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FEDERAL RESERVE BANK O F N EW YORK Fiscal A gent o f the United States 1< ' •" - '>• ; •' Offering o f $1,500,000,000 of 91-Day Treasury Bills Dated November 19, 1953 ;: Maturing February 1$, 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 : . -• > .j'- > F ollow in g is the text o f a notice published to d a y : F O R R E L E A S E , M O R N IN G T h u rsd a y, N o v e m b e r 12, 1953. NEW SPAPERS, TREASU RY DEPARTM ENT W a sh in g to n T h e T re a su ry D epartm en t, b y this pu blic n otice, 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 for T rea su ry bills m atu rin g N o v e m b e r 19, 1953, in the am ou nt:o£ $1,5.01,428,000, to be issued on a d iscou n t basis under com p etitive and n on -com p etitiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated N o v e m b e r 19, 1953, and w ill m ature F eb ru a ry 18, 1954, w hen the face a m ou n t w ill be payable w ith ou t interest. T h e y will be issued in bearer fo rm on ly , and in den om in ation s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity va lu e). T en d ers w ill be receiv ed at Federal R eserve Banks and B ran ch es up to the clo s in g h our, tw o o ’ c lo c k p.m ., Eastern Standard tim e, M o n d a y , N o v e m b e r 16, 1953. T en d ers w ill n ot be received at the T rea su ry D epa rtm en t, W a sh in g ton . E ach tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed 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 m ade on the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed eral R eserve Banks or B ran ches o n a pp lication th erefor. O th ers than b a n k in g institutions w ill n ot be perm itted t o subm it tenders e x cep t for their ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fro m respon sible and recog n ized dealers in in vest m en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills applied fo r, unless the tenders are a ccom p a n ied b y an express guaranty o f paym ent b y an in corpora ted bank or trust com pan y. Im m edia tely after the clo s in g h our, tenders w ill be op en ed at the Federal R eserve Banks and B ran ches, fo llo w in g w hich p u b lic a n n ou n cem en t w ill be m ade b y the T rea su ry D epartm en t o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e subm itting tenders w ill b e 'a d v is e d o f the a ccep ta n ce o r rejection th ereof. T h e S ecretary o f the T rea su ry ex p ressly reserves the righ t to a cce p t o r re je ct a n y 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 etitiv e tenders fo r $200,000 or less w ith ou t stated price fro m any on e b idd er w ill be a ccep ted in full at the a verage price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent for a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the Federal R eserve B ank on N ov em b er -19, 1953, in cash or .other im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m aturing N ov em b er 19, 1953. Cash and exch a n ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par value of; m aturing bills a ccep ted in exch a n ge and the issue price o f the n ew bills. T h e in co m e derived fro m T rea su ry bills, w hether interest or gain fro m the sale o r oth er d isp osition o f the bills, shall not have any exem ption , as such, and loss fro m the sale o r oth er d isp osition o f T rea su ry bills shall n ot have any special treat m en t, as such, under the Internal R even u e C ode, or law s am en da tory o r supplem entary thereto. T h e bills shall be subject to estate, inheritance, g ift, o r oth er excise taxes, w hether Federal o r State, but shall be exem p t from all taxation n ow o r h ere a fter im p osed o n the principal o r interest th ereof b y any State, o r any o f the p ossession s o f the U nited States, o r b y a n y local ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f discou n t at w h ich T rea su ry bills are origin a lly sold b y the 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 Internal R even ue C ode, as a m en ded by S ection 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 hereunder are sold-shall n ot b e con sidered to accru e until such bills shall be sold, red eem ed o r oth erw ise disp osed of, and such bills are exclu d ed from con sideration as capital assets. A c co r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance com p a n ies) issued .hereunder need in clude in his in com e ta x return on ly the difference betw een the price paid fo r such bills, w hether on original issue or on sub sequent pu rch ase, and the a m ou n t actu ally received either upon sale or redem ption at m aturity du rin g the taxable year fo r w h ich th e return is m ade, as ord in a ry gain o r loss. . ; .• \\ , , , . k . T re a su ry D epartm en t C ircu lar N o . 418, as am ended, and this n otice, prescrib e the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C opies o f the circular m a y be obtain ed fro m a n y Federal R eserve Bank o r Branch. T h is Bank w ill receive tenders up to 2 p.m ., Eastern Standard time, M onday, N ovem ber 16, 1953, at the Securities Departm ent o f its H ead Office and at its B uffalo Branch. Please use the fo rm on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ T en d er fo r Treasury B ills.” Tenders may be submitted by telegraph, sub je ct to written con firm 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. funds or in maturing Treasury bills. Settlement must be made in cash or other immediately available A llan S proul, President. R esults o f last offerin g o f T re a s u ry bills (9 1 -d a y bills d a te d N o v e m b e r 12, 1 953, m a tu rin g F e b ru a ry 11, 1 9 5 4 ) T o t a l applied f o r .......... $2,198,501,000 T o t a l a c c e p t e d .............. $1,500,316,000 (in clu d es $255,685,000 entered on a n on -com p etitiv e basis and a ccep ted in full at the a vera ge price sh ow n b e lo w ) A v e ra g e p rice ........ 99.626 E quivalent rate o f discount a p p rox. 1.482% per annum R a n g e o f a ccep ted com p etitive b ids: H i g h .......................... 99.700 E quivalent rate o f discou nt approx. 1.187% per annum L o w .......................... 99.621 E quivalent rate o f discount approx. 1.499% per annum F ed era l R eserv e D is tr ic t T o t a l -■ A p p lied f o r B oston .............................. $ 23,408,000 N e w Y o r k ................... 1,622,190,000 P h iladelphia ............... 33,142,000 C le v e la n d .............<;...... >< 38,019,000 R ich m on d ...................... 15/485,000 A tla n ta ............................ 30,728,000 C h ica g o ............................ 226,812,000 St. L ou is ........... .'‘ 35,916,000 M in n eap olis ........ ...... . 12,873,000 K ansas C ity .................. . 54,923,000' D allas .............................. 30,353,000’ ' San F r a n c is c o ................. 74,652,000 T o ta l A c cep te d $ 20,828,000 1,015,430,000 18,142,000 38,019,000 , 13,985,000 29,188,000 181,767,000 28,616,000 12,773,000 51,133.000 30,153,000 60,282,000 (71 percent o f the amount bid for at the low price was accepted) T ota l ........ ....... ....... $2,198,501,000 $1,500,316,000 ( over ) 30 I IM P O R T A N T — I f y o u desire t o b id o n a competitive basis, fill in ra te p e r 100 an d m a tu r ity v a lu e in p a ra g ra p h bead ed "C o m p e titiv e B id .” I f y o u desire t o b id o n a non-competitive basis, fill in o n ly th e m a tu r ity v a lu e in p a ra g ra p h headed "N o n -c o m p e titiv e B id .” DO N O T fill in both paragraphs on one form. A separate ten d er m u st b e used f o r ea ch b id , e x ce p t th a t ban k s su b m ittin g bids on a co m p e titiv e basis f o r th eir o w n an d th e ir custom ers* a ccou n ts m a y su b m it one ten d er f o r the to ta l a m ou n t b id a t each p rice , p r o v id e d a list is a tta ch ed sh ow in g the nam e o f each b id d e r, the a m ou n t b id f o r his a cc o u n t, an d m ethod o f p a ym en t. Form s f o r this p u rp ose w ill be fu rn ish ed u p on request. N o --------------------------- TENDER FOR 91 -DAY TREASURY BILLS D a te d N o v e m b e r 19, 1953 To F M a tu rin g F e b ru a ry 18, 1954 Dated at. ederal R e ser v e Ba n k of N ew Y ork, Fiscal A gen t o f the U nited States. —1953 C O M P E T IT IV E B ID N O N -C O M P E T IT IV E BED Pursuant to the provisions o f T reas ury Departm ent C ircular N o . 418, as amended, and to the provisions o f the public n o tice on N ovem ber 12, 1953, as issued by the T reasu ry Departm ent, the undersigned offers Pursuant to the provisions o f T reasu ry D e partment Circular N o . 418, as am ended, and to the provisions o f the public notice on N ovem ber 12, 1953, as issued by the T reasu ry Departm ent, the undersigned o ffers a non-com petitive tender — * fo r a total am ount o f (Rate per 100) (Not to exceed $200,000) -------------- ---------------------------(m aturity value) o f the Treasury bills therein described, or fo r any less amount that m ay be awarded, settlement th erefor to be made at y ou r Bank, on the date stated in the public notice, as indicated b e lo w : □ By surrender o f am ounting to □ fo r a total am ount o f $_ m aturing T reasury bills ....................... $ _______________________ B y cash o r oth er im m ediately available funds (m aturity valu e) o f the T reasu ry bills therein described, at the average price (in three deci m als) o f accepted com petitive bids, settlement th erefor to be m ade at y o u r Bank, on the date stated in the public notice, as indicated b e lo w : □ By surrender o f am ounting to □ m aturing T reasu ry bills ....................... $ _______________________ B y cash o r other im mediately available funds *Price must be expressed on the basis o f 100, with not more than three decimal places, for example, 99.925. T h e T reasu ry bills fo r w hich tender is hereby made are to be dated N ovem ber 19, 1953, and are to mature on F ebruary 18, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B i d d e r ..................................................................................................................... ....................... (Please print) By (Official signature required) (Title) Street A d d ress (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) (City, Town or ViUage, P. O. No., and State) I M P O R T A N T IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be con sidered, and each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the person m a k in g the ten der is a corp ora tion , the tender should be sign ed b y an officer o f the co rp o ra tion authorized t o m ake 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 represen tation b y him that he has been s o authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a m em b er o f the firm , w h o sh ou ld sign in the fo rm “ ....................................................................................................... . a cop artn ersh ip, b y ....................................................................................................................... . a m em b er o f the firm .” 3. T e n d e rs w ill b e received w ith ou t d ep osit fr o m in corp ora ted banks and trust com p a n ies and fro m resp o n sible and re co g n iz e d dealers in investm ent securities. T en d ers from oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the face a m ou n t o f T rea su ry bills a pplied for, unless the tenders are accom pa n ied b y an express gu aranty o f paym ent b y an in corp ora ted ba n k o r trust com pan y. 4. I f the language o f this ten der is ch a n ged in any respect, w hich, in the opin ion o f the S ecreta ry o f the T reasu ry, is m aterial, th e ten der m ay be disregarded. Payment b y credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B 1220-a (ovp R l Federal Reserve Bank of St. Louis
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