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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
£ CirAp,rU22°’i9S400 }
O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills
Dated April 29, 1954
Maturing July 29, 1954
To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve 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 ,
Th ursday, A p ril 22, 1954.
TREASU RY DEPARTM ENT
W ash in gton
T h e T reasu ry Departm ent, b y this pu blic notice, invites tenders for $1,500,000,000, o r thereabouts, o f 91-day Treasu ry
bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing A p r il 29, 1954, in the amount o f $1,500,313,000, to be issued on
a discou nt basis under com petitive and n oncom petitive b idd ing as h ereinafter provided. T h e bills o f this series w ill be dated
A pril 29, 1954, and w ill mature July 29, 1954, when the face am ount w ill be payable w ithout interest. T h ey w ill
be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity va lu e).
T en ders w ill be received at Federal R eserve Banks and B ranches up to the clo s in g hour, tw o o ’clo ck p.m., E astern D a y
light S a v in g time, M on day, A p ril 26, 1954. Tenders w ill not be received at the T reasu ry Departm ent, W a sh in gton . Each
ten der m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must 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 not be used. It is urged that tenders be
made on the printed form s and forw a rded in the special envelopes w hich w ill be supplied by Federal R eserve Banks o r
Branches on application th erefor.
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 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 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 by 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 Federal 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 amount 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 he Secretary 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. Subject
to these reservations, noncom petitive tenders for $200,000 or less w ithout stated price from any one bidder w ill be accepted
in fu ll at the average price (in three decim a ls) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccordance
w ith the bids must be made or com pleted at the Federal R eserve Bank on A p ril 29, 1954, in cash or oth er im m ediately
available funds o r in a like face am ount o f T reasu ry bills m aturing A p ril 29, 1954. Cash and exch an ge tenders w ill re
ceive equal treatment. Cash adjustm ents w ill be made for differences betw een the par value o f m aturing bills a ccepted in
exch an 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 oth er disposition o f the bills, shall
n ot have any exem ption, as such, and loss from the sale o r oth er disposition o f T rea su ry bills shall not have any special
treatm ent, as such, under the Internal Revenue Code, or law s am endatory o r supplem entary thereto. T h e bills shall be
su b ject to estate, inheritance, g ift, or other excise taxes, w hether Federal or State, but shall be exem pt from a ll taxation
now o r hereafter im posed on the principal or interest th ereof by any State, or 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 am ount o f discount at w hich T reasu ry bills are origin a lly
sold 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
Code, as am ended by S ection 115 o f the Revenue A ct o f 1941, the am ount o f discou n t at w hich bills issued hereunder are
so ld shall not be con sidered to accrue until such bills shall be sold, redeem ed or otherw ise disposed of, and such bills are
exclu d ed 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 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 am ount actu ally received either upon sale o r redem ption at
m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry gain or loss.
T reasu ry D epartm ent C ircu la r N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and
govern the con ditions o f their issue. C opies o f the circu la r m ay be obtained from any Federal R eserve Bank or Branch.
This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, April 26, 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 telegraphy 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 22, 1954, maturing July 22, 1954)
T ota l applied f o r ........ $2,364,475,000
T ota l a c c e p t e d ............. $1,501,394,000 (inclu des $230,763,000
entered on a noncom petitive basis
and accepted in full at the a ver
age price show n below )
A ve ra g e p r ic e ........... 9 9 .7 4 0 + Equivalent rate o f discount
approx. 1.027% per annum
Range o f accepted com petitive b id s : (excep tin g one
tender o f $200,000)
H i g h ........................... 99.743 Equivalent rate o f discount
approx. 1.017% per annum
L o w .............................
99.739 Equivalent rate o f discount
a pp rox. 1.033% per annum
Federal R eserve
D istrict
B oston .............................
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 ica go ...........................
St. L ou is .........................
M inneapolis ...................
Kansas C i t y ...................
D allas ..............................
San F r a n c i s c o ...............
Total
Applied fo r
$
14,233,000
1,732,977,000
32,451,000
31,874,000
9,971,000
42,940,000
252,151,000
31,966,000
10,852,000
52,938,000
50,167,000
101,955,000
Total
A ccepted
$
13,933.000
984,752,000
14.351,000
24,914,000
9,971,000
38,760,000
216.701.000
24,960,000
8,892,000
47,198,000
45.087,000
71,875,000
(40 percent o f the am ount bid for at the low
price was accep ted)
T o t a l ...................
$2,364,475,000
$1,501,394,000
( over )
Tenders will be received up to 2 p.m., Eastern Daylight Saving time, Monday, April 26, 1954
31 F
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.
N o.............................
TEN DER FOR 91-DAY TREASURY BILLS
Dated A pril 29, 1954
To
F ed era l R eserve B a n k
o f N ew
Maturing July 29, 1954
Y ork ,
Dated at
Fiscal Agent of the United States.
..............................................................1954
COMPETITIVE BID
Pursuant to the provisions of Treas
ury Department Circular No. 418, Revised,
and to the provisions o f the public no
tice on April 22, 1954, as issued by the
Treasury Department, the undersigned offers
..........................................* for a total amount of
( R a t e p er 100)
$ ................................................... (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 :
□
By surrender of maturing Treasury bills
amounting t o ..................$______________________
□
...................................................
By cash or other immediately available funds
NONCOMPETITIVE BID
Pursuant to the provisions of Treasury De
partment Circular No. 418, Revised, and to the
provisions of the public notice on April 22,
1954, as issued by the Treasury Department,
the undersigned offers a noncompetitive tender
for a total amount of $ ............................................
( N o t to exceed $200,000)
('maturity value) of the Treasury bills therein
described, at the average price (in three deci
mals) o f accepted competitive bids, settlement
theretor to be made at your Bank, on the date
stated in the public notice, as indicated below :
□
By surrender of maturing Treasury bills
amounting t o ..................$_______________________
□
By cash or other immediately available funds
* P r ice must be expressed on the basis o f 100, w ith not
more than three dccimal places, fo r exam ple, 99.925.
The Treasury bills for which tender is hereby made are to be dated April 29, 1954, and are to
mature on July 29, 1954.
This tender mill be inserted in special envelope marked “ Tender for Treasury Bills.”
N am e o f B id d er ...........................................................................................................................................
(Please print)
B y ................... ••••••••..................... ...........................*
(Official signature required)
.......................................................
(Title)
Street A d d ress ...............................................................................................................................................
(City, Town or Village, P. O . No., and State)
I f this tender is subm itted b y a bank fo r the a ccou n t o f a custom er, indicate the cu stom er’ s nam e on line b e lo w :
(Name o f Customer)
(City, Town or Village, P. O . No., and State)
IM PORTANT INSTRUCTIONS:
1. N o tender for 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 va lu e).
2. I f the person m akin g the tender is a corp ora "ion . the tender should be signed b y an officer o f the corp oration
authorized to make the tender, and the sign ing o f the tender by an officer o f the corp ora tion w ill be construed as a rep
resentation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed b y a m em
ber o f the firm, w ho should sign in the form “ ............................................................................................................... . a copartn ersh ip, by
....................................................................................................................... a m em ber o f the firm.”
3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from 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 face am ount o f T reasu ry bills applied for, 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.
4. I f the lan gu age 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 by credit through Treasury Tax end Loan Account will not he permitted.
TENTB—1243-a
(ovn)
@FedFRASER