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FEDERAL

RESERVE

BANK

OF

NEW

YORK

Fiscal A gent o f the United States

r c ir c u ia r N o - 447 6
L
June 13, 1957
J

O ffering o f $ 1 ,6 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills
Dated June 20, 1957

Maturing September 19, 1957

T o all Incorporated Banks and Tru st Companies, and Others
Concerned, in the Second Federal R eserve D istrict:

F ollow ing is the text o f a notice published today:
FOR RELEASE, MORNING NEW SPAPERS,
TREASU RY DEPARTM ENT
Thursday, June 13, 1957.
Washington
The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing June 20, 1957, in the amount of $1,603,807,000, to be issued on
a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated
June 20, 1957, and will mature September 19, 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 17, 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 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 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 June 20, 1957, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing June 20, 1957. Cash and exchange tenders will re­
ceive 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 17, 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 n ot be submitted by telephone. P a ym en t fo r the T reasury bills
cannot be made by credit through the T reasury T a x and L oan A ccou n t.
im m ediately available funds or in m aturing T rea su ry bills.

S ettlem en t must be made in cash or other
A

lfred

H

ayes,

P resident.

Results o f last offering o f Treasury bills (91-day bills dated June 13, 1957, maturing Septem ber 12, 1957)
Total applied f o r ....... $2,687,265,000
Total accepted........... $1,800,579,000 (includes $365,672,000
entered on a noncompetitive basis
and accepted in full at the aver­
age price shown below)
Range of accepted competitive bids:
H ig h .................... 99.186 Equivalent rate of discount
approx. 3.220% per annum
L o w ......................

99.174 Equivalent rate of discount
approx. 3.268% per annum

A verage...............

99.177

Equivalent rate of discount
approx. 3.256% per annum

(98 percent of the amount bid for at the low
price was accepted)



Federal R eserv e
D istrict

Total
A pplied for

Boston ......................... $ 46,909,000
New York .................. 1,831,100,000
Philadelphia ..............
38,307,000
Cleveland ....................
74,477,000
Richmond ....................
33,930,000
Atlanta ........................
53,968,000
Chicago ......................
325,978,000
31,194,000
St. Louis ....................
Minneapolis ................
23,509,000
Kansas City ...............
59,960,000
Dallas .........................
39,218,000
San Francisco ...........
128,715,000
T

o t a l

.....................

$2,687,265,000

Total
A ccepted

$ 36,489,000
1.090,225,000
22,918,000
69,063,000
29,910,000
44,330,000
249,640,000
29,578,000
23,083,000
56,960,000
32,218,000
116,165,000
$1,800,579,000
( over)

37 N
IM P O R T A N T — I f you desire to bid on a com p etitive basis, fill 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.” D O N O T fill in b oth paragraphs on on 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 noncom 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. Forms for this purpose w ill be furnished on
request.
N o ..............................

TEN DER FOR 91-DAY TREASURY BILLS
Maturing Septem ber 19, 1957

Dated June 20, 1957
T o F e d e r a l R eserve B a n k o f N e w Y
Fiscal Agent of 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 June 13. 1957, as issued by the
Treasury Department, the undersigned offers
............................................ * for a total amount of
(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 below :
□

Dated a t .......................

ork,

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 June 13,
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 competitive 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

100, with not
m ore than three decimal places, jo r exam ple, 99.925.

* P r ice must be expressed on the basis o f

□

By surrender o f maturing Treasury bills

By cash or other immediately available funds

T he Treasury bills for which tender is hereby made are to be dated June 20, 1957, and are to mature
on September 19, 1957.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
Name of Bidder .......................................................................................................................
(Please print)

By . . . .
(Official signature required)

(Title)

Street Address .................................
(C ity, 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. No tender for less than $1,000 will be considered, and eacli 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.

P aym ent b y cred it through Treasury T ax and Loan A ccou n t w ill n ot b e perm itted.

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