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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent o f the United States [ Cirj ^ mum !42] Offering of $1,600,000,000 of 91-Day Treasury Bills Dated July 7, 1955 Maturing October 6, 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 , Tuesday, June 28, 1955. TREASURY DEPARTM ENT W ashington The Treasury Department, by this public notice, invites tenders for $1,600,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing July 7, 1955, in the amount o f $1,501,001,000, 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 w ill be dated July 7, 1955, and will mature O ctober 6, 1955, when the face am ount 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 w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Daylight Saving time, Friday, July 1, 1955. Tenders will 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 form s and forw arded in the special envelopes w hich w ill be supplied by Federal Reserve Banks or Branches on application therefor. O thers than banking institutions will not be permitted to submit tenders except for their ow n account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest m ent securities. Tenders from others must be accom panied b y payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f payment b y 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 w ill be made by the Treasury Departm ent o f the amount and price range o f accepted bids. Those submitting tenders w ill be advised o f the acceptance or rejection thereof. T he 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 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 com petitive bids. Settlement for accepted tenders in accordance with the bids must be made o r com pleted at the Federal Reserve Bank on July 7, 1955, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing July 7, 1955. Cash and exchange tenders will 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 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 now or hereafter im posed on the principal or interest thereof by any State, o r any o f the possessions o f the United States, or b y any local taxing authority. F or purposes o f taxation the am ount o f discount at w hich 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 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 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 D epartm ent 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 Daylight Saving time, Friday, July 1, 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 for the Treasury bills cannot be m ade by credit through the Treasury Tax and Loan Account. Settlement m be m in cash or other im ediately available ust ade m funds or in m aturing Treasury bills. A l l a n S p r o u l, President. (CLOSING D A Y FOR RECEIPT OF TENDERS IS FRIDAY, JULY 1, 1955) RESULTS OF BIDDING FOR TREASURY BILLS DATED JUNE 30, 1955 WERE NOT AV AIL ABLE WHEN THIS CIRCULAR WAS PRINTED. (o v e r ) 33 P I M P O R T A N T — Please note th at tenders fo r this issue m u st be received not later than 2 p .m ., Eastern D a y lig h t Saving tim e, F riday, Ju ly 1, 19 5 5 . I M P O R T A N T — I f y ou desire to bid on a com petitive basis, fill in rate per 100 and m atu rity valu e in paragraph headed "C o m p e titiv e Bid.” I f y ou desire to bid on a noncom petitive basis, fill in only the m a tu rity valu e in paragraph headed "N o n c o m p e titiv e B id.” D O N O T fill in both paragraphs on one fo rm . A separate tender m u st be used fo r each bid, except th a t banks subm itting bids on a com petitive basis fo r their ow n and their custom ers’ accounts m a y subm it one tender fo r the total am ount bid at each price, provided a list is attached show ing the name o f each bidder, the am ount bid fo r his accou n t, and method o f paym ent. Forms fo r this purpose w ill be furnished upon request. No. T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS D ated Ju ly 7 , 1955 M aturin g O ctober 6, 1955 Dated at T o F e d e r a l R ese r v e B a n k o f N e w Y o r k , Fiscal Agent o f the United States. 1955 C O M P E T IT IV E B ID N O N C O M P E T IT I V E B ID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on June 28, 1955, as issued by the Treasury Department, the Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on June 28, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s ...................................... * for a (R ate per 100) 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: □ By surrender o f maturing Treasury bills for a total amount of $ ............................................ (N ot to exceed $200,000) (maturity value) of the Treasury bills therein described, at the average price (in three decimals) 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 to .................. $_____________________ amounting to .................. $_____________________ □ □ 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 dated July 7, 1955, and are to mature on October 6 , 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name o f Bidder ............................................ By. (Please print) (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: (N am e o f Customer) (C ity, T ow n o r V illage, P . O . N o., and State) IM P O R T A N T IN S T R U C T IO N S : 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. 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 w ill be construed as a representation b y him that he has been so authorized. If the tender is made b y a partnership, it should be signed b y a m em ber o f the firm, w ho should sign in the form “ ............................................................................................. . a copartnership, by .............................................................................................................................. . a mem ber o f the firm.” 3. T enders w ill 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 b y payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f payment b y an incorporated bank or trust company. 4. I f 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. Vaym ent b y cred it through T reasury T a x and Loan A cco u n t w ill n ot be perm itted. T E N T B — 1305-a (OVER)
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