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F E D E R A L R E S E R V E B AN K O F N E W Y O R K Fiscal Agent of the United States f L CircularNo. 4 0 7 2 t February 16, 1954 J O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated February 25, 1954 Maturing May 27, 1954 T o all In corporated Banks and Trust Companies, and Others C oncerned, 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 u esda y, F eb ru a ry 16, 1954. TREASU RY DEPARTM ENT W a sh in gton T h e T re a su ry Departm ent, b y this p u b lic n otice, invites tenders fo r $1,500,000,000, or thereabouts, o f 91-d a y Treasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing F ebru ary 25, 1954, in the am ount o f $1,501,170,000, to be issued on a d iscou n t basis under com petitive 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 F ebru ary 25, 1954, and w ill mature M a y 27, 1954, w hen the face am ount w ill be payable w ithout interest. T h e y 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 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., Eastern S tandard time, F rida y, F ebru ary 19, 1954. T en ders w ill n ot be received at the T reasu ry D epartm ent, W a sh in g ton . E ach ten der m ust be fo r an even m ultiple o f $1,000, and in the ca se o f com petitive tenders the price offered m ust be expressed on the basis o f 100, w ith not m ore than three decim als, e. g., 99.925. F raction s m ay not be used. It is u rged that tenders be m ade on the printed form s and forw a rd ed in the special envelopes w h ich w ill be supplied by F ed eral R eserve Banks o r B ran ches o n application therefor. O thers than banking institutions w ill not be perm itted to subm it tenders excep t fo r their ow n account. T en d ers 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 from others must be accom panied by 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 panied by 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 a t the F ed eral R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be m ade by the T rea su 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 or rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the righ t to a ccep t o r reject any o r all tenders, in w hole or in part, and his action in any such respect shall be final. S ubject to these reservations, n on -com p etitive tenders fo r $200,000 o r less w ith ou t stated price from any one bidder w ill be accepted in fu ll at the a vera ge price (in three decim a ls) o f a ccepted com petitive bids. Settlem ent fo r a ccepted tenders in a ccord a n ce w ith the bids m ust be made o r com pleted at the F ed eral R eserve Bank on F ebru ary 25, 1954, in cash o r oth er im m ediately ava ila b le funds o r in a like fa ce am ount o f T rea su ry bills m aturing F ebru ary 25, 1954. Cash and exch an ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een 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 rea su ry bills, w hether interest o r gain from the sale o r other disposition o f the bills, shall n ot have any exem ption, as such, and loss from the sale or oth er d isp osition o f T reasu 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, gift, o r oth er e x cis e taxes, w hether F ed eral or State, but shall be exem pt fro m all taxation n o w o r h erea fter im posed on the principal o r interest th ereof by any State, o r any o f the possessions o f the U nited States, o r b y any lo ca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T rea su ry bills are o rig in a lly s o ld by the U nited States shall be con sid ered to be interest. U n der S ections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue C ode, as am ended b y S ection 115 o f the Revenue A c t o f 1941, the am ount o f d iscou n t at w h ich bills issued hereunder are s o ld shall not be con sidered to a ccru e until such bills shall be sold, redeem ed or otherw ise disp osed of, and such bills are e xclu d e d 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 pan ies) issued hereunder need include in his incom e ta x return o n ly the difference between the p rice pa id fo r such bills, w hether on o rigin a l issue o r on subsequent purchase, and the am ount actu a lly received either u pon sale or redem ption at m aturity d u rin g the ta x ab le year f o r w hich the return is m ade, as ord in a ry ga in o r loss. T re a su ry D epartm ent C ircu la r N o. 418, as amended, and this notice, prescribe the terms o f the T rea su ry bills and govern the con dition s o f their issue. C opies o f the circu la r m a y be obtained from any F ed eral R eserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Friday, February 19, 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 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 tn cash or other immediately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. (CLOSING D AY FOR RECEIPT OF TENDERS IS FRIDAY, FEBRUARY 19, 1954) RESULTS OF BIDDING FOR TREASURY BILLS DATED FEBRUARY 18, 1954 WERE NOT AVAIL ABLE WHEN THIS CIRCULAR WAS PRINTED. (avia) 30 w IM PORTANT— Please note that tenders for this issue must be received not later than 2 p.m., Eastern Standard time, Friday, February 19, 1954. IM PORTAN T— 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 non-competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive 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 Maturing May 27, 1954 Dated February 25, 1954 To F ed era l R eserve B a n k o f N ew Y ork , Dated a t ........................ Fiscal Agent of the United States. 1954 COMPETITIVE BID Pursuant to the provisions of Treas ury Department Circular No. 418, as amended, and to the provisions of the public no tice on February 16, 1954, as issued by the Treasury Department, the undersigned offers NON-COMPETITIVE BID Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions of the public notice on February 16, 1954, as issued by the Treasury Department, the undersigned offers a non-competitive tender ..........................................* for a total amount of for a total amount of $ ............................................ (Rate per 100) (Not to exceed $200,000) $ ....................................................(maturity value) o f 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 o f 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 r ice must be expressed on the basis o f 100, w ith 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 February 25, 1954, and are to mature on May 27, 1954. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N a m e o f B id d er . . . . (Please print) By (Official signature required) (T itle) Street A dd ress (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Name of Customer) (City, 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 atu rity 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 ora tion authorized to m ake the tender, and the sign in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a rep resentation b y h im that he has been so authorized. I f the tender is made b y a partnership, it should be sign ed b y a m em ber o f the firm , w ho sh ou ld sign in the fo rm “ ............................................................................................................... . a copartn ersh ip, by ....................................................................................................................... a m em ber o f the firm .” 3. T en ders w ill be received w ithout deposit fro m 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 panied b y paym ent o f 2 percent o f the fa c e am ount o f T rea su ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an in corp ora ted bank o r trust com pany. 4. I f the language o f this tender is changed 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 b y credit through Treasury Tax and Loan Account will not be permitted. TENTB—1234-a (OVER)