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FED ERAL RESER VE BANK O F N EW YO RK J Circular No. 4 0 4 0 ~ " l L November 5, 1953 J Fiscal A gent o f the United States Offering o f $1,500,000,000 of 91-Day Treasury Bills Dated November 12, 1953 Maturing February 11, 1954 T o a ll I n c o r p o r a t e d B a n k s a n d T r u s t C o m p a n ie s , an d O t h e r s C o n c e r n e d , in th e S e c o n d F e d e r a l R e s e r v e D i s t r i c t : F o llo w in g is the tex t o f a n otice pu b lish ed to 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 , T h ursd ay, N ovem ber 5, 1953. TREASURY DEPARTM ENT W ash ington T h e T reasu ry Departm ent, b y this pu blic notice, invites tenders for $1,500,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing N ovem b er 12, 1953, in the am ount o f $1,500,702,000, to be issued on a discount basis under com petitive and n on -com p etitive b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated N ovem ber 12, 1953, and w ill mature F ebru ary 11, 1954, when the face am ount w ill be payable w ithout interest. T h ey 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 aturity va 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., E astern Standard time, M on day, N ovem ber 9, 1953. T en ders w ill not be received at the T reasu ry Departm ent, W ash ington. E ach 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 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 rd ed in the special envelopes w hich w ill be supplied by F ed eral R eserve Banks o r B ranches on application th erefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n a ccou nt. 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 m ust be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom pa n ied by an express guaranty o f paym ent by 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 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 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 re je ctio n thereof. T he S ecretary o f the T rea su ry expressly reserves the righ t to accep t o r reject any or all tenders, in w h ole or in part, and his action in any such respect shall be final. S u bject to these reservations, n on -com p etitive tenders fo r $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 ccord a n ce with the bids must be made or com pleted at the Federal R eserve Bank on N ovem ber 12, 1953, in cash or other im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing N ovem ber 12, 1953. Cash and exch a n 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 or oth er disp osition o f the b ills, shall not have any exem ption, as such, and loss from the sale o r oth er disp osition o f T reasu ry bills shall n ot have any special treatment, as such, under the Internal Revenue Code, o r laws am endatory o r supplem entary thereto. T he bills shall be subject to estate, inheritance, gift, or oth er excise taxes, w hether F ed eral or State, but shall be exem pt from all taxation n ow 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 loca l taxing authority. F o r purposes o f taxation the am ount o f discou n t at w h ich T reasu ry bills are o rigin a lly so ld b y the U nited States shall be con sidered to be interest. U nder S ections 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 h ereunder are sold shall not be con sidered to a ccru e until such bills shall be sold, redeem ed o r oth erw 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 in clude in his incom e ta x return only the difference between the price paid f o r such bills, w hether on o rigin a l issue or on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity du rin g the taxable yea r fo r w hich the return is m ade, as ord in a ry gain o r loss. T reasu ry D epartm ent C ircu lar N o . 418, as amended, 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 m a y be obtained from any Federal R eserve Bank or Branch. T h is Bank w ill receive tenders up to 2 p.m ., E astern Standard tim e, M on d a y , N ov em b er 9, 1953, 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 circular to subm it a tender, and return it in an en velop e m arked “ T en d er fo r T reasu ry B ills.” T en d ers m ay be subm itted by telegraph, subject to written confirm ation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. immediately available funds or in maturing Treasury bills. Settlement must be made in cash or other A lla n S p r o u l, P r e s id e n t. R esults o f last offerin g o f T reasu ry b ills (91-day b ills dated N o v e m b e r 5, 1953, m aturing F e b ru a ry 4, 1954) T o ta l applied f o r ......... $2,066,198,000 T o ta l accepted ............. $1,500,521,000 (in clu des $181,912,000 entered on a non-com p etitive basis and accepted in full at the a ver age price shown below ) A ve ra g e p r ic e .......... 99.670 Equivalent rate o f discount approx. 1.306% per annum R a n g e o f accepted com petitive bids : H ig h ............................ 99.710 L o w ............................. 99.663 E quivalent rate o f discount approx. 1.147% per annum Equivalent rate o f discount approx. 1.333% per annum (79 percent o f the am ount bid fo r at the low price was accep ted) F ed era l R eserv e D is trict T o ta l A p p lied fo r . $ . $2,066,198,000 N ew Y o rk ................. Philadelphia ............... Cleveland ..................... R ich m on d ................... A tlanta ....................... C h icago ....................... St. L ouis ..................... M inneapolis ............... K ansas C i t y ................. D allas ......................... San F ra n cisco .......... T otal ........................... 24,771,000 1,552,886,000 41,765,000 46,957,000 10,761,000 25,692,000 203,889,000 17,587,000 7,803,000 37,590,000 28,998,000 67,499,000 T o ta l A c c e p te d $ 23,771,000 1,057,814,000 26,665,000 46,957,000 10,661,000 25,692,000 158,789,000 17,587,000 7,703,000 37,490,000 26,893,000 60,499,000 $1,500,521,000 ( oveh) 30 H IMPORTANT—If you desire to bid on a competitive 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 of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. No.......................... T E N D E R FOR 91-D A Y T R E A SU R Y BILLS Dated November 12, 1953 To F ederal R eserve Bank of N ew Y Maturing February 11, 1954 ork, D ated at F isca l A g e n t o f the U n ited States. 1953 COMPETITIVE BID Pursuant to the p rov ision s o f T re a s ury D epartm ent C ircular N o. 418, as am ended, and to the p ro v isio n s o f the p u b lic n o tice on N ovem b er 5, 1953, as issued b y the T reasu ry D epartm ent, the undersigned offers ............................................... * fo r a total am ount o f (R a te per 100) $ ...........................................................(m a tu rity valu e) o f the T reasu ry b ills therein described , or fo r any less am ount that m ay be aw arded, settlem ent th erefor to be m ade at y o u r B ank, on the date stated in the p u b lic n otice, as indicated b e lo w : □ B y surrender o f m aturing T rea su ry bills NON-COMPETITIVE BID Pursuant to the p rov ision s o f T rea su ry D e partm ent C ircular N o. 418, as am ended, and to the p rov ision s o f the p u b lic n otice o n N o v e m b er 5, 1953, as issued b y the T rea su ry D epartm ent, the undersigned o ffers a n on -com p etitiv e tender fo r a total am ount o f $ .................................................. (N o t to exceed $200,000) (m atu rity v a lu e) o f the T rea su ry b ills therein described, at the a vera ge p rice (in three d eci m a ls) o f accepted com p etitive bids, settlem ent th erefor to be m ade at y o u r B ank, on the date stated in the p u b lic notice, as indicated b e lo w : □ By surrender o f m aturing T reasu ry bills am ou n tin g t o .....................$-------------------------------------am ou n tin g t o .................... $_________________________ □ B y cash o r oth er im m ediately available funds □ B y cash or oth er im m ediately a vailable funds * P r i c e m u s t b e e x p r e s s e d o n th e b a s is o f 100, w i t h n o t m o r e th a n t h r e e d e c im a l p l a c e s , j o r e x a m p l e , 99.925. T h e T rea su ry b ills fo r w h ich tender is h ereby m ade are to be dated N o v e m b e r 12, 1953, and are to m ature on F eb ru a ry 11, 1954. This tender will be inserted in special envelope marked “ Tender jor Treasury Bills.” N am e o f B i d d e r .................................................................................................................................... (P lea se print) By (O fficial signature required) (T itle ) Street A dd ress .......................................... . (C ity , T ow n o r V illa ge, P. O. N o., and S tate) I f this tender is subm itted b y a bank fo r the accou n t o f a custom er, indicate the custom er's name on line b e lo w : (N am e o f C ustom er) (C ity , T ow n or V illa g e , P . O. N o., and State) IMPORTANT INSTRUCTIONS: 1. N o tender f o r less than $1,000 w ill be con sid ered , 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 aking 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 make the tender, and the sign in g o f the ten der by an o ffice r 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 ten der is made by a partnership, it sh ou ld be signed by 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 ithout deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en d ers from others m ust be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu 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. 4. I f the language o f this tender is ch anged in any respect, w hich, in the opin ion o f the S ecreta ry 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. T E N T B —1219-a (oV E fi)
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