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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent of the United States £ ClAugustus, ws®1] Offering of $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 92-D ay Treasury Bills Dated August 25, 1955 Maturing November 25, 1955 To all Incorporated. B anks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice published today: F O R R E L E A S E , M O R N IN G N E W S P A P E R S , T h ursd ay, A u gu st 18, 1955. TREASU RY DEPARTM ENT W ash ington T h e T reasu ry D epartm ent, by this pu blic notice, invites tenders for $1,600,000,000, or thereabouts, o f 92-day Treasu ry bills, fo r ca sh and in exch ange fo r T reasu ry bills m aturing A u gu st 25, 1955, in the am ount o f $1,500,181,000, to be issued on a discou nt basis under com petitive and noncom petitive b idd ing as h ereinafter provided. T h e bills o f this series w ill be dated A u gu st 25, 1955, and w ill mature N ovem ber 25, 1955, w hen the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). T en ders w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’c lo ck p.m., Eastern D a yligh t S a vin g time, M on day, A u gu st 22, 1955. T en ders w ill n ot be received at the T reasu ry Department, W a sh in gton . E ach tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, with not m ore than three decim als, e. g., 99.925. F raction s m ay not be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied by Federal R eserve Banks or Branches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. Tenders from others m ust be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank o r trust com pany. Im m ediately a fter the closin g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich p u b lic announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry exp ressly reserves the righ t to accept o r reject any o r a ll tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reservations, n oncom petitive tenders f o r $200,000 o r less w ithout stated p rice from any one bidder w ill be accepted in fu ll at the average price (in three decim a ls) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce with the bids must be made or com pleted at the F ed eral R eserve Bank on A u gu st 25, 1955, in cash or other im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing A u gu st 25, 1955. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r dirterences between the par value o f m aturing bills a ccepted in exch a n ge and the issue price o f the new bills. T h e incom e derived from T reasu ry bills, whether interest or gain from the sale or other disp osition o f the bills, does not have any exem ption, as such, and loss from the sale o r other disp osition o f T reasu ry bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T h e bills are subject to estate, inheritance, g ift o r oth er excise taxes, whether F ed era l o r State, but are exem pt fro m all ta xation n ow o r h ereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U n ited States, o r b y any lo ca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are o rig in a lly sold by the U nited States is con sidered to be interest. U nder S ections 454(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou nt at w hich bills issued hereunder are s o ld is n ot con sidered to accru e until such bills are sold, redeem ed or otherw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A cco rd in g ly , the ow n er o f T reasu ry bills (oth er than life insurance com pa n ies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid for such bills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity du rin g the ta xab le yea r fo r w hich the return is m ade, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu lar N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con ditions o f their issue. Copies o f the circu la r m ay be obtained from any Federal Reserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, August 22, 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 o f last offering o f Treasury bills (91-day bills dated August 18, 1955, maturing November 17, 1955) T o ta l applied f o r ........ $2,368,922,000 T o ta l a c c e p t e d ............. $1,600,735,000 (in clu des $236,882,000 entered on a n oncom petitive basis and accepted in fu ll at the aver a ge price show n b elow ) A ve ra g e p r ice ........... 99.523 Equivalent rate o f discount approx. 1.888% per annum R ange o f accepted com petitive b id s : H i g h ....................... 99.532 Equivalent rate approx. 1.851% L o w ......................... 99.518 Equivalent rate approx. 1.907% o f discount per annum o f discount per annum (89 percent o f the amount bid fo r at the low price w as accepted) Federal R eserve D istrict Total A pplied fo r Boston ......................... . . N ew Y o r k ................. Philadelphia ............. Cleveland ................... R ic h m o n d ................... C h i c a g o ....................... St. L o u i s ..................... M inneapolis ............. K ansas C ity ............. D allas ......................... San F ra n cisco ......... T o t a l ...................... ... $ 33,375,000 1,660,504,000 40,823,000 90,829,000 26,556,000 54,326,000 230,484,000 39,151,000 34,756,000 50,694,000 34,252,000 73,172,000 $2,368,922,000 Please note that the current offering is for 92-day Treasury bills. Total A ccep ted $ 28,375,000 965,027,000 25,823,000 90,829,000 26,556,000 53,716,000 181,044,000 39,151,000 34,756,000 50,694,000 31,592,000 73,172,000 $1,600,735,000 (ovra) 33W IM PORTANT— Please note that this offering is for 92-day Treasury bills, which will mature on Friday, November 25, 1955, because Thursday, November 24, will be Thanksgiving Day. IM PORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed “ Competitive Bid.” If you desire to bid on a noncompetitive basis, fill in only the maturity value in paragraph headed “ Noncompetitive Bid.” DO NOT fill in both paragraphs on one form. 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 o f each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. N o............................. TENDER FOR 92-DAY TREASURY BILLS Dated August 25, 1955 To F ederal R eserve B a n k of N ew Y ork Maturing November 25, 1955 Dated at , Fiscal Agent o f the United States. 1955 NONCOMPETITIVE BID COMPETITIVE BID Pursuant to the provisions o f Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on August 18, 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 August 18, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ......................................... * for a total amount of for a total amount of $ ........................................... (R ate per 100) (N o t to exceed $200,000) $ ....................................................(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 amounting t o ..................$______________________ □ By surrender of maturing Treasury bills amounting t o ..................$______________________ By cash or other immediately available funds □ By cash or other immediately available funds * P r ice must be expressed on the basis o f 100, with not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated August 25, 1955, and are to mature on November 25, 1955. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id d er ........................................................................................................................................... (P lea se print) B y .................................................................. (Official signature required) (T itle ) Street A d d ress ............................................ (C ity , T ow n o r V illa g e , P. O. N o., and State) I f this tender is subm itted b y a bank fo r the accou n t o f a custom er, indicate the custom er’ s name on line b elow : (N am e o f Custom er) (C ity , T o w n o r V illa g e , P. O. N o., and State) IM PORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sidered, and each tender must be fo r an even m ultiple o f $1,000 (m atu rity va lu e). 2. I f the person m akin g the tender is a corp ora tion , the tender should be signed b y an officer o f the corp ora tion authorized to m ake the tender, and the sign in g o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a rep resentation b y him that he has been so authorized. I f the ten der is made b y a partnership, it sh ou ld be signed b y a m em b e r o f the firm, w ho sh ou ld sign in the form “ ............................................................... ................................................. a copartnership, by a m em ber o f the firm.” 3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en ders from others must be accom panied b y paym ent o f 2 percent o f the fa ce am ount o f T rea su ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an in corporated bank o r trust com pany. 4. I f the language o f this ten der 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 ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1312-a Federal Reserve Bank of St. Louis ( over) F ederal R e se r v e Ba n k of N ew Yo r k N E W Y O R K 4 5 , N.Y. RECTOR 2 -5 7 0 0 August 22, 1955 To Member and Nonmember Clearing Banks in the Second Federal Reserve District: The recent floods have disrupted transportation facilities, and have hampered operations at a number of banks, in the First, Second and Third Federal Reserve Districts. As a result, banks m a y anticipate delays in receiving advices of nonpayment and items returned unpaid by banks located in the affected areas. We understand that the Governor of the State of Connecticut has issued a proclamation authorizing banks and certain other financial institutions in affected areas to suspend their usual business during the emergency, pursuant to regulations as issued b y the Bank Commis sioner. We will continue as usual to dispatch cash items deposited with us payable in the affected areas and to give credit therefor in accordance with our time schedules, but we reserve the right to charge back any unpaid items at any time. ALLAN SPROUL, President.
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