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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States f Circular No. 4 2 4 8 L July 14,1955 Offering o f $1,600,000,000 o f 91-Day Treasury Bills Dated July 21, 1955 Maturing October 20, 1955 T o all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e 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 T h u rsd a y, July 14, 1955. NEW SPAPERS, TREASU RY DEPARTM ENT W a sh in g ton T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,600,000,000, o r th ereabouts, o f 9 1-d ay T reasu ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g July 21, 1955, in the a m ou n t o f $1,500,709,000, to be issued on a d iscou n t basis under com p etitive and n on com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated J u ly 21, 1955, and w ill m ature O c to b e r 20, 1955, w h en the face am ou nt w ill be pa ya b le w ith ou t interest. T h e y w ill b e issued in bearer fo rm on ly, and in den om in ation s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill be received at Federal R eserve B anks and B ran ches up to the clo s in g h our, tw o o ’ c lo ck p.m ., E astern D a y lig h t S a vin g tim e, M on d a y, July 18, 1955. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be ex p resse d on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be m ade o n the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be supplied b y Federal R eserve B anks o r B ran ch es o n application th erefor. O th ers than b ankin g institutions w ill n ot be perm itted t o subm it tenders excep t fo r their ow n a ccou n t. T en d ers w ill be received w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fro m respon sib le and recog n ized dealers in in vest m en t securities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 percen t o f the face am ou nt o f T rea su ry bills a pplied fo r, unless the tenders are a ccom p a n ied b y an express gu aranty o f p a ym en t b y an in corpora ted bank o r trust com pan y. Im m ed ia tely a fter the clo s in g h our, tenders w ill be o p en ed at the Federal R eserve B anks and B ranches, fo llo w in g w h ich p u blic a nn oun cem ent w ill be m ade b y the T rea su ry D epa rtm en t o f the a m ou n t and price range o f a ccep ted b ids. T h o s e subm itting ten ders w ill be advised o f the a ccep ta n ce or rejection th ereof. T h e S ecreta ry o f the T rea su ry e x p ressly reserves the righ t to a ccep t o r reject a n y o r all tenders, in w h ole o r in part, and his action in any such resp ect shall be final. S u b ject t o these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m a n y on e b idder w ill be a ccep ted in full at the a verage price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade o r com p le te d at the Federal R eserve B ank on J u ly 21, 1955, in cash o r o th e r im m ediately available funds o r in a like fa ce a m ou n t o f T rea su ry bills m atu rin g July 21, 1955. Cash and exch a n ge ten ders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m aturing bills a ccep ted in e x ch a n g e and the issue price o f the new bills. T h e in com e derived fro m T rea su ry bills, w hether interest o r gain fro m the sale or oth er disp osition o f the bills, d oes n ot have a n y exem ption , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills does not have any special treat m ent, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w hether Federal o r State, but are exem p t fro m all taxation n o w o r hereafter im p osed on the principal o r interest th ereof b y any State, o r any o f the possession s o f the U n ited States, o r b y any local taxing authority. F o r pu rposes o f ta xation the a m ou n t o f discou n t at w h ich T rea su ry bills are origin a lly s o ld b y the U nited States is con sidered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C ode o f 1954 the am ou nt o f discou n t at w h ich bills issued hereunder are so ld is n o t con sidered to accru e until such bills are sold , red eem ed o r oth erw ise disp osed o f, and such bills are excluded from con sideration as capital assets. A c co r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance com p a n ies) issued hereun der need in clude in his in com e ta x return o n ly the differen ce betw een the price paid fo r such bills, w h eth er on original issue o r o n subsequent purchase, and the a m ou n t actu ally receiv ed either u pon sale or redem ption at m atu rity du rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain or loss. T re a su ry D epartm en t Circular N o. 418, R evised , and this n otice, prescrib e the term s o f the T rea su ry bills a n d g o v e rn the con d ition s o f their issue. C opies o f the circu la r m a y be obtain ed fro m any F ed eral R eserve Bank o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, July 18, 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. Results o f last offering o f Treasury bills (91-day bills dated July 14, 1955, maturing October 13, 1955) T o ta l applied f o r .......... $2,257,759,000 T o ta l a c c e p t e d .............. $1,600,459,000 (in clu d es $222,914,000 entered on a n on com p etitive basis and a ccep ted in full at the a verage price sh ow n b e lo w ) A v e ra g e price........ 9 9 .594-f E quivalent rate o f discou n t a p p rox. 1.606% per annum R a n g e o f a ccep ted com p etitive b ids: H i g h ..................... 99.621 E quivalent rate o f discou nt app rox. 1.499% per annum L o w ..................... 99.588 E quivalent rate o f discou nt a p p rox. 1.630% per annum Federal R eserve D istrict B oston ............. N ew Y o r k .... P h iladelphia ... C leveland ...... R ich m on d ....... A tlanta ........... C h ica g o .......... St. L ou is ......... M inneapolis ... K ansas C ity .. D allas ............. San F ra n cisco (48 percent o f the am ou nt bid fo r at the low price w as a ccep ted ) T otal ............................ Total A pplied f o r 5 33,511,000 1,608,905,000 39.101.000 43.889.000 14.514.000 21.676.000 258,396,000 25.991.000 19.192.000 54.320.000 55.176.000 83.088.000 $2,257,759,000 T otal A ccepted $ 33,511,000 1,043,925,000 26,101,000 43.889.000 13.754.000 20.416.000 193,716,000 25.991.000 19.192.000 52.760.000 44.616.000 82.588.000 $1,600,459,000 (over) 33 R 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 noncompetitive basis, fill in only the maturity value in paragraph headed "Noncompetitive Bid.” DO N O T fill in both paragraphs on one form . A separate tender must be used fo r each bid, except that banks submitting bids on a competitive basis fo r 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 fo r his account, and method o f payment. Forms for this purpose w ill be furnished upon request. No___________________ TENDER FOR 91 -D A Y TREASURY BILLS Maturing October 20, 1955 Dated July 21, 1955 To Dated at.................... F ed eral R eserve B a n k o f N e w Y o r k , Fiscal Agent o f the United States. .1955 COMPETITIVE BID NONCOMPETITIVE 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 July 14, 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 14, 1955, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ............................................* for a total amount of for a total amount o f $............................... .............. (R ate per 100) (N ot to exceed $200,000) $......................................................(maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender o f maturing Treasury bills (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: amounting to . .....................$ ------------------------------ □ By surrender of maturing Treasury bills amounting to .......................$ ____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds * P rice must be expressed on the basis o f 100, w ith not m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated July 21, 1955, and are to mature on October 20, 1955. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id d e r .............................................................................................................................................. (Please print) B y. (Official signature required) (Title) Street A dd ress (City, Town or Village, P. O. No., and State) I f this ten der is subm itted b y a bank f o r th e a ccou n t o f a cu stom er, indicate the cu stom er’s nam e on lin e b e lo w : (Nam e of Customer) (City, Tow n or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 w ill be con sidered, and each tender m ust be fo r an even m ultiple o f $1,000 (m atu rity va lu e). 2. I f the person m ak in g the tender is a corp oration , the tender should be signed b y an officer o f the co rp o ra tion authorized to m ake the tender, and the sign in g o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a representation b y him that he has been so authorized. I f the tender is m ade b y a partnership, it shou ld be sign ed b y a m em ber o f the firm , w h o shou ld sign in the fo rm “ ....................................................................................................... a copartn ersh ip, b y ....................................................................................................................... . a m em b er o f the firm .” 3. T e n d ers w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fro m resp o n sible and re co g n ize d dealers in in vestm ent securities. T e n d e rs fr o m others m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills applied for, unless the ten ders are accom pa n ied b y an express gu aranty o f paym ent b y an in co rp o ra te d bank or trust com pan y. 4. I f the language o f this tender is ch a n ged in any respect, w h ich , in the op in ion o f the S ecreta ry o f the T rea su ry, is m aterial, the ten der m a y be disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 130 7-a Federal Reserve Bank of St. Louis ( over)
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