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I H FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States^ Tt-IATHO Offering o f $1,500,000,000 of 91-Day Treasury Bills Dated May 19, 1955 -* •cular N o. 4 2 2 8 ] ’ «May 12 , 1955 J ‘ Maturing August 18, 1955 * t vno jiindif? y.rBjtfi To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: ' ' r 1 ■,,fiy ■ > • • >** to 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, M ay 12, 1955. . .. TREASU RY DEPARTM ENT Was hi ngt on . .~r The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing M ay 19, 1955, in the amount o f $1,500,125,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T he bill's o f this series will be dated May 19, 1955, and will mature August 18, 1955, when the face amount will be payable without interest. Th ey will be issued in bearer form only, and in denominations of $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 Daylight Saving time, M onday, M ay 16, 1955. Tenders will not be received at the Treasury'Departm ent, 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 more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made o n 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 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 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 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. 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 decim als) 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 M ay 19, 1955, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing M ay 19, 1955. Cash and exchange tenders w ill 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. Th 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 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. 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 ow ner 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 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., Eastern Daylight Saving time, Monday, May 16, 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 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. m a t u r in g A u g u s t 1 1 , 1 9 5 5 ) Total applied f o r ......... $2,409,908,000 T otal accep ted ............. $1,501,287,000 (includes $190,707,000 entered on a noncompetitive basis and accepted in full at the average price shown below ) A verage price....... 99.636 Equivalent rate o f discount approx. 1.440% per annum Range o f accepted competitive bids: H ig h .................,..... 99.640 Equivalent rate o f discount approx. 1.424% per annum L ow ........................ Equivalent rate o f discount approx. 1.448% per annum (22 percent o f the amount bid for at the low price was accepted) 99.634 Federal Reserve District Boston .................. New Y ork ......... Philadelphia ....... Cleveland ........... Richm ond ........... Atlanta ................ Chicago ................ St. Louis ............. M inneapolis .... . Kansas City ....... D a lla s.................... San Francisco .... T otal ................... Total Applied fo r ... ... $ 30,121,000 1,679,962,000 37,319,000 47,143,000 10,605,000 18,688,000 330,016,000 23,100,000 23,990,000 55,918,000 54,943,000 98,103,000 ... $2,409,908,000 Total Accepted $ 25,761,000 967,044,000 19,219,000 38,153,000 9,115,000 15,758,000 272,876,000 15,914,000 13,530,000 21,936,000 51,703,000 50,278,000 $1,501,287,000 ( over) 33 I 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 f o r their ow n and their customers’ accounts may submit one tender f o r the tota l 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. N o. - FOR 9 1 -D A Y T R E A SU R Y BILLS tender M aturing A u gu st 18, 1955 Dated May 19, 1955 To F ederal R ese rv e B ank of N ew Y Dated at____________ ork, Fiscal Agent o f the United States. .1955 COMPETITIVE 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 May 12, 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 May 12, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ............................................* for a total amount of for a total amount o f $.......................... ................. (Not to exceed $200,000) (R a t e p e r 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: (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) o f 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 amounting t o ...................... $____________________ amounting t o ...................... $------------------------------- □ □ By cash or other immediately available funds □ By surrender of maturing Treasury bills 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 May 19, 1955, and are to mature on August 18, 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name o f B id d e r.................................................................................................................................... (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) IMPORTANT INSTRUCTIONS: 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 b y 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 mem ber 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 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 w ill n ot be perm itted. http://fraser.stlouisfed.org/ T E N T B — 1298-a (OVER) Federal Reserve Bank of St. Louis