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FEDERAL RESERVE BANK O F NEW YORK N o. 4 2 9 6 1 [Circular December 19,1955 J Fiscal Agent of the United States Offering of $ 1 ,6 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills Dated Decem ber 29, 1955 Maturing March 29, 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 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 , M on d a y , D e ce m b e r 19, 1955. TREASURY DEPARTM ENT W a s h in g to n T h e T r e a s u ry D epartm en t, b y this p u b lic n otice, in vites tenders f o r $1,600,000,000, o r th ereabouts, o f 9 1 -d a y T re a su ry bills, fo r cash a n d in e x ch a n g e fo r T rea su ry bills m a tu rin g D ecem b er 29, 1955, in the a m ou n t o f $1,600,810,000, to be issued on a discou n t basis u nder com p etitiv e 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 29, 1955, and w ill m atu re M a rch 29, 1956, w h en th e face a m ou n t w ill b e pa ya b le w ith ou t interest. T h e y w ill be issued in b ea rer fo r m o n ly , and in d en 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 va lu e). T e n d e rs w ill be receiv ed at F ed era l R es e rv e Banks and B ran ch es up t o the clo s in g h ou r, on e-th irty o ’c lo c k p.m ., E astern S ta n da rd tim e, F rida y, D ecem b er 23, 1955. T e n d e rs 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 ca se o f com p etitiv e ten ders the price o ffe re d m u st be ex p re s se d o n the basis o f 100, w ith n ot m ore than th ree decim a ls, e. g., 99.925. F ra ction s m ay n ot be used. It is u rged that ten ders be m ade on the printed fo rm s and fo rw a rd e d in the special en v elop es w h ich w ill be supplied b y F ed era l R e serv e B an k s o r B ra n ch es o n a p p lica tion th erefor. O th e rs than b a n k in g institutions w ill n ot b e perm itted to subm it ten ders e x ce p t f o r their o w n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t d e p o s it fro m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le a n d re co g n iz e d dealers in in vest m en 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 th e fa c e a m ou n t o f T r e a s u ry bills a pplied fo r, u nless th e tenders are a ccom p a n ied b y an ex p re s s 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 c lo 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 ran ches, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill be 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 ten ders w ill be advised o f th e a ccep ta n ce or 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 re s sly reserves th e righ t to a ccep t o r reject a n y o r all tenders, in w h o le or in part, and his a ction in a n y such resp ect shall be final. S u b je ct t o th ese reserva tion s, n on com p etitiv e ten ders fo r $200,000 o r less w ith ou t stated p r ice fro m a n y on e b idd er w ill be a cce p te d 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 en t f o r a cce p te d tenders in a cco rd a n ce w ith th e b id s m u st be m a d e or com p le te d at the F ed eral R e serv e Bank on D e ce m b e r 29, 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 r e a s u ry bills m a tu rin g D e ce m b e r 29, 1955. Cash and ex 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 a d e fo r d ifferen ces betw een th e par valu e o f m a tu rin g bills a cce p te d in e x ch a n g e and th e issue p rice o f th e 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 n ot have a n y e x e m p tion , as such, and loss fro m the sale o r oth er d isp osition o f T r e a s u ry bills d oes n ot have a n y special tre a t m en t, as such, u nder th e 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 o r oth er e x cis e taxes, w hether F ed era l o r State, but are ex em p t fr o m all taxation n o w o r h erea fter im p o s e d on the prin cip a l o r 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, or b y any lo ca l ta x in g authority. F o r p u rp oses o f ta x ation the a m ou n t o f discou n t at w h ich T rea su ry bills are o rig in a lly sold b y th e U n ited States is con sid ered to b e interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f th e In tern al R e v en 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 sold is n o t con sid ered to a ccru e until such bills are sold , redeem ed o r oth erw ise disp osed o f, and such bills a re exclu d ed fr o m con sidera tion as capital assets. A c c o r d in g ly , the o w n e r o f T r e a s u ry bills (o th e r than life in su rance co m p a n ie s ) issued h ereun der need in clu d e in his in co m e ta x return on ly the differen ce b etw een the price paid fo r such bills, w h e th e r o n original issue o r o n su b seq u en t pu rch ase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m a tu rity d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss. T r e a s u ry D e p a rtm e n 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 opies 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 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, Friday, December 23, 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. (C LO SIN G D A Y FOR RECEIPT OF TEND ERS IS F R I D A Y , DE C EM B ER 2 3 , 1 9 55) RESULTS OF B ID D IN G FOR T R E A SU R Y BILLS D A T E D DECEMBER 22 , 195 5 W ER E N O T A V A IL ABLE W H E N T H IS CIR C U LA R W A S PR IN T ED . ( over) 34 0 IM P O R T A N T — Please note that tenders for this issue must be received not later than 1:30 p.m ., Eastern Standard time, Friday, December 23 , 1955. 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 beaded "Com petitive Bid.” I f you desire to bid on a n o n c o m p e titiv e basis, fill in only the maturity value in paragraph headed "Noncom petitive Bid.” D O N O T fill in b o th para grap h s on o n 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 o f payment. Forms for this purpose will be furnished upon request. No. T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS Dated December 2 9 , 1 9 5 5 To F ed era l R eserve B a n k o f N ew Maturing March 2 9 , 1 9 5 6 Dated at Y ork , Fiscal Agent o f the United States. 1955 COMPETITIVE BID 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 December 19, 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 December 19, 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: for a total amount of $ ............................................ (N o t to exceed $200,000) (maturity value) o f 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 By surrender of maturing Treasury bills 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. The Treasury bills for which tender is hereby made are to be dated December 29, 1955, and are to mature on March 29, 1956. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills/' Name of Bidder---By. (Please print) (Official signature required) (T itle ) Street Address (C ity, T ow n or 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 o r V illage, 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 th an $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 th e person m a k in g th e ten der is a co rp o ra tio n , the ten der sh ou ld be sign ed b y an officer o f th e c o rp o ra tion a u th orized to m ake the ten d er, and th e sig n in g o f th e ten der b y an officer o f th e corp o ra tio n w ill b e co n stru ed as a represen tation b y h im that he has b een s o auth orized. I f th e ten der is m ade b y a partnersh ip, it sh ou ld b e sig n ed b y a m e m b e r o f th e firm , w h o sh ou ld sig n 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 e rs w ill b e 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 s p o n sible a n d re co g n iz e d dealers in in vestm en t securities. T e n d e rs fr o 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 th e face a m ou n t o f T rea su ry bills a pp lied fo r, unless the ten ders are a ccom p a n ied b y an ex p ress gu a ra n ty o f pa ym en t b y an in co rp o ra te d bank o r trust com p a n y . 4. I f th e la n g u a g e o f this ten d er is ch a n g e d in a n y resp ect, w h ich , in th e op in ion o f th e S ecreta ry o f the T re a s u ry , is m aterial, the ten d er m a y b e disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1330-a (0 V 1 ») Federal Reserve Bank of St. Louis