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FED ERAL RESER VE BANK O F N EW YO RK Fiscal Agent of the United States £ C janlfary s . f ^ 1 ] Offering o f $1,600,000,000 o f 91-Day Treasury Bills D a te d January 12, 1956 M a tu rin g A p ril 12, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice published today: TREASURY DEPARTM ENT 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 r s d a y , J a n u a ry 5, 1956. Washington T h e T r e a s u r y D e p a r tm e n t, b y th is p u b lic n o tic e , in v ites ten d ers fo r $1,600,000,000, o r th e re a b o u ts, o f 9 1 -d a y T r e a s u r y b ills , fo r c a s h a n d in e x c h a n g e f o r T r e a s u r y b ills m a tu r in g J a n u a ry 12, 1956, in th e a m o u n t o f $1,600,691,000, to b e is s u e d on a d is c o u n t b a sis u n d e r c o m p e t it iv e a n d n o n c o m p e tit iv e b id d in g a s h e r e in a ft e r p r o v id e d . T h e b ills o f th is se r ie s w ill b e d a ted J a n u a ry 12, 1956, an d w ill m a tu re A p r i l 12, 1956, w h e n th e fa c e a m o u n t w ill b e p a y a b le w ith o u t in terest. T h e y w ill b e issu e d in b e a r e r fo r m o n ly , an d in d e n o m in a tio n s o f $1,000, $5,000, $10,000, $100,000, $500,000 an d $1,000,000 (m a tu r ity v a lu e ). T e n d e r s w ill b e r e ce iv e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s up to the c l o s in g h o u r , o n e -th ir t y o ’c l o c k p.m ., E a s te r n S ta n d a r d tim e , M o n d a y , J a n u a ry 9, 1956. T e n d e r s w ill n o t b e r e c e iv e d a t the T r e a s u r y D e p a r tm e n t, W a s h in g to n . E a c h te n d e r m u s t b e f o r a n e v e n m u ltip le o f $1,000, a n d in th e c a s e o f c o m p e t it iv e ten d e rs the p r ic e o ffe r e d m u st b e e x p r e s s e d o n the b a sis o f 100, w ith n o t m o r e th a n th re e d e c im a ls , e . g ., 99.925. F r a c t io n s m a y n o t b e u se d . I t is u r g e d th a t te n d e rs be m ad e o n the p rin te d fo r m s an d fo r w a r d e d in the s p e c ia l e n v e lo p e s w h ic h w ill be su p p lie d b y F e d e r a l R e s e r v e B a n k s o r B r a n c h e s o n a p p lic a t io n t h e r e fo r . O t h e r s th a n b a n k in g in s titu tio n s w ill n o t b e p e rm itte d to su b m it ten d ers e x c e p t f o r th e ir o w n a c c o u n t. T e n d e r s w ill be r e c e iv e d w ith o u t d e p o s it fr o m in c o r p o r a t e d b a n k s a n d tru st c o m p a n ie s a n d fr o m r e s p o n s ib le an d r e c o g n iz e d d e a le r s in in vestm en t s e c u r itie s . T e n d e r s fr o m o th e r s m u st b e a c c o m p a n ie d b y p a y m e n t o f 2 p e rc e n t o f th e fa c e a m o u n t o f T r e a s u r y b ills a p p lie d fo r , u n le ss th e te n d e rs a r e a c c o m p a n ie d b y an e x p r e s s g u a r a n ty o f p a y m e n t b y a n in c o r p o r a t e d b a n k o r tru s t c o m p a n y . I m m e d ia te ly a fte r the c lo s in g h o u r , te n d e rs w ill be o p e n e d a t the F e d e r a l R e s e r v e B a n k s an d B r a n c h e s , fo l lo w in g w h ic h p u b lic a n n o u n c e m e n t w ill be m a d e b y th e T r e a s u r y D e p a r tm e n t o f th e a m o u n t a n d p r ic e r a n g e o f a c c e p t e d b id s. T h o s e su b m ittin g te n d e rs w ill b e a d v is e d o f th e a c c e p t a n c e o r r e je c tio n t h e r e o f. T h e S e c r e t a r y o f th e T r e a s u r y e x p r e s s ly reserv es the r ig h t to a c c e p t o r r e je c t a n y o r a ll te n d e rs , in w h o le o r in p a rt, a n d h is a c t io n in a n y su ch r e s p e ct s h a ll b e fin a l. S u b je c t to th ese r e s e r v a tio n s , n o n c o m p e titiv e te n d e rs fo r $200,000 o r le ss w it h o u t sta ted p r ic e fr o m an y o n e b id d e r w ill be a c c e p te d in fu ll at the a v e r a g e p r ic e (in th ree d e c im a ls ) o f a c c e p t e d c o m p e titiv e b id s . S ettle m e n t f o r a c c e p te d ten d e rs in a c c o r d a n c e w it h the b id s m u st be m a d e o r c o m p le te d a t the F e d e r a l R e s e r v e B a n k on J a n u a ry 12, 1956, in c a s h o r o t h e r im m e d ia te ly a v a ila b le fu n d s o r in a lik e fa c e a m o u n t o f T r e a s u r y b ills m a tu r in g J a n u a ry 12, 1956. C a sh a n d e x c h a n g e ten d e rs w ill r e c e iv e e q u a l tre a tm e n t. C a sh a d ju stm e n ts w ill be m a d e fo r d iffe r e n c e s b e tw e e n th e p a r v a lu e o f m a tu r in g b ills a c c e p te d in e x c h a n g e a n d th e is s u e p r ic e o f th e n e w b ills . T h e in c o m e d e r iv e d fr o m T r e a s u r y b ills , w h e th e r in te re st o r g a in fr o m th e s a le o r o t h e r d is p o s itio n o f th e b ills , d o e s n o t h a v e a n y e x e m p tio n , as su ch , an d lo s s fr o m th e s a le o r o th e r d is p o s itio n o f T r e a s u r y b ills d o e s n o t h a v e a n y s p e c ia l tre a t m en t, as s u ch , u n d e r the I n te r n a l R e v e n u e C o d e o f 1954. T h e b ills a r e s u b je c t to esta te, in h e rita n ce , g ift o r o t h e r e x c is e ta x es, w h e th e r F e d e r a l o r S ta te , bu t are e x e m p t fr o m a ll t a x a t io n n o w o r h e r e a fte r im p o s e d o n th e p r in c ip a l o r in te r e s t t h e r e o f by an y S ta te , o r a n y o f the p o s s e s s io n s o f the U n ite d S ta te s , o r b y a n y lo c a l t a x in g a u th o rity . F o r p u r p o s e s o f t a x a t io n the am o u n t o f d is c o u n t a t w h ic h T r e a s u r y b ills a r e o r i g i n a l ly s o ld b y th e U n ite d S ta tes is c o n s id e r e d t o be in terest. U n d e r S e c tio n s 4 5 4 (b ) a n d 12 2 1 (5 ) o f th e I n te r n a l R e v e n u e C o d e o f 1954 th e a m o u n t o f d is c o u n t a t w h ic h b ills issu e d h e re u n d e r a r e s o ld is n o t c o n s id e r e d to a c c r u e u n til su ch b ills are s o ld , re d e e m e d o r o th e r w is e d is p o s e d o f , a n d su ch b ills a r e e x c lu d e d fr o m c o n s id e r a tio n as ca p ita l asse ts. A c c o r d i n g l y , th e o w n e r o f T r e a s u r y b ills (o t h e r th an life in s u r a n c e c o m p a n ie s ) issu e d h e r e u n d e r n e e d in c lu d e in h is in c o m e t a x re tu rn o n ly the d iffe r e n c e b e tw e e n the p r ic e p a id fo r su ch b ills , w h e th e r o n o r ig in a l issu e o r o n su b se q u e n t p u rch a se , an d th e a m o u n t a c t u a lly r e c e iv e d e ith e r u p o n s a le o r re d e m p tio n at m a tu r ity d u r in g the t a x a b le y e a r f o r w h ic h th e re tu rn is m ad e, as o r d in a r y g a in o r lo s s . T r e a s u r y D e p a r tm e n t C ir c u la r N o . 418, R e v is e d , an d th is n o t ic e , p r e s c r ib e th e . term s o f th e T r e a s u r y b ills a n d g o v e r n th e c o n d itio n s o f th e ir issu e. C o p ie s o f th e c ir c u la r m a y be o b ta in e d fr o m a n y F e d e r a l R e s e r v e B a n k o r B r a n c h . This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, January 9, 1956, at the Securi ties Department of 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 of Treasury bills (91-<lay bills dated January 5, 1956, maturing April 5, 1956) T o t a l a p p lie d f o r ......... $2,458,443,000 T o t a l a c c e p t e d .............. $1,600,478,000 (in c lu d e s $213,545,000 e n te re d o n a n o n c o m p e titiv e b a sis an d a c c e p te d in fu ll at the a v e r a g e p r ic e s h o w n b e lo w ) A v e r a g e p r i c e ............ 99.371 E q u iv a le n t ra te o f d is c o u n t a p p r o x . 2 .4 8 9 % p e r an nu m R a n g e o f a c c e p te d c o m p e titiv e te n d e r o f $1,000,000) H i g h ......................... 99.393 L o w ........................... 99.366 b id s : ( e x c e p t in g one E q u iv a le n t ra te o f d is co u n t a p p r o x . 2 .4 01% p e r an nu m E q u iv a le n t ra te o f d is co u n t a p p r o x . 2 .5 08% p e r an nu m (4 4 p e rc e n t o f the a m o u n t b id f o r at the lo w p r ic e w a s a c c e p t e d ) FRASER Digitized for Federal R eserve D istrict Total A pplied for .. N e w Y o r k .................... P h ila d e lp h ia ............... C le v e la n d .................... R ic h m o n d .................... A tla n t a ......................... C h i c a g o ......................... S t. L o u i s ....................... M i n n e a p o l i s ................ K a n s a s C i t y ................ D a lla s ........................... S a n F r a n c is c o ......... T o t a l ......................... $ 18,950,000 1,797,674,000 48,295,000 41,039,000 7,556,000 24,208,000 329,545,000 19,518.000 6,359,000 40,200,000 39,491,000 85,608,000 $2,458,443,000 Total A ccepted $ 18,450,000 1,053,644,000 32,075,000 41,039,000 6,756,000 21,278,000 266,188,000 18,490,000 6,359,000 37,900,000 34,691,000 63,608,000 $1,600,478,000 ( over) IM PORTANT— If you desire to bid on a c o m p e titiv e basis, fill in rate per 100 and maturity value in paragraph headed “ Competitive Bid.” If 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 “ Noncompetitive Bid.” D O N O T fill in b o th paragraph s o n o n e fo rm . 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 F O R 9 1 -D A Y T R E A S U R Y B IL L S Dated January 12, 1956 To F ed era l R eserve B a n k o f N ew Maturing April 12, 1956 Dated at Y ork , Fiscal Agent o f the United States. 1956 COM PETITIVE BID Pursuant to the provisions of Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on January 5, 1956, 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 January 5, 1956, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ..........................................* for a total amount of for a total amount of $. NONCOMPETITIVE BID ( R a t e p e r 100) ( N o t t o e x c e e d $200,000) $ ....................................................(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 : □ (maturity value) of 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 of maturing Treasury bills □ amounting t o .................... $--------------------------------□ By surrender of maturing Treasury bills amounting t o .................... $______________________ By cash or other immediately available funds □ 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 January 12, 1956, and are to mature on April 12, 1956. This tender will be inserted in special envelope marked “ Tender for Treasury Bills” N a m e o f B id d e r ................................................. ( P le a s e p r in t ) B y ............................. .................................. — (Title) (O ffic ia l s ig n a t u r e r e q u ir e d ) S tr e e t A d d r e s s .............................................. ( C it y , 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: ( C it y , T o w n o r V illa g e , P . O . N o ., a n d S ta te ) (N a m e o f C u s to m e r ) IM PORTANT INSTRUCTIONS: 1. N o te n d e r f o r $1,000 (m a t u r ity v a lu e ). less th an $1,000 w ill b e c o n s id e r e d , an d e a ch te n d e r m ust be fo r an ev e n m u ltip le of 2. I f th e p e rs o n m a k in g the te n d e r is a c o r p o r a t io n , the te n d e r sh o u ld be s ig n e d b y a n o ffic e r o f th e c o r p o r a t io n a u th o riz e d to m a k e the te n d e r, an d the s ig n in g o f the te n d e r by an officer o f the c o r p o r a t io n w ill be c o n s tr u e d as a rep r e se n ta tio n by h im that he h a s b e e n s o a u th o riz e d . I f the t e n d e r is m a d e by a p a rtn e rs h ip , it s h o u ld be sig n e d b y a m e m b e r o f th e firm , w h o s h o u ld s ig n in the fo r m “ ........................................................................................................................ . a c o p a rtn e r s h ip , b y ............................................................................................................................ a m e m b e r o f th e firm .” 3. T e n d e r s w ill b e s ib le a n d r e c o g n iz e d d e a le r s 2 p e rc e n t o f the fa c e a m o u n t o f p a y m e n t b y a n in c o r p o r a t e d r e c e iv e d w ith o u t d e p o s it fr o m in c o r p o r a te d b a n k s a n d tru st c o m p a n ie s an d fr o m r e s p o n in in v e stm e n t s e c u r itie s . T e n d e r s fr o m o th e r s m u st b e a c c o m p a n ie d b y p a y m en t o f o f T r e a s u r y b ills a p p lie d fo r , u n less the ten d ers a re a c c o m p a n ie d b y a n e x p r e s s g u a ra n ty b a n k o r tru st c o m p a n y . 4. I f th e la n g u a g e o f th is te n d e r is c h a n g e d T r e a s u r y , is m a te r ia l, th e te n d e r m a y b e d is r e g a r d e d . in a n y r esp ect, w h ic h , in th e o p in io n o f th e S e c r e t a r y o f the Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ J— 1332-a Federal Reserve Bank of St. Louis ( over)
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