed e r a l R eserve B a n k of N e w Y Fiscal Agent o f the United States. M aturing September 5, 1957 Dated at ork, 1957 C O 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 M ay 29, 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 M ay 29, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s .........................................* fo r a (Rate per 100) for a total amount o f $. 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 below : □ By surrender o f maturing Treasury bills amounting to □ ................... $---------------------------------- B y cash or other immediately available funds *P rice must be expressed, on the basis o f 100, w ith not m ore than three decimal places, f o r exam ple, 99.925. (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 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 e lo w : □ By surrender o f amounting to □ maturing Treasury bills ................... $_______________________ By cash or other immediately available funds The Treasury bills for which tender is hereby made are to be dated June 6, 1957, and are to mature on September 5, 1957. This tender will be inserted in special envelope marked ‘ Tender f o r Treasury Bills.” Name of Bidder ......................... (Please print) B y. (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 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 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 o f the corpora tion authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member 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 o f the Secretary of the Treasury, is material, the tender may be disregarded. Paym ent b y cred it through T reasury T a x and Loan A cco u n t w ill not be perm itted. T E N T B — 1405-a ( over)