The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RE SE R V E BANK O F NEW YORK Fiscal Agent of the United States £ CirMay 24 °i9 ss'33 } Offering of $1,500,000,000 of 91-Day Treasury Bills Dated June 2, 1955 Maturing September 1, 1955 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: 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 , Tuesday, M ay 24, 1955. TREASURY DEPARTM ENT Washington 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 June 2, 1955, in the amount o f $1,500,692,000, 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 June 2, 1955, and will mature September 1, 1955, when the face amount w ill be payable without interest. They w ill 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern Daylight Saving time, Friday, M ay 27, 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 more 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. 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 in vestment 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 w ill be made by the Treasury Department o f the amount and price range of accepted bids. Those submitting tenders w ill 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 w ill be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 2, 1955, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing June 2, 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. 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 o r other disposition of 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 now 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. For 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. Accordingly, the owner o f Treasury bills (other than life insurance companies) 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, Friday, May 27, 1955, at the Securi ties Department of its Head Office1 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. (CLOSING D A Y FOR RECEIPT OF TENDERS IS FRIDAY, M AY 27, 1955) RESULTS OF BIDDING FOR TREASURY BILLS DATED M AY 26, 1955 WERE NOT AVAIL ABLE W HEN THIS CIRCULAR WAS PRINTED. ( over) 33 K IM PORTANT— Please note that tenders for this issue must be received not later than 2 p.m., Eastern Daylight Saving time, Friday, May 27, 1955. IM PORTANT— If 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 non com p etitive basis, fill in only the maturity value in paragraph headed “ Noncompetitive Bid.” DO N O T fill in b oth paragraphs on on e form . 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 for his account, and method o f payment. Forms for this purpose will be furnished upon request. N o............................. TENDER FOR 91-DAY TREASURY BILLS Dated June 2, 1955 To F ederal R eserve B a n k of N ew Maturing September 1, 1955 Y ork Dated at , Fiscal Agent o f the United States. 1955 NONCOMPETITIVE BID COMPETITIVE BID Pursuant to the provisions of Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on May 24, 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 24, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ..........................................* for a total amount of for a total amount of $. (R ate per 100) (N o t to exce e d $200,000) $ ....................................................(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 of maturing Treasury bills amounting t o ..................$______________________ □ By cash or other immediately available funds By surrender of maturing Treasury bills amounting t o .................. $______________________ □ 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 June 2, 1955, and are to mature on September 1, 1955. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” Name o f Bidder . . . . . (P lea se print) By (Official signature required) (T itle ) Street Address ......................................... (C ity , T ow n o r V illa ge, P. O. N o., and State) I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Custom er) (C ity , T ow n or V illa g e , P. O. N o., and State) IM PORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $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 corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed as a rep resentation 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, who 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 of 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. P aym ent b y cred it through Treasury T ax and Loan A ccou n t will n ot b e perm itted. http://fraser.stlouisfed.org/ T E N T B — 1300-a Federal Reserve Bank of St. Louis ( over)
@FedFRASER