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FEDERAL RESER VE BANK O F N EW YO RK Fiscal Agent of the United States Offering of $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills D ated O ctober 6, 1955 M aturing January 5, 1956 T o all Incorporated B anks and Trust Com panies, and O thers C oncerned, 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 u rsd ay, Septem ber 29, 1955. TREASURY DEPARTM ENT W ashington T h e T reasu ry Departm ent, by this pu blic n otice, invites tenders for $1,600,000,000, or thereabouts, o f 91-day Treasu ry b ills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing O ctob er 6, 1955, in the amount o f $1,600,059,000, to be issued on a discou n t basis under com petitive and noncom petitive bidding as h ereinafter provided. T h e bills o f this series w ill be dated O cto b e r 6, 1955, and w ill mature January 5, 1956, when the fa ce am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity v a lu e ). T en ders w ill be received at Federal R eserve Banks and B ran ches up to the clo s in g hour, one-thirty o ’c lo c k p.m., Eastern Standard time, M on day, O ctober 3, 1955. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . E ach tender must 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 may not be used. It is urged that tenders be made 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 B ranches on application therefor. O th ers than banking institutions w ill not 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 vestment securities. T en ders from others must be accom panied b y paym ent o f 2 percent o f the face am ount o f T reasu ry bills a pplied for, unless the tenders are accom panied b y an exp ress guaranty o f paym ent by an in corporated bank o r trust com pany. Im m ediately a fter the clo s in g h ou r; 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 blic announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f accepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the righ t to accept o r reject any or all tenders, in w h ole or in part, and his action in any such respect shall be final. Subject to these reservations, n oncom petitive tenders fo r $200,000 or less w ith ou t stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Settlem ent for accepted tenders in a ccord a n ce w ith the bids m ust be made or com pleted at the Federal R eserve Bank on O ctober 6, 1955, in cash or oth er im m ediately available funds o r in a like face am ount o f T rea su ry bills m aturing O ctober 6, 1955. Cash and exch a n ge tenders w ill re-, ceive equal treatment. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m aturing bills accepted 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, w hether interest o r gain from the sale or oth er disp osition o f the bills, does not have any exem ption, as such, and loss from the sale or oth er 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 or other e x cis e taxes, w hether Federal o r State, but are exem pt from all taxation now or hereafter im posed on the principal o r interest th ereof by any State, o r any o f the possessions o f the U nited States, or b y any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discount 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 4 5 4(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 sold is not con sidered to a ccru e until such bills are sold, redeem ed or otherw ise disposed o f, and such bills are exclu ded from con sideration as capital assets. A cco r d in g ly , the ow ner o f T rea su ry bills (oth er than life insurance com panies) issued hereunder need include in his incom e ta x return only the difference between the price paid for such bills, w hether on original issue o r on subsequent purchase, and the amount actu ally received either upon sale or redem ption at m aturity d u rin g the taxable year fo r w hich the return is made, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu la r N o. 418, Revised, and this n otice, 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 R eserve Bank o r Branch. This Bank will receive tenders up to 2:30 p.m., Eastern Daylight Saving time, (1:30 p.m., Eastern Standard time), Monday, October 3, 1955, at the Securities Department of 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 o f Treasury bills (91-day bills dated September 29, 1955, maturing December 29, 1955) T o ta l applied f o r .........$2,317,278,000 T ota l a c c e p t e d ............. $1,600,910,000 (in clu des $203,803,000 entered on a n oncom petitive basis and accepted in fu ll at the a ver age price shown b elow ) A ve ra g e p r ice ........... 99.464 E quivalent rate o f discount approx. 2.122% per annum R ange o f com petitive b id s : H i g h ....................... 99.515 E quivalent rate o f discount approx. 1.919% per annum L o w ......................... 99.460 Equivalent rate o f discount approx. 2.136% per annum (82 percent o f the amount bid fo r at the low price was accepted) Federal R eserve D istrict B oston ......................... .. N ew Y o rk ................. Philadelphia ............. C leveland ................... R ic h m o n d ................... A tlanta ....................... C h i c a g o ....................... St. L ou is ................... M in n e a p o lis ............... K ansas C i t y ............... D allas ......................... San F r a n c is c o ........... T o tal ...................... . . Total A pplied for $ 18,857,000 1,755,276,000 26,805,000 50,179,000 16,150,000 22,702,000 247,592,000 32,644,000 6,822,000 52,020,000 26,390,000 61,841,000 $2,317,278,000 T otal A ccepted $ 13,857,000 1,165,616,000 11,805,000 41,179,000 14,150,000 20,626,000 181,332,000 32,644,000 6,822,000 37,720,000 21,390,000 53,769,000 $1,600,910,000 ( over) IM PORTANT— Closing time is 2:30 p.m., Eastern Daylight Saving time. IM PORTANT— If you desire to bid on a com petitive 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 o f payment. Forms for this purpose will be furnished upon request. N o.......................... T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S Dated October 6, 1955 To F ederal R ese r v e Bank of N ew Y Maturing January 5, 1956 Dated at ork, Fiscal Agent o f the United States. 1955 COMPETITIVE BID Pursuant to the provisions of Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on September 29, 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 29, 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 te per 100) NONCOMPETITIVE BID (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 o f maturing Treasury bills amounting t o ....................$--------------------------------□ By cash or other immediately available funds By surrender of maturing Treasury bills amounting: t o ....................$______________________ □ By cash or other immediately available funds * P r ic e 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 October mature on January 5, 1956. 6 , 1955, and are to This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” Nam e o f B idder .............................................. (P lea se print) B y ..................................................................... (T itle ) (Official signature required) Street A ddress .......................................... . (C ity , T ow n or 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 nam e on line b e lo w : (C ity , T ow n or V illa g e , P. O. N o., and State) (N am e o f Custom er) IM PORTANT INSTRUCTIONS: 1. N o tender fo r $1,000 (m aturity va lu e). less than $1,000 w ill be con sid ered , and each tender must be fo r an even m ultiple o f 2. I f the person m aking the tender is a corp ora tion , the tender should be signed by an officer o f the corp ora tion authorized to make the tender, and the sign in g o f the tender by an officer o f the corp ora tion w ill be construed as a rep resentation by him that he has been so authorized. I f the ten der is made by a partnership, it should be signed b y a m em ber o f the firm, w h o should 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 by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by an in corporated 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 Secretary o f the T reasu ry, is m aterial, the tender m ay be d i s r e g a r d . Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ —1318-a Federal Reserve Bank of St. Louis ( over)
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