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FED ERAL RE SE R V E BANK O F N EW YORK £ c January 194i9S65 } Fiscal Agent of the United States Offering o f $1,600,000,000 o f 91-Day Treasury Bills D a te d January 26, 1956 M a tu rin g A p ril 26, 1956 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of 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 ay, January 19, 1956. TREASURY DEPARTM ENT W ashington T h e T re a su ry D epartm ent, by this pu blic n otice, invites tenders for $1,600,000,000, or thereabouts, o f 91-day T reasu ry b ills, fo r cash and in exch a n ge for T reasu ry bills m aturing January 26, 1956, in the am ount o f $1,601,680,000, to be issued on a discou n t basis_ under com petitive and n on com petitive b idd ing as h erein a fter provided . T h e bills o f this series w ill be dated January 26, 1956, and w ill mature A p ril 26, 1956, w hen the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity va lu e). T en ders w ill be received at Federal R eserve Banks and B ran ches up to the clo s in g hour, on e-thirty o ’clo ck p.m., Eastern Standard tim e, M on day, January 23, 1956. T en ders w ill n ot be received at the T reasu ry D epartm ent, W ash ington. E ach tender must be fo r an even m ultiple o f $1,000, and in the ca se o f com petitive tenders the price offered must be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F raction s m ay not be used. It is urged that tenders be made on the printed form s and forw a rded in the special envelopes w hich w ill be supplied by Federal R eserve B anks o r B ranches on application therefor. O th ers than banking institutions w ill not be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in in vestm ent securities. T en ders from others must be accom panied b y paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an exp ress guaranty o f paym ent by an in corporated bank o r trust com pany. Im m ediately a fter the clo s in g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f accepted bids. T h ose subm itting tenders w ill be advised o f the acceptance o r rejection th ereof. T h e Secretary o f the T reasu ry exp ressly reserves the right to accep t o r reject any o r a ll tenders, in w h ole or in part, and his action in any such respect shall be final. S ubject to these reservations, noncom petitive tenders fo r $200,000 o r less w ith ou t stated price from any one bidder w ill be accepted 111 full at the a vera ge price (in three decim a ls) o f accepted com petitive bids. Settlem ent for accepted tenders in a ccord a n ce with the bids must be m ade or com pleted at the F ed eral R eserve Bank on January 26, 1956, in cash or oth er im m ediately a va ila b le funds o r in a like face am ount o f T reasu ry bills m aturing January 26, 1956. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be m ade f o r differences betw een the par value o f m aturing bills a ccepted in exch a n ge and the issue price o f the new bills. T h e in com e derived from T reasu ry bills, w hether interest o r ga in from the sale o r oth er d isp osition o f the bills, d oes not have any exem ption, as such, and loss from the sale or oth er d isp osition o f T reasu ry bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T h e bills are subject to estate, inheritance, g ift o r oth er e x cis e taxes, whether Federal o r State, but are exem pt from a ll taxation n ow or hereafter im posed on the principal o r interest th ereof by any State, o r any o f the possessions o f the U nited States, o r by any loca l ta x in g authority. F o r purposes o f ta xation the am ount o f discou n t at w hich T reasu ry bills are o rig in a lly sold by the U nited States is con sidered to be interest. U nder Sections 4 5 4 (b ) and 1221(5) o f the Internal R evenue C ode o f 1954 the am ount o f discou n t at w hich bills issued hereunder are sold is not con sidered to a ccru e until such bills are sold , redeem ed or otherw ise disposed o f, and such bills are exclu ded from con sidera tion as capital assets. A cco rd in g ly , the ow ner o f T rea su ry bills (oth er than life insurance com pa n ies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid fo r such b ills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity d u rin g the taxable yea r fo r w hich the return is m ade, as ord in a ry gain o r loss. T reasu ry Departm ent C ircu la r N o. 418, R evised, and this n otice, prescribe the terms o f the T reasu ry bills and govern the con dition s o f their issue. C opies o f the circu la r may be obtain ed from any F ed eral R eserve Bank o r Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday. January 23. 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 o f Treasury hills (91-dav bills dated January 19, 1956, maturing April 19, 1956) T o ta l applied f o r .........$2,686,133,000 T o ta l a c c e p t e d .............$1,601,612,000 (in clu des $286,017,000 entered on a noncom petitive basis and accepted in full at the a ver age price show n b elow ) A ve ra g e p r ic e ........... 99.370 Equivalent rate o f discount app rox. 2.493% per annum Range o f accepted com petitive b id s : H i g h ....................... 99.376 L o w ......................... 99.368 E quivalent rate app rox. 2.469% E quivalent rate approx. 2.500% o f discou nt per annum o f discou nt per annum (4 8 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 ) Federal R eserve District Total A pplied for .. N ew Y o r k ................. Ph iladelphia ............. C leveland ................... R ic h m o n d ................... A tlanta ....................... C h i c a g o ....................... St. L o u i s ..................... M in n e a p o lis ............... K ansas C i t y ............... D allas ......................... San F ra n cisco ......... T o ta l ...................... . . $ 61,784,000 1,796,786.000 45,755.000 115,790,000 19,767,000 38,162,000 364,615.000 29,692.000 10,957,000 36,759,000 33,751,000 132,315.000 $2,686,133,000 T otal A ccepted $ 48,189,000 943,841,000 19,049,000 98,675,000 18,715,000 27,822,000 249,173,000 22,750,000 10,857,000 31,535.000 25,081,000 105,925,000 $1,601,612,000 ( oveb) 34 S IM PORTANT— 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 noncompetitive 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. 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 26, 1956 To F ederal R eserve Bank of N ew Y Maturing April 26, 1956 Dated at 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 19, 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 19, 1956, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ..........................................* for a total amount of for a total amount of $ ( R a t e p e r 100) NONCOMPETITIVE BID ( N o t to e x c e e d $200,000) $ ....................................................(maturity value) o f 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 o f maturing Treasury bills amounting t o .................... $---------------------------------□ By cash or other immediately available funds By surrender of maturing Treasury bills amounting t o .................... $______________________ □ 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 26, 1956, and are to mature on April 26, 1956. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” Name o f Bidder ............................................... ( P le a s e p r in t) By (T itle ) (O ffic ia l s ig n a tu r e re q u ir e d ) Street Address ............................................ ( 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: (N a m e o f C u sto m e r) (C it y , T o w n o r V i l la g e , P . O . N o ., a n d S ta te ) IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 w ill be con sidered, and each tender must be fo r an even multiple of $1,000 (m aturity valu e). 2. If the person m aking the tender is a corp ora tion , the tender should be signed by an officer o f the corporation authorized to make the tender, and the sign ing o f the tender by an officer o f the corp ora tion w ill be construed as a rep resentation by him that he has been so authorized. I f the ten der is made by a partnership, it should be signed by a m em ber o f the firm, w ho should sign in the form “ ................................................................................................................... a copartnership, by ..................................................................................................................... a m em ber o f the firm.” 3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en ders from others must be accom panied b y paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom pa n ied b y an express guaranty o f paym ent by an in corporated bank or trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B — 1334-a ( over)
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