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FEDERAL RE SER VE BANK O F N EW YORK Fiscal Agent of the United States [ Cirju'iy*7^ 1955246J Offering o f $1,600,000,000 o f 91-Day Treasury Bills D a te d Ju ly 14, 1955 M a tu rin g O cto b e r 13, 1955 T o all In corporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F o l l o w i n g is t h e t e x t o f a n o t i c e p u b l i s h e d t o d a y : 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 , T h u rsd ay, July 7, 1955. TREASU RY DEPARTM ENT W ash in gton T h e T re a su ry D epartment, by this public notice, invites tenders for $1,600,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch ange for T reasu ry bills m aturing July 14, 1955, in the am ount o f $1,500,291,000, to be issued on a discou nt basis under com petitive and noncom petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated July 14, 1955, and w ill mature O ctob er 13, 1955, when the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity v a lu e ). T en ders w ill be received at F ed eral R eserve Banks and B ranches up to the clo s in g hour, tw o o ’c lo ck p.m., E astern D a yligh t S a vin g time, M on day, July 11, 1955. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . E ach tender must be fo r an even m ultiple 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, w ith n ot m ore than three decim als, e. g., 99.925. F raction s m ay not be used. It is urged that tenders be made on the printed form s and forw a rd ed in the special en velopes w hich w ill be supplied by F ed eral R eserve Banks or Branches on a pp lication therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n a ccou nt. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders from others m ust be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank o r trust com pany. Im m ediately a fter the clo s in g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g which pu blic announcem ent w ill be m ade by the T reasu ry D epartm ent o f the amount and price range o f a ccep ted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T he S ecretary o f the T reasu ry exp ressly reserves the right to accept o r reject any or all tenders, in w h ole or in part, and his action in any such respect shall be final. S ubject to these reservations, n oncom petitive tenders fo r $200,000 or less w ithout stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim a ls) o f a ccepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the Federal R eserve Bank on July 14, 1955, in cash or other im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing July 14, 1955. Cash and exch ange tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r differences between the par value o f m aturing bills a ccepted in exch a n ge and the issue price o f the new bills. T h e in com e derived from T reasu ry bills, w hether interest or gain from the sale or other disp osition o f the bills, does not have any exem ption, as such, and loss from the sale o r other disposition o f T reasu ry bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T h e bills are subject to estate, inheritance, g ift or oth er excise taxes, w hether F ed eral o r State, but are exem pt from all taxation n ow or hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U n ited States, or by any loca l ta x in g authority. F o r purposes o f ta xation the amount o f discou n t at w hich T reasu ry bills are o rigin a lly sold by the United States is con sidered to be interest. U nder Sections 4 5 4(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the amount o f discou nt at w hich bills issued hereunder are so ld is n ot con sidered to accru e until such bills are sold, redeem ed or otherw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A cco rd in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com p a n ies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid fo r such b ills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity du rin g the ta x ab le year fo r w hich the return is m ade, as ord in a ry gain or loss. T reasu ry Departm ent C ircu lar N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills -and govern the con dition s o f their issue. Copies o f the circu la r m ay be obtain ed from any Federal Reserve Bank or Branch. T h i s B a n k w ill r e c e i v e t e n d e r s u p t o 2 p .m ., E a s t e r n D a y l i g h t S a v i n g tim e , M o n d a y , J u ly 11, 1 9 5 5 , a t th e S e c u r i t ie s D e p a r t m e n t o f its H e a d O f fic e a n d a t its B u f f a l o B r a n c h . P le a s e u s e th e f o r m o n th e r e v e r s e s id e o f t h i s c ir c u la r t o s u b m it a t e n d e r , a n d r e t u r n it in a n e n v e lo p e m a r k e d “ T e n d e r f o r T r e a s u r y B ills .” T e n d e r s m a y b e s u b m itt e d b y te le g r a p h , s u b j e c t t o w r it te n c o n f ir m a t io n ; t h e y m a y n o t b e s u b m itt e d b y t e le p h o n e . 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 of last offering o f Treasury bills (91-day bills dated July 7, 1955, maturing October T ota l applied f o r ......... $2,119,089,000 T o ta l a c c e p t e d .............$1,600,029,000 (includes $175,868,000 entered 011 a noncom petitive basis and accepted in full at the aver age price shown below ) A verage p r ic e ........... 99.611 Equivalent rate o f discount approx. 1.541% per annum R ange o f accepted com petitive b id s : H i g h ....................... 99.655 Equivalent rate approx. 1.365% L o w ......................... 99.601 Equivalent rate approx. 1.578% o f discount per annum o f discount per annum Federal R eserve D istrict 6, Total Applied for B oston ......................... .. N ew Y o rk ................. Philadelphia ............. C leveland ................... R ich m on d ................... St. L o u i s ..................... M inneapolis ............. K ansas City ............. D allas ......................... San F ra n cisco ........ $ 21,417,000 1,528,787,000 31,545,000 37,201,000 10,651,000 17,348,000 273,556,000 15,565,000 9,177,000 41,717,000 50,496,000 81,629,000 1955) Total A ccepted $ 15,997,000 1,113,987,000 16,545,000 37,201,000 10,651,000 17,348,000 224,716,000 15,565,000 9,177,000 41,717,000 40,496,000 56,629,000 (16 percent o f the amount bid fo r at the low price was accepted) T o t a l .................... .. $2,119,089,000 $1,600,029,000 ( over) 33 Q IM PORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph beaded “ Competitive Bid.” If you desire to bid on a noncompetitive basis, fill in only tbe maturity value in paragraph headed “ Noncompetitive Bid.” DO NOT fill in both paragraphs on one 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........................... T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S Dated July 14, 1955 Maturing October 13, 1955 To F ederal R ese rv e Bank of N ew Y Dated at ork, 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 July 7, 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 July 7, 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 exceed $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) 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 .................. $______________________ □ By cash or other immediately available funds By surrender of maturing Treasury bills amounting t o ..................$______________________ □ By cash or other immediately available funds * P r ice must be expressed on the basis o f 100, ivith not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated July 14, 1955, and are to mature on October 13, 1955. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id der ........ (P le a se print) By (O fficial signature required) (T itle ) Street A dd ress ............................................ (C ity , T ow n or V illa g e , P . O. N o., and S tate) I f this tender is subm itted b y a bank fo r the a ccou n t o f a custom er, indicate the custom er’ s name on line b elow : (C ity , T o w n or V illa g e , P . O. N o., and State) (N am e o f Custom er) IM PORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 w ill be con sidered, and each $1,000 (m atu rity va lu e). tender must be fo r an even m ultiple o f 2. I f the person m akin g the tender is a corporation , the tender should be signed b y an officer o f the corp ora tion authorized to make the tender, and the sign in g o f the tender b y an officer o f the corp ora tion w ill be construed as a rep resentation b y him that he has been so authorized. I f the tender is made b y a partnership, it should be signed by a m em ber o f the firm, w ho sh ou ld sign in the fo rm “ ................................................................................................................. a copartnership, by ........................................................................................ ............................ a m em ber o f the firm.” 3. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en ders from others must be accom pa n ied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by an in corporated bank o r trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the opinion o f the S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1306-a Federal Reserve Bank of St. Louis ( over)