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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent o f the United States ( Circular No. 4 2 5 3 1 July 21,1955 Offering o f $1,60 0,00 0,0 00 o f 91-Day Treasury Bills Dated J u ly 2 8, 1955 M aturing O ctob er 27, 1955 T o all Incorporated Banks and T rust Com panies, and O thers C oncerned, in the Second Federal R eserv e 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 , T h u rsd a y , J u ly 21, 1955. TREASU RY DEPARTM ENT W a s h in g to n T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,600,000,000, o r th ereabou ts, o f 9 1-d ay T reasu ry bills, fo r cash and in ex ch a n g e fo r T r e a s u ry bills m atu rin g July 28, 1955, in the a m ou n t o f $1,501,086,000, to b e issued on a d iscou n t basis under com p etitive and n on com p etitiv e bid d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated J u ly 28, 1955, and w ill m ature O c t o b e r 27, 1955, w h en the fa ce a m ou n t w ill be payable w ith ou t in terest. T h e y w ill be issued in bearer form o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity va lu e). T e n d e rs w ill be received at Federal R eserve B anks and B ran ch es up to the c lo s in g h our, tw o o ’ c lo c k p.m ., E astern D a y lig h t S a v in g tim e, M on d a y , Ju ly 25, 1955. T en d ers w ill n ot be receiv ed at the T r e a s u ry D ep a rtm en t, W a s h in g to n . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in th e ca se o f com p etitive ten ders the p r ice o ffe re d m u st be ex p resse d on the basis o f 100, w ith n ot m ore than th ree decim als, e. g., 99.925. F ra ction s m ay n o t be used. It is u rg ed that tenders be m ade on the p rin ted fo rm s a n d fo rw a rd e d in th e special en v elop es w h ich w ill b e su p plied b y F ed eral R eserve Banks o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b ank in g institutions w ill n ot be perm itted to subm it ten ders e x ce p t f o r their o w n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t d ep o sit fro m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers in in vest m en t secu rities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f th e fa ce am ou nt o f T rea su ry bills applied for, u nless the tenders are a ccom p a n ied b y an ex p ress gu a ra n ty o f pa ym en t b y an in corp ora ted ba n k o r trust com p a n y . Im m ed ia tely after the clo s in g h ou r, tenders w ill be op en ed at the F ed era l R eserve B anks and B ra n ch es, fo llo w in g w h ich pu b lic an n ou n cem en t w ill be m ade b y the T rea su ry D epartm en t o f the a m ou n t and p rice ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be advised o f th e a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f th e T r e a s u ry e x p re s sly reserves the righ t to a ccep t o r re je ct a n y o r all ten ders, in w h o le or in part, and his a ction in a n y such resp ect shall be final. S u b ject to these reserva tion s, n on com p etitive ten ders fo r $200,000 o r less w ith ou t stated p r ice fr o m a n y o n e b idd er w ill be a ccep ted in full at the a vera ge price (in th ree d e c im a ls ) o f a ccep ted com p etitive bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the b id s m u st be m ade o r com p le te d at the Federal R eserve B ank on Ju ly 28, 1955, in cash or oth er im m ediately available fu n ds o r in a like face am ou nt o f T rea su ry bills m a tu rin g July 28, 1955. Cash and ex ch a n g e ten ders w ill receive equal treatm ent. Cash adju stm en ts w ill be m ade fo r d ifferen ces betw een the par valu e o f m atu rin g bills a ccep ted in exch a n ge and the issue p rice o f the n ew bills. T h e in co m e derived fr o m T rea su ry bills, w h eth er interest or gain fr o m the sale or oth er d isp osition o f the bills, d oes n o t have a n y exem p tion , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills does n ot 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 ex cise taxes, w h eth er Federal o r State, but are ex em p t fro m all taxation n o w or hereafter im p osed on the principal o r interest th ereof b y an y State, o r any o f the possession s o f the U n ited States, o r b y any loca l ta x in g authority. F o r pu rposes o f ta xation the a m ou n t o f discou nt at w h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sidered to b e interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C od e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder are so ld is n ot co n sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise d isp osed of, and such bills are exclu ded fro m con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued h ereunder need include 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 on subsequent purchase, and the am ou nt actu ally receiv ed either u p on sale or red em ption at m atu rity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D ep a rtm en t C ircular N o . 418, R evised , and this n otice, p rescrib e the term s o f the T rea su ry bills and go v e rn th e co n d itio n s o f their issue. C op ies o f the circu la r m ay be obtain ed fro m a n y F ed eral R e serv e B ank o r B ran ch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, July 25, 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 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 of Treasury bills (91-d a y b ills d a te d J u ly 21 , 1955, maturing October 2 0, 1 9 5 5 ) T o ta l applied fo r . . .$2,390,318,000 T o ta l a ccep ted .........$1,600,466,000 (in clu d es $253,340,000 en tered on a n on com p etitiv e basis and a ccep ted in full at th e average p r ice sh ow n b e lo w ) A v e ra g e price . . . 99.591 E q u iva len t rate o f discou nt a p p rox . 1.620% p er annum R a n g e o f a cce p te d co m p etitive b id s: H i g h ...................... 99.618 E q u iva len t rate o f discou n t a p p rox . 1.511% p er annum L o w ...................... 99.588 E q u iva len t rate o f discou n t a p p rox. 1.630% p er annum (84 p ercen t o f the a m ou n t bid fo r at the low price w as a cce p te d ) F edera l R eserve D istrict B o s to n ............... N ew Y o r k ......... P h iladelphia . . . C l e v e l a n d ........... R ich m o n d ......... A tlanta ............... C h ica g o ............. St. L ou is ........... M in n ea p olis . . . K an sas C ity . . D allas .................. San F r a n cis co . Total Accepted Total A pplied f o r $ 36,247,000 1,673,775,000 35,454,000 67,021,000 10,742,000 33,814,000 300,220,000 29,309,000 9,460,000 43,128,000 50,568,000 100,580,000 $2,390,318,000 $ 29,197,000 1,022,080,000 20,454,000 59,221,000 9,242,000 30,282,000 224,300,000 28,622,000 9,260,000 39,128,000 30,156,000 98,524,000 $1,600,466,000 ( over) 33 S IM P O R T A N T — I f you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Com petitive Bid.” I f you desire to bid on a noncompetitive basis, fill in only the maturity value in paragraph headed "Noncom petitive Bid.** D O N O T fill in both paragraphs on otie 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 of 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 FOR 9 1 -D A Y T R E A SU R Y BILLS Maturing October 2 7 , 1955 Dated July 28 , 1955 To F ederal R eserve B a n k of N ew Y o rk Dated at ............................................. , Fiscal Agent o f the United States. 1955 CO M PETITIVE BID N O N C O M P E T IT IV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on July 21, 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 July 21, 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 o t to exceed $200,000) (maturity value) o f the Treasury bills therein described, at the average price (in three decimals) 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 to .................. $_____________________ amounting to .................. $_____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds * P rice m ust b e ex p ressed on the basis o f 100, w ith not m ore than three decim al places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated July 28, 1955, and are to mature on October 27, 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id d er ............................................... B y. (Please print) (T id e ) (Official signature required) S treet A d d re ss (C ity, T ow n o r Village, 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 or 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 ten der fo r less than $1,000 w ill b e con sidered, and each tender m u st b e fo r an even m ultiple o f $1,000 (m a tu rity v a lu e ). 2. I f the person m a k in g the tender is a corp ora tion , the tender sh ou ld b e sign ed b y an officer o f the c o r p o r a tion a u th orized to m ak e the tender, and the sig n in g o f the tender b y an officer o f the corp o ra tio n w ill be con stru ed as a represen tation b y h im that he has been s o authorized. If the ten der is m ade b y a partnership, it sh ou ld b e sign ed b y a m em b er o f the firm , w h o shou ld sign in the fo r m “ ...................................................................................................... a cop artn ersh ip , b y .......................................................................................................................................... a m em b er o f th e firm .” 3. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and tru st com p a n ies and fr o m re sp o n sible a n d re co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers 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 r e a s u ry bills applied fo r, unless the tenders are a ccom p a n ied b y an ex p ress gu a ra n ty o f pa ym en t b y an in co rp o ra te d b a n k o r trust com p a n y . 4. I f th e la n g u a g e o f this ten d er is ch a n g e d in a n y respect, w h ich , in th e o p in io n o f th e S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m ay b e disregarded. Payment b y credit through Treasury Tax and Loan A ccou n t ■will not be permitted. T E N T B — 1308-a (ovn)
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