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F E D E R A L R E S E R V E BAN K O F N E W Y O R K Fiscal Agent of the United States CCircAprin°i9S4)9a 3 O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated April 8 , 1954 Maturing July 8 , 1954 T o all In corporated B anks and Tru st Companies, and O thers Concerned, in the S econd 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 ursday, A p ril 1, 1954. TREASU RY DEPARTM ENT W a sh in gton T h e T reasu ry Departm ent, by this pu blic n otice, invites tenders fo r $1,500,000,000, o r thereabouts, o f 91-day Treasu ry bills, fo r cash and in exch ange fo r T reasu ry bills m aturing A p ril 8, 1954, in the am ount o f $1,500,289,000, to be issued on a discou n t 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 A p ril 8, 1954, and w ill mature July 8, 1954, w hen the face am ount w ill be payable w ith ou t interest. T h ey w ill be issued in bearer form on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e). T en ders w ill be received at Federal R eserve Banks and B ran ches up to the clo s in g hour, tw o o ’ clo ck p.m., Eastern Standard time, M on day, A p ril 5, 1954. T en ders w ill not be received at the T reasu ry D epartm ent, W ash ington. E ach ten der must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust 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 n ot be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied b y F ed eral R eserve Banks o r B ranches on a pp lication therefor. O thers than b ank in g institutions w ill not be perm itted to subm it tenders excep t for their ow n account. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders fro m others must be accom panied b y paym ent o f 2 percent o f the face am ount o f T rea su ry bills applied fo r, unless the tenders are accom pa n ied b y an express guaranty o f paym ent b y 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 F ed eral R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance o r rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the righ t to accept o r reject any o r all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reservations, noncom petitive tenders fo r $200,000 or less w ith ou t stated price from any one b idder w ill be accepted in fu ll at the a verage 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 F ed eral R eserve Bank on A p ril 8, 1954, in cash o r oth er im m ediately available funds o r in a like face amount o f T rea su ry bills m aturing A p r il 8, 1954. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made f o r differences betw een the par value o f m aturing bills a ccep ted in exch a n ge and the issue price o f the new bills. T h e incom e derived from T reasu ry bills, w hether interest o r gain from the sale o r other disp osition o f the bills, shall n o t have any exem ption, as such, and loss from the sale o r oth er d isp osition o f T rea su ry bills shall n ot have any special treatm ent, as such, under the Internal Revenue Code, o r law s am endatory o r supplem entary thereto. T h e bills shall be su b ject to estate, inheritance, g ift, o r oth er ex cise taxes, w hether F ed eral or State, but shall be exem pt from a ll taxation n o w o r 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, o r b y any lo ca l ta x in g authority. F o r purposes o f taxation the amount o f discou n t a t w h ich T reasu ry bills are o rigin a lly s o ld b y the U nited States shall be con sidered to be interest. U nder Sections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue C ode, as am ended by S ection 115 o f the Revenue A c t o f 1941, the am ount o f discou n t at w h ich bills issued hereunder are s o ld shall not be con sidered to accrue until such bills shall be sold, redeem ed o r otherw ise disp osed of, and such bills are e x clu d ed from con sideration as capital assets. A cco rd in g ly , the ow n er o f T reasu ry bills (oth er than life insurance co m pan ies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid for such bills, w hether on origin a l issue o r on subsequent purchase, and the amount actu ally received either upon sale or redem ption at m aturity 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 reasu ry Departm ent C ircu lar N o. 418, R evised, and this n otice, prescribe the terms o f the T reasu ry bills and go v e rn the con ditions o f their issue. C opies o f the circu la r m ay be obtained from any F ed eral Reserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, April 5, 1954, 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 telegraphi 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 April 1, 1954, maturing July 1, 1954) T o ta l applied f o r ........ $2,339,935,000 T o ta l a c c e p t e d ............. $1,500,672,000 (inclu des $191,561,000 entered on a noncom petitive basis and a ccepted in fu ll at the aver age price show n b elow ) A ve ra g e p r ic e ........... 99.731+ E qu ivalent rate o f discount approx. 1.063% per annum R ange o f accepted com petitive b id s : (E x ce p tin g one tender o f $200,000) H i g h ........................... 99.750 E quivalent rate o f discou nt approx. 0.989% per annum L o w ............................. 99.729 E quivalent rate o f discount approx. 1.072% per annum (77 percent o f the am ount b id fo r at the low price was accepted) Federal R eserve D istrict B o s t o n .............................. N ew Y o r k ....................... P h ila d e lp h ia ................... C leveland ........................ R ic h m o n d ....................... A tlanta ........................... C h i c a g o ........................... St. L ou is ....................... M in n e a p o lis ................... K ansas C i t y ................... D allas .............................. San F r a n c i s c o ............... T o ta l ....................... Total A pplied fo r $ 23,248,000 1,791,461,000 32,720,000 64,750,000 17,715,000 29,186,000 177,912,000 27,074,000 7,470,000 33,774,000 28,705,000 105,910,000 $2,339,935,000 Total A ccepted $ 20,598,000 1,071,461,000 17,720,000 55,460,000 14,715,000 26,887,000 122,002,000 26,774,000 6,970,000 30,724,000 18,305,000 89,056,000 $1,500,672,000 ( over ) 31 C 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 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. No. TEN DER FOR 91-DAY TREASURY BILLS Dated A pril 8, 1954 To F ederal R eserve Ban k of N ew Maturing July 8, 1954 Y ork, Dated a t ...................... Fiscal Agent of the United States. 1954 COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions o f the public no tice on April 1, 1954, as issued by the Treasury Department, the undersigned offers NONCOMPETITIVE BID Pursuant to the provisions of Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on April 1, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ..........................................* for a total amount of for a total amount of $ ............................................ (Rate per 100) $ ....................................................(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 : □ (Not to exceed $200,000) (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : By surrender of maturing Treasury bills □ amounting t o ..................$______________________ □ By surrender of maturing Treasury bills amounting t o .................. $______________________ 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, with not more than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated April 8, 1954, and are to mature on July 8, 1954. This tender will be inserted in special envelope marked “ Tender for Treasury Bills." N am e o f B id d er ........ (Please print) By (Official signature required) (Title) Street A dd ress (City, Town or Village, P. O. No., and State) I f this tender is subm itted b y a bank f o r the a ccou n t o f a custom er, in dicate the cu stom er’s nam e on line b e lo w : (Name of Customer) (C ity, Town or Village, P. O. No., and State) IM PORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 w ill be con sidered, and each tender must be fo r an even m ultiple o f $1,000 (m aturity v a lu e). 2. I f the person m akin g the tender is a corp ora tion , the tender should be sign ed b y an officer o f the corp oration 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 con stru ed as a rep resentation b y him that he has been so authorized. If the ten der is m ade b y a partnership, it should be sign ed b y a m em b er o f the firm, w h o should sign in the form “ ............................................................................................................... . 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 corpora ted banks and trust com panies and fro m respon sible and recogn ized dealers in investm ent securities. T en ders from others must be accom pa n ied b y paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for. unless the tenders are accom pa n ied b y an express guaranty o f paym ent by an in corpora ted bank o r trust com pany. 4. I f the language o f this tender is ch anged in any respect, w hich, in the opin ion 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. TENTB—1240-a ( 0VER)
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