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FEDERAL RESERVE BANK O F N EW YORK [■Circular No. Fiscal A gent o f the United States [ D e c e m b e r 3,1953 Offering o f $1,500,000,000 o f 91-Day Treasury Bills Dated December 10, 1953 Maturing March 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 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 tex t o f a n otice published tod a y : F O R R E L E A S E , M O R N IN G T h u rsd a y, D e ce m b e r 3, 1953. NEW SPAPERS, TREASU RY DEPARTM EN T W a sh in g ton T h e T re a su ry D epartm en t, b y this pu blic notice, invites tenders for $1,500,000,000, o r thereabouts, o f 91-day T re a su ry bills, fo r cash and in exch a n ge for T rea su ry bills m atu rin g D ecem b er 10, 1953, in the am ou nt o f $1,500,508,000, to be issued on a discou n t basis under com petitive and n on -com p etitiv e bid d in g as hereinafter provided. T h e bills o f this series w ill be dated D e ce m b e r 10, 1953, and w ill m ature M a rch 11, 1954, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill 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 atu rity v a lu e ). T e n d e rs w ill be received at Federal R eserve B anks and B ran ches up t o the clo s in g h our, tw o o ’ c lo ck p.m ., E astern Standard tim e, M o n d a y , D ecem b er 7, 1953. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a sh in g ton . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in the case o f com p etitive tenders the price offered m ust 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 n ot be used. It is urged that tenders be m ade o n the printed fo rm s and forw a rd ed in the special en velopes w hich w ill be supplied b y Federal R eserve Banks o r B ran ch es o n a pp lication th erefor. O th e rs than b a n k in g institutions w ill n ot be perm itted t o subm it tenders e x cep t fo r their ow n a ccou n t. T en d ers w ill be re ce iv e d w ith ou t d ep osit fro m in corp ora ted banks and trust com pa n ies and fro m respon sib le and recog n ized dealers in invest m en t securities. T e n d ers 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 a pplied fo r, unless the tenders are a ccom p a n ied b y an express gu aranty o f p a ym en t b y an in corp ora ted bank or trust com pan y. Im m ed ia tely after the clo s in g hour, tenders w ill be open ed at the Federal R eserve B anks and B ranches, 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 be advised 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 exp ressly reserves the righ t t o a cce p t o r re je ct any or all tenders, in w h ole o r in part, and his action in a n y such resp ect shall be final. S u b ject to these reservations, n on -com p etitiv e ten ders fo r $200,000 or less w ith ou t stated price from any on e b idder w ill be a ccep ted in full at the average price (in three d ecim 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 o r com p leted at the Federal R eserve B ank on D ecem b er 10, 1953, in cash o r oth er im m ediately available funds o r in a like fa ce a m ou n t o f T rea su ry bills m a tu rin g D ecem b er 10, 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 o f 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 o r gain fro m the sale o r oth er disposition o f the bills, shall not have any exem p tion , as such, and loss fr o m the 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 en t, as such, u nder the Internal R even u e C ode, o r law s a m en da tory or supplem entary thereto. T h e bills shall be su b ject t o estate, inheritance, gift, o r oth er excise taxes, w hether F ed eral o r State, but shall be exem p t fro m all taxation n o w or h ere after im p osed o n the principal o r interest th ereof b y a n y State, or any o f the possession s o f the U nited States, or 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 con sid ered t o be interest. U n der S ection s 42 and 1 1 7 (a )(1 ) o f the Internal R even ue C ode, as a m en ded b y S ection 115 o f the R even u e A c t o f 1941, the a m ou n t o f discou n t at w hich bills issued h ereunder 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 of, and such bills are exclu d ed fro m con sidera tion 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 h ereun der need in clude in his in com e ta x return o n ly th e differen ce betw een the price paid fo r such bills, w hether on original issue o r on sub sequen t purchase, and the a m ou n t actu a lly receiv ed either u pon sale or red em p tion at m aturity during the taxable year fo r w h ich th e return is m ade, as ord in a ry gain o r loss. T re a su ry D epartm en t C ircu lar N o . 418, as am en ded, and this n otice, prescrib e the term s o f the T rea su ry bills and g o v e rn th e con d ition s o f th eir issue. C opies o f the circular m a y b e obtain ed fro m a n y F ed eral R eserve B ank or B ranch. T h is B ank w ill receive tenders up to 2 p.m ., Eastern Standard tim e, M on day, D ecem ber 7, 1953, at the Securities Departm ent o f its H ead Office and at its B u ffa lo Branch. Please use the fo r m on the reverse side o f this circular to submit a tender, and return it in an envelope m arked “ T en d er fo r T reasu ry B ills.” Tenders m ay be submitted by telegraph, sub je c t to written confirm ation; they m ay not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. funds or i n maturing Treasury bills. Settlement must be made in cash or other immediately available A lla n S p r o u l, P r e s id e n t. Results of last offering of Treasury bills (91-day bills dated December 3, 1953, maturing March 4, 1954) T o t a l applied fo r .......... $2,024,814,000 T o t a l a c c e p t e d .............. $1,500,219,000 (in clu d es $213,829,000 entered on a n on -com p etitiv e basis and a ccep ted in fu ll at the average price sh ow n b e lo w ) A v e ra g e p rice........ 9 9 .598-f E quivalent rate o f discou n t a p p rox. 1.589% per annum R a n g e o f a ccep ted com p etitive b ids: H i g h .......................... 99.638 E quivalent rate o f discou nt a pp rox. 1.432% per annum L o w .......................... 99.592 E quivalent rate o f discount a p p rox. 1.614% per annum F ed era l R eserv e D is trict ...... N ew Y o r k .............. ...... Philadelphia ............ C levelan d ................. R ich m o n d ................. A tlanta ........................ St. L ou is ................... M in n eap olis ............ K ansas C ity ............. D allas ........................ San F r a n cis co ........ T o ta l A p p lie d f o r $ 33,807,000 1,471,701,000 26,524,000 37,293,000 19,890,000 22,349,000 207,634,000 17,720,000 20,005,000 59,214,000 31,508,000 77,169,000 T o ta l A c cep te d $ 32,807,000 996,436,000 11,524,000 37,293,000 19,180,000 22,349,000 175,114,000 17,720,000 20,005,000 59,114,000 31,508,000 77,169,000 (58 percent o f the am ou nt bid fo r at the low price w as a ccep ted ) T otal ..................... ...... $2,024,814,000 $1,500,219,000 ( over) 30 L 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 N O T 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. N o __________________ T E N D E R FOR 9 1 -D A Y T R E A SU R Y BELLS Dated December 10, 1953 Maturing March 11, 1954 Dated at_.. T o F e d e r a l R eserve B a n k of N e w Y o r k , Fiscal A g e n t o f the U nited States. .1953 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions o f T rea s u ry Departm ent Circular N o. 418, as amended, and to the provisions o f the public n o tice on D ecem ber 3, 1953, as issued by the T reasury 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 D ecem ber 3, 1953, as issued by the T reasu ry Department, the undersigned o ffers a non-com petitive tender --------- -------------------------------- * fo r a total am ount o f fo r a total amount o f $____________________________ (Not to exceed 9200,000) (Rate per 100) --------------------- -------------------- (m aturity valu e) o f the T reasu ry bills therein described, o r fo r any less amount that may be awarded, settlement th erefor to be made at y o u r Bank, on the date stated in the public notice, as indicated b e lo w : (m aturity valu e) o f the T reasu ry bills therein described, at the average p rice (in three deci m als) o f accepted com petitive bids, settlement th e re fo r to be m ade at you r Bank, on the date stated in the public notice, as indicated b e lo w : □ □ By surrender am ounting to □ of m aturing T reasu ry bills ....................... $_______________________ B y cash o r other im m ediately available funds By surrender o f am ounting to □ m aturing T reasu ry bills ....................... $----------------------------------- B y cash o r other im m ediately available funds * P r i c e m u st b e e x p r e s s e d o n th e ba sis o f 100, w ith n o t m o r e than th r e e d ecim a l p la ces, f o r ex a m p le , 99.925. T h e T reasu ry bills fo r which tender is hereby made are to be dated D ecem ber 10, 1953, and are to mature on M arch 11, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id d e r .......... By (Please print) (Official signature required) (Title) S treet 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 Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill b e 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 p erson m a k in g the ten der is a corp ora tion , the ten der should be sign ed b y an officer o f the co rp o ra tion a u th orized t o m a ke the tender, a n d the sig n in g o f th e ten der b y an officer o f th e corp ora tion w ill be co n stru ed as a rep resen tation b y h im that he has been s o authorized. I f the tender is m ade b y a partnership, it sh ou ld be sign ed b y a m e m b e r o f the firm , w h o should sign in the fo r m “ ...................................................................................................... . a cop artn ersh ip, b y ....................................................................................................................... . a m em b er o f the firm .” 3. T e n d ers 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 fr o m resp o n sible and re co g n iz e d dealers in in vestm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the fa ce 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 exp ress gu a ra n ty o f paym ent b y an in co rp o ra te d b a n k o r trust com p a n y . 4. I f the language o f this ten der is ch a n g ed in a n y respect, w hich, in the opin ion o f th e S ecreta ry o f the T re a su ry , is m aterial, th e ten der m a y 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 — 1223-a Federal Reserve Bank of St. Louis . ( over ) Federal R eserve Bank o f N e w Y <u4) o r k N e w Y o r k 4 5 , N. Y. December 3, 1953 DANGEROUS COUNTERFEIT FEDERAL RESERVE NOTES T o a ll B an ks in th e S econ d F e d era l R e s e r v e D istrict: Counterfeit Federal Reserve notes of the 1950 series in the $20 denomination have appeared in the Second Federal Reserve District. Your tellers and customers should be warned to be on the alert for the appearance of similar counterfeits. While the counterfeits that have appeared purport to be issu es of the Federal Reserve Bank of Chicago (G), it would be prudent to assume that similar counterfeits purporting to be issu es of other Federal Reserve Banks may also appear. The United States Secret Service describes the new counterfeits as follows: $20 Denomination Series 1950 Check Letter Face Plate E 6 Back Plate 728 The serial number on the specimens seen is G 53405074 A. The counterfeits are of good workmanship and bear the facsim ile signatures of Georgia Neese Clark and John W. Snyder. They are printed by intaglio process on good quality bond paper of single thickness, but without fibre threads; the specimens have a dull gray appear ance. The coloring of the Treasury seal is a bright glossy green, and the portrait of Jackson has a darker background than on a genuine note.. All counterfeit currency received from any source should be forwarded to the nearest office of the United States Secret Service, -rather than to Washington, D. C, In this District, the Secret Service has offices in Room 917, Federal Office Building, 90 Church Street, New York 7, N. Y .; in the United States Court House, Buffalo 1, New York; in the Post Office Building, Utica 1, • New York; and at 1060 Broad Street, Newark 1, New Jersey. Additional copies of this letter will be furnished upon request. ALLAN SPROUL President
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