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FEDERAL RESERVE BANK O F N E W YORK Fiscal Agent of the United States [sSpTembS^iMsJ Offering o f $ 1 ,60 0,00 0,0 00 o f 91-Day Treasury Bills Dated September 29, 1955 Maturing Decem ber 29, 1955 T o all In corpora ted B anks and Tru st 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 N E W S P A P E R S , T h u rsd a y, S ep tem ber 22, 1955. TREASURY DEPARTM ENT W a s h in g to n 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 ereabou ts, o f 9 1-d ay T re a su ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g Septem ber 29, 1955, in the am ou nt o f $1,500,043,000, t o be issued on a d isco u n t basis u nder com p etitiv e and n on com p etitiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill b e dated S ep tem ber 29, 1955, and w ill m ature D e ce m b e r 29, 1955, w h en the face 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 r m 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 va lu e). T e n d e rs w ill be receiv ed at Federal R eserve Banks and B ran ches up t o the clo s in g hour, on e-th irty o ’ c lo c k p.m ., E astern Standard tim e, M o n d a y , S ep tem ber 26, 1955. T en d ers will n ot be received at the T rea su ry D epa rtm 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 ten ders the p r ice o ffe re d m u st b e ex p resse d on the basis o f 100, w ith n ot m o re than th ree decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rg ed that tenders be m ade on th e p rin ted fo rm s a n d fo rw a rd e d in th e sp ecia l en v elop es w h ich w ill b e sup plied b y F ed era l R es e rv e B anks 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 b e perm itted to subm it ten ders e x ce p 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 d e p o s it fr o m in co rp o ra te d banks and trust com p a n ies a n d fro m resp on sib le and r e co g n iz e d dealers in in vest m en t secu rities. T e n d ers fr o 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 th e fa c e a m ou n t o f T rea su ry bills a pplied fo r, u nless th e tenders are a ccom p a n ied b y an exp ress gu aranty o f p a ym en t b y an in corp ora ted b a n k o r trust com p a n y . Im m e d ia te ly a fter the clo s in g h ou r, ten ders w ill be op en ed a t th e F ed era l R e serv e B anks and B ra n ch es, fo llo w in g w h ich p u b lic an n ou n cem en t w ill be m ade b y the T r e a s u ry D epa 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 b ids. T h o s e su b m ittin g ten ders w ill be advised o f the a ccep ta n ce or 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 t o a cce p t o r reject a n y o r all tenders, 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 these reserva tion s, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y o n e b idd er w ill b e a ccep ted in fu ll at the a vera ge p rice (in th ree d e c im a ls ) o f a ccep ted co m p e titiv e bids. S ettlem ent fo r a ccep ted tenders in a cco rd a n ce w ith the b id s m u st be m ade o r com p le te d at the F ed eral R eserve Bank on S ep tem ber 29, 1955, in cash o r oth er 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 aturing S ep tem ber 29, 1955. Cash and exch a n ge tenders w ill receiv e equal treatm ent. Cash adju stm en ts w ill be m ade fo r d ifferen ces betw een the pa r va lu e o f m a tu rin g bills a cce p te d in exch a n ge and th e issue p rice o f th e n ew bills. T h e in co m e derived fr o m T rea su ry bills, w h eth er interest or gain fr o m the sale o r oth er d isp osition o f the bills, d oes 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 r e a s u ry bills d o e s n ot have a n y special treat m en t, as such, under th e Internal R even u e C o d e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er e x cis e taxes, w h eth er Federal o r State, but are ex em p t fro m all taxation n o w or hereafter im p osed on the principal o r interest th e re o f b y an 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 a u th ority. F o r pu rp oses o f ta x ation the am ou nt o f discou nt at w h ich T rea su ry bills are o rigin a lly sold b y th e U n ited States is con sidered to b e interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R e y en 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 sold is n ot co n sid ered to a ccru e until such bills are sold , red eem ed o r oth erw ise d isp osed o f, and such bills are exclu ded fro m con sidera tion as capital assets. A c c o r d in g ly , the o w n e r o f T r e a s u ry bills (o th e r than life insurance 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 th e price pa id fo r such bills, w h eth er on original issue o r on subsequent pu rch ase, and the a m ou n t actu ally receiv ed either u p on sale o r red em p tion at m a tu rity du rin g the ta x a b le yea r fo r w h ich th e return is m ade, as ord in a ry g a m o r loss. T re a su ry D ep a rtm en t Circular N o . 418, R evised , and this n otice, p rescrib e th e 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 th eir issue. C op ies o f the circular m ay be ob ta in ed fr o m a n y F ed era l R e serv e B a n k o r B ran ch. This Bank will receive tenders up to 2:30 p.m., Eastern Daylight Saving time (1:30 p.m., Eastern Standard time), Monday, September 26, 1955, at the Securities Department of 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 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 22, 195 5, maturing December 22, 195 5) Federal Reserve District T o ta l applied fo r T o ta l a ccep ted Total Accepted B oston <K ?8 4?^ n n o $ S e w Y o r k ...................... $1 fils ’s f o S .................... ’ P h iladelp hia .................. 47,151,000 84,220,000 9? 9 9 .4 9 9 + E quivalent rate o f discou n t an n rox 1 981% ner annum A tla n ta 0 ...................... /vu an ta ............................. 48’ S62000 4«,bO^,UUO 4 7 ^np’SSn 47,502,000 R a n g e o f a ccep ted com p etitiv e b id s : H i g h .................. 99.507 E quivalent rate o f d iscou n t a p p rox . 1.950% p er annum L o w .................. 99.494 E quivalent rate o f d iscou n t a n o r o x 2 002% o e r annum a p p rox. p er annum (94 p ercen t o f the a m ou n t bid for at the lo w p rice w as a cce p te d ) S t '° L o u is ........................... r ...................... M in n ea p olis ................... ^ " s a s C ity ................... P allas ............................... San F ra n cisco ............. 22 S 924 00 0 223 615’ 000 JJ’ S S 'S S 34,689,000 35,826,000 80,213,000 -----------------------$2,327,516,000 JS’non’000 32,089,000 29,808,000 80,213,000 -----------------------$1,600,318,000 A v e ra g e price . . $2,327,516,000 $1,600,318,000 (in clu d es $268,516,000 entered on a n on com p etitive basis and a ccen ted in full at the average p rice show n b e lo w ) Total Applied for T o ta l nnn $ o 65,000 31,651,000 83,77*000 ( over) 34 B Note change in closing to 2:30 p.m., Eastern Daylight Saving time (1:30 p.m., Eastern Standard time). IM PORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” 5 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 f o r each bid, except that banks submitting bids on a competitive basis fo r 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 o f payment. Forms fo r this purpose will be furnished upon request. No. T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS Dated September 29, 1955 To Fm ER AL R e s e r v e B a n k of N ew Y Maturing December 29, 1955 Dated at .................................. ork, 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 September 22, 1955, as issued by the Treasury Department, the Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on September 22, 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 ot to exceed $200,000) (maturity value) of the Treasury bills therein described, at the average price (in three decimals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: amounting to .................. $______________________ □ By surrender of maturing Treasury bills amounting to ...................$_____________________ _ □ □ By cash or other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. The Treasury bills for which tender is hereby made are to be dated September 29, 1955, and are to mature on December 29, 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name of; Bidder — ....................................... ......................... ............................ ...... (Pleaae print) B y. (Official signature required) (T id e ) Street Address (C ity, T o w 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 V illage, P . O . N o., and State) IM PORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sid ered , and each ten d er 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 th e person m a k in g th e ten der is a co rp o ra tio n , th e ten der sh ou ld b e sig n ed b y an officer o f the c o rp o ra tion a u th orized t o m a ke the tender, and th e sig n in g o f the ten der b y a n officer o f th e co rp o ra tio n w ill be con stru ed as a represen tation b y h im that he has been s o auth orized. I f th e ten d er is m ade b y a partnersh ip, it sh ou ld b e sign ed b y a m e m b e r 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 f ir m ” 3. T e n d e rs w ill be receiv ed w ith ou t d ep osit fr o m in corp ora ted banks a n d trust c o m p a n i - and fr o m respon sible and re 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 ym en t o f 2 p ercen t o f the fa ce a m o u n t o f T r e a s u ry bills a pp lied fo r, u nless th e ten ders are a cco m p a n ie d b y an ex p re s s gu a ra n ty o f paym ent b y an in co rp o ra te d bank o r trust com p a n y . 4. I f th e la n g u a g e o f this ten d er is ch a n g ed 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 su ry , is m aterial, th e ten der m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B — 1317-a ( over)