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FEDERAL RESERVE BANK O F N EW YORK i Fiscal Agent of the United States T Circular N o. 4 2 9 0 1 L, Decem ber 6, 1955 J J Offering o f $1,500,000,000 o f 99-Day Treasury Bills T o Be Designated “ Tax Anticipation Series” Dated December 15, 1955 x, To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: ; t Maturing March 23, 1956 v .^ ;a 0 's 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 u e s d a y , D e ce m b e r 6, 1955. ’ *'r- r w jj 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 ten ders fo r $1,500,000,000, o r thefeabotrts. o f 9 9 -d a y T rea su ry bills, to be issued o n a d iscou n t basis under com p etitiv e and n on com p etitiv e b id d in g as h ereinafter p ro v id e d . T h e b ills o f this series w ill b e design ated T a x A n ticip a tion Series, th ey w ill be dated D e ce m b e r 15, 1955, and th ey w ill m ature M a rch 23, 1956. T h e y w ill be a cce p te d at fa ce value in pa ym en t o f in com e and profits ta xes due on M a rch 15, 1956, and t o th e ex ten t th ey are n o t p resen ted fo r this pu rpose the fa ce a m ou n t o f these bills w ill be p a ya b le w ith ou t in terest a t m aturity. T a x p a y e rs d esirin g to a p p ly these bills in pa ym en t o f M a rch 15, 1956, in co m e and profits ta xes have the privilege o f su rren d erin g th em t o a n y F ed era l R e se rv e B a n k o r B ra n ch n ot m o re than fifteen days b e fo r e M a rch 15, 1956, and receiv in g receip ts th erefor s h o w in g the fa ce a m ou n t o f the bills so surrendered. T h e s e receip ts m ay be subm itted in lieu o f the bills on o r b e fo re M a rch 15, 1956, to th e D is trict D ire cto r o f In tern al R e v e n u e fo r the d istrict in w h ich such taxes are payable. T h e y w ill b e issued in bearer fo r m o n 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 b e receiv ed a t F ed eral R e serv e B anks and B ra n ch es up t o th e clo s in g h our, o n e-th irty o ’ c lo c k p.m ., E astern S tandard tim e, T h u rsd a y, D e ce m b e r 8, 1955. T e n d e rs w ill n ot be receiv ed at the T r e a s u ry D epartm en t, W a s h in g to n . E ach te n d e r m u st b e fo r an even m u ltiple o f $1,000, a n d in the ca se o f com p etitiv e ten ders the p rice o ffe re d m u st b e exp ressed o n th e basis o f 100, w ith n o t m o re than th ree decim a ls, e.g., 99.925. F ra ction s m a y n ot be used. I t is u r g e d th at tenders be m ade o n th e printed fo rm s and fo rw a rd e d in the special en velop es w h ich w ill b e supplied b y F ed era l R e s e rv e B anks o r B ra n ch e s o n a pp lica tion th erefor. O th ers than b ank in g institutions w ill n o t be perm itted to subm it ten ders e x ce p t fo r th eir o w n a ccou n t. T e n d e r s w ill be re ce iv e d w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies a n d fr o m resp on sib le a n d re co g n iz e d d ea lers in in vest m en t securities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y p a ym en t o f 2 p ercen t o f th e 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 a ra n ty 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 a fter the clo s in g h ou r, ten ders w ill b e op en ed at th e F ed eral R es e rv e B anks a n d B ra n ch es, fo llo w in g w h ich pu blic an n ou n cem en t w ill be m ade b y the T rea su ry D ep a rtm en t o f the a m ou n t a n d price ra n ge o f a cce p te d bids. T h o s e su b m ittin g ten ders w ill b e advised o f the 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 exp ressly reserves the rig h t t o a cce p t o r re je c t a n y o r a ll tenders, in w h ole o r in part, a n d his a ction in a n y su ch resp ect shall be final. S u b je ct to these reservations, n on com p etitiv e ten ders fo r $300,000 o r less w ith ou t stated price fr o m a n y o n e bidder w ill b e a cce p te d in fu ll at the a vera ge price (in th ree decim a ls) o f a ccep ted com p etitive 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 c o m p le te d at the Federal R eserve B a n k on D e ce m b e r 15, 1955, in cash o r oth er im m ed iately availa b le fun ds, provid ed , h ow ev er, a n y qualified d ep osita ry w ill b e perm itted t o m ake p a ym en t b y cred it in its T r e a s u ry T a x and L o a n A c c o u n t fo r n ot m o re than 60 p ercen t o f the a m ou n t o f T rea su ry bills a llotted t o it f o r itself and its cu stom ers (u p t o the a m ou n t fo r w h ich it shall be qua lified in e x cess o f e xistin g d ep osits) w h en s o n otified b y the F ed era l R e se rv e B ank o f its district. T h e in co m e derived fr o m T rea su ry bills, w h eth er interest o r gain fro m the sale o r oth er d isp osition o f the bills, d o e s n o t have a n y exem p tion , as such, and lo s s fro m the sale or oth er d isp osition o f T rea su ry bills d oes n ot have a n y sp ecia l treat m en t, as such, u nder the In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r o th e r excise taxes, w hether F ed era l or State, b u t are ex em p t fro m all ta x ation n o w or hereafter im p osed o n the prin cip a l o r interest th ereof b y a n y State, o r any o f the p ossession s o f the U n ited States, o r b y a n y lo ca l ta x in g authority. F o r p u rp ose s o f taxation the a m ou n t o f d iscou n t at w hich T rea su ry bills are o rig in a lly s o ld b y the U n ited States is con sid ered t o be interest. U n d e r S ection s 4 5 4 (b ) and 12 2 1(5 ) o f the Internal R even u e C o d e o f 1954 the 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 con sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise d isp osed o f , a n d .such bills are exclu d e d fro m con sid era tion 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 than life insurance co m p a n ie s) issued hereun der need in clude in his in co m e ta x return o n ly the differen ce betw een th e p rice pa id fo r su ch bills, w h eth er o n origin a l issue o r on subsequen t pu rch ase, a n d the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m aturity, o r the a m ou n t o f in co m e o r profits taxes paid b y m ean s o f the bills, d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain or 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 a n d g o v e rn th e co n d itio n s o f th eir issue. C op ies o f th e circular m a y b e ob ta in ed fr o m a n y F ed era l R e serv 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, Thursday, December 8 , 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— Tax Anticipation Series.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds, except that any qualified depositary may make payment by credit in its Treasury Tax and Loan Account for not more than 60 percent of amount payable on bills allotted to it for itself and its customers, adjusted to next higher $1,000. 1 \ A llah S p S otjl , President. i.—m z w (o v e r ) IM PO RTAN T-—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 noncom petitive 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. i | V if N o......................... TENDER F O R 99-D A Y T R E A SU R Y BILLS r-; TO BE DESIGNATED “ T A X ANTICIPATION SERIES” Dated December 15, 1955 To F ederal R eserve Bank of N ew Y Maturing March 23, 1956 ork, Fiscal Agent of the United States. ................................................. COM PETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on December 6 , 1955, as issued by the Treasury Department, the 1955. NONCOMPETITIVE BID Pursuant to the provisions of Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on December 6 , 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned offers .............................................* for . .. . (R ate per 100) a total amount of $ ................ ................................... (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: for a total amount of $ .............................................. (Not to exceed $300,000) (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 credit to Treasury Tax and Loan Account of not more than 60 percent of amount payable and remainder in cash or other immediately available funds □ By cash or other immediately available funds □ By credit to Treasury Tax and Loan Account of not more than 60 percent of amount payable and remainder in cash or other immediately available funds By cash or other immediately available funds * Price must be expressed on the basis of 100, zvith not more than three decimal places, for example, 99.925. The Treasury bills for which tender is hereby made are to be dated December 15, 1955, and are to mature on March 23, 1956. This tender will be inserted in special envelope marked “ Tender for Treasury Bills— Tax Anticipation Series. N a m e o f B id der (P lease print) B y ......... (O fficial signature required) (T itle) Street Address .............................. (C ity , T ow n o r V illage, P . O . N o ., and State) I f this te n d e r is su b m itted b y a ba n k fo r th e a cco u n t o f a cu stom er, in dica te th e cu sto m e r’ s n am e o n line b e lo w : (N am e o f Custom(C er)ity , T ow n o r V illage, 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 b e fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f th e p erson 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 th e co rp o ra tio n a u th orized t o m ake th e ten der, and th e sig n in g o f the ten der b y an officer o f the co rp o ra tio n w ill b e con stru ed as a rep resentation b y h im that he has been s o auth orized. I f th e ten der is m ade b y a partnership, it sh ou ld be sig n ed b y a m em b e r o f th e firm , w h o sh ou ld sig n in the fo r m “ ........................................................................................................... . a cop artn ersh ip , b y ............................................. ........................................................................ a m em ber o f the firm .” 3. T e n d e rs 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 an d fro m resp on sible and r e 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 b e 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 r e a s u ry b ills a pplied fo r , unless the tenders are a ccom p a n ied b y an exp ress guaranty o f paym ent b y an in corp ora ted bank o r trust com pany . 4. I f the lan g u a g e o f this ten der is ch an ged in a n y respect, w h ich , in the o p in io n o f the S e c r e t a r y ,o f the T reasu ry, is m aterial, the ten der m a y b e disregarded. TENSTB—8 B e sure to return tender in special envelope marked “ Tender fo r Treasury Bills—T ax Anticipation Series.” ( over) NA-TB F e d eral R e serve B a n k ape* of New Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA TREASURY BILLS T A X ANTICIPATION SERIES December 9, 1955. Your Q competitive Q noncompetitive tender for Treasury bills, Tax Anticipation Series, dated December 15, 1955, maturing March 23, 1956, has been accepted at the rate of (per 1 0 0 ), in the amount of $ (maturity value). Settlement therefor must be made on or before December 15, 1955 in cash or other imme diately available funds at the Federal Reserve Bank of New Y ork ; depositaries may credit Treasury Tax and Loan Accounts with not more than 60 percent of the amount payable, rounded to the next higher $ 1 ,0 0 0 . To obtain delivery o f the Treasury bills, please complete both copies of the attached Letter of Instructions, and return them promptly to the Federal Reserve Bank of New York. If settlement is to be made by check on a bank other than the Federal Reserve Bank of New York, the check should be received by us in time for collection on date bills are issued, otherwise it will be necessary for the bidder to pay for the bills allotted at the price computed on the rate of discount on such bills to the date o f collection. I f settlement is to be made by credit to Treasury Tax and Loan Account, the Certificate of Deposit, which is part of the attached form, must be executed and officially signed. F ederal R eserve B ank of N ew Y ork Fiscal Agent of the United States. Checked by THIS LETTER OP INSTRUCTIONS (ACCOMPANIED BY ATTACHED DUPLICATE YELLOW COPY) TO BE FILLED IN AND RETURNED TO FEDERAL RESERVE BANK OF NEW YORK TAB LETTER OF INSTRUCTIONS To F ederal R B eserve ank o r New Y ork, Fiscal Agent of the United States, Government Bond Department, New York 45, N. Y. From (D ate) Referring to our □ competitive Q noncompetitive tender for Treasury bills, Tax Anticipation Series, dated December 15, 1955, maturing March 23, 1956, which has been accepted at the rate of (per 1 0 0 ), in the amount of $ (maturity value), please issue and make delivery o f the bills as instructed below. Settlement will be made as indicated below: By credit to Treasury Tax and Loan Account (not more than 60 percent of total amount payable, rounded to the next higher $1 ,0 0 0 ) as indicated in the attached Certificate of D ep osit.............................................................. $.......................... By charge to our reserve account, which you are authorized to make By check in funds available on issue d a te ........................................... By c a s h ..................................................................................................... Total payment.................................................. . Issue bills in the follow ing denominations Pieces Denomination $ (Please do not use this space) Maturity value Dispose o f bills as indicated below Numbers O 1,000 □ O 5,000 10,000 □ 100,000 □ 500,000 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (fo r member bank only) 4. Hold as collateral for Treasury Tax and Loan Account 5. Special instructions: 1,000,000 Totals------- IM PO RTAN T: No changes in delivery instructions will be accepted. T h e u n dersig n ed ( i f a bank or trust co m p a n y ) h ereb y certifies that the T reasu ry bills w hich you are h ereb y instructed to d is p o se o f in the m anner in d ica ted in item 3 or 4 a b ov e are the sole p rop erty o f the u ndersigned. (F ill in all required spaces before signing) Name o f subscriber ................................................................................................................ (Please print) ---- B y ...................... By (Official signature required) Title . . , Title Address (S b e lo w are fo r the use o f F ed eral R eserve Bank o f New Y o r k ) Government Bond Department Security Custody Department Safekeeping Department Payment received sign ed: Deliver against payment Taken from vault Checked Counted ............... Delivered o f $ ..................................... Checked sign ed: . ............... D E L IV E R Y R E C E IP T Received from Federal Reserve Bank o f New York, Fiscal Agent o f the United States, the above described Treasury bills allotted in the amount indicated above. Subscriber................................................................................................................ Date. B y. If payment is to be made by credit to Treasury Tax and Loan Account, the following Certificate of Deposit should officially executed. r '■ d e r a l R eserve b a n k o f n e w Yo r k GOVERNMENT BOND DEPARTMENT (T h is certifica te m ust be e x e cu te d w hen su b scrib er is m aking paym ent through T reasu ry T a x and Loan A c c o u n t ; paym ent through that A cco u n t m ay n ot e x ce e d 6 0 p ercen t o f am ou nt pa ya b le on T reasu ry bills a llo tte d .) Certificate of Deposit in Treasury Tax and Loan Account The undersigned depositary certifies that it will deposit on December 15, 1955, to the credit of Federal Reserve Bank of New York, Fiscal Agent of the United States, in the Treasury Tax and Loan Account, to be held subject to withdrawal 0 1 1 demand the above sum in partial payment of $ (maturity value) Treasury bills, Tax Anticipation Series, dated December 15, 1955, due March 23, 1956, allotted as per Notice of Allotment dated December 9, 1955. Dated (N am e of depositary) B y ................... (Official signaturs required) Street address (C ity, Town o r Village, P. O . N o., and State) (T itle) (D U PLIC A TE F O R USB OF F E D E R A L RESERVE BAN K O F N EW Y O R K ) TAB To F LETTER OF INSTRUCTIONS ederal R eserve B ank of New Y ork, Fiscal Agent o f the United States, Government Bond Department, New York 45, N. Y . * From (D a te) Referring to our □ competitive Q noncompetitive tender for Treasury bills, Tax Anticipation Series, dated December 15, 1955. maturing March 23, 1956, which has been accepted at the rate of (per 1 0 0 ), in the amount of $ (maturity value), please issue and make delivery o f the bills as instructed below. Settlement will be made as indicated below : By credit to Treasury Tax and Loan Account (not more than 60 percent of total amount payable, rounded to the next higher $ 1 ,0 0 0 ) as indicated in the attached Certificate o f D e p o s it................................................................. $............................ By charge to our reserve account, which you are authorized to m a k e .......... ....$............................ By check in funds available on issue d a t e ............................................................ $............................ By c a s h ..................................................................................................................... $............................ Total payment................................................................... $............................ Issue bills in the follow in g denomination*) Pieces Denom ination $ Dispose o f bills as indicated below (P lease do not use this space) M aturity value Numbers □ 1. D eliver over undersigned □ □ 2. Ship to the undersigned 3. H old in safekeeping ( f o r member bank on ly) 4. H old as collateral fo r Treasury Tax and Loan A ccount 5. Special instructions: 1,000 5,000 10,000 □ 100,000 0 500,000 the counter to the 1.000,000 Totals------- IM P O R T A N T : N o changes in delivery instructions will be accepted. T h e u n d e rsig n e d ( i f a b a n k o r trust c o m p a n y ) h e r e b y ce rtifies th at th e T r e a s u ry b ills w h ich y o u a re h e re b y in stru cte d to d is p o s e o f in th e m a n n e r in d ica te d in item 3 o r 4 a b o v e a re th e s o le p r o p e rty o f th e u n d ersig n ed . (F ill in all required spaces b efore sign ing) Name o f subscriber (Please print) . . . . . . . B v ................................ By . . . . . . . (O fficial signature required) Title Title . . . Address (S p a c e s b e lo w a re f o r th e u se o f F e d e ra l R e s e rv e B ank o f N ew Y o r k ) Security Custody Department Government Bond Department S afekeeping Department Paym ent received Taken from v a u l t ........................................................ s ig n e d : Deliver against payment o f $ ...................................... Checked sig n e d : .......................................................................... D E L IV E R Y R E C E IP T Received from Federal Reserve Bank o f New Y ork, F isca l A gen t o f the United States, the above described Treasury bills allotted in the amount indicated above. Date Subscriber By 4 F e d e r a l R e se r v e B a n k of Ne w Y ork PENDING DELIVERY TICKET OF UNITED STATES OF AMERICA TREASURY BILLS T A X ANTICIPATION SERIES December 9, 1955. Your □ * competitive □ noncompetitive tender for Treasury bills, Tax Anticipation Series, dated December 15, 1955, maturing March 23, 1956, has been accepted at the rate of (per 1 0 0 ), in the amount of $ (maturity value). k j ► Date Treas. T a x & Loan Acc. D elivery teller Cash Charge 1 Allotment Premium a n d /o r interest D isposition Purchase price Deposit Over counter Safekeeping Gov. Deposit P rin cip a l due R efund Balance Accrued interest Am ount due Special delivery instructions Ship 5 F e d e r a l R e se r v e B a n k op New Y ork FILLED ALLOTMENT DELIVERY TICKET TB OF UNITED STATES OF AMERICA TREASURY BILLS T A X ANTICIPATION SERIES December 9, 1955. Your □ k competitive Q noncompetitive tender for Treasury bills, Tax Anticipation Series, dated December 15, 1955, maturing March 23, 1956, has been accepted at the rate of (per 1 0 0 ), in the amount of $ (maturity value). ( PAR PRINCIPAL DISCOUNT MASTER 5URED CHECKED METHOD OF PAYMENT DISPOSITION SECURITIES DEPARTMENT COPY T A X ANTICIPATION SERIES December 9, 1955. Your Q competitive [[] noncompetitive tender for Treasury bills, Tax Anticipation Series, dated December 15, 1955, maturing March 23, 1956, has been accepted at the rate of (per 1 0 0 ), in the amount of $ (maturity value). RECORDS STORAGE OFFICE, ITHACA, N. Y. F ederal R eserve Bank of New Y 7 ork NOTICE OF ALLO TM E N T OF UNITED STATES OF AMERICA TREASURY BILLS T A X ANTICIPATION SERIES December 1955. Your Q competitive Q noncompetitive tender for Treasury bills, Tax Anticipation Series, dated December 15, 1955, maturing March 23, 1956, has been accepted at the rate of (per 1 0 0 ), in the amount of $ (maturity value).
@FedFRASER