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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 [ Ciljuiyr»,°i 9S4 31 ] F isca l A g e n t o f the U nited States O ffe rin g o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T reasu ry B ills Dated August 5, 1954 Maturing November 4, 1954 T o all Incorporated Banks and Trust Companies, and O thers Concerned, in the S econd Federal R eserv e D istrict: F o llo w in g is the text o f a n otice published t o 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 , Th ursday, Ju ly 29, 1954. TREASU RY DEPARTM ENT W ash in gton T h e T reasu ry Departm ent, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 91-day Treasu ry bills, fo r cash and in exch a n ge for T reasu ry bills m aturing A u gust 5, 1954, in the am ount o f $1,502,208,000, to be issued on a discou n t basis un;ter com petitive and noncom petitive b idding as h ereinafter provided. T he bills o f this series w ill be dated A u gu st 5, 1954, ana w ill mature N ovem ber 4, ly54, when .he face am ount w ia be payable w ith ou t 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 Branches up to the closin g hour, tw o o 'c lo c k p.m., E astern D a y ligh t S a vin g time, M on day, A u gust 2, 1954. Tenders w ill not be received at the Treasury- Department, W a sh in gton . Each tender 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 not more than three decim als, e. g., 99.925. F raction s m ay not be used. It is u rged that tenders be made on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied by Federal R eserve Banks o r Branches on 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 ders w ill be received w ithout 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 amount o f T rea su ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an in corporated bank or trust com pany. Im m ediately after 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 which public announcem ent w ill be made by the T reasu ry Departm 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 right to accept o r reject any or all tenders, in w hole or in part, and his a ction in any such respect shall be final. Subject to these reservations, n oncom petitive tenders fo r $200,0U0 or le»s w ithout stated price from any one b idder w ill be accepted in fu ll at the average price (in three decim a ls) o f accepted com petitive bids. Settlem ent for accepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the Federal R eserve Bank on A u gu st 5, 1954, in cash or other im m ediately available funds o r in a like face amount o f T reasu ry bills m aturing A u gust 5, 1954. Cash and exch an ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r differences betw een the par value o f m aturing bills accepted in exch a n ge and the issue price o f the new bills. T h e incom e derived from T reasu ry b ills, w hether interest or gain from the sale o r oth er disp osition o f the bills, shall not have any exem ption, as such, and loss from the sale or other disp osition o f T reasu ry bills shall not have any special treatment, as such, under the Internal Revenue Code, or laws am endatory o r supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift, or oth er excise taxes, w hether Federal or State, but shall be exem pt from all taxation now 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 nited States, or by any loca l ta x in g authority. F o r purposes o f taxation the amount o f discou nt at w hich T reasu ry bills are origin a lly so ld by the U n ited States shall be con sid ered to be interest. U nder Sections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue C ode, as amended by Section 115 o f the R evenue A ct o f 1941, the am ount o f discou nt at w hich bills issued hereunder are so ld shall not be con sidered to a ccru e until such bills shall be sold, redeem ed o r otherw ise disposed o f, and such bills are exclu ded from con sideration as capital assets. A ccord in g ly , the ow n er erf T reasu ry bills (oth er than life insurance co m pan ies) issued hereunder need include in his incom e tax return on ly the difference between the p rice paid fo r such bills, w hether on origin a l issue or on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity during the taxable year fo r w hich the return is m ade, as ord in a ry gain or loss. T reasu ry Departm ent C ircu lar 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. Copies o f the circu la r may be obtained from any Federal R eserve Bank o r Branch. T h is Bank w ill receive tenders up to 2 p.m ., Eastern D a y lig h t S a v in g time, M on d a y , A u g u st 2, 1954, at the S ecu ri ties D epartm ent o f its H ead O ffice and at its B u ffa lo B ranch. P lease use the form on the reverse side o f this circu lar to subm it a tender, and return it in an en v elop e m arked “ T en d er fo r T rea su ry B ills.” T en d ers m ay be submitted by telegraph, subject to written confirm ation; they m ay not be submitted by telephone. Paym ent for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. immediately available funds or in maturing Treasury bills. Settlement must be made in cash or other A llan S proul, President. Results o f last offering o f Treasury bills (91-day bills dated July 29, 1954, maturing October 28, 1954) T ota l applied f o r ........ $2,237,485,000 T ota l a c c e p t e d ............. $1,500,400,000 (in clu des $193,575,000 entered on a noncom petive basis and accepted in fu ll at the aver a ge price show n b elow ) A v era ge p r ic e ........... 99.798 Equivalent rate o f discount approx. 0.800% per annum R ange o f accepted com petitive bids : H i g h ........................... 99.835 E quivalent rate approx. 0.653% L o w .............................. 99.793 E quivalent rate approx. 0.819% o f discount per annum o f discount per annum Federal R eserv e D istrict B oston ............................. $ N ew Y o rk ..................... Philadelphia ................. Cleveland ....................... R ich m on d ..................... A tlanta ........................... C h ica go ......................... St. L ou is ....................... M inneapolis ................. K ansas C ity ................. D allas .............................. San F ra n cisco ............. Total A pplied fo r 25,579,000 1,616,396,000 71,512,000 57,799,000 8,946,000 17,544,000 215,770,000 21,469,000 10,680,000 43,962,000 33,554,000 114,274,000 Total A ccep ted $ 25,579,000 912,221,000 56,512,000 57,799,000 8,946,000 17,544,000 198,830,000 21,469,000 10,680,000 43,962,000 32,584,000 114,274,000 (3 percent o f the amount b id fo r at the low price was accepted) T o t a l ....................... $2,237,485,000 $1,500,400,000 ( over) 31 T 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 August 5, 1954 T o F ed e r al R eser v e B a n k o f N e w Y Fiscal A gen t o f the U nited States. Maturing November 4, 1954 Dated at ork, 1954 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the p rov ision s o f T re a s ury D epartm ent C ircu lar N o. 418, R evised , and to the p ro v isio n s o f the p u b lic n o tice on Ju ly 29, 1954, as issued b y the T rea su ry D epartm ent, the u ndersigned offers Pursuant to the p ro v isio n s o f T reasu ry D e partm ent C ircu lar N o. 418, R evised , and to the p rov ision s o f the p u b lic n otice on July 29, 1954, as issued b y the T rea su ry D epartm ent, the undersigned offers a n oncom petitive tender ............................................... * fo r a total am ount o f fo r a total am ount o f $ .................................................. (Rate per 100) (Not to exceed $200,000) $ ...........................................................(m a tu rity value) o f the T reasu ry b ills therein described, o r fo r any less am ount that m ay be aw arded, settlement th erefor to be m ade at y o u r B ank, on the date stated in the p u b lic notice, as indicated b e lo w : (m a tu rity v a lu e ) o f th e T rea su ry b ills therein described, at the a vera ge p rice (in three deci m a ls) o f accepted com p etitiv e bids, settlem ent th e re fo r to be m ade at y o u r B ank, on the date stated in the p u b lic notice, as indicated b e lo w : □ □ B y surrender o f m aturing T reasu ry bills am ou n tin g t o .................... $_________________________ □ B y surrender o f m aturing T re a su ry bills a m ou n tin g t o .................... $_________________________ B y cash o r oth er im m ediately available funds □ B y cash o r oth er im m ediately available funds * P r ice must be expressed on the basis o f 100, with not m ore than three dccimal places, fo r exam ple, 99.925. T h e T reasu ry b ills fo r w hich tender is hereby m a d e are to be dated A u g u st 5, 1954, and are to m ature on N ov em b er 4, 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) 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 m ust be for an even m ultiple o f $1,000 (m atu rity v a lu e). 2. I f the person m aking the tender is a corp ora tion , the tender should be signed by 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. 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 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 corporated banks and trust com panies and from respon sible and recogn ized dealers in investment 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 b y an express guaranty o f paym ent b y an in corporated bank or trust com pany. 4. I f the language o f this tender is changed in any respect, which, in the opin ion o f the Secretary 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 1257-a (o v e r )