The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FED ERAL RE SE R V E BANK O F N EW YORK Fiscal A gent o f the United States I Circular No. 4 1 8 0 1 L January 6, litoo J ° Offering of $1,500,000,000 of 91-Day Treasury Bills Dated January 13, 1955 Maturing April 14, 1955 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 6, 1955. TREASURY 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 J anuary 13, 1955, in the amount of $1,500,014,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills o f this series w ill be dated January 13, 1955, and will mature April 14, 1955, when the face amount will be payable without interest. Th ey 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, tw o o'clock p.m., Eastern Standard time, M onday, January 10, 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 competitive 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 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 invest ment 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 will be made by the Treasury Department o f the amount and price range o f accepted bids. Those submitting tenders will be advised o f 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 will be accepted in full at the average price (in three decimals) o f accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal R eserve Bank on January 13, 1955, in cash or other immediately available funds or in a like face amount o f Treasury bills m aturing January 13, 1955. Cash and exchange tenders will re ceive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price of the new bills. T h e 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. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exem pt from all taxation n ow or hereafter imposed 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. For purposes o f taxation the amount o f discount at which Treasury bills are originally so'.d by the United States is considered to be interest. Under Sections 454(b) and 1221(5) o f the Internal Revenue Code o f 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 ccordingly, the owner o f Treasury bills (other than life insurance com panies) 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 cither 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, January 10, 1955, 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 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 (9 1 -d a y bills dated January 6, 1955, m aturing A pril 7, 1955) Total applied for..........$2,327,137,000 Total accep ted ..............$1,500,432,000 (includes $190,887,000 entered on a noncompetitive basis and accepted in full at the average price shown below ) A verage price....... 99.735 Equivalent rate o f discount approx. 1.049% per annum Range o f accepted competitive bids: H ig h ........................ 99.747 Equivalent rate o f discount approx. 1.001% per annum L ow ........................ 99.727 Equivalent rate o f discount 1.080% per annum Federal Reserve District Boston ............................ New Y o r k ...................... Philadelphia .................. Cleveland ...................... Richmond ...................... Atlanta .......................... C h ic a g o .......................... St. L o u is ........................ Minneapolis .................. Kansas C i t y .................. Dallas ............................ San Francisco .............. Total Applied for $ 25,484,000 1,603,223,000 26,079,000 42,245,000 12,165,000 21,870,000 429.334,000 28.646,000 8,764,000 39,921,000 28,972,000 60,434,000 Total Accepted $ 24.539,000 830,293,000 11,079,000 42,110,000 11,665,000 21,570,000 398,625,000 28,646,000 8,764,000 38,821,000 23,886,000 60,434,000 (37 percent o f the amount bid for at the low price was accepted) T o t a l .......................... $2,327,137,000 $1,500,432,000 ( over) 32 Q IM P O R T A N T — I f you desire to bid on a competitive basis, fill in rate per 100 and m aturity value in paragraph headed "C om petitive Bid.” I f you desire to bid on a noncompetitive basis, fill in only the m aturity value in paragraph headed "N oncom petitive 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 customers’ accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the am ount bid fo r his account, and method o f payment. 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 13, 1955 To M aturing A pril 14, 1955 Dated at F ederal R eserve B a n k of N ew Y o r k , Fiscal Agent o f the United States. .1955 COM PETITIVE BID N O N C O M PE TITIV E 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 January 6, 1955, 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 6, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ________________________ * for a total amount of for a total amount of $------------------------------------- (K a te per 100) (N o t to e x c e e d $200,000) .....(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 (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 of maturing Treasury bills amounting t o ...................... $------------------------------- amounting t o ...................... $------------------------------ Q □ By cash or other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis o f 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 13, 1955, and are to mature on April 14, 1955. This tender zuill be inserted in special envelope marked “ Tender fo r Treasury Bills.’ ' Name o f Bidder .................................................................................................................................. (P le a s e p r in t) By (T itle ) (O fficia l s ig n a tu re r e q u ir e d ) Street Address ........................................ (C ity , 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 stom er) (C ity , T o w n o r V illa g e , P . O. N o ., a n d S ta te) IM P O R T A N T IN STR U C T IO N S: 1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple o f $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 corpora tion authorized to make the tender, and the signing o f the tender by an officer of the corporation w ill be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem ber of the firm, w ho should sign in the form “ ............................................................................................ . a copartnership, by ............................................................................................................. . a member of the firm.” 3. Tenders will 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 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. 4. If 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 Account will not be permitted. http://fraser.stlouisfed.org/ T Reserve Bank Federal E N T H — 12S0-a of St. Louis ( over)