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FEDERAL RESERVE BANK O F N E W Fiscal Agent of the United States YORK wfiSS] Offering of $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills D a te d D e c e m b e r 1 , 1 9 5 5 M a tu r in g M a r c h 1 , 1 9 5 6 T o all In corpora ted B anks and Trust Com panies, and O thers C oncerned, 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 , W e d n e s d a y , N o v e m b e r 23, 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, invites tenders fo r $1,600,000,000, o r th ereabouts, o f 9 1 -d a y T rea su ry bills, fo r cash and in e x ch a n g e fo r T r e a s u ry bills m atu rin g D ecem b er 1, 1955, in the a m ou n t o f $1,600,049,000, t o be issued on a discou n t basis under com p etitive 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 be dated D e ce m b e r 1, 1955, and w ill m ature M a rch 1, 1956, w h en the fa ce 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 b ea rer 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 v a lu e ). T e n d e rs w ill b e received at F ed eral R es e rv e B anks and B ra n ch es u p to the clo s in g h ou r, o n e-th irty o ’ c lo c k p.m .. E astern S tandard tim e, M o n d a y , N o v e m b e r 28, 1955. T en d ers w ill n ot be receiv ed at the T r e a s u 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 etitiv e ten ders th e p r ice o ffe re d m u st be ex p resse d on the basis o f 100, w ith n ot m ore than th ree decim als, e. g., 99.925. F ra ction s m a y n o t be used. It is u rg ed that ten ders be m ade o n the printed fo rm s a n d fo rw a rd e d in th e special en v elop es w h ich w ill b e supplied b y F ed eral R e serv e B ank s o r B ra n ch e s o n a pp lica tion th erefor. O th e rs than b ankin g institutions w ill n ot b e perm itted to subm it ten ders e x ce p t f o r th eir o w n a ccou n t. T e n d e rs w ill be re ce iv e d w ith ou t d ep o sit fro m in co rp o ra te d banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers in in vest m e n t secu rities. T e n d e rs 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 fa c e am ou nt o f T r e a s u ry bills a p p lied fo r, u n less the tenders are a ccom p a n ied b y an exp ress gu aranty o f p a y m 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 at the F ed era l R es e rv e B anks and B ra n ch es, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill b e m ade b y th e 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 bids. T h o s e su b m ittin g te n d e rs w ill be advised o f th e a ccep ta n ce o r 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 r e s s ly reserves the rig h t to a cce p t o r re je ct a n y o r all ten ders, in w h o le or in part, and his a ction in a n y such resp ect shall b e final. S u b je ct to these reserva tion s, n on com p etitive ten ders f o r $200,000 o r less without^ stated p rice fr o m a n y on e b id d er w ill be a ccep ted in fu ll at the a vera ge price (in th ree d e c im a ls ) o f a ccep ted com p etitiv e bids. S ettlem en t f o r a ccep ted ten ders in a cco rd a n ce w ith th e b id s must be m ade o r com p le te d at the Federal R eserve Bank on D e ce m b e r 1, 1955, in cash o r o th e r im m ediately available fu n ds o r in a like face a m ou n t o f T rea su ry bills m aturing D e ce m b e r 1, 1955. Cash and e x ch a n g e ten ders w ill re ce iv e equal treatm ent. Cash adju stm en ts w ill be m ade fo r d ifferen ces betw een th e par value o f m a tu rin g bills a cce p te d in ex ch a n g e and the issue price o f the n ew bills. T h e in co m e derived fro m T r e a s u ry bills, w h eth er interest o r gain fro m the sale o r oth er d isp osition o f the b ills, d oes not have a n y e x e m p tion , as such, and loss fro m the sale or oth er d isp osition o f T r e a s u ry bills d oes n ot have a n y sp ecia l tre a t m en t, as such, u nder the Internal R even u e C od e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er e x cis e taxes, w h eth er F e d e ra l o r State, but are ex em p t fro m all taxation n ow o r h ereafter im p osed on the prin cip a l or in terest th e re o f b y a n 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 authority. F o r p u rp oses o f ta xation the a m ou n t o f discou n t 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 sid ered to be interest. U n der S e ctio n s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C o d e o f 1954 th e a m ou n t o f d iscou n t at w h ich bills issued hereun der are so ld is n ot co n sid ered to a ccru e until such bills are sold, redeem ed o r oth erw ise d isp osed o f, and such bills are exclu d e d fro m con sidera tion as capital assets. A c c o r d in g ly , the ow n er 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 on ly the differen ce betw een th e price pa id fo r such bills, w h eth er on original issue o r on subsequen t pu rch ase, and the a m ou n t actu ally receiv ed either u p on sale o r red em ption at m atu rity d u rin g the taxable y e a r f o r w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D e p a rtm e n t C ircu lar N o . 418, R evised , and this n otice, p rescrib e the term s o f th e T r e a s u ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f th e circu la r m a y b e ob ta in ed fr o m a n y F ed era l R es e rv e B a n k o r B ra n ch . This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, November 28, 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 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. R esu lts o f la st o ffe r in g o f T r e a s u r y b ills ( 9 0 - d a y bills d a te d N o v e m b e r 2 5 , 1 9 5 5 , m a t u r in g F e b r u a r y 2 3 , 1 9 5 6 ) T o t a l a pp lied f o r ...$ 2,1 7 4 ,0 7 3,0 0 0 F e d era lR ese rv e T o ta l a ccep ted ......... $1,600,093,000 (in clu d es $231,087,000 en tered on a n on com p etitiv e basis and a ccep ted in full at the a vera ge price sh ow n b e lo w ) A v e r a g e p rice . . 99.390 E q u iva len t rate o f discou n t a p p rox . 2.440% p er annum --------D istrict------B oston ............................. N e w Y o r k ...................... P h ila delp h ia .................. C levelan d ...................... R ich m o n d ...................... R a n g e o f a cce p te d co m p etitive b id s : (e x c e p tin g th ree ten ders a g g re g a tin g $780,000) A tla n ta C h jca g o — on 99.375 p. • * . cA ’ * L o w .................. E quivalent rate o f discou n t 2.500% p er annum (57 p ercen t o f the am ou nt bid f o r at the lo w price w as a cce p te d ) ........................... ........................... ::::::::: K an sas C ity .................. D allas ................................ San F r a n cis co .............. T o ta l ............. T ota l T ota l A pplied f o r $ 39,654,000 1,528,511,000 32,426,000 75,564,000 18,286,000 A ccep ted $ 37,504,000 1,017,031^000 ’ 17[426[000 71,264,000 18,286,000 27,706,000 241,787,000 27,706,000 202,887,000 jg g 47,969,000 44,196,000 81,355,000 ----------------------$2,174,073,000 Please n ote t h a t th e resu lts sh o w n a b o v e a re f o r 9 0 -d a y T r e a s u r y B ills. SSSK 47,969,000 42 046 000 81,355,000 -----------.-----------$1,600,093,000 ( over) 34 K IM P O R T A N T — I f you desire to bid on a c o m p e titiv e basis, fill in rate per 100 and m aturity value in paragraph headed "Com petitive Bid.” I f you desire to bid on a n o n c o m p etitiv e basis, fill in only the m aturity value in paragraph headed "Noncom petitive Bid.” D O N O T fill in b o th p a ra grap h s on on e fo r m . 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 of payment. Forms for this purpose w ill be furnished upon request. N o............................... T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Maturing March 1, 1956 Dated December 1, 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. CO M PE TITIVE BED N O N C O M P E T IT IV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on November 23, 1955, as issued by the Treasury Department, the Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on November 23, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s ...................................... * for a (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 for a total amount o f $ ............................................ (N o t to exceed $200,000) (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 of maturing Treasury bills amounting to .................. $_____________________ amounting to .................. $_____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds * P rice m ust be exp ressed on the basis o f 100, w ith not m o re than th ree decim al places, f o r exam ple, 99.525. The Treasury bills for which tender is hereby made are to be dated December 1, 1955, and are to mature on March 1, 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) Street A d d re ss (City, T ow n or Village, P . O. N o., and State) I f 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 P O R T A N T IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill b e con sidered, and each ten der m u st b e 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 tender is a co rp o ra tio n , the ten der sh ou ld b e sign ed b y an officer o f the c o rp o ra tion a u th orized to m ake the tender, and the s ig n in g o f the tender b y an officer o f the corp o ra tio n w ill be con stru ed as a represen tation b y him that he has been s o authorized. I f the ten d er is m ade b y a partnership, it sh ou ld b e sign ed b y a m em b er o f the firm , w h o shou ld sign in the fo r m “ ....................................................................................................., a cop artn ersh ip, b y ........................................................................................................................................., a m em b er o f the firm .” 3. T e n d e rs w ill be received w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fr o m resp on sible and re co g n ize d dealers in investm ent securities. T en d ers fr o m oth ers m ust be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face a m ou n t o f T r e a su ry bills a pplied fo r, u nless the tenders are a ccom pa n ied b y an exp ress gu aranty o f p a ym en t b y an in corp ora ted bank o r trust com p a n y . 4. I f the language o f this ten der is ch a n g e d in any respect, w h ich , in the op in ion o f the Secretary o f the T reasu ry , is m aterial, the tender m a y be disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. T E N T B — 1326-a ( over)
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