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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent o f the United States [ ClrCAph]?,°i9 5 5 1 7] Offering of $1,500,000,000 of 91-Day Treasury Bills Dated April 14, 1955 Maturing July 14, 1955 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve 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 , Thursday, A pril 7, 1955. TREASURY DEPARTM ENT W ashington T he 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 A pril 14, 1955, in the amount o f $1,500,630,000, to be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T h e bills o f this series will be dated A pril 14, 1955, and w ill mature July 14, 1955, when the face amount w ill be payable w ithout interest. T h 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). T enders w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Standard time, M onday, A pril 11, 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 com petitive 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. O thers than banking institutions w ill not be permitted to submit tenders except for their ow n account. Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest ment securities. T en ders from others must be accom panied by payment o f 2 percent o f the face am ount 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. Im m ediately after the closing hour, tenders w ill 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 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 w hole or in part, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for $200,000 o r less without stated price from any one bidder will be accepted in full at the average price (in three decim als) o f accepted com petitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on April 14, 1955, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing A pril 14, 1955. Cash and exchange tenders w ill receive 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. T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, 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 oth er excise taxes, whether Federal or State, but are exempt from all taxation now 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. U nder Sections 454(b) and 1221(5) o f the Internal Revenue Code o f 1954 the amount (pf 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 ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return on ly the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount 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 o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, April 11, 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, 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 Sproul, President. R e s u lts o f la s t o ffe r in g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a te d A p r il 7 , 1 9 5 5 , m a t u r in g J u ly 7 , 1 9 5 5 ) Total applied for . . .$2,125,925,000 T otal a c c e p t e d ........ $1,500,901,000 (includes $218,321,000 entered on a noncom petitive basis and accepted in full at the average price shown below ) A verage price . . . 99.630 Equivalent rate o f discount approx. 1.466% per annum Range o f accepted competitive bids: Hfc* L ow " - 670 ..................... 99.626 ? SKOm* approx 1.305% per annum Equivalent rate o f discount approx. 1.480% per annum (84 percent o f the amount bid for at the low price was accepted) Federal Reserve District Boston ............................ New Y ork .................... Philadelphia .................. Cleveland ...................... Richm ond ...................... Atlanta .......................... s£ ” l £ » Minneapolis ................. Kansas City ................. Dallas ............................. San Francisco ............. Total ............. Total Applied f o r $ 24,782,000 1,484,904,000 28,450,000 44,665,000 9,158,000 S 16,355,000 79,240,000 42,574,000 91,934,000 ---------------------$2,125,925,000 $ Total Accepted 22,470,000 962,244,000 13,450,000 44,665,000 9,158,000 w ^Soo 16,355,000 76,080,000 32,254,000 82,494,000 ---------------------$1,500,901,000 ( over) 33 D IM PORTANT— I f you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” If you desire to bid on a n oncom petitive basis, fill in only the maturity value in paragraph headed "Noncompetitive Bid.” DO N O T fill in b oth paragraphs on one fo rm . 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 fo r his account, and method o f payment. Forms fo r this purpose will be furnished upon request. No. T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Dated April 14, 1955 To Maturing July 14, 195 5 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 Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on April 7, 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 April 7, 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 $. ................................... (S a te per 100) (N ot to exceed $200,000) 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: □ (maturity value) of the Treasury bills therein described, at the average price (in three decimals) 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 to .................. $_____________________ amounting to .................. $--------------------------------- □ □ By cash or other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis of 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 14, 1955, and are to mature on July 14, 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills ” Name o f B i d d e r ----(Please print) By. (Official signature required) (T itle ) Street Address (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: (C ity , T ow n o r V illage, P . O . N o., and State) (N am e o f Customer) IM PORTAN T 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 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 h o should sign in the form “ ........................................................................................... , a copartnership, by ............................................................................................................................ a mem ber o f the firm.” 3. T enders will be received w ithout deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face am ount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank o r 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. Paym ent b y cred it through T reasu ry T a x and Loan A cc o u n t w ill n ot b e perm itted . T E N T B — 1293-a (OVER)
@FedFRASER