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FEDERAL RESERVE BANK O F NEW YO RK Fiscal Agent of the United States ^August^o. ims3] Offering o f $1,600,000,000 o f 91-Day Treasury Bills Dated September 8, 1955 Maturing December 8, 1955 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 N E W S P A P E R S , T uesday, A ugust 30, 1955. TREASURY DEPARTM ENT Washington T h e T r e a s u ry D epa rtm en t, b y this p u b lic n otice, in vites ten ders fo r $1,600,000,000, o r th ereabouts, o f 9 1 -d a y T rea su ry b ills, fo r cash and in e x ch a n g e fo r T r e a s u ry bills m a tu rin g S ep tem b er 8, 1955, in the a m ou n t o f $1,500,455,000, t o be issued on a d isco u n t basis u nder com p etitive and n on com p etitiv e b idd ing as h ereinafter p ro v id e d . T h e bills o f this series w ill be dated S ep tem ber 8, 1955, a n d w ill m ature D e ce m b e r 8, 1955, w hen the fa ce a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo rm o n ly, and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill b e receiv ed at F ed eral R e serv e B anks and B ra n ch es u p to the clo s in g h our, tw o o’clock p.m ., E astern D a y ligh t S a v in g tim e, F rida y, S ep tem ber 2, 1955. T e n d e rs will n ot be receiv ed at the T rea su ry D ep a rtm en t, W a s h in g to n . E ach ten der m u st be f o r an even m u ltiple o f $1,000, and in the ca se o f com p etitive ten ders th e p r ice o ffe re d m u st be ex p resse d on the basis o f 100, w ith n ot m ore than th ree decim als, e. g., 99.925. F ra ction s m a y n ot be u sed. It is u rg ed that tenders be m a d e o n th e printed fo rm s a n d fo rw a rd e d in th e special en v elop es w h ich w ill b e sup plied b y F ed eral Reserve Banks o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x c e p t f o r th eir own a ccou n t. Tenders will be receiv ed w ith ou t d e p o s it fro m in co rp o ra te d banks and trust com p a n ies and fr o m resp on sib le a n d re co g n iz e d dealers in in vest m en t secu rities. T e n d e rs fr o m oth ers m u st be a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f th e fa c e am ou nt o f T r e a s u ry bills a pp lied fo r , u nless th e tenders are a ccom p a n ied b y an ex p re s s gu a ra n ty o f p a y m en t b y an in corp ora ted b a n k or trust com p a n y . Im m ed ia tely a fter th e clo s in g h ou r, ten ders w ill be op en ed at the F ed era l R e s e rv e B anks a n d B ra n ch es, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill be m ade b y th e T r e a s u ry D ep a rtm en t o f th e a m ou n t and p r ice ra n ge o f a cce p te d bids. T h o s e su b m ittin g ten d e rs w ill be advised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e T r e a s u ry e x p re s sly reserves th e righ t to a cce p t o r reject a n y o r all ten ders, in w h o le o r in part, and his a ction in a n y such re s p e ct shall be final. S u b je ct to th ese reserva tion s, n on com p etitiv e ten ders fo r $200,000 o r less w ith ou t stated p r ice fr o m a n y o n e b idd er w ill b e a ccep ted in full at the a vera ge p rice (in th ree d e c im a ls ) o f a ccep ted com p etitiv e bids. S ettlem en t f o r a ccep ted tenders in a cco rd a n ce w ith the b id s m u st b e m ade o r com p le te d at the Federal R eserve B ank on S ep tem b er 8, 1955, in cash o r o th e r im m ediately available fu n ds o r in a like fa ce a m ou n t o f T r e a s u ry bills m a tu rin g S ep tem ber 8, 1955. Cash and ex ch a n g e ten ders w ill receive equal treatm ent. C ash adjustm ents w ill be m ade fo r d ifferen ces betw een the par valu e o f m a tu rin g bills a cce p te d in exch a n ge an d the issue p rice o f the n ew bills. T h e in co m e d eriv e d fr o m T rea su ry bills, w h eth er interest or gain fr o m the sale o r o th e r d isp osition o f the b ills, d o e s n o t have a n y exem p tion , as such, and lo s s fr o m the sale or oth er d isp osition o f T rea su ry bills d oes n o t have a n y special tre a t m ent, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er e x cis e taxes, w hether Federal o r State, but are ex em p t fro m all taxation n o w o r hereafter im p osed on the principal o r interest th ereo f b y a n y State, o r a n y o f the p ossession s o f the U n ited States, o r b y any lo ca l ta x in g authority. F o r pu rp oses o f ta x ation the a m ou n t o f d iscou 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 sid ered to be interest. U nder S ection s 4 5 4 (b ) and 1221(5) o f the In tern a l R even u e C od e o f 1954 th e a m ou n t o f d iscou n t at w h ich bills issued hereunder are so ld is n ot co n sid ered to a ccru e u ntil such bills are sold , redeem ed o r oth erw ise d isp osed o f, and such bills are exclu ded fr o m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life in su rance co m p a n ie s ) issued hereun der need in clu d e in his in co m e ta x return o n ly the differen ce b etw een the price pa id fo r such bills, w h eth er on original issue o r on subsequent pu rch ase, and the am ou nt actu a lly receiv ed either u pon sale o r red em p tion at m atu rity du rin g the ta x a b le yea r f o r w h ich the return is m ade, as ord in a ry g a m o r loss. T r e a s u ry D e p a rtm e n t C ircu lar N o . 418, R evised , and this n otice, p rescrib e the term s o f th e T r e a s u ry bills and g o v e rn th e co n d itio n s o f their issue. C op ies o f the circu la r m ay be obtain ed fro m a n y F ed era l R eserve B a n k o r B ra n ch . This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Friday, September 2, 1955, at the Securities 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, sub ject to written confirmation; they may not be submitted by telephone. Payment fo r 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. (CLO SIN G D A Y FOR RECEIPT OF TENDERS IS F R ID A Y , SEPTEM BER 2, 1 9 55) RESULTS OF B ID D IN G FOR T R E A SU R Y BILLS D A T E D SEPTEMBER 1, 1955 W ER E N O T A V A IL ABLE W H E N TH IS CIR CU LA R W A S PR IN TED . (o ra ) 33 Y IM PORTANT— Please note that tenders for this issue must be received not later than 2 p.m., Eastern Daylight Saving time, Friday, September 2, 1955. IM PORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” I f you desire to bid on a noncompetitive basis, fill in only the maturity value in paragraph headed "Noncompetitive Bid.” DO N O T fill in both paragraphs on one form . A separate tender must be used fo r 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 fo r his account, and method o f payment. Forms for this purpose will be furnished upon request. No. T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Dated September 8, 1955 To F ederal R eserve B a n k of N ew Maturing December 8, 1955 Y o rk Dated at ............................................ , Fiscal Agent o f the United States. 1955 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on August 30, 1955, as issued by the Treasury Department, the Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on August 30, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s ...................................... * for a for a total amount of $ ............................................ (R ate per 100) total amount o f $ .................................. (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settle ment 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 (N o t to exceed $200,000) (maturity value) o f the Treasury bills therein described, at the average price (in three decimals) 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 to .................. $_____________________ amounting to .................. $_____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds * P rice must b e exp ressed on the basis o f 100, w ith 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 September 8 , 1955, and are to mature on December 8 , 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id d er ............................................... (Please print) B y. (T itle) (Official signature required) Street A d d re ss (C ity, Tow n or V illage, P . O. N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Customer) (C ity, T ow n o r Village, P . O . N o., and State) IM PORTANT INSTRUCTIONS: 1. N o ten d er fo r less than $1,000 w ill b e con sidered, and each tender m u st 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 tender is a co rp o ra tio n , the ten der shou ld b e signed b y an officer o f the c o rp o ra tion a u th orized to m a k e the tender, an d the sign in g o f the tender b y an officer o f the corp o ra tio n w ill be con stru ed as a rep resen tation b y h im that he has been s o authorized. I f the ten d er is m ade b y a partnership, it shou ld be sign ed b y a m em b er 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 b er o f th e firm .” 3. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m re sp o n sible and r e co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 p ercen t o f the face a m ou n t o f T r e a s u ry bills a pp lied fo r, u nless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t b y an in co rp o ra te d b a n k o r trust com p a n y . 4. I f th e la n g u a g e o f this ten der is ch a n g e d in a n y respect, w h ich , in th e o p in io n o f th e S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m ay be disregarded. 'Payment b y credit through Treasury Tax and Loan A ccount will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1314-a Federal Reserve Bank of St. Louis ( over)
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