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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent o f the United States C ir c u la r N o. 4 3 0 3 J a n u a r y 1 2 ,1 9 5 6 Offering o f $1,600,000,000 of 91-Day Treasury Bills Dated January 19, 1956 Maturing A p ril 19, 1956 T o all Incorporated Banks and Trust Companies, 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 , T h u rsd a y, January 12, 1956. T h e T re a su ry D epartm en t, b y bills, fo r cash and in exch a n ge fo r a discou n t basis under com petitive January 19, 1956, and w ill m ature be issued in bearer fo rm on ly , and in TREASU RY DEPARTM ENT W ashington this pu blic n otice, invites tenders fo r $1,600,000,000, o r thereabouts, o f 91-day T rea su ry T rea su ry bills m atu rin g J a n u a ry 19, 1956, in the a m ou n t o f $1,600,903,000, to be issued on and n on com p etitive b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated A p ril 19, 1956, w h en the face am ou nt w ill be payable w ith ou t interest. T h e y w ill 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 be received at Federal R eserve B anks and B ra n ch es up to the clo s in g hour, on e-th irty o ’ c lo ck p.m ., E astern S tandard tim e, M on d a y, January 16, 1956. T en d ers w ill n ot be received at the T rea su ry D epa rtm en t, W a sh in g ton . E a ch tender m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith n ot m o re than three decim als, e .g ., 99.925. F ra ction s m ay n ot be used. It is u rged that tenders be m ade on th e printed form s and forw a rd ed in the special en velop es w h ich w ill be supplied b y F ed eral R eserve B anks o r B ran ches on a pp lication th erefor. O th e rs than banking institutions w ill n ot be perm itted to subm it tenders e x cep t fo r th eir o w n a ccou nt. T en d ers w ill be received w ith ou t d ep o sit fr o m in corp ora ted banks a n d trust com p a n ies and fro m respon sib le and recog n ized dealers in invest m en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the fa ce a m ou n t o f T rea su ry bills a pplied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted b a n k or trust com p a n y . Im m ed ia tely after the clo s in g h our, tenders w ill be o p e n e d at the Federal R e serv 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 the T rea su ry D ep a rtm en t o f the a m ou n t and p rice ra n ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be advised o f the a ccep ta n ce or re je ctio n thereof. T h e S ecreta ry o f the T r e a s u ry exp ressly reserves the righ t to a cce p t o r reject any or a ll tenders, in w h ole o r in part, and his a ction in any such resp ect shall be final. S u b je ct to these reservations, n on com p etitive tenders for $200,000 o r less w ith ou t stated price fro m any on e b idder w ill be a ccep ted in fu ll at the a vera ge price (in three d ecim a ls) o f a ccep ted com p etitiv e bids. Settlem ent for a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the F ed eral R e serv e B ank on January 19, 1956, in cash or oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m aturing January 19, 1956. Cash and exch a n ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par valu e o f m a tu rin g bills a ccep ted in e x ch a n g e and the issue price o f the n ew bills. T h e in co m e derived fr o m T rea su ry bills, w hether in terest o r gain fro m the sale o r oth er disp osition o f the b ills, d o e s n ot have any e x e m p tion , as such, and loss fr o m the sale or oth er d isp osition o f T rea su ry bills d oes n ot have a n y special treat m en t, as such, under the Internal R even u e C ode o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w hether F ed eral o r State, but are exem p t fr o m all taxation n o w o r hereafter im p osed on the principal o r interest th ereof b y any State, o r any o f the p ossession s o f the U n ited States, or b y a n y loca l taxing authority. F o r pu rposes 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 rigin a lly s o ld b y the U n ited States is con sidered to be interest. U n d e r S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the am ou nt o f d iscou n t at w hich bills issued h ereunder are so ld is n o t co n sid ered to a ccru e until such bills are sold , red eem ed o r oth erw ise disp osed o f, and such bills are 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 rea su ry bills (oth er than life insurance com p a n ies) issued hereunder need include in his in com e ta x return o n ly th e differen ce betw een the price paid for such bills, w h eth er on origin a l issue o r o n subsequen t purchase, and the am ou nt actu ally receiv ed either upon sale o r redem ption a t m atu rity du rin g the taxable yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss. T rea su ry D epa rtm en t Circular N o. 418, R evised , and this n otice, prescrib e the term s o f the T rea su ry bills and g ov e rn the con d ition s o f their issue. C opies o f the circular m a y be ob ta in ed fro m a n y Federal R eserve B a n k or B ran ch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, January 16, 1956, at the Securi ties 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 llan S proul, President. Results o f last offering o f Treasury bills (91-day bills dated January 12, 1956, maturing April 12, 1956) T o ta l applied f o r .......... $2,492,911,000 T o ta l a c c e p t e d ...............$1,600,601,000 (inclu des $270,921,000 entered on a n on com petitive basis and accepted in full at the average p rice sh ow n b e lo w ) A ve ra g e price........ 99.344 E quivalent rate o f discou nt app rox. 2.596% p er annum R a n ge o f a ccep ted com petitive b ids: H i g h ..................... 99.393 E quivalent rate o f discou n t a p p rox. 2.401% per annum L o w ...................... 99.337 E quivalent rate o f discou nt a p p rox. 2 .623% per annum Federal R eserv e D istrict B oston .............................. N e w Y o r k ..................... P h iladelphia ................... C leveland ........................ R ich m o n d ........................ A tlanta ............................ C h ica g o ............................ St. L ou is .......................... M in neapolis ................... K an sas C ity ................... D allas .............................. San F ra n cisco ............... Total A pplied f o r $ 26,189,000 1,787,926,000 52,310,000 67,840,000 17,275,000 34,238,000 242,085,000 39,550,000 13,906,000 44,978,000 37,272,000 129,342,000 Total A ccepted $ 26,189,000 976.336.000 37.310.000 67.840.000 17.275.000 34.238.000 184.565.000 37.550.000 13.806.000 44.978.000 37.272.000 123,242,000 (4 8 p e r c e n t o f th e a m o u n t b id f o r at th e lo w p r ic e w a s a c c e p t e d ) T o t a l ......................... $2,492,911,000 $1,600,601,000 ( over) 34 R IM PORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” If you desire to bid on a noncompetitive basis, fill in only the maturity value in paragraph headed "Noncompetitive Bid.” DO N O T fill in both paragraphs on one form. A separate tender must be used fo r 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 fo r his account, and method o f payment. Forms fo r this purpose will be furnished upon request. No_____________ TENDER FOR 91 -D A Y TREASURY BILLS Dated January 19, 1956 To F ederal R eserve B a n k of N e w Y ork Maturing April 19, 1956 Dated at_ , Fiscal Agent o f the United States. .1956 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f Treas ury Department Circular Xo. 418, Revised, and to the provisions o f the public no tice on January 12, 1956, as issued by the Treasury Department, the undersigned offers ________________________ * for a total amount of (Rate per 100) 4 ---------------- (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: □ By surrender o f maturing Treasury bills Pursuant to the provisions of Treasury De partment Circular No. 418, Revised, and to the provisions o f the public notice on January 12, 1956, as issued by the Treasury Department, the undersigned offers a noncompetitive tender for a total amount o f $_ (N ot to exceed $200,000) (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender o f maturing Treasury bills amounting t o .......................$ ------------------------------ amounting t o ...................... $ ____________________ Q □ By cash or other immediately available funds By cash or other immediately available funds *P rice must b e expressed on the basis o f 100, with hot m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated January 19, 1956, and are to mature on April 19, 1956. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N a m e o f B id der (Please print) B y -----------(Official signature required) (Title) Street A d d ress (C ity, T ow n or Village, P . O. N o., and State) If this tender is submitted by a bank for the account o f a customer, indicate the customer’s nam* on line below: (N am e o f Customer) (City, Tow n or Village, P. O. No., and State) IM PORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sid ered , and each tender m u st b e fo r an even m u ltiple o f $1,000 (m a tu rity va lu e). 2. I f the p erson m a k in g the ten der is a corp ora tion , the tender sh ou ld b e sign ed b y an officer o f the co rp o ra tion a uthorized to m ake the tender, and the sig n in g o f the ten d er b y an officer o f the corp ora tion w ill be con stru ed as a represen tation b y h im that he has been s o authorized. I f the tender is m a d e b y a partnership, it sh ou ld be sign ed b y a m e m b e r o f the firm , w h o should 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 ers w ill be receiv ed w ith ou t deposit from in corp ora ted banks and trust com p a n ies and fr o m resp on sible and re co g n ized dealers in in vestm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the face a m ou n t o f T rea su 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 paym ent b y an in corp ora ted bank o r trust com p a n y . 4. I f the la n g u a ge o f this ten der is ch a n g ed in a n y respect, w hich, in the opin ion o f the S ecreta ry o f the T reasu ry, is m aterial, the ten der m a y be disregarded. Payment by credit through Treasury Tax and Loan Account u/ill not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1333 a (o v e r ) Federal Reserve Bank of St. Louis FED ER AL RESERVE BANK OF NEW YORK January 11, 1956. To All Banking Institutions in the Second Federal Reserve District: T h e E a s t e r n N a t io n a l B a n k of S m it h t o w n , a n e w l y o r g a n i z e d b a n k in S m it h t o w n , N e w Y o r k , w a s g r a n t e d a c h a r t e r b y th e C o m p t r o l l e r o f th e C u r r e n c y o n J a n u a r y 11,1956, a n d o n t h a t s a m e d a y b e ca m e a m e m b e r o f th e F e d e r a l R e s e r v e S y s te m . bank ex p ects to open fo r b u s in e s s on J an u ary T h e new 12, 1956, w it h c a p i t a l o f $500,000 a n d s u r p l u s o f $400,000. O ffic e r s o f th e n e w b a n k a r e : H er b e r t S a d k in Chairman W i l l i a m J. B o y l e P resid en t L e w is L . S m it h V ice P resid en t W alter F. T h om as Cashier The A .B .A . transit num ber and check routing sym bol o f The E astern National Bank o f Sm ithtown is ^0-1232 . 214 A llan S proul, President.
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