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FEDERAL RESERVE BANK O F N EW YORK f C ir c u la r N o. 4 2 6 6 L S e p te m b e r 15,1955 Fiscal Agent of the United States Offering o f $1,600,000,000 o f 91-Day Treasury Bills Dated September 22, 1955 Maturing December 22, 1955 T o all Incorporated Banks and T ru st Companies, and O thers Concerned, in the Second Federal 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 N E W S P A P E R S , T h u rsd a y, S ep tem ber 15, 1955. TREASU RY DEPARTM EN T W a s h in g to n T h e T re a su ry D epartm ent, b y this pu blic n otice, invites tenders fo r $1,600,000,000, or thereabouts, o f 9 1-d ay T reasu ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing S ep tem ber 22, 1955, in the am ou nt o f $1,503,268,000, to be issued o n a d iscou 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 S ep tem ber 22, 1955, and w ill m ature D e ce m b e r 22, 1955, w hen the face a m ou n t w ill be payable w ith ou t interest. T h e y w ill b e issued in bearer fo rm on 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 be received at F ed eral R eserve B anks and B ran ch es up t o the clo s in g hour, tw o o 'c lo c k p.m ., E astern D a y ligh t S a v in g tim e, M on d a y, S ep tem ber 19, 1955. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive tenders the price offered m u st be expressed on the basis o f 100, w ith n ot m ore than th ree decim als, e. g., 99.925. F raction s m a y n ot be used. It is u rged that tenders be m ade on th e printed form s and forw a rd ed in the special en velop es w h ich w ill be supplied b y F ed eral R eserve B anks or B ran ch es o n application therefor. O th e rs than banking institutions w ill n ot be perm itted t o subm it tenders excep t for their o w n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit from in corp ora ted banks and trust com p a n ies and fro m respon sible and recog n ized dealers in invest m en t securities. T e n d ers fro m others m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills a pplied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corporated bank o r trust com pan y. Im m edia tely after the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve B anks and B ranches, fo llo w in g w h ich pu blic a n n ou n cem en t w ill be m ade b y the T rea su ry D epa rtm en t o f the a m ou n t and price range o f a ccep ted bids. T h o s e su b m ittin g tenders w ill be advised o f th e accep tance or rejection th ereof. T h e S ecreta ry 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 a n y 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 p rice from 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 ccepted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the Federal R eserve Bank on Septem ber 22, 1955, in cash or oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m a tu rin g S ep tem ber 22, 1955. Cash and exch a n ge ten ders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value o f m atu rin g bills a ccep ted in e x ch a n g e and the issue price o f the n ew bills. T h e in com e derived fro m T rea su ry bills, w hether interest o r gain fro m the sale or oth er disp osition o f the bills, does 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 ent, as such, under th e 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 excise taxes, w hether F ed eral o r State, but are exem p t fr o m all taxation n o w o r hereafter im posed on the principal o r interest th ereof b y a n y State, o r a n y o f the possession s o f the U n ited States, o r b y a n y loca l 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 s o ld b y the U n ited States is con sid ered 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 ode o f 1954 the am ou nt o f d iscou n t at w h ich bills issued hereunder are sold is n o t con sidered to accru e until such bills are sold , red eem ed o r oth erw ise disp osed o f, and such bills are exclu ded fro m con sideration 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 insurance com p a n ies) issued hereunder need include in his in com e tax return on ly the differen ce betw een the price paid for 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 du 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 Circular N o. 418, R evised , and this n otice, prescribe 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 opies o f the circular m ay be obtain ed fro m a n y Federal R eserve Bank o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, September 19, 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 September 15, 1955, maturing December 15, 1955) T o ta l applied fo r .......... $2,653,983,000 T o ta l a c c e p t e d .............. $1,602,174,000 (in clu d es $267,743,000 entered o n 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 ........ 9 9 .4 6 8 + E quivalent rate o f discou n t a p p rox. 2 .104% per annum R a n ge o f a ccep ted com p etitive b id s: (E x c e p t in g tw o tenders tota lin g $1,100,000) H i g h ..................... 99.470 E quivalent rate o f discou nt a p p rox. 2.097% per annum L o w ..................... 99.466 E quivalent rate o f discou nt a p p rox. 2 .113% per annum (14 percent o f the a m ou n t bid fo r at the low price w as a ccep ted) Federal R eserve D istrict .... N ew Y o r k ................. .... Philadelphia .............. C leveland ................... R ich m on d ................... St. L ou is ................... M in neapolis .............. K ansas C ity ............ D allas .......................... San F ra n cisco .......... T otal .................... .... Total A pplied fo r $ 33,029,000 1,799,383,000 46,203,000 69,281,000 17,048,000 52,570,000 339,668,000 30,206,000 21,047,000 73.906,000 42,861,000 128,781,000 $2,653,983,000 Total A ccepted $ 23,749,000 976,018,000 20,655,000 41,978,000 14,367,000 33,478,000 260,338,000 26,545,000 19,031,000 56,236,000 35,501,000 94,278,000 $1,602,174,000 ( over) 34 A m 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 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 fo r 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 o f payment. Forms for this purpose will be furnished upon request. N FOR 9 1 -D A Y TR E A SU R Y BILLS tender Maturing December 22, 195 5 Dated September 22, 1955 To o .- Dated at....... ............ F ederal R eserve B a n k o f N ew Y ork, Fiscal Agent o f the United States. .1955 COMPETITIVE BID NONCOMPETITIVE 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 September 15, 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 September 15, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender . * for a total amount of for a total amount of $.............................................. (R a t e p er 100) ( N o t t o e x c e e d §200,000) $...... I.................................. ......... (maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ ....By surrender o f maturing Treasury bills □ amounting to .......................$ .................................... amounting to □ □ By cash or other immediately available funds By surrender of maturing Treasury bills ................... $ ____________________ By cash or other immediately available funds ■ P rice must be expressed 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 22, 1955, and are to mature on December 22,# .1955. » J> . ; . ^ . v > . .. wj, This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id d e r ............................................... (P le a s e p r in t ) B y. (O fficia l s ig n a tu re r e q u ir e d ) (T itle ) 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) I f this tender is submitted b y a bank for the account of a customer, indicate the customer’s name on line below: (N a m e o f C o p to ip e r) (C ity , T o w n o r V illa g e , P. O . N o., a n d S ta te) IMPORTANT INSTRUCTIONS: n 1. N o tender fo r less than $1,000 w ill be con sidered, and each tender m ust be fo r an even m ultiple o f $1,000 (m a tu rity v a lu e ). o n f 2. xitwdop erson& m a k in g the tender . is- oa' ' corp ora tion , the tender should b e. sign ed b y an officer o f the co rp o ra u i . ■ ' j. I f the tion authorized to m ake the tender, and the sig n in g o f the ten der b y an officer o f th e corp ora tion w ill be con stru ed as a representation b y him that he has been so authorized. If the ten der is m ade b y a partnership, it should 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 copartn ersh ip, b y ........................................................................................................................ a m em b er o f the firm .” 1 3. 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 pa n ies and from resp o n sible and re co g n ize d dealers in in vestm ent securities. T e n d e rs from others m ust be accom pa n ied b y paym ent o f 2 percent o f the fa ce a m ou n t o f T rea su ry bills applied for, unless the ten ders are accom pa n ied b y an express gu aranty o f paym ent b y an in corp ora ted bank o r trust com pan y. 4. I f the la n g u a ge o f this tender is ch anged 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 ten der m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ TENTB— 1 1 -a 36 (over) Federal Reserve Bank of St. Louis