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FEDERAL RESERVE BANK O F NEW YORK
f Cireular No. 4 1 5 4 1
L October 14,1954
J

Fiscal Agent of the United States

O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-Day Treasury Bills
Dated October 21 , 1954

Maturing January 20 , 1955

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the text of 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 ,
Thursday, October 14, 1954.

TREASURY DEPARTM ENT
Washington

The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing October 21, 1954, in the amount of $1,500,473,000, to be issued on
a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated
October 21, 1954, and will mature January 20, 1955, when the face amount will be payable without interest. They will
be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Standard time, Monday, October 18, 1954. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest­
ment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on October 21, 1954, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing October 21, 1954. Cash and exchange tenders will re­
ceive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treat­
ment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The bills shall be subject
to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or here­
after imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local
taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United
States shall be considered to be interest. Under Sections 42 and 117(a)(1) of the Internal Revenue Code, as amended by
Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for such bills, whether on original issue or on sub­
sequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, October 18, 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 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.
Results of last offering of Treasury bills (91-day bills dated October 14, 1954, maturing January 13, 1955)
Total applied fo r ......... $2,137,283,000
Total accepted..............$1,500,189,000 (includes $200,465,000
entered on a noncompetitive basis
and accepted in full at the average
price shown below)
Average price.......

99.756

Equivalent rate of discount
approx. 0.966% per annum

Range of accepted competitive bids:
H igh ........................ 99.767
Equivalent rate of discount
approx. 0.922% per annum
Low ........................

99.754

Equivalent rate of discount
approx. 0.973% per annum

(82 percent of the amount bid for at the low
price was accepted)




Federal Reserve
District

Total
Applied fo r

....
New Y o r k .................. ....
Philadelphia .............
Cleveland ....................
Richmond ..................
Chicago ......................
St. Louis ....................
Minneapolis .............
Kansas City ..............
San Francisco ..........
T otal

...........................

....

$

29,123,000
1,604,344,000
29,935,000
31.838,000
12,846,000
22,870,000
188,231,000
38,245,000
17,521,000
42,637,000
40,668,000
79,025,000

$2,137,283,000

Total
Accepted
$

26,083,000
1,018,039,000
19,035,000
31,838,000
12.256,000
22,290.000
166,332,000
37,875,000
17,467,000
42,537,000
39,724,000
66,713,000

$1,500,189,000
( over )

32 E
IM P O R T A N T — I f you desire to bid on a c o m p e titiv 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 co m p etitiv e
basis, fill in only the m aturity value in paragraph headed "N oncom petitive Bid.”
DO
N O T fill in b o th paragraphs on one fo r m . A separate tender must be used f o r each bid,
except that banks subm itting bids on a com petitive basis f o r their ow n and their customers’
accounts may submit one tender f o 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 f o r his account, and method
o f payment. Forms f o r this purpose w ill be furnished upon request.

No.

T E N D E R F O R 91 -D A Y T R E A S U R Y BILLS
M aturing January 20, 1955

D ated O ctober 21, 1954

To

Dated at..
F ed era l R eserve B a n k o f N ew Y ork ,

Fiscal Agent o f the United States.
COM PETITIVE BID

N O N C O M PE TITIV E BID

Pursuant to the provisions o f Treas­
ury Department Circular No. 418, Revised,
and to the provisions o f the public no­
tice on October 14, 1954, as issued by the
Treasury Department, the undersigned offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, Revised, and to the
provisions of the public notice on October 14,
1954, as issued by the Treasury Department,
the undersigned offers a noncompetitive tender

............................................* for a total amount of

for a total amount of
(Rate per

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 o f maturing Treasury bills

(N ot to exceed $200,000)

(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 ...................... $-------------------------------

amounting t o ...................... $ ____________________

□

□

By cash or other immediately available funds

By cash or other immediately available funds

*Price must be expressed on the basis o f 100, with not
more than three decimal places, for example, 99.925.

The Treasury bills for which tender is hereby made are to be dated October 21, 1954, and are to
mature on January 20, 1955.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills”
Name of Bidder .......
(Please print)

By..
(Official signature required)

(Title)

Street Address.
(City, Tow n or V illage, 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:

(N am e o f Customer)

(City, Tow n or V illage, P . O. N o., and State)

IM P O R T A N T IN STR U C T IO N S:
1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000
(maturity value).
2. If the person making the tender is a corporation, the tender should be signed by an officer of the corpora­
tion authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a
representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
member of the firm, who should sign in the form “.............................................................................................. , a copartnership, by
............................................................. ................................................. . a member of the firm.”
3. Tenders will be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent
of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment
by an incorporated bank or trust company.
4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
Treasury, is material, the tender may be disregarded.


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Federal Reserve Bank of St. Louis


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102