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F E D E R A L R E SE R V E BAN K O F N E W Y O R K Fiscal Agent of the United States [ CirMay^25f°i9M11} Offering of $1,500,000,000 of 91-Day Treasury B ills Dated June 3, 1954 Maturing September 2, 1954 T o all Incorporated Banks and T rust Companies, and O thers Concerned, 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 u e sd a y , M a y 25, 1954. TREASU RY DEPARTM EN T W a sh 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 tenders fo r $1,500,000,000, o r th ereabouts, o f 9 1-d ay T rea su ry bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g June 3, 1954, in th e a m ou n t o f $1,500,998,000, to be issued on a d isco u n t basis u nder co m p etitiv e and n on co m p e titiv e b id d in g as h erein a fter p rov id ed . T h e bills o f this series w ill b e dated June 3, 1954, and w ill m ature S ep tem ber 2, 1954, w hen the face a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo r m 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 v a lu e ). T e n d e rs w ill b e receiv ed at F ed eral R e serv e B an ks and B ran ch es up to th e clo 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, F rida y, M a y 28, 1954. T e n d e rs will n ot be received at the T rea su ry D epa rtm en t, W a s h in g to n . E ach ten der m u st b e f o r an even m ultiple o f $1,000, and in the case o f com p etitiv e ten ders th e p rice o ffe re d m u st be exp ressed o n the basis o f 100, w ith n o t m o re than three decim a ls, e. g., 99.925. F ra ction s m a y n o t be used. I t is u rg ed th at ten ders be m ade o n th e p rin ted fo rm s and forw a rd ed in the special en velopes w h ich w ill be sup plied b y F ed era l R e s e rv e B anks o r B ra n ch es o n a pp lica tion th erefor. O th ers than b a n k in g institutions w ill n ot b e perm itted to subm it ten ders e x cep t fo r th eir ow n a ccou n t. T e n d e rs w ill be receiv ed w ith o u t dep osit 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 securities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y p a ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T rea su ry bills a pplied for, unless the tenders are a ccom p a n ied b y an express gu a ra n ty o f pa ym en t b y an in corp ora ted b a n k o r tru st com p a n y . Im m ed ia tely a fter th e clo s in g h ou r, ten ders w ill be o p en ed at the F ed era l R e s e rv e B anks and B ra n ch es, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill b e m ade b y the T r e a s u ry D ep a rtm 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 the 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 ex p re s sly reserves th e righ t to a cce p t o r re je ct a n y o r all ten ders, in w h o le o r in part, and his a ction in a n y su ch resp ect shall b e final. S u b je ct to these reserva tion s, n o n com p etitiv e tenders fo r $200,000 or less w ith ou t stated p rice fr o m a n y on e b idd er w ill be a ccep ted in fu ll at the average p rice (in th ree decim a ls) o f a ccep ted com p etitive bids. S ettlem en t fo r a ccep ted ten ders in a ccord a n ce w ith the bids m ust be m ade o r co m p le te d at the F ed eral R eserve B a n k on June 3, 1954, in cash o r oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry hills m atu rin g June 3, 1954. Cash and ex ch a n g e ten ders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m a tu rin g bills a ccep ted in exch a n ge and th e issue price o f the n ew bills. T h e in co m e d eriv e d fr o m T rea su ry bills, w h eth er interest o r gain fro m th e sale o r o th e r d isp osition o f th e bills, shall n o t have a n y exem p tion , as such, and lo s s fro m th e sale o r oth er d isp osition o f T r e a s u ry bills shall n ot have a n y special treat m en t, as such, under the In tern al R even u e C od e, o r law s a m en d a tory o r su p plem en ta ry th ereto. T h e bills shall b e su b je ct to estate, inheritance, g ift, o r oth er ex cise taxes, w h eth er F ed eral o r State, but shall be ex em p t fr o m all taxation n o w o r h ere a fter im p osed o n th e principal or interest th e re o f b y a n y State, or any o f the p ossession s o f th e U n ited States, o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f ta xation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are orig in a lly s o ld b y th e U n ited States shall be co n sid ered to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the In tern al R even u e C od e, 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 a m ou n t o f d iscou n t at w h ich bills issued h ereun der are sold shall n ot be con sid ered to a ccru e until such bills shall be sold , red eem ed o r oth erw ise d isp osed o f, and su ch bills are exclu d ed fr o m con sid era tio n as capital assets. A c co r d in g ly , th e o w n e r o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued hereun der n eed in clude in his in co m e ta x return on ly the differen ce betw een th e price paid fo r such bills, w h eth er on origin a l issue o r o n subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u pon sale o r red em p tion at m aturity d u rin g the ta x a b le yea r f o r w h ich the return is m ade, as ord in a ry gain o r loss. T r e a s u ry D ep a rtm en t Circular N o. 418, R evised , and this n otice, prescrib e th e term s o f th e T r e a s u ry bills and g o v e rn the co n d itio n s o f th eir issue. C op ies o f the circu la r m ay be ob ta in ed fr o m a n y F ed era l 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, Friday, May 28, 1954, 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 fo r 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. (C L O S I N G DAY FOR RESULTS DATED ABLE R E C E IP T O F T E N D E R S OF MAY WHEN B ID D IN G 27, T H IS 1954 FOR IS F R I D A Y , M A Y TREASURY WERE C IR C U L A R NOT WAS 28, 1954) B IL L S A V A IL P R IN T E D . ( over) 31 K IM P O R T A N T — Please note that tenders fo r this issue must be received not later than 2 p.m ., Eastern D aylight Saving time, Friday, May 28, 1954. IM P O R T A N T — I f you desire to bid on a c o m p e t i t i v e basis, fill in rate per 100 and m aturity value in paragraph headed "C om petitive Bid.” I f you desire to bid on a n o n c o m p e t i t i v e basis, fill in only the m aturity value in paragraph headed "N on com p etitive Bid.” D O N O T fill i n b o t h p a r a g r a p h s o n o n e f o r m . A separate tender m ust be used fo r each bid, except that banks subm itting bids on a com petitive basis fo r their ow n and their custom ers’ accounts m ay subm it one tender fo r the total am ount bid at each price, provided a list is attached showing the name o f each bidder, the am ount bid fo r his accou n t, and method o f paym ent. Forms fo r this purpose w ill be furnished upon request. N o.................................. T E N D E R F O R 91 -D A Y T R E A S U R Y BILLS Dated June 3, 1954 M a tu rin g Septem ber 2, 1954 Dated at T o F ederal R eserve B a n k of N ew Y ork , Fiscal Agent o f the United States. ..................................................................................... CO M PE TITIV E BID N O N C O M P E T IT IV E Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on May 25, 1954, as issued by the Treasury Department, the undersigned o f f e r s .........................................* for a (Rate per 100) 1954 B ID Pursuant to the provisions o f T reasu ry Departm ent Circular N o. 418, R evised, and to the provisions o f the public notice on M ay 25, 1954, as issued b y the T rea su ry Departm ent, the undersigned o ffers a noncom petitive tender fo r a total amount o f $ .................................................. total amount o f $ .............................. (maturity value) o f the Treasury bills therein described, or fo r 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 b elo w : □ ............................................................................ B y surrender o f maturing Treasury bills (Not to exceed $200,000) (m aturity valu e) o f the T reasu ry bills therein described, at the average p rice (in three decim als) o f accepted com petitive bids, settlement th erefor to be made at y o u r Bank, on the date stated in the public notice, as indicated b e lo w : □ By surrender amounting to ................... $----------------------------------- am ounting to □ □ B y cash or other immediately available funds o f m aturing T rea su ry bills .....................$________________________ B y cash o r other im m ediately available funds * P r ic e must be exp ressed on the basis o f 100, w ith not m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated June 3, 1954, and are to mature on September 2, 1954. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” N a m e o f B id d er ........................................................................................................................................... (Please print) B y .................................... ........................ ..................................... , ......................................................... (Official signature required) S treet A d d re s s (Title) ............................................................................................................................................. (City, Town or Village, P. O. No., and State) I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Name of Customer) IM P O R T A N T (City, Town or Village, P. O. No., and State) IN S T R U C T IO N S : 1. N o ten der f o r less th an $1,000 w ill b e con sid ered , and each ten der m u st be f o r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f th e p erson m a k in g the ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the c o r p o r a tion a uthorized to m a ke th e tender, and th e sign in g o f th e ten der b y an officer o f the corp o ra tio n w ill be con stru ed as a rep resen tation b y h im th at he h as b een s o authorized. I f the ten der is m ade b y a partnersh ip, it sh ou ld b e sig n ed b y a m e m b e r o f the firm , w h o sh ou ld sign in th e fo r m “ ....................................................................................................., a cop artn ersh ip , b y ........................................................................................................................................., a m em b er o f the firm .” 3. T e n d e r s w ill b e receiv ed w ith ou t d ep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m re s p o n sible and re co g n iz e d dealers in in vestm en t securities. T en d ers fr o m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 p ercen t o f the fa c e a m ou n t o f T r e a s u ry bills applied fo r, u nless th e ten ders are a cco m p a n ie d 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 bank o r trust com p a n y . 4. I f th e language o f this ten der is ch a n ged in a n y respect, w h ich , in the op in io n o f the S ecreta ry o f the T rea 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. TE N TB — 1248-a (q v e r )
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