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F E D E R A L R E S E R V E BAN K O F N E W Y O R K r C ir c u la r N o. 4 4 8 7 1 J u ly 18,1957 Fiscal Agent o f the United States I J Offering of $1,600,000,000 of 91-Day Treasury Bills Dated July 25, 1957 Maturing October 24, 1957 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published tod ay: F O R R E L E A SE , M O R N IN G N E W S PA P E R S , TREASU RY DEPARTM ENT Thursday, July 18, 1957. Washington The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing July 25, 1957, in the amount of $1,600,412,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated July 25, 1957, and will mature October 24, 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, July 22, 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 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 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 July 25, 1957, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 25, 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, July 22, 1957, at the Securi ties 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, subject to written confirmation; they may not be submitted by telephone. Payment fo 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 l f r e d H a y e s , President. Results o f last offering o f Treasury bills (9 1 -day bills dated July 18, 1957, m aturing O ctober 17, 1957) Total applied for.........$2,719,490,000 Total accepted.............$1,601,037,000 (includes $410,457,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: (excepting one tender of $11,000) H ig h .................. 99.229 Equivalent rate of discount approx. 3.050% per annum Low .................. 99.216 Equivalent rate of discount approx. 3.102% per annum Average............. 99.218 Equivalent rate o f discount approx. 3.092% per annum (40 percent of the amount bid for at the low price was accepted) Federal R eserve District ..... New Y o r k .............. ..... Philadelphia ......... Cleveland ............... Richmond .............. Atlanta .................. Chicago .................. St. Louis ................ Minneapolis ........... Kansas City ........... D allas...................... San Francisco ....... T o tal .................... ..... Total Applied f o r $ 44,078,000 1,944,703,000 41,808,000 66,063,000 21,287,000 49,351,000 256,294,000 41,422,000 27,225,000 52,741,000 45,764,000 128,754,000 $2,719,490,000 T otal A ccep ted $ 28,734,000 1,008,376.000 18,723,000 60,483,000 18,555,000 43,198,000 174,384,000 36,967,000 25,825,000 45,652,000 37,219,000 102,921,000 $1,601,037,000 ( over) 37 S 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 non com petitive basis, fill in only the m aturity value in paragraph headed "N oncom petitive Bid.” D O N O T fill in both paragraphs on one form . A separate tender m ust be used fo r each bid, except that com m ercial banks submitting bids f o r their customers’ accounts may consolidate com petitive tenders at the same price and m ay consolidate noncom peti tive tenders, provided a list is attached show ing the name o f each bidder, the am ount bid fo r his accoun t, and method o f payment. Forms f o r this purpose w ill be furnished on request. N o. T E N D E R FO R 91 -D A Y T R E A SU R Y BELLS M aturing O ctober 24, 1957 Dated July 25, 1957 T o F ederal R eserve B a n k of N e w Y Fiscal Agent o f the United States. Dated a t ..................... ork, .1957 COM PETITIVE BID N O N CO M PETITIVE BED Pursuant to the provisions o f Treas ury Department Circular N o. 418, Revised, and to the provisions o f the public no tice on July 18, 1957, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular N o. 418, Revised, and to the provisions o f the public notice on July 18, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ............................................... * for a total amount o f for a total amount o f (R ate per 100) $------------------------------ ----------------- (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender o f maturing Treasury bills amounting t o ........................$_____________________ □ By cash or other immediately available funds ------------ (N ot to exceed $200,000 fo r one bidder through all sources) (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : □ By surrender o f maturing Treasury bills amounting t o ........................$_____________________ □ By cash or other immediately available funds * P rice mtist be expressed on the basis o f 100, w ith not m ore than three decimal places, f o r exam ple, 99.925. T he Treasury bills for which tender is hereby made are to be dated July 25, 1957, and are to mature on October 24, 1957. This tender will be inserted in special envelope marked “ Tender fo r Treasury B ills” N a m e o f Bidder ..................................................................................... .............................................................. (Please print) By (Official signature required) (T itle) Street Address (C ity, T ow n o r 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: (Nam e o f Custom er) (City, T ow n o r Village, P. O. No., and State) IM P O R T A N T IN STR U CTIO N S: 1. N o tender for less than $1,000 will be considered, and each tender m ust be for an even multiple of $1,000 (m aturity value). 2. I f the person m aking the tender is a corporation, the tender should be signed b y an officer o f the corpora tion authorized to m ake the tender, and the signing o f the tender b y an officer o f the corporation will be construed as a representation by him that he has been so authorized. I f the tender is m ade by a partnership, it should be signed by a m em ber of the firm, w h o should sign in the form “ ........................................................................................................... a copartnership, by ....................................................................... ........................................................ a m em ber of the firm.” 3. T en ders w ill be received w ithout deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investm ent securities. T enders from others m ust be accom panied b y p aym ent of 2 percent of the face am ount of T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty of paym ent b y an incorporated bank or trust com pany. 4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary of the T reasu ry, is material, the tender m a y be disregarded. Paym ent b y credit through T reasury T a x and Loan A cco u n t w ill n ot be perm itted. http://fraser.stlouisfed.org/ T E N T B — 1412-a Federal Reserve Bank of St. Louis ( over)
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