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FED ERAL RESER VE BANK O F NEW YO RK r C ir c u la r N o. 4 2 8 4 L N o v e m b e r 17,1953 Fiscal Agent of the United States Offering of $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 90-Day Treasury Bills Dated N ovem ber 25, 1955 Maturing February 23, 1956 To all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second F ederal R eserv e D istrict: Following is the text o f a notice published today: F O R R E L E A S E , M O R N IN G T h u rsd a y, N o v e m b e r 17, 1955. N EW SPAPERS, TREASU RY DEPARTM EN T W a sh in g to n T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders fo r $1,600,000,000, o r thereabouts, o f 9 0-d ay T reasu ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g N o v e m b e r 25, 1955, in the am ou nt o f $1,600,217,000, to be issued on a discou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated N o v e m b e r 25, 1955, and w ill m ature F eb ru a ry 23, 1956, w hen the face a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly, and in den om in ation s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity va lu e). T e n d e rs w ill be received at Federal R eserve B anks and B ra n ch es up to the clo s in g hour, on e-th irty o ’ c lo ck p.m ., Eastern Standard tim e, M on d a y, N ov em b er 21, 1955. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . E ach tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F raction s m ay n ot be used. It is u rged that tenders be m ade o n the printed fo rm s and forw a rd ed in the special en v elop es w h ich w ill be supplied b y F ed eral R eserve B anks o r B ran ches o n application th erefor. O th e rs than b ank in g institutions w ill n ot be perm itted t o subm it tenders excep t fo r their o w n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies and fro m respon sib le and recog n ized dealers in invest m en t securities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f pa ym en t b y an in corpora ted bank o r trust com pan y. Im m ed ia tely after the closin g hour, tenders w ill be op en ed at the Federal R es e rv e B anks and B ran ches, fo llo w in g w hich pu blic a n n ou n cem en t w ill be m ade b y the T rea su ry D epartm en t o f the a m ou n t and price range o f a ccep ted bids. T h o s e subm itting tenders w ill be advised o f the a ccep ta n ce or rejection thereof. T h e S ecretary o f the T rea su ry ex p ressly reserves the righ t t o a ccep t o r reject a n y o r all tenders, in w h ole o r in part, and his a ction in any such resp ect shall be final. S u b ject to these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m any on e b idd er w ill be a ccep ted in full at the a verage price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m ust be m ade o r com p leted at the F ed eral R es e rv e Bank on N ov em b er 25, 1955, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m a tu rin g N ov em b er 25, 1955. Cash and exch a n ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m atu rin g bills a ccep ted in exch a n ge and the issue price o f the new bills. T h e in com e derived fro m T rea su ry bills, w hether interest or gain fro m the sale or oth er d isp osition o f the b ills, d o e s n ot have any exem ption , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills does n ot have a n y special treat m en t, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er excise taxes, w hether Federal o r State, but are exem p t fro m all taxation n o w o r hereafter im p osed on the principal o r interest th ereof b y a n y State, o r any o f the possession s o f the U n ited States, o r b y any local ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f discou n t at w h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sidered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the a m ou n t o f discou n t at w h ich bills issued hereunder are so ld is n ot con sidered to accru e until such bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu ded from con sideration as capital assets. A c co r d in g ly , the o w n e r o f T reasu ry bills (o th e r than life insurance com p a n ies) issued h ereunder need include in his in com e ta x return o n ly the differen ce betw een the price paid fo r such bills, w h eth er on original issue o r on subsequent purchase, and the a m ou n t actu ally receiv ed either u pon sale o r redem ption at m aturity d u rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epartm en t C ircu lar N o . 418, R evised , and this n otice, prescrib e the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C op ies o f the circular m a y be ob ta in ed fro m a n y Federal R eserve Bank o r B ran ch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Monday, November 21, 1955, at the Securi ties Department o f 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 Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. Results of last offering of Treasury bills (91-d a y bills dated November 17, 1955, maturing February 16, 1956) T o ta l applied f o r .......... $2,320,676,000 T o ta l a c c e p t e d .............. $1,600,476,000 (in clu des $221,827,000 entered on a n on com p etitive basis and a ccep ted in full at the a verage price sh ow n b e lo w ) A v e ra g e p rice ........ 99.432 E quivalent rate o f discou nt a p p rox. 2.248% p er annum R a n g e o f a ccep ted com p etitive b ids: H i g h ..................... 99.507 E quivalent rate o f discount a p p rox. 1.950% per annum L o w ..................... 99.422 E quivalent rate o f discou nt app rox. 2.287% p er annum (83 p ercen t o f the am ou nt b id fo r at the low price w as a ccep ted ) Federal R eserve D istrict B oston .............. N ew Y o r k ..... Philadelphia ... C leveland ....... R ich m on d ....... Atlanta ........... C h ica g o ........... St. L ou is ......... M in neapolis ... K ansas C ity ... D allas ............. San F ra n cisco T otal ........ Total A pplied f o r $ 28,286,000 1,668.209,000 46.867.000 70.554.000 19,322,000 34,936,000 233,577.000 36,940,000 21,082,000 39,356,000 33,039,000 88,508,000 $2,320,676,000 Please note that the current offering is for 90-day Treasury bills. Total A cccptcd $ 28,286,000 1,024,859,000 36,017,000 70,554.000 19,322,000 34,436.000 173,577,000 36,940,000 21,082,000 39,356,000 33,039,000 83,008,000 $1,600,476,000 ( over) IM P O R T A N T — Please note that this offering is for 90-day Treasury bills, which w ill be dated F rid a y, N o v e m b e r 2 5, 1955. IM P O R T A N T — I f you desire to bid on a c o m p e titiv e basis, fill in rate per 100 and maturity value in paragraph headed "Com petitive Bid.” I f you desire to bid on a n o n c o m p e titiv e basis, fill in only the maturity value in paragraph headed "Noncompetitive Bid.” DO N O T fill in b o th paragraph s on o n e fo r m . A separate tender must be used for each bid, except that banks submitting bids on a competitive basis for their own and their customers’ accounts may submit one tender for the total amount bid at each price, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose w ill be furnished upon request. N o........................ T E N D E R FOR 9 0 -D A Y T R E A SU R Y BILLS Dated November 25 , 1955 To Maturing February 2 3, 1956 Dated at.. F ed eral R eserve B a n k o f N e w Y o r k , Fiscal Agent o f the United States. .1955 C O M P E T IT IV E B ID N O N C O M P E T IT IV E B ID Pursuant to the provisions of Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on November 17, 1955, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions of Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on November 17, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ............. ...............................* for a total amount of for a total amount of $.............................. ............... ( N o t t o e x c e e d $200,000) (K a te p e r 100) $......................................................(maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ □ By surrender of maturing Treasury bills By surrender of maturing Treasury bills amounting to .......................$------------------------------- amounting to . .....................$ ------------------------------ □ □ By cash or other immediately available funds By cash or other immediately available funds *P rice must be expressed on the basis o f 100, with not m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated November 25, 1955, and are to mature on February 23, 1956. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills” N am e o f B id d e r .............................................................................................................................................. (P le a s e p r in t ) By.. (O fficia l s ig n a tu re r e q u ir e d ) ( T it le ) Street A d d ress (C ity , T o w n o r V illa g e , P . O. N o., a n d S ta te ) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N a m e o f C u s to m e r) (C ity , T o w n o r V illa g e , P . O. N o., a n d S ta te) I M P O R T A N T IN S T R U C T IO N S * 1. N o tender fo r less than $1,000 w ill be con sid ered , and each tender m ust be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the person m a k in g the ten der is a corp ora tion , the tender should be sign ed b y an officer o f the co rp o ra tion a uthorized to m ake the tender, and the sig n in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a representation b y him that he has been so authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a m em ber o f the firm , w h o sh ou ld sign in the fo r m “ ..................................................................................................... . a cop artn ersh ip, b y .............................................. .......................................................................... a m em ber o f the firm .” 3. T en d ers w ill be received w ith ou t deposit fr o m in corporated banks and trust com panies and fro m resp on sible and recog n ized dealers in investm ent securities. T en d ers fro m others m ust be accom pan ied by paym ent o f 2 percent o f the face am ou nt o f T rea su ry bills applied fo r, unless the tenders are accom panied b y an exp ress guaranty o f paym ent b y an in corpora ted bank o r trust com pany . 4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the S ecreta ry o f the T reasu ry, is m aterial, the tender m a y be disregarded. P a ym en t b y c r e d it th ro u g h T rea su ry T a x and L oan A c c o u n t w ill n o t b e p erm itted . http://fraser.stlouisfed.org/ T E N T B — 1 3 2 5 -a ? ; Federal Reserve Bank of St. Louis ( over)
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