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FEDERAL RESERVE BANK O F NEW YORK I C ircu lar N o . 42761 O cto b e r 13. 1955 J Fiscal Agent of the United States L Offering of $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills Dated October 20, 1955 Maturing January 19, 1956 T o all In corpora ted B anks and Trust Com panies, and O thers 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 u rsd a y, O c t o b e r 13, 1955. TREASU RY DEPARTM EN T W a s h in g to n T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,600,000,000, o r th ereabou ts, o f 9 1-d ay T rea su ry bills, fo r cash and in exch a n ge for T rea su ry bills m atu rin g O c t o b e r 20, 1955, in the a m ou n t o f $1,600,431,000, to be issued on a discou n t basis u nder com p etitive and n on com p etitiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated O c to b e r 20, 1955, and w ill m ature January 19, 1956, w hen the face a m ou n t w ill be pa ya b le w ith ou t in terest. T h e y w ill be 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 e serv e Banks and B ran ches up to the clo s in g h our, on e-th irty o ’ c lo c k p.m ., E astern Standard tim e, M on d a y , O c to b e r 17, 1955. T en d ers w ill n ot be receiv ed at th e T rea su ry D epa rtm en t, W a s h in g to n . E ach ten der m u st b e fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitiv e ten ders th e p rice o ffe re d m u st be exp ressed 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 rged that tenders be m ade o n the printed fo rm s and fo rw a rd e d in th e special en v elop es w h ich w ill be supplied b y F ed eral R e s e rv e B anks o r B ran ch es o n a pp lica tion th erefor. O th e rs than b ankin g institutions w ill not be perm itted to subm it ten ders e x ce p t fo r th eir ow n a ccou n t. T e n d e rs w ill be received w ith ou t d ep o sit fro m in corp ora ted banks and trust com p a n ies and fro m respon sib le and re co g n iz e d dealers in in vest m en t securities. T e n d e rs fro 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 fa ce am ou nt o f T rea su ry bills applied fo r, u nless the tenders are a ccom p a n ied b y an exp ress gu aranty o f pa 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 after the clo s in g h ou r, ten ders w ill be op en ed at the F ed era l R eserve Banks and B ran ches, fo llo w in g w h ich pu b lic a n 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 the a m ou n t and p rice ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be advised o f th e a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T rea su ry e x p re s sly reserves the righ t to a cce p t o r re je ct a n y or all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b je ct to these reserva tion s, n on com p etitive ten ders fo r $200,000 o r less w ith ou t stated price fr o m any on 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 com p etitiv e bids. S ettlem ent fo r a ccep ted tenders in a cco rd a n ce w ith the bids m u st be m ade o r com p leted at the F ed eral R eserve Bank on O c t o b e r 20, 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 rea su ry bills m aturing O c t o b e r 20, 1955. Cash and ex ch a n g e tenders w ill receiv e equal treatm ent. Cash adjustm ents w ill be m ade f o r d ifferen ces betw een the par valu e o f m atu rin g bills a cce p te d in ex ch a n g e a n d the issue p rice o f the n ew bills. T h e in co m e derived fro m T rea su ry bills, w h eth er interest or gain fro m the sale o r oth er d isp osition o f the bills, d oes not have any exem ption , as such, and lo s s fr o m the sale o r oth er d isp osition o f T rea su ry bills d oes n ot have a n y special treat m en t, 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, in heritance, g ift or oth er ex cise taxes, w hether F ed era l o r State, but are ex em p t fro m all taxation n ow o r hereafter im p osed on the prin cip a l or interest th e re o f b y any State, o r a n y o f the p ossession s o f the U n ited States, o r b y any loca l ta x in g authority. F o r p u rp oses o f taxation 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 sidered to b e interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the a m ou n t o f d iscou n t at w hich bills issued hereunder are sold is n ot co n sid ered to a ccru e until such bills are sold, red eem ed or oth erw ise disp osed of. and such bills are exclu ded fr o m con sidera tion as capital assets. A c c o r d in g ly , the o w n er o f T rea su ry bills (o th e r than life in su rance co m p a n ie s ) issued hereunder need in clude in his in co m e tax return o n ly the differen ce betw een the price paid fo r such bills, w h eth er on original issue o r on subsequen t pu rch ase, and the am ou nt actu ally receiv ed either u p on sale o r red em ption at m atu rity du rin g the taxable y e a r 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 ep a rtm en t C ircu lar N o . 418, R evised , and this n otice, p rescrib e th e term s o f the 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 ob ta in ed fro m a n y F ed eral R e serv e B ank o r B ran ch. This Bank will receive tenders up to 2 :3 0 p.m., Eastern Daylight Saving time ( 1 :30 p.m., Eastern Standard time), Monday, October 17, 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 of last offering of Treasury bills (9 1 -d a y bills dated October 13, 1955, maturing January 12, 1956) T o ta l applied fo r . . . $2,256,679,000 T o ta l a ccep ted ,....$ 1 ,6 0 0 ,7 3 1 ,0 0 0 (in clu d es $231,403,000 en tered on a n on com p etitiv e basis and a ccep ted in full at the average price sh ow n b e lo w ) A v e ra g e price . . 9 9 .4 2 9 + E quivalent rate o f discou nt : : r. a p p rox. 2.257% per annum Range of a cce p te d com p etitive b id s : (e x c e p tin g ten der o f $500,000) on e H ig h ............... 99.440 E quivalent rate o f discou n t a p p rox. 2.215% p er annum Low .................. 99.426 E quivalent rate o f discou n t a p p rox . 2.271% p er annum (84 p ercen t o f the am ou nt bid fo r at the lo w p rice w as a cce p te d ) F ed era l R eserv e D istrict B o s to n ...................... N ew Y o r k ................ P h ila delp h ia ........... C levelan d .................. R ich m o n d ............... A tla n ta ...................... C h ica g o .................... St. L ou is .................. . . M in neapolis ........... K ansas- C ity ........... D allas ........................ San F r a n c i s c o ......... T o ta l ......... Total A pplied f o r $ 35,938,000 1,594,934,000 42,377,000 63,525,000 15,654,000 33,297,000 250,432,000 27,564,000 16,124,000 35,940,000 56,095,000 84,799,000 $2,256,679,000 T o ta l A ccep ted $ 30,938,000 1,060,694,000 27,377,000 63,525,000 15,654,000 32,637,000 180,792,000 27,564,000 15,708,000 34,940,000 31,063,000 79,839,000 $1,600,731,000 ( over) IM PORTANT— Closing time is 2:30 p.m., Eastern Daylight Saving time. IM PORTANT— I f 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 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 FOR 9 1 -D A Y TR EASU R Y BILLS Maturing January 19, 1956 Dated October 20, 1955 To Dated at .................................. F ederal R eserve B a n k of N e w Y o rk , 1955 Fiscal Agent o f the United States. 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 October 13, 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 October 13, 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) (N ot to exceed $200,000) 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: (maturity value) of 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 o f maturing Treasury bills □ amounting to . . ...............$..................................... amounting to .................. $ □ □ 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. By surrender of maturing Treasury bills _________ ;_____ _ By cash or other immediately available funds j The Treasury bills for which tender is hereby made are to be dated October 20, 1955, and are to mature on January 19, 1956. 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- (Official signature required) (T itle) S treet A d d re s s (C ity, T ow n o r 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 or Village, P. O . N o., and State) IM PORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill b e con sid ered , and each ten der 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 ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the co rp o ra tion a u th orized to m a ke the ten der, and the sig n in g o f the ten der b y an officer o f the co rp 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 auth orized. I f the ten d er is m ade b y a partnersh ip, it sh ou ld be sign ed b y a m e m b e r o f th e firm , w h o sh ou ld sign in th e 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 ers 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 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 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 applied fo r, 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 co rp o ra te d ba n k or trust com p a n y . 4. I f th e la n g u a ge o f this ten der is ch a n g e d in any resp ect, w h ich , in the op in ion o f th e S ecreta ry o f the T re a s u ry , is m aterial, the ten der m ay be disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. T E N T B — 1320-a (O V E R ) Fe d er a l 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 2-5700 October 17, 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 may anticipate delays in receiving advices of nonpayment and items returned unpaid by banks located in the affected areas. We will continue to dispatch cash items deposited with us payable in the affected areas and to give credit therefor in accordance with our time schedules as usual, but we reserve the right to charge back any unpaid items at any time. ALLAN SPROUL, President.
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