The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FED ERAL RESER VE BANK O F N EW YO RK [ C ir c u la r N o. 4 2 1 5 L M a rch 31,1955 Fiscal Agent of the United States Offering of $ 1 ,5 0 0 ,0 0 0 ,0 0 0 of 9 1 -Day Treasury Bills Dated April 7, 1955 Maturing July 7, 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, March 31, 1955. TREASURY D EPARTM EN T W ashington Th e 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 April 7, 1955, in the amount o f $1,500,112,000, 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 April 7, 1955, and will mature July 7, 1955, when the face amount w ill be payable v/ithout 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, April 4, 1955. Tenders w ill 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 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 w ill 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 w ill 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 com pleted at the Federal Reserve Bank on April 7, 1955, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing April 7, 1955. Cash and exchange tenders will 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. 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. 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 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 ccordin gly, 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, April 4, 1955, at the Securities 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 (91-day bills dated March 31, 1955 maturing June 30, 1955) Total applied for......... $2,229,689,000 Total a ccep ted ..............$1,500,099,000 (includes $202,251,000 entered on a noncompetitive basis and accepted in full at the average price shown below ) A verage price....... 99.653 Equivalent rate o f discount approx. 1.374% per annum Range o f accepted competitive bids: (E xcep tin g three tenders totaling $1,012,000) H ig h .................... 99.667 Equivalent rate o f discount approx. 1.317% per annum L o w .................... 99.648 Equivalent rate o f discount approx. 1.393% per annum (9 percent o f the amount bid for at the low price was accepted) Federal Reserve District Total Applied fo r Boston ........................ .... New' Y o r k .................. .... Philadelphia .............. Cleveland .................. Richm ond ................. Chicago ...................... St. Louis .................... Minneapolis .............. Kansas City .............. San Francisco ......... T otal ........................... .... $ 22,502,000 1,613,670.000 27,496,000 68,635,000 10,941.000 21,429.000 251,652,000 19,285,000 9,672,000 47,014,000 44,971,000 92,422,000 $2,229,689,000 Total Accept cd $ 22,002,000 960,440.000 12,496,000 67,725,000 10,941,000 20,974,000 223,862,000 19,285,000 9,672,000 44,594,000 39,971,000 68,137,000 $1,500,099,000 ( over) 33 C IM PORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph beaded "Competitive Bid.’* If you desire to bid on a noncom petitive basis, fill in only the maturity value in paragraph headed "Noncompetitive 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 submitting bids on a competitive basis for their own 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 fo 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 91 -D A Y T R E A SU R Y BILLS Maturing July 7, 1955 Dated April 7, 1955 To Dated at. F ed era l R eserve B a n k o f N ew Y ork , Fiscal Agent 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 31, 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 31, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ------------------------------------- * for a total amount of for a total amount of $„ ( R a t e p e r 100) ( N o t t o e x c e e d $20 0,00 0) $-------------------------------------------- (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: □ □ By surrender of maturing Treasury bills 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 April 7, 1955, and are to mature on July 7, 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name o f B id d e r ........................................... (P le a s e p r in t) By. (Title) ( O f fi c i a l s i g n a t u r e r e q u i r e d ) Street Address. ( C i t y , T o w n o r V i l l a g e , P . O . N o ., a n d S t a t e ) I f 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 sto m e r) ( C i t y , T o w n o r V i l l a g e , P . O . N o ., a n d S t a t e ) IMPORTANT INSTRUCTIONS: 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 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 mem ber of 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 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 m ay be disregarded. Paym ent b y cred it through Treasury T a x and Loan A cco u n t w ill n ot be perm itted. http://fraser.stlouisfed.org/ T E N T B — 1292 -a Federal Reserve Bank of St. Louis ( over)