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wbnsT FEDERAL RESERVE BANK O F N EW YORK Fiscal Agent of the United States S it J . < ? U ( C ila ^ l ar N N'o. 4 2 2 52 0 o. 4 p r il 2 1 ,1U55 Offering o f $1,500,000,000 o f 91-Day Treasury Bills Dated April 28, 1955 Maturing July 28, 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: TREASURY DEPARTM ENT W ashington 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, April 21, 1955. 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 28, 1955, in the amount o f $1,500,199,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills o f this series will be dated April 28, 1955, and will mature July 28, 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 D ay light Saving time, M onday, April 25, 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 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 w ill be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will 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. 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. Immediately 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 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 w ill 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 com pleted at the Federal Reserve Bank on April 28, 1955, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing April 28, 1955. Cash and exchange tenders will re ceive equal treatment. Cash adjustments w ill be made for differences between the par value o f m aturing bills accepted in exchange and the issue price of the new bills. The incom e 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 of Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code o f 1954. T h e 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 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. 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. Under1 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, w’hether 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 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., E astern D a y lig h t S a vin g tim e, Monday, April 25, 1955, at the Securi ties Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f 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 A pril 21, 1955, m aturing July 21, 1955) Total applied for......... $2,347,479,000 T otal accepted..............$1,500,794,000 (includes $259,172,000 entered on a noncompetitive basis and accepted in full at the average price shown below ) Average price....... 99.579-f- Equivalent rate o f discount approx. 1.664% per annum Range o f accepted competitive bids: H ig h ........................ 99.620 Equivalent rate o f discount approx. 1.503% per annum L ow ........................ Equivalent rate o f discount approx. 1.677% per annum (5 percent o f the amount bid for at the low price was accepted) 99.576 Federal Reserve District Boston .......................... $ New Y o r k ...................... Philadelphia .................. Cleveland ...................... Richm ond ...................... Atlanta .......................... Chicago .......................... St. L o u is ........................ M inneapolis ................. Kansas City .................. Dallas ............................ San Francisco .......... . T otal Total Applied fo r Total Accepted 37,120,000 $ 1,569,701,000 41,320,000 74,677,000 15,009.000 42,877,000 266,326,000 51.444,000 19,129,000 56,894,000 49,712,000 123,270,000 .......................... $2,347,479,000 28,940,000 876,351,000 26,370,000 55,177,000 11,059,000 41,902,000 212,176,000 44,994,000 18,829,000 46,894,000 32,812,000 105,290,000 $1,500,794,000 ( over) 33 F | Tenders w ill be received up to 2 p.m., Eastern D aylight Saving time, Monday, A pril 25, 1955 I OSSI- IM P O R T A N T — I f you desire to 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 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 subm itting bids on a com petitive basis fo r their ow n and their custom ers’ accounts m ay submit one tender fo r the to ta l 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 FOR 91 -D A Y T R E A SU R Y BILLS tender M aturing July 28, 1955 D ated A pril 28, 1955 To F ederal R eserve Bank of N ew - Y Dated at................... ork, 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 April 21, 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 April 21, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ------------------------------------- * for a total amount of for a total amount of $________________________ (Not to exceed $200,000) (R a t o p er 100) $...... ..................... -......-.......-.... . (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 ...................... $____________________ □ □ 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, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated April 28, 1955, and are to mature -on July 28, 1955. This tender will be inserted in special envelope marked “ Tender for Treasury Bills” Name o f B id d e r.................................................................................................................................... (P le a s e p r in t) By. (Title) (O fficia l s ig n a tu re r e q u ire d ) Street Address (City, Town or VUlage, 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 o f Customer) (City, Town or Village, P. O. No., and State) 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. I f 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 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 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. Paym ent b y cred it through Treasury T a x and Loan A cco u n t -will n ot be perm itted. http://fraser.stlouisfed.org/ N T B — 1205 a of St. Louis FederalT EReserve Bank ( over)
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