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FEDERAL RE SE R V E BANK O F N EW YO RK Fiscal Agent of the United States [^oclobiJVifss7 ] Offering of $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills Dated October 27, 1955 Maturing January 26, 1956 T o all In corporated B anks and Tru st Companies, 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 ursday, O cto b e r 20, 1955. TREASU RY D EPARTM EN T W ashington T h e T re a su ry D epartm ent, by this pu blic notice, invites tenders for $1,600,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge for T reasu ry bills m aturing O cto b e r 27, 1955, in the am ount o f $1,601,235,000, to be issued on a discou n t basis under com petitive and noncom petitive bid d in g as h erein a fter provided. T h e bills o f this series w ill be dated O cto b e r 27, 1955, and w ill mature January 26, 1956, when the face amount w ill be payable without interest. T h ey w ill be issued in bearer form only, 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, on e-thirty o ’c lo ck p.m., Eastern Standard tim e, M on day, O ctober 24, 1955. T en ders w ill not be received at the T reasu ry D epartment, W a sh in gton . E ach tender must be fo r an even m ultiple o f $1,000, and in the ca se o f com petitive tenders the price offered must be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F raction s m ay 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 b y F ed eral R eserve Banks or B ranches o n application therefor. O th ers than banking institutions w ill not be perm itted to subm it tenders excep t for their ow n account. T en ders w ill be received w ith ou t 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 by paym ent o f 2 percent o f the face am ount o f T rea su ry bills applied for, unless the tenders are accom panied by an express 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 hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich public announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted 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 accep t o r reject any or all tenders, in w h ole or in part, and his action in any such respect shall be final. S ubject to these reservations, noncom petitive tenders f o r $200,000 or less w ith ou t stated price from any one b idder w ill be accepted in fu ll at the a verage price (in three decim a ls) o f a ccepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce with the bids must be made or com pleted at the Federal R eserve Bank on O ctober 27, 1955, in cash or other im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing O ctob er 27, 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 between the par value o f m aturing bills accepted in exch an ge and the issue price o f the new bills. T h e in com e derived from T reasu ry bills, w hether interest o r ga in from the sale or oth er disposition o f the bills, does not have any exem ption, as such, and loss from the sale or other disp osition o f T reasu ry bills does not have any special treat ment, as such, under the Internal R evenue C ode o f 1954. T h e bills are subject to estate, inheritance, g ift o r other e x cis e taxes, w hether Federal o r State, but are exem pt from a ll 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 by any loca l ta x in g authority. F o r purposes o f ta xation the am ount o f discou nt 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 a re sold is not con sidered to accru e until such bills are sold, redeem ed or otherw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A cco rd in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com pan ies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid fo r such bills, w hether on original issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity d u rin g the ta xab le year fo r w hich the return is m ade, as ordinary gain or loss. T reasu ry D epartm ent C ircu la r N o. 418, R evised, and this n otice, prescribe the term s o f the T reasu ry bills and govern the con ditions o f their issue. C opies 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 24, 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 o f last offering of Treasury bills (91-day bills dated October 20, 1955, maturing January 19, 1956) T o ta l applied f o r .........$2,405,915,000 T o ta l a c c e p t e d ............. $1,600,983,000 (in clu des $260,942,000 entered on a noncom petitive basis and accepted in full at the a ver age price show n b elow ) A v era ge p r ic e ........... 99 .41 0 + Equivalent rate o f discount approx. 2.333% per annum R ange o f accepted com petitive b id s : (excep tin g one tender o f $500,000) H i g h ....................... 99.434 Equivalent rate o f discount approx. 2.239% per annum L o w ......................... 99.407 Equivalent rate o f discount approx. 2.346% per annum (28 percent o f the amount bid fo r at the low price was accepted) Federal R eserve D istrict Total A pplied for B oston ......................... . . N ew Y o r k ................. Philadelphia ............. Cleveland ................... R ich m on 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 i s c o .......... T o t a l ...................... .. $ 26,839,000 1,708,405,000 34,519,000 71,869,000 15,623,000 42,168,000 284,679,000 34,252,000 11,390,000 32,962,000 41,521,000 101,688,000 $2,405,915,000 Total A ccepted $ 21,839,000 1,056,105,000 19,519,000 67,869,000 14,763,000 36,728,000 194,919,000 30,812,000 11,190,000 29,962,000 26,021,000 91,256,000 $1,600,983,000 ( over) IM PORTANT— Closing time is 2:30 p.m., Eastern Daylight Saving 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.” 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 Maturing January 26, 1956 Dated October 27, 1955 To F ederal R eserve B a n k of N ew Y o rk Dated a t ...................... , 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 o f the public no tice on October 20, 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 October 20, 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) o f 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 27, 1955, and are to mature on January 26, 1956. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B idder .............................................. (P lea se print) By (Official signature required) (T itle ) Street A dd ress .......................................... . (C ity , T ow n o r V illa g e , P. O. N o., and State) I f this tender is subm itted b y a bank fo r the a ccou n t o f a custom er, indicate the custom er’ s nam e on line b e lo w : (C ity , T o w 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 for $1,000 (m aturity valu e). less than $1,000 w ill be con sidered, 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 oration authorized to make the tender, and the sign ing o f the tender by an officer o f the corp ora tion w ill be con stru ed 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 by 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 b y paym ent o f 2 percent o f the fa ce am ount o f T rea su 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 opinion o f the Secretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ -1321-a Federal Reserve Bank of St. Louis ( over)
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