View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FED ERAL RESERVE BANK O F NEW YORK
Circular N o. 4 1 8 5 \
January 13, 1955 J

Fiscal Agent of the United States

Offering of $1,500,000,000 of 91-Day Treasury Bills
D ated January 20, 1955

M aturing A p r il 21, 1955

To all Incorporated, Banks and Trust Companies, and Others
Concerned, in the Second Federal R eserve 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 ,
Thursday, January 13, 1955.

TREASURY DEPARTM ENT
W ashington

T h e Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing January 20, 1955, in the amount o f $1,500,256,000, to be issued on
a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated
January 20, 1955, and w ill mature April 21, 1955, when the face amount will be payable without interest. T h ey w ill be
issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern
Standard time, M onday, January 17, 1955. Tenders will not be received at the Treasury Department, W ashington. Each
tender must be for an even multiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on
the basis o f 100, with not m ore than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed form s and forw arded in the special envelopes w hich w ill be supplied by Federal Reserve Banks or
Branches on application therefor.
O thers than banking institutions w ill not be permitted to submit tenders except for their ow n account. Tenders will be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest­
ment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face amount o f Treasury bills
applied for, unless the tenders are accom panied b y an express guaranty o f payment by an incorporated bank or trust company.
Imm ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which
public announcement will be made by the Treasury Department o f the amount and price range o f accepted bids. Those
subm itting tenders w ill be advised o f the acceptance or rejection thereof. T he Secretary o f the Treasury expressly reserves
the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject
to these reservations, noncom petitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted
in full at the average price (in three decim als) o f accepted com petitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on January 20, 1955, in cash or other immediately
available funds or in a like face am ount o f Treasury bills maturing January 20, 1955. Cash and exchange tenders will receive
equal treatment. Cash adjustments w ill be made for differences between the par value o f maturing bills accepted in exchange
and the issue price o f the new bills.
T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not
have any exemption, as such, and loss from the sale or other disposition o f Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code o f 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes,
whether Federal o r State, but are exempt from all taxation now or hereafter im posed on the principal or interest thereof by
any State, or any o f the possessions o f the United States, or by any local taxing authority. F or purposes o f taxation the
amount o f discount at which Treasury bills are originally sold by the United States is considered to be interest. Under
Sections 454(b) and 1221(5) o f the Internal Revenue Code of 1954 the amount o f discount at which bills issued hereunder
are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) issued
hereunder need include in his incom e tax return only the difference between the price paid for such bills, whether on original
issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Departm ent Circular No. 418, Revised, and this notice, prescribe the terms o f the Treasury bills and govern
the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank o r Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 17, 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, sub­
ject 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 la n Sproul, President.
Results o f last offering o f Treasury bills ( 9 1 -day bills dated January 1 3 , 1 9 5 5 , m aturing A pril 1 4 , 1 9 5 5 )
T otal applied f o r . . . . $2,355,730,000
T otal accepted ........ $1,500,300,000 (includes $227,682,000
entered on a noncom petitive basis
and accepted in full at the average
price shown below )
Average price
99.691- f Equivalent rate o f discount
approx. 1.222% per annum
Range o f accepted competitive bids:

/ ' ederal Reserve
Total
_____— S
t— ____
Applied f o r
Boston ........................... $ 31,363,000
N ew Y o rk .....................
1,716,811,000
Philadelphia .................
32,275,000
Cleveland .......................
45,808,000
Richm ond
..................
17,238,000
; ; ; ; ; ; ; ; ■ ;; ■;
^ .0 0 0

H igh

...................

99.765

St. Louis .......................
Minneapolis .................

Low

...................

99.684

Equivalent rate o f discount
approx. 0.930% per annum

Equivalent rate o f discount
approx. 1.250% per annum
....
,
(49 percent o f the amount bid for at the low
price was accepted)




39,319,000
16,787,000

£ a,'JSaS City .................
K ’S l ’SKi!
]?alIa® ■■• :.....................
S&SSnSX
San Francisco ............. 78,767,000
--------------------T otal ...............
$2,355,730,000

$

Total
Accepted
31,363,000
920,011 000
25,275,000
45,808,000
17,238,000
^2,014,000
39,319,000
16,787,000
5 & K 1'000

74,687,000
--------------------$1,500,300,000
( oveb)

32 R
IM P O R T A N T — I f y o u desire to bid on a competitive basis, fill in rate per 100 and m atu rity
value in paragraph headed "C om petitive Bid.” I f you desire to bid on a noncompetitive
basis, fill in only the m atu rity value in paragraph headed "N on com p etitive 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 subm itting bids on a com petitive basis fo r their ow n and their custom ers’
accounts m ay submit one tender fo r the total am ount bid at each price, provided a list is
attached showing the name o f each bidder, the am ount bid fo r his accou n t, and method
o f paym ent. Forms fo r this purpose w ill 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
D ated January 20, 1955

To

F

ederal

R

eserve

Ban

k

of

N

ew

M aturing A p ril 21, 1955
Y

Dated at ............................................ .

ork,

Fiscal Agent o f the United States.

1955

COMPETITIVE BID

N O N C O M PE TITIV E BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, Revised, and to
the provisions o f the public notice on January 13,
1955, as issued by the Treasury Department, the

Pursuant to the provisions o f Treasury
Department Circular No. 418, Revised, and to
the provisions of the public notice on January 13,
1955, as issued by the Treasury Department,
the undersigned offers a noncompetitive tender

undersigned o f f e r s ...................................... * for a

for a total amount of $ ................................ ..

(R ate per 100)

(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, f o r example, 99.925.

The Treasury bills for which tender is hereby made are to be dated January 20, 1955, and are to
mature on April 21, 1955.
This tender will be inserted in spccial envelope marked “ Tender fo r Treasury Bills/’
Name o f Bidder .................................................................................................................................
(Please print)

B y.

(Official signature required)

(T id e )

Street Address

(C ity, Town 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, Tow n or V illage, P . O . N o., and State)

IM P O R T A N T IN ST R U C T IO N S:
1. N o tender for less than $1,000 will be considered, and each tender m ust be for an even multiple o f $1,000
(maturity value).
2. I f the person making the tender is a corporation, the tender should be signed b y an officer o f the corpora­
tion authorized to make the tender, and the signing o f the tender by an officer o f the corporation w ill be construed as a
representation by him that he has been so authorized. If the tender is made b y a partnership, it should be signed by a
member o f the firm, w h o should sign in the form “ ............................................................................................. . a copartnership, by
................................................................................................................................ a member o f the firm.”
3. T enders w ill be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accom panied by payment o f 2 percent
o f the face am ount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment
b y an incorporated bank or trust company.
4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the
Treasury, is material, the tender may be disregarded.

Payment by credit through Treasury Tax and Loan A ccount -will not be permitted.
T N T B — 1281-a
Digitized forEFRASER


(OVES)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102