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FEDERAL RESERVE BANK O F NEW YORK
f Circular No. 42HOT
I August 11. 1955 J

Fiscal Agent of the United States

Offering o f $1,60 0,00 0,0 00 o f 91-Day Treasury Bills
Dated August 18, 1955

Maturing November 17, 1955

T o all In corpora ted B anks and Trust Companies, and O thers
Concerned, in the Second Federal R e s e r v 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, A u g u st 11, 1955.

TREASU RY DEPARTM ENT
W a s h in g to n

T h e T r e a s u ry D epa rtm en t, b y this p u b lic n otice, in vites ten ders f o r $1,600,000,000, o r th ereabouts, o f 9 1-d ay T reasu ry
bills, fo r ca sh and in ex ch a n g e f o r T rea su ry bills m atu rin g A u g u s t 18, 1955, in th e a m ou n t o f $1,500,393,000, t o be issued on
a d iscou n t basis u nder com p etitiv e and n on com p etitiv e bid d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated
A u g u s t 18, 1955, and w ill m ature N o v e m b e r 17, 1955, w h en the face a m ou n t w ill be p ayable w ith ou t in te re s t T h e y w ill be
issued in bearer fo rm o n ly , and in den om in a tion 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 receiv ed at F ed era l R eserve B anks and B ra n ch es up to the c lo s in g h our, tw o o ’ c lo c k p.m ., E astern D a y ­
ligh t S a v in g tim e, M o n d a y , A u g u s t 15, 1955. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . Each
ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitiv e ten ders the p r ice o ffe re d m u st b e exp ressed on
the basis o f 100, w ith n ot m o re than th ree decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rg ed that tenders be
m a d e o n the printed fo rm s and fo rw a rd e d in th e special en v elop es w h ich w ill be sup plied b y F ed eral R es e rv e B anks o r
B ra n ch es o n a pp lica tion th erefor.
O th e rs than b a n k in g institutions w ill n ot be perm itted t o subm it ten ders e x ce p t fo r th eir o w n a ccou n t. T en d ers w ill be
receiv ed w ith ou t d ep o sit fr o m in corp ora ted banks and trust com p a n ies a n d fr o m resp on sib le and r e co g n iz e d dealers in invest­
m en t securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f the fa c e a m ou n t o f T rea su ry bills
applied fo r, u nless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a y m en t b y an in corp ora ted bank o r trust com p a n y .
Im m e d ia te ly a fter th e clo s in g h ou r, ten ders w ill be o p en ed at th e F ed era l R e serv e B an ks and B ra n ch es, fo llo w in g w hich
pu b lic a n n ou n cem en t w ill be m ade b y the T r e a s u ry D epa rtm en t o f th e a m ou n t a n d p r ice ra n ge o f a cce p te d 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 th ereof. T h e S ecreta ry o f the T rea su ry e x p re s sly reserves
the righ t t o a cce p t o r re je ct a n y o r all ten ders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b ject
to these reserva tion s, n on com p etitiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y on e b idd er w ill be a ccep ted
in fu ll at the a vera ge price (in th ree d e c im a ls ) o f a ccep ted com p etitiv e bids. S ettlem en t fo r a ccep ted tenders in a cco rd a n ce
with the bids m u st be m ade or com p leted at the Federal R eserve B ank on A u g u s t 18, 1955, in cash o r oth er im m ediately
available fu n ds o r in a like fa ce a m ou n t o f T rea su ry bills m aturing A u g u st 18, 1955. Cash and ex ch a n g e tenders w ill receive
equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces b etw een the par valu e o f m a tu rin g bills a ccep ted in exch a n ge
a n d the issue p r ice o f th e n ew bills.
T h e in co m e derived fr o m T rea su ry bills, w h eth er interest or gain fr o m the sale o r oth er d isp osition o f the bills, d oes n o t
have a n y exem ption , 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 ent, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r o th e r e x cis e taxes,
w hether Federal o r State, but are exem p t fro m all taxation n o w or hereafter im posed on the principal o r interest th e re o f b y
an y State, o r any o f the p ossession s o f the U n ited States, or b y any lo ca l ta x in g authority. F o r pu rp oses o f taxation the
am ou n t o f discou n t at w h ich T rea su ry bills are o rigin a lly sold b y th e U n ited States is con sid ered to be interest. U n der
S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C od e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder
are so ld is n ot con sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise d isp osed o f, and such bills are exclu ded
fro m con sid era tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued
hereun der need in clude in his in co m e ta x return o n ly the differen ce betw een th e p rice pa id fo r such bills, w h eth er o n original
issue o r on subsequent pu rch ase, and the am ou nt actu a lly received either u p on sale o r red em p tion at m atu rity d u rin g the
ta x a b le yea r fo r w h ich th e return is m ade, as ord in a ry gam o r loss.
T re a su ry D e p a rtm en t C ircu lar N o . 418, R evised , and this n otice, p rescrib e the term s o f the T r e a s u ry bills and g o v e rn
th e co n d itio n s o f their issue. C op ies o f the circu la r m ay be obtain ed fro m a n y F ed era l R e serv e B ank o r B ran ch.

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, August 15, 1955, at the Securities
Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f 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 l a n S p r o u l , President.
Results o f last offering o f Treasury bills (91-d a y bills dated August 11, 1955, maturing November 10, 1955)
T o ta l a p p lie d for . . .$2,291,394,000
T o ta l a c c e p t e d ......... $1,600,357,000 (in clu d e s $230,599,000
en tered on a n on com p etitiv e basis
and a ccep ted in fu ll at th e a vera ge
p rice sh ow n b e lo w )
A v e ra g e p rice . . .
9 9 .5 2 2 + E q u iva len t rate o f discou n t
a p p rox . 1.889% per annum
R a n g e o f a ccep ted com p etitiv e b id s : (E x c e p t in g tw o
ten ders tota lin g $750,000)

Hi* h ................

99 532

i
Low

ooco
99.518

per^aTnim

£
\
V p er annum
..................
E q u iva len t rate o f discou n t
a p p rox . 1.907% p er annum
(9 p ercen t o f the a m ou n t b id fo r at the lo w
p rice w as a cce p te d )




F edera l R eserv e
T ota l
D istrict
A pplied f o r
B o s to n ............................. $
35,666,000
N e w Y o r k ....................
1,628,561,000
P h iladelp hia ..................
40,489,000
C levelan d ......................
57,477,000
R ich m o n d .......................
15,876,000
.............................
21,656,000
C h ica g o ...........................
257,087,000

M

o o lis ' ! ' . ! ' . !

K ansas C ity ..................
Dallas
.............................
San F r a n cis co ..............
T o ta l ................

t s S ’.O O
O
56,734,000
43,710,000
92,643,000
----------------------$2,291,394,000

Total
A ccep ted
$
30,666,000
1,025,329 000
25,489,000
57,477,000
15,876,000
20,156,000
204,717,000

$ 3 3 £ »
49,564,000
37 600 000
92,188,000
$1,600,357,000
( over)

33 V
IM P O R T A N T — I f you desire to bid on a competitive basis, fill in rate per 100 and maturity
value in paragraph headed "Com petitive Bid.” I f you desire to bid on a noncompetitive
basis, fill in only the maturity value in paragraph headed "Noncompetitive Bid.” D O
N O T 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 9 1 -D A Y T R E A SU R Y BILLS
Dated A u gust 1 8 , 1 9 5 5

Maturing November 17, 1955

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

T o F ederal R eserve B a n k of N ew Y ork,
Fiscal Agent o f the United States.

1955

CO M PETITIVE BID

N O N C O M P E T IT IV E BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, Revised, and to
the provisions o f the public notice on August 11,
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 August 11,
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 $ ............................................

(Rate per 100)

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:

(N o t to exceed $200,000)

(maturity value) o f the Treasury bills therein
described, at the average price (in three decimals)
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 to .................. $.......................................

amounting to .................. $_____________________

□

□

By cash or other immediately available funds

□

By surrender o f maturing Treasury bills

By cash or other immediately available funds

* P rice m ust be ex p ressed on the basis o f 100, w ith not
m ore than th ree decim al places, f o r exam ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated August 18, 1955, and are to mature
on November 17, 1955.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
N a m e o f B id d er .........
(Pleaae print)

By.

(Official signature required)

(T itle )

S treet A d d re s s

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

IM P O R T A N T IN S T R U C T IO N S :
1. N o ten der fo r less than $1,000 w ill be con sid ered , and each ten der m u st b e fo r an even m u ltiple o f $1,000
(m a tu rity v a lu e ).
2. I f th e p erson m a k in g th e tender is a co rp o ra tio n , the ten der sh ou ld b e sign ed by_ an officer o f the c o rp o ra ­
tion a u th orized t o m a k e th e tender, and the sig n in g o f the ten der b y an officer o f th e corp o ra tio n w ill be con stru ed as a
rep resen tation b y h im that he has been s o auth orized. I f the ten der is m ade b y a partnersh ip, it sh ou ld be sign ed b y a
m e m b e r o f th e firm , w h o sh ou ld sign in th e fo r m “ ...................................................................................................... a cop artn ersh ip , b y
.......................................................................................................................................... a m em b er o f th e firm .”
3. T e n d e rs w ill b e receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp o n ­
sible and re co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m u st b e a ccom p a n ied b y pa ym en t o f 2 p ercen t
o f the face a m ou n t o f T r e a s u ry bills a pp lied fo r, unless th e ten ders are a ccom p a n ied b y an ex p ress gu a ra n ty o f pa ym en t
b y an in co rp o ra te d bank o r trust com p a n y .
4. I f th e la n g u a g e o f this ten d er is ch a n g ed in a n y respect, w h ich , in th e op in io n o f th e S ecreta ry o f the
T re a su ry , is m aterial, th e ten der m a y b e disregarded.

Payment by credit through Treasury Tax and Loan A ccount will not be permitted.
T for B — 1311-a
DigitizedE N TFRASER


( over)

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