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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 Circular No. 4 1 2 4 1 July 15,1954 J Fiscal Agent of the United States Offering of $1,500,000,000 of 91-Day Treasury B ills Dated July 22, 1954 Maturing October 21, 1954 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice published to 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 a y , July 15, 1954. TREASU RY W a sh in g ton DEPARTM ENT T h e T reasu ry D epartm en t, b y this pu blic n otice, invites tenders for $1,500,000,000, o r thereabouts, o f 91 -d a y T reasu ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing J u ly 22, 1954, in the a m ou n t o f $1,501,452,000, to be issued on a d iscou n t basis under com petitive and n on com petitive b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated J u ly 22, 1954, and w ill m ature O c to b e r 21, 1954, w h en the face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form on 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 v a lu e ). T e n d e rs w ill be received at Federal R eserve Banks and B ran ch es up to the clo s in g h our, tw o o ’ clo ck p.m ., E astern D a y ligh t S a vin g tim e, M on d a y, July 19, 1954. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm ent, W a sh in g ton . 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 petitive tenders th e price offered m u st be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e .g ., 99.925. F raction s m a y n ot be used. It is urged that tenders be m ade on the printed fo rm s and forw a rd ed in the special en velop es w hich w ill be supplied b y Federal R eserve Banks or B ran ch es on application therefor. O th ers than banking institutions w ill n ot be perm itted to subm it tenders ex cep t fo r their ow n a ccou nt. T en d ers w ill be receiv ed w ith ou t deposit from in corpora ted banks and trust com pa n ies and fro m respon sible and recog n ized dealers in invest 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 paym ent o f 2 percen 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 express gu a ra n ty o f paym ent b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve Banks and B ranches, fo llo w in g w h ich p u blic a n 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 am ou nt and price range o f a ccep ted bids. T h o s e su b m ittin g tenders w ill be advised o f the a ccep ta n ce or rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the righ t t o 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 a n y such respect shall be final. S u b ject to these reservations, n on com petitive ten ders for $200,000 o r less w ith ou t stated price from a n y on e b idd er w ill be a ccep ted in full at the a vera ge price (in three d ecim 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 or com p leted at the Federal R eserve Bank o n July 22, 1954, in cash or oth er im m ediately available funds o r in a like face am ou nt o f T reasu ry bills m aturing July 22, 1954. Cash and exch a n ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade for 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 in co m e derived fro m T reasu ry bills, w hether interest o r gain from the sale o r oth er disp osition o f the bills, shall not have a n y exem p tion , as such, and loss fro m the sale or oth er disp osition o f T rea su ry bills shall n ot have any special treat m ent, as such, u nder the Internal R even u e C ode, o r law s a m en da tory o r supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift, or oth er excise taxes, w hether F ed eral or State, but shall be exem p t fr o m a ll taxation n o w or h ere after im p osed on the principal or interest th ereof b y any State, or any o f the possession s o f the U n ited States, o r b y any local ta x in g authority. F o r pu rposes o f taxation the am ou nt o f d iscou n t at w h ich T rea su ry bills are origin a lly s o ld b y the U n ited States shall be con sidered to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the Internal R even u e C ode, as a m en ded b y S e ctio n 115 o f the R even u e A c t o f 1941, the am ount o f d iscou n t at w hich bills issued hereunder are sold shall n ot be con sidered to accru e until such bills shall be sold, redeem ed or oth erw ise disp osed o f , and such bills are exclu d ed fro m con sidera tion as captial assets. A cco r d in g ly , the ow n er 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 on ly the difference betw een the price paid for such bills, w hether on original issue o r on su b sequent pu rch ase, and the am ou nt actu ally received either u pon sale o r redem ption at m aturity d u rin g the ta xab le year fo r w hich 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, p rescrib e the term s o f the T rea su ry bills and govern the con d ition s o f their issue. C opies o f the circular m ay be obtain ed fro m any Federal R eserve B ank o r B ranch. T h is Bank will receive tenders up to 2 p.m.. Eastern Daylight Saving time, M onday, July 19, 1954, at the Securities Department o f its H ead Office and at its B uffalo Branch. Please use the fo rm on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ T ender fo r T reasu ry B ills.” T en d ers may be submitted b y telegraph, sub ject to written confirm ation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by crcdit through the Treasury T ax and Loan Account. funds or in maturing Treasury bills. Settlement must be made in cash or other immediately available A lla n S p r o u l, President. Results of last offering of Treasury bills (91-day bills dated July 15, 1954, maturing October 14, 1954) T o ta l applied fo r .......... $2,290,405,000 T o ta l a cce p te d .............. $1,500,255,000 (in clu des $229,370,000 entered on a n on com p etitive basis and a ccep ted in full at the average price sh ow n b e lo w ) A v e ra g e p rice ........ 99.823 E quivalent rate o f discou nt a p p rox. 0.701% per annum R a n g e o f a ccep ted com petitive b ids: H i g h .......................... 99.845 L o w .......................... 99.819 E quivalent rate approx. 0.613% Equivalent rate approx. 0.716% o f discount per annum o f discou nt per annum Federal R eserve District B oston ....................... .... N ew Y o r k ................. .... Philadelphia ............ C levelan d ................... R ich m on d ................... C h ica go ....................... St. L ou is ..................... M in n eap olis .............. K ansas C ity .............. D allas .......................... San F ra n cisco .......... Total Applied f o r $ 42,041,000 1,652,057.000 33,307,000 37,707.000 16,327.000 35,720,000 220,077,000 32.492.000 13,351.000 61,138.000 41,365,000 104,823,000 Total A ccep t cd $ 40,841,000 944,257,000 18,307,000 37,707,000 16,327,000 35,420,000 176,427,000 32,492,000 13,351,000 58,138,000 37,165,000 89,823,000 (60 percent o f the am ount bid for at the low price w as a ccep ted) T o t a l ........................ .... $2,290,405,000 $1,500,255,000 ( over ) 31 R IM PORTANT— If you desire to bid on a competitive 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 fo r 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 fo r this purpose will be furnished upon request. N o. TEN D ER FOR 91-D AY TREASU RY BILLS Dated July 22, 1954 Maturing October 21, 1954 Dated at™. T o F ederal R eserve B a n k of N e w Y o r k , Fiscal A gen t o f the U nited States. .1954 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f T reas u ry Department Circular N o. 418, Revised, and to the provisions o f the public n o tice on Ju ly 15, 1954, as issued by the T reasu ry Departm ent, the undersigned offers Pursuant to the provisions o f T reasury D e partment Circular N o. 418, R evised, and to the provisions o f the public notice on July 15, 1954, as issued by the T reasu ry Department, the undersigned offers a noncom petitive tender ___________________________ * fo r a total amount o f fo r a total amount o f (Rnte per 100 ) (Not to exceed $200,000) $_________________________ ___ ___ (m aturity value) o f the T reasury bills therein described, o r fo r any less amount that may be awarded, settlement th erefor to be made at you r Bank, on the date stated in the public notice, as indicated below : (m aturity valu e) o f the T reasu ry bills therein described, at the average price (in three deci m als) o f accepted com petitive bids, settlement th erefor to be made at you r Bank, on the date stated in the public notice, as indicated b e lo w : □ □ By surrender o f m aturing Treasury bills By surrender o f maturing Treasury bills am ounting t o ..........................$ ---------------------------------- am ounting t o ..........................$ ---------------------------------- Q □ B y cash o r other im mediately available funds B y cash o r oth er im mediately available funds * P r ice must be expressed on the basis o f 100, with not m ore than three decimal places, fo r example, 99.925. T he T reasury bills fo r which tender is hereby made are to be dated July 22, 1954, and are to mature on O ctober 21, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N am e o f B id der .................................... By.. (Please print) (Official signature required) (T itle) Street A d d ress. (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account o f a customer, indicate the customer’s name on line below: (Name o f Customer) (City, Town or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o ten der f o r less than $1,000 w ill be con sidered, and each tender m u st b e fo r an even m ultiple o f $1,000 (m a tu rity va lu e). 2. I f the person m a k in g the tender is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the c o rp o ra tion authorized t o m ake th e tender, and the sign in g o f the ten der b y an officer o f the co rp o ra tio n w ill be con stru ed as a representation b y h im that he has been so authorized. I f the tender is m ade b y a partnership, it sh ou ld be sign ed b y a m em b er o f the firm , w h o sh ou ld sign in the fo r m “ ..................................................................................................... . a copartn ersh ip, b y ....... „ ............................................................................................................ . a m em ber o f the firm .” 3. T e n d ers w ill be received w ith ou t dep osit fro m in corpora ted banks and trust com pa n ies and fro m resp o n sible and recogn ized dealers in in vestm ent securities. T en d ers from oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the face am ount 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 corp ora ted bank o r trust com pan y. 4. I f th e lan gu age o f this ten der is ch anged in a n y respect, w hich, in the op in ion o f the Secretary o f the T re a su ry , is m aterial, th e ten der m a y be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E X T B — 1255-a Federal Reserve Bank of St. Louis ( over )
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