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FEDERAL RE SER VE BANK O F NEW YORK r Circular No. 4 0 4 7 1 I November 19, 1953 J Fiscal Agent o f the United States Offering o f $1,500,000,000 of 90-Day Treasury Bills Dated November 27, 1953 Maturing February 25, 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 , a n d O t h e r s C o n c e r n e d , in t h 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 ollow in g 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 h u rsd a y, N o v e m b e r 19, 1953. TREASU RY DEPARTM ENT W a s h in g to n T h e T re a su ry D ep a rtm en t, b y this p u b lic n otice, invites tenders fo r $1,500,000,000, o r th ereabou ts, o f 90-day T rea su ry bills, fo r cash and in e x ch a n g e for T rea su ry bills m atu rin g N o v e m b e r 27, 1953, in the a m ou n t o f $1,501,518,000, to be issued on a d iscou n t basis under com p etitive a n d n on -com p etitiv e bid 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 27, 1953, and w ill m ature F eb ru a ry 25, 1954, w h en 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 rm 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 va lu e). T en d ers w ill be re ceiv ed at F ed era l R eserve B anks and B ra n ch es up to th e clo s in g h ou r, tw o o ’c lo c k p.m ., E astern Standard tim e, M o n d a y , N o v e m b e r 23, 1953. T en d ers w ill n ot be receiv ed at the T rea su ry D ep a rtm en t, W a sh in g to n . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitiv e tenders the p rice o ffe re d m ust be expressed on the basis o f 100, w ith n ot m ore than th ree decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rg ed that tenders be m ade o n the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be su p plied b y F ed eral R eserve B anks o r B ran ches o n a pp lica tion th erefor. O th ers than b a n k in g institutions w ill n ot be p erm itted to subm it tenders e x cep t fo r th eir o w n a ccou n t. T en d ers w ill be receiv ed w ith ou t d ep o sit fr o 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 fro 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 face a m ou n t o f T reasu ry bills a pp lied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu aranty o f p a ym en t b y an in co rp o ra te d bank or trust com p a n y . Im m ed ia tely a fter the clo s in g h our, ten ders w ill be op en ed at the Federal R eserve B anks and B ran ches, fo llo w in g w hich pu blic a n n ou n cem en t w ill be m ade b y the T rea su ry D epa rtm en t o f the a m ou n t and p rice ra n ge o f a ccep ted bids. T h o s e su b m ittin g tenders 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 the T rea su ry e x p ressly reserves th e righ t t o a cce p t o r re je ct a n y or all ten ders, in w h ole or in part, and his a ction in a n y such resp ect shall be final. S u b je ct to these reserva tion s, n o n -com p etitiv e tenders fo r $200,000 o r less w ith ou t stated price fro m a n y o n e b idd er w ill be a ccepted in full at the a vera ge p rice (in th ree decim a ls) o f a ccep ted co m p e titiv e bids. S ettlem ent for a ccep ted ten ders in a ccord a n ce w ith the b id s m u st be m a d e o r com p le te d at the F ed eral R eserve Bank on N o v e m b e r 27, 1953, 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 bills m aturing N o v e m b e r 27, 1953. Cash and ex ch a n g e ten ders w ill receive equal treatm ent. C ash adjustm ents w ill be m ade fo r differences betw een the par value o f m atu rin g bills a ccep ted in exch an ge and the issue p rice o f the n ew bills. T h e in co m e d eriv e d fro m T rea su ry bills, w h eth er interest or gain fro m th e sale o r oth er d isp osition o f the bills, shall not have any exem ption , as such, a n d lo s s fro m th e sale o r oth er d isp osition o f T rea su ry bills shall n ot have a n y special treat m ent, as such, u nder th e Internal R even u e C ode, o r law s a m en d a tory o r sup plem en ta ry thereto. T h e bills shall be su b ject to estate, in heritance, gift, o r oth er excise taxes, w h eth er F ed era l or State, but shall be ex em p t fro m all ta xation n ow o r h ere after im p osed o n th e principal o r interest th ereof b y a n y State, o r any o f the p ossession s o f the U n ited States, o r b y any loca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T r e a s u ry bills are origin a lly sold b y the U nited States shall be co n sid e red to be interest. U n d e r S ection s 42 and 117 (a ) ( 1 ) o f the Internal R even u e 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 hich bills issued h ereu n 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 disp osed o f, and such bills are ex clu d ed fro m con sid era tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life in su rance com p a n ies) issued h ereun der need include in his in co m e ta x return o n ly the differen ce betw een the p rice paid fo r such bills, w h eth er on origin a l issue o r on subsequent pu rch ase, and the a m ou n t actu ally receiv ed either u pon sale or red em p tion at m atu rity du rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain or loss. T re a su ry D epa rtm en t C ircu la r N o. 418, as am en ded , and this notice, prescrib e the term s o f the T r e a s u ry bills and govern the co n d itio n s o f their issue. C opies o f the circu la r m a y be ob ta in ed fro m a n y F ed era l R eserve B ank o r B ran ch. T h is Bank will receive tenders up to 2 p.m ., Eastern Standard time, M on day, N ovem ber 2 3 , 1 9 5 3 , 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.” T en d ers may be submitted b y telegraph, sub ject to written con firm ation ; they may not be submitted b y 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. R e s u lts o f la s t o ffe rin g o f T r e a s u r y b ills T o t a l a pplied fo r . . . ( 9 1 - d a y b ills d a te d N o v e m b e r 1 9 , 1 9 5 3 , m a t u r in g F e b r u a r y $2,265,148,000 F ed era l R ese rv e T o ta l a ccep ted ......... $1,501,737,000 (in clu d es $260,799,000 en tered on a n o n -co m p e titiv e basis and accepted in full at the average price sh ow n b e lo w ) A vera ge p rice . . . 99.638 E quivalent rate o f discou n t a p p rox. 1.433% p er annum r . , ... R a n g e o f a ccep ted co m p etitive b id s . H i g h ...................... 99.655 E q u iva len t rate o f d iscou n t a p p rox. 1.365% per annum ^ a p p rox. 1 .4 4 4 /c per annum (25 p ercen t o f the a m ou n t bid fo r at the lo w p r ice w as a cce p te d ) t^ITTlease T o ta l ?ls JLlct ____ B o s to n ............................. N e w Y o r k ...................... P h iladelphia .................. C leveland ........................ R ich m o n d ...................... A tlanta ............................. C h ica g o ........................... St. L ou is ......................... M in n eap olis .................. P? ti,y A p p lie d f o r $ 30,751,000 1,683,821,000 32,191,000 46,023,000 31,904,000 39,258,000 194,028,000 43,373,000 11,693,000 18, 1954) T o ta l A c cep te d $ 25,251 000 1,036,946 000 17,19l’,000 44,722,000 31,604,000 30,483,000 153,178,000 26,073*000 10,893,000 ~ San F r a n cls co .............. 66,483,000 57,033,000 T o ta l ................ -----------------------$2,265,148,000 -----------------------$1,501,737,000 note that the current offering is for 9 0-day Treasury bills. (o v e r ) I M P O R T A N T — Please n ote t h a t th is o ffe rin g is f o r 9 0 - d a y T r e a s u r y B ills w h ic h w ill be d a te d F r i d a y , N o v e m b e r 2 7 , 1 9 5 5 , b e c a u s e T h u r s d a y , N o v e m b e r 2 6 , w i l l b e T h a n k s g i v i n g D ay. I M P O R T A N T — I f y o u desire to bid on a c o m p e t i t i v e basis, fill in ra te p er 1 0 0 a n d m a t u r it y v a lu e in p a r a g r a p h h ead ed "C o m p e t it iv e B id .” I f y o u desire to b id on a n o n - c o m p e t i t i v e b asis, fill in o n ly th e m a t u r it y v a lu e in p a r a g ra p h h eaded "N o n -c o m p e t i t i v e B id .” DO N O T fill in b o th p a r a g r a p h s o n o n e f o r m . A sep arate ten d e r m u s t be u sed f o r each b id , e x c e p t t h a t b an k s s u b m ittin g b ids on a c o m p e titiv e basis f o r th eir o w n a n d th eir c u sto m e r s’ a c c o u n ts m a y s u b m it one ten d e r fo r th e to t a l a m o u n t b id a t ea ch p ric e, p r o v id e d a list is a tta c h e d sh o w in g th e n a m e o f each b id d e r , the a m o u n t b id f o r his a c c o u n t, and m eth od o f p a y m e n t. F o rm s fo r this pu rp o se w ill be fu r n ish e d u p o n req u est. N o ................................ TENDER FOR 90-DAY TREASURY BILLS D a ted N o v em b er 2 7 , 19 53 M a tu r in g F e b r u a r y 2 5 , 1 9 5 4 Dated at T o F e d e r a l R eserv e B a n k o f N ew Y o rk , Fiscal A gen t o f the U n ited States. 1953 N O N -C O M P E T I T I V E C O M P E T I T I V E B ID Pursuant to the p rovisions o f T reasury Departm ent Circular N o. 418, as amended, and to the provision s o f the public notice on N ovem ber 19, 1953, as issued b y the T reasu ry Department, B ID Pursuant to the provisions o f T reasu ry Department C ircular N o . 418, as amended, and to the provisions o f the public notice on N ovem ber 19, 1953, as issued b y the T reasu ry Department, the undersigned o ffers a non-com petitive tender the undersigned o ff e r s .......................................* fo r a fo r a total amount o f $ ................................................ (R ate per 100) total am ount o f $ ......................................... (m aturity valu e) o f the T reasu ry bills therein described, or fo r any less amount that may be awarded, settle ment th erefor to be made at you r Bank, on the date stated in the public notice, as indicated b e lo w : □ By surrender of m aturing T reasu ry bills (N ot to exceed $200,000) (m aturity valu e) o f the T reasury bills therein described, at the average price (in three decim als) o f accepted com petitive bids, 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 of m aturing T reasu ry bills am ounting t o ....................... $------------------------------------ amounting t o .......................$________________________ □ □ B y cash o r other im mediately available funds B y cash or other immediately available 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 it 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 , f o r e x a m p l e , 99.925. T h e T reasu ry bills fo r w hich tender is hereby made are to be dated N ovem b er 27, 1953, and are to m ature on F ebruary 25, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills” N a m e o f B id der B y ......... (Please print) (Title) (Official signature required) S treet A d d re ss ...................................... (City, T ow n or Village, P. O. N o., 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: (Nam e o f Customer) IM P O R T A N T (City, T ow n or Viliage, P. O. N o., and State) IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 will be con sidered, and each ten der m ust be fo r an even m u ltiple o f $1,000 (m a tu rity va lu e). 2. I f the person m a k in g the tender is a corp ora tion , the tender shou ld be sign ed b y an officer o f the c o rp o ra tion a uthorized to m a k e the tender, and the s ig n in g o f the tender b y an officer o f the co rp o ra tio n w ill be co n stru ed as a rep resen tation b y him that he has been so authorized. If the tender is m ade b y a partnership, it shou ld be sign ed b y a m em b er o f the firm , w h o shou ld sign in the fo rm “ .................................................................................................... . a cop a rtn ersh ip , b y ........................................................................................................................................ . a m e m b e r o f the firm .” 3. T e n d e rs w ill be received w ith ou t d ep osit from in corp ora ted banks and trust com p a n ies and fro m re sp o n sible and r e co g n iz e d dealers in in vestm ent securities. T e n d e rs fro m oth ers m u st be a cco m p a n ie d b y paym ent o f 2 percen 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 exp 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 lan gu age o f this ten der is ch a n g ed in any respect, w hich, in the op in ion o f the S ecreta ry o f the T re a su ry , is m aterial, the ten der m a y be disregarded. P a y m e n t b y c r e d it t h r o u g h T r e a s u r y T a x a n d L o a n A c c o u n t iv ill n o t b e p e r m it te d . http://fraser.stlouisfed.org/ TENTB— 1221-a Federal Reserve Bank of St. Louis ( over)
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