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FEDERAL RESER VE BANK O F N EW YO RK Fiscal Agent of the United States [ C ir c u la r N o. 4 2 0 7 1 I M a rch 10,1955 J Offering of $1,500,000,000 of 91-Day Treasury Bills Dated March 17, 1955 Maturing June 16, 1955 To all Incorporated Banks and Trust Companies, and Others Concerned, tn 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, March 10, 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 March 17, 1955, in the amount o f $1,500,623,000, 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 M arch 17, 1955, and will mature June 16, 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, March 14, 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 form s 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 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 o r trust company. Immediately after the closing hour, tenders will 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 submitting tenders will 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 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 Reserve Bank on March 17, 1955, in cash or other immediately available funds or in a like face amount of Treasury bills maturing March 17, 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. 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 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. 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 o f 1954 the am ount 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 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, March 14, 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 M arch 10, 1955, m aturing June 9, 1955) T otal applied for......... $2,011,048,000 Total accepted ..............$1,500,048,000 (includes $210,812,000 entered on a noncompetitive basis and acccpted in full at the average price shown below ) A verage price........ 99.689 Equivalent rate o f discount approx. 1.231% per annum Range o f accepted competitive bids: H ig h ........................ 99.697 Equivalent rate o f discount approx. 1.199% per annum L ow ........................ 99.681 Equivalent rate o f discount approx. 1.262% per annum Federal Reserve District Total Applied for Boston ............ N ew Y o r k ...... Philadelphia ... Cleveland ....... Richm ond ...... Atlanta ........... Chicago .......... St. Louis ....... M inneapolis ... Kansas City ... Dallas ............. San Francisco (88 percent o f the amount bid for at the low price was accepted) T otal .......... ....... .. Total Accepted |> 20,152,000 1,429,387,000 28.994.000 33.413.000 20.725.000 27.397.000 262,203,000 30.767.000 17.237.000 43.188.000 39.880.000 57.705.000 20.152.000 972.587.000 13.994.000 32.313.000 19.225.000 27.397.000 227.203.000 30.767.000 17.137.000 42.988.000 38.580.000 57.705.000 $2,011,048,000 $1,500,048,000 32 Z 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 m ust be used f o r each bid, except that banks submitting 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 amount bid f o r his account, and method o f payment. Forms fo r this purpose w ill be furnished upon request. N o_____________ T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS M aturing June 16, 1955 D ated M arch 17, 1955 To Dated at.. F ederal R eserve 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 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 March 10, 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 March 10, 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 p e r 100) (N o t t o e x c e e d $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 below: (maturity value) o f 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 o f maturing Treasury bills By surrender of maturing Treasury bills amounting t o .................. $--------------------------------- amounting t o .................. $_____________________ □ □ 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 March 17, 1955, and are to mature on June 16, 1955. This tender will 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.. (O fficia l s ig n a tu re r e q u ir e d ) (T itle ) 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 s to m e r) (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 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 will 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 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 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. http://fraser.stlouisfed.org/ Payment by credit through Treasury Tax and Loan Account -will not be permitted. N T B — 1289-a FederalT EReserve Bank of St. Louis ( over)
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