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FEDERAL RESERVE

BANK O F

NEW YORK

C

Fiscal Agent of the United States

C ircular No. 4 2 1 2 "1
M arch 24, 1955
J

Offering of $ 1 ,5 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills
Dated March 31, 1955

Maturing June 30, 1955

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:
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, M arch 24, 1955.

TREASU RY DEPARTM ENT
W ashington

The 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 March 31, 1955, in the amount o f $1,500,859,000, to be issued on
a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills o f this series will be dated
March 31, 1955, and w ill mature June 30, 1955, when the face amount w ill be payable without interest. They will
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 closing hour, two o ’clock p.m., Eastern
Standard time, Monday, M arch 28, 1955. Tenders w ill not be received at the Treasury Department, Washington. Each
tender must be for an even multiple o f $1,000, and in the case o f competitive tenders the price offered must be expressed on
the basis o f 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions w ill not be permitted to submit tenders except for their own account. Tenders will be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in­
vestment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills
applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which
public announcement w ill be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders w ill be advised of the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, noncompetitive 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 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on March 31, 1955, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing March 31, 1955. Cash and exchange tenders w ill re­
ceive 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.
The income 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. The bills are subject to estate, inheritance, gift or other excise taxes,
whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by
any State, or any o f the possessions of the United States, or by any local taxing authority. For purposes o f taxation the
amount of 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 of 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. Accordingly, the owner o f Treasury bills (other than life insurance companies) issued
hereunder need include in his income 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 Department 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 or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 28, 1955, 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 bills (91-day bills dated March 24, 1955 maturing June 23, 1955)
T otal applied f o r ........ $2,358,953,000
Total a ccep ted ............ $1,501,723,000 (includes $250,327,000
entered on a noncompetitive basis
and accepted in full at the aver­
age price shown below)
Average price.......... 99.655 Equivalent rate o f discount
approx. 1.366% per annum
Range o f accepted competitive b id s :
H i g h .........................

99.696

L o w ...........................

99.653

Equivalent rate
approx. 1.203%
Equivalent rate
approx. 1.373%

o f discount
per annum
o f discount
per annum

(79 percent o f the amount bid for at the low
price was accepted)




Federal R escn e
District
B o s to n ...........................
New Y ork ....................
Philadelphia
C le v e la n d ___
R ich m o n d ___
Atlanta ..........
Chicago ........
St. Louis ___
Minneapolis . .
Kansas City .
Dallas ............
San Francisco
T

otal

____

Total
Applied for
$

47,656,000
1,542,101,000
58.878.000
85.448.000
15.420.000
58.804.000
291.060.000
22.640.000
24.849.000
41.214.000
52.860.000
118.023.000

$2,358,953,000

Total
Accepted
$

46,581,000
806.404.000
43.878.000
84.398.000
13.210.000
55.968.000
257.990.000
22.178.000
24.513.000
31.641.000
33.767.000
81.195.000

$1,501,723,000
(

over)

33 B

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
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.
No.

T E N D E R FOR 91-D AY T R E A S U R Y BILLS
Dated March 31, 1955
To

F ed era l

R eserve

B an k

o f

N ew

Maturing June 30, 1955
Dated at

Y ork ,

Fiscal A gent o f the United States.

1955

COMPETITIVE BID

NONCOMPETITIVE BID

Pursuant to the provisions o f Treas­
ury Department Circular No. 418, Revised,
and to the provisions o f the public no­
tice on March 24, 1955, as issued by the
Treasury Department, the undersigned offers

Pursuant to the provisions o f Treasury De­
partment Circular No. 418, Revised, and to the
provisions o f the public notice on March 24,
1955, as issued by the Treasury Department,
the undersigned offers a noncompetitive tender

............................................ * for a total amount o f

for a total amount o f $ ..............................................

(R a te p er 100)

(N o t to exceed $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 b e lo w :

(maturity value) o f 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 b e lo w :

□

□

By surrender o f maturing Treasury bills

amounting t o ................... $_______________________
□

B y cash or other immediately available funds

By surrender o f maturing Treasury bills

amounting t o ................... ________________________
□

B y cash or other immediately available funds

P rice 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 March 31, 1955, and are to
mature on June 30, 1955.

This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
Name o f Bidder .................................................................................... ...........................................
(P lea se print)

By
(O fficial signature required)

(T itle )

Street Address .........................................
(C ity , T ow n o r V illa g e , P. O. N o., and S tate)

I f th is te n d e r is su b m itte d b y a b a n k f o r the a c c o u n t o f a cu s to m e r , in d ic a te th e c u s to m e r ’ s n a m e o n lin e b e lo w :
(C ity , T ow n or V illa g e , P. O. N o., and State)

(N am e o f Custom er)

IM PORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of
$1,000 (maturity value).
2. If the person making the tender is a corporation, the tender should be signed by an officer o f the corporation
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 rep­
resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem­
ber o f the firm, who should sign in the form “ ......................................................................................................... a copartnership, by
a member o f the firm.’!
3. Tenders 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 accompanied by payment of
2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty
o f payment by an incorporated bank or trust company.
4. If the language o f this tender is changed in any respect, which, in the opinion of the Secretary o f the
Treasury, is material, the tender may be disregarded.

Payment by credit through Treasury Tax and Loan Account will not be permitted.

Digitized N T B —1291-a
T E for FRASER


( over)

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