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FEDERAL RESERVE BANK O F NEW YO RK /■Circular N o. 4 2 9 8 1 I Decem ber 26,1955 J Fiscal Agent o f the United States Offering o f $ 1 ,60 0,00 0,0 00 o f 91-Day Treasury Bills Dated January 5, 1956 Maturing A pril 5, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 o n d a y , D e ce m b e r 26, 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, in vites ten ders fo r $1,600,000,000, o r th erea b ou ts, 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 rea su ry bills m a tu rin g January 5, 1956, in the am ou nt o f $1,600,062,000, t o be issued on a d iscou n t basis u nder com p etitiv e and n o n co m p e titiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated January 5, 1956, and w ill m atu re A p ril 5, 1956, w hen the face a m ou n t w ill be p ayable 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 valu e). T e n d e rs w ill b e receiv ed at F ed eral R e serv e B anks and B ran ches u p t o the clo s in g h ou r, o n e-th irty o ’ c lo c k p.m ., E astern Standard tim e, F rida y, D ecem b er 30, 1955. T e n d e rs 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 the p rice o ffe re d m u st be ex p resse d o n th e basis o f 100, w ith n o t m o re than th ree decim als, e. g., 99.925. F ra ction s m a y n o t be u sed. It is u rg e d that ten ders be m a d e o n the p rin ted fo rm s and fo rw a rd e d in th e special en v elop es w h ich w ill b e su p plied b y F ed era l R e serv e B ank s o r B ra n ch e s 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 t o su b m it ten ders e x ce p t fo r th eir o w n a ccou n t. T e n d e rs w ill be received w ith o u t d e p o s it fr o 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 r e 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 cco m p a n ie d b y pa 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 cco m p a n ie d b y an ex p re s s gu a ra n ty o f p a 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 th e clo s in g h ou r, ten ders w ill b e op en ed at the F e d e ra l R e serv e B an ks a n d 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 a d e b y th e T r e a s u ry D ep a rtm en t o f th e a m ou n t a n d p r ice ra n g e o f a cce p te d bids. T h o s e su b m ittin g ten d e rs w ill be advised o f th e a cce p 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 ex p re s sly reserves th e rig h t t o a cce p t o r re je ct a n y o r all ten ders, in w h o le o r in part, and h is a ction in a n y su ch re s p e ct 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 fr o m a n y on e b id d er w ill be a ccep ted in fu ll at th e a vera ge price (in th ree d e c im a ls ) o f a ccep ted co m p e titiv e bids. S ettlem ent fo r a cce p te d ten ders in a ccord a n ce w ith the b id s m u st be m ade o r com p le te d at the Federal R eserve B ank on Janu ary 5, 1956, in cash o r o th e r im m ediately available fun ds o r in a like face a m ou n t o f T r e a s u ry bills m aturing January 5, 1956. Cash and ex ch a n g e ten ders w ill re ce iv e equal treatm ent. C ash adju stm en ts w ill b e m a d e fo r d ifferen ces betw een th e p a r 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 in terest o r gain fro m the sale o r oth er d isp osition o f th e bills, d o e s not have a n y e x e m p tion , as such, and loss fro m th e sale o r oth er d isp osition o f T r e a s u ry bills d oes n o t have a n y special treat m en t, as such, u nder th e Internal R even u e C o d e o f 1954. T h e bills are s u b je ct to estate, in heritance, g ift o r oth er e x cis e taxes, w hether F e d e ra l o r State, but are ex em p t fr o m all ta xation n o w o r h erea fter im p osed on th e prin cip a l o r interest th e re o f b y an y State, o r a n y o f the p ossession s o f the U n ited States, or b y a n y lo ca l ta x in g authority. F o r p u rp oses o f ta xation the am 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 t o be interest. U n der S e ctio n s 4 5 4 (b ) a n d 1221(5) o f the In tern a l R even u e C od e o f 1954 th e a m ou n t o f d iscou n t at w h ich bills issued h ereunder are so ld is n o t co n sid ered to a ccru e u ntil such bills are sold, red eem ed o r oth erw ise d isp osed o f, and su ch bills a re exclu d ed fr o m con sid era 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 in su rance co m p a n ie s ) issued hereun der n eed in clu d e in his in co m e ta x return o n ly the d ifferen ce betw een the p rice pa id fo r such b ills, w h eth er on origin a l issue o r o n subsequen t p u rch a se, 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 atu rity d u rin g the ta xab le y e a r fo r w h ich th e return is m a d e, 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 re scrib e th e term s o f th e 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 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 e serv e B ank o r B ran ch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Friday, December 30, 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 , D E C EM B ER 30 , 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 2 9 , 1955 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 . ( oveh) 34 P IM P O R T A N T — Please note that tenders for this issue must be received not later than 1 : 3 0 p.m ., Eastern Standard time, Friday, December 3 0 , 1 9 5 5 . IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph headed "Com petitive Bid.” I f you desire to bid on a noncom petitive basis, fill in only the maturity value in paragraph headed "Noncom petitive Bid.” D O 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 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 FOR 9 1 -D A Y T R E A SU R Y BILLS Dated January To F ederal R eserve Ban k Maturing April 5, 1956 of N ew Y 5, 1956 Dated at ork, 1955 Fiscal Agent o f the United States. C O M PE TITIVE 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 26, 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 26, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s (Rate per 100) * for a for a total amount of $ ............................................ (N ot to exceed $200,000) 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: (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 o f 100, with not more than three decimal places, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated January 5, 1956, and are to mature on April 5, 1956. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name of Bidder___ B y. (Please print) (Official signature required) (T id e ) S treet A d d re s s (C ity, T ow n o r 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 or 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 d er fo r less th an $1,000 w ill b e con sid ered , a n d each ten d er m u st be f o 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 , th e 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 a k e the ten der, and th e s ig 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 con stru ed as a represen tation b y h im th at he has b e e n s o auth orized. I f th e ten d er is m ade b y a partnersh ip, it sh ou ld b e sign ed b y a m e m b e r o f th e firm , w h o sh ou ld sign in th e fo r m **...................................................................................................... a cop artn ersh ip, b y .......................................................................................................................................... a m em b er o f th e f ir m ” 3. T e n d e rs w ill b e receiv ed w ith ou t d ep osit fr o m in corp ora ted b a n k s and trust com p a n ies and fr o m re sp o n sible a n d r e 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 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 a m o u n t o f T r e a s u ry bills applied fo r, u nless th e ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a y m e n t b y an in co rp o ra te d ba n k o r trust com p a n y . 4. I f th e la n g u a ge o f this ten der is ch a n g e d in a n y resp ect, w h ich , in th e o p in io n 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 — 1331-a (0 J 1 ») Federal Reserve Bank of St. Louis