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FEDERAL RESERVE BANK OF NEW YORK £ Circular No. 4 1 9 1 Fiscal Agent of the United States January 27, 1955 Offering of $1,500,000,000 of 91-Day Treasury Bills Dated February 3, 1955 Maturing May 5, 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 27, 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 February 3, 1955, in the amount o f $1,500,936,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T h e bills o f this series will be dated February 3, 1955, and will mature M ay 5, 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 will 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 31, 1955. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case o f competitive tenders the price offered must be expressed on the basis of 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 will 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 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 accompanied b y 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 o r 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. T h e 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 decim als) 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 February 3, 1955, in cash or other immediately available funds or in a like face amount o f Treasury bills m aturing February 3, 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 o f 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 exempt from all taxation n ow 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. For 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 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 on ly the difference between the price paid for such bills, whether on original issued 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 N o. 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 31, 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 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 (9 1 -d a y bills dated January 27, 1955, m aturing A pril 28, 1955) Total applied for..........$2,449,938,000 Total a ccep ted ..... ........$1,500,197,000 (includes $240,537,000 entered on a noncompetitive basis and accepted in full at the average price shown below ) A verage price....... 99.659 Equivalent rate o f discount approx. 1.349% per annum Range o f accepted competitive bids: (E xcep tin g one tender o f $900,000) H ig h ........................ 99.671 Equivalent rate o f discount approx. 1.302% per annum L o w ........................ 99.657 Equivalent rate o f discount approx. 1.357% per annum (13 percent o f the amount bid for at the low price was accepted) Federal Reserve District Total Applied for $ Cleveland ............ Minneapolis ......... Kansas C i t y .......... Dallas .................... San Francisco ..... 28^666,000 1,711,382,000 41,680.000 58,219,000 14,126,000 29,315,000 307,441,000 19,920,000 13.875,000 53,393,000 41,026,000 130,895,000 $2,449,938,000 Total Accepted $ 26,666,000 949,188,000 20,420,000 53,229,000 14,026,000 24,170.000 201,759,000 18,314,000 11,735,000 48,608,000 29,126,000 102,956,000 $1,500,197,000 ( over) 32 T IM P O R T A N T — I f you desire td bid on. a com petitive basis, fill in rate per 100 and m aturity value in paragraph headed "C om petitive B id.” I f you desire to bid on a noncom petitive basis, fill in only the m aturity value in paragraph headed "N on com petitive Bid.” DO N O T fill in b oth paragraphs on one form . A separate tender must be used f o r each bid, except that banks subm itting bids on a com petitive basis fo r their ow n and their customers’ accounts m ay submit one tender f o r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid f o r his account, and method o f payment. Forms f o r this purpose w ill be furnished upon request. no tender .- FOR 9 1 -D A Y T R E A SU R Y BILLS M aturing M ay 5, 1955 Dated February 3, 1955 Dated at ................... To F e d e r a l R e se r v e B a n k of N e w Y o r k , Fiscal Agent o f the United States. .1955 COM PETITIVE BID N O N CO M PE TITIVE 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 27, 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 27, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender .............. .......... ...................* for a total amount of for a total amount o f $.............................................. $...... ..................... ..........................(maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ □ (Rate per 100) (Not to exceed ?200,000) By surrender o f maturing Treasury bills By surrender of maturing Treasury bills amounting to .......................$------------------------------- amounting to . .....................$____________________ □ □ By cash or other immediately available funds By cash or other immediately available f unds *Price must be expressed on the basis o f 100, with not more than three decimal places, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated February 3, 1955, and are to mature on May 5, 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills” Name o f Bidder .................................................................................................................................. (Please print) By ................................................................ (Official signature required) (Title) Street Address ........................................ (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Name of Customer) (City, Town or Village, P. O. No., 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 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 o f 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 member o f the firm, w ho 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 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 o r 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 b y cred it through Treasury T a x and Loan A ccou n t nrill n ot b e perm itted. http://fraser.stlouisfed.org/ T E N T B — 1283-a (OVER) Federal Reserve Bank of St. Louis
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