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FEDERAL RESERVE BANK O F N EW YORK r Circular No. 4 2 7 9 1 L October 27,1956 J Fiscal Agent of the United States Offering o f $1,600,000,000 o f 91-Day Treasury Bills Dated November 3,1955 Maturing February 2, 1956 T o all Incorporated Banks and Trust 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, O cto b e r 27, 1955. TREASU RY DEPARTM EN T W a sh in g to n T h e T re a su ry D epartm en t, b y this pu blic notice, invites tenders for $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 N o v e m b e r 3, 1955, in the a m ou n t o f $1,600,714,000, to be issued on a discou n t basis under com petitive and n on com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated N o v e m b e r 3, 1955, and w ill m ature F eb ru a ry 2, 1956, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly, and in den om in ation 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 Federal R eserve B anks and B ra n ch es 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 31, 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 case o f com petitive tenders the price offered m u st be expressed 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 n ot be used. It is u rged that tenders be m ade o n the printed fo rm 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 e serv e B anks or B ran ches o n application th erefor. O th ers than b ankin g institutions w ill n ot be perm itted t o subm it tenders excep t fo r their ow n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t deposit fro m in corpora ted banks and trust com p a n ies and fro m respon sib le and recog n ized dealers in invest m en t securities. T e n d ers fro 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 the face a m ou n t o f T rea su ry bills applied fo r, u nless the tenders are a ccom p a n ied b y an express gu a ra n ty o f paym ent b y an in corpora ted bank o r trust com pan y. Im m ed ia tely after the closin g h our, tenders w ill be op en ed at the F ed eral R eserve B anks and B ran ches, fo llo w in g w hich 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 am ou nt 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 a ccep ta n ce or re je ctio n th ereof. T h e S ecretary 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 price fro m any o n 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 for a ccep ted ten ders in a ccord a n ce w'ith the bids m u st be m ade o r com p leted at the Federal R eserve B ank on N ov em b er 3, 1955, in cash o r oth er im m ediately available funds o r in a like fa ce am ou nt o f T rea su ry bills m a tu rin g N o v e m b e r 3, 1955. Cash and exch a n ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een th e par valu e o f m a tu rin g bills a ccep ted in exch a n ge and the issue price o f the new bills. T h e in com e derived fro m T rea su ry bills, w hether interest o r gain from the sale or oth er d isp osition o f the b ills, does n ot have any exem ption , as such, a n d loss fro 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, inheritance, g ift or oth er excise taxes, w h eth er Federal o r State, but are exem p t fr o m all taxation n o w o r hereafter im p osed on th e principal o r interest th ereof b y any State, o r any o f the p ossession s o f the U n ited States, or b y any loca l taxing authority. F o r pu rposes 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 sold b y the U nited States is con sidered to be 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 am ou nt o f d iscou n t at w h ich bills issued hereunder are so ld is n ot con sidered to accru e until such bills are sold, red eem ed or oth erw ise disp osed of, and such bills are excluded 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 (oth er th an life in su rance com p a n ies) issued hereun der need in clude in his in com e ta x 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 o n subsequent purchase, and the a m ou n t actu ally receiv ed either u pon sale or redem ption at m aturity d u rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain or loss. T re a su ry D epartm en t Circular N o. 418, R evised , and this n otice, prescrib e the term s o f the T rea su ry bills a n d g o v e rn the con dition s o f their issue. C opies o f the circular m ay b e ob ta in ed fr o m a n y F ed eral R eserve Bank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, October 31, 1955, at the Securities 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 October 27, 1955, maturing January 26, 1956) T o ta l applied fo r .......... $2,430,033,000 T o ta l a cce p te d .............. $1,601,073,000 (in clu des $250,515,000 entered on 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 .436-f E quivalent rate o f discou nt a p p rox. 2.231% per annum R a n ge o f a ccep ted com p etitive bids: H i g h ..................... 99.443 E quivalent rate o f discou n t app rox. 2.204% per annum L o w ..................... 99.434 E quivalent rate o f discou nt app rox. 2.239% per annum (26 percent o f the am ount bid fo r at the lo w price w as a ccep ted) Federal R eserve D istrict B oston .............................. N ew Y o r k ....................... Philadelphia C leveland ....... R ich m on d ....... A tla n ta ........... C h ica go .......... St. L ou is ......... M in neapolis ... K ansas C ity ... D allas ............. San F ra n cisco T o t a l ....................... Total A pplied f o r Total A cccpted 36,658,000 1,691,703,000 41.841.000 89.582.000 15.314.000 37.451.000 310,053,000 31.191.000 9.725.000 42.967.000 37.165.000 86.383.000 5 29,158,000 1,000,753,000 26.841.000 84.782.000 15.214.000 27.981.000 230,373,000 30.691.000 9,251,000 41.087.000 23.465.000 81.477.000 $2,430,033,000 $1,601,073,000 $ ( over) 34 G Closing time for receipt of tenders is 1:30 p.m., Eastern Standard time, Monday, October 31, 1955 IM P O R T A N T — Please note that closing time is 1*30 p.m., Eastern Standard time. IM P O R T A N T — I f you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Com petitive 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 of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. No______________ T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Dated November 3 , 1955 To Maturing February 2, 1956 Dated at.. F ederal R eserve B a n k of N ew Y o rk , Fiscal Agent o f the United States. .1955 C O M PETITIVE BID N O N C O M P E T IT IV E 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 27, 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 27, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender * for a total amount of for a total amount of (Ita te p e r 100) (N o t t o ex c e e d $200,000) $----------------------------------------------(maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ --- By surrender o f maturing Treasury bills □ amounting to -------------------$------------------------------- amounting t o ...................... $____________________ □ □ 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 November 3, 1955, and are to mature on February 2, 1956. 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 it le ) 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 ) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N a m e o f C u s to m e r) (C ity , T o w n o r V illa g e , P . O . N o., a n d S ta te) IM P O R T A N T IN S T R U C T IO N S : 1. N o tender fo r less than $1,000 w ill be con sid ered , and each tender m ust be fo r an even m ultiple o f $1,000 (m a tu rity v a lu e ). 2. I f the p erson m a k in g the ten der is a corp ora tion , the tender should b e sign ed b y an officer o f the co rp o ra tion authorized to m ake the tender, 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 represen tation b y him that he has been so authorized. If the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a m em b er o f the firm , w h o sh ou ld sign in the fo rm “ ......................................................................................................, a copartn ersh ip, b y ....................................................................................................................... . a m em ber o f the firm .” 3. T en 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 fro m re s p o n sible and re co g n ize d dealers in in vestm ent securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the fa ce am ou nt o f T rea su ry bills applied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu aranty o f paym ent by an in corp ora ted bank or trust com pan y. 4. I f the lan gu age o f this tender is ch anged in any respect, w hich, in the op in ion o f the S ecreta ry o f the T rea su ry, is m aterial, the tender m a y be disregarded. Payment b y credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ TENTB-1322-a Federal Reserve Bank of St. Louis ( over)