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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. http://fraser.stlouisfed.org/ TENTB—1407-a (OVER) Federal Reserve Bank of St. Louis