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FED ERAL RESERVE BANK O F NEW YORK r Circular No. 4 0 5 2 "I Fiscal Agent o f the United States I December 10,1953 J Offering o f $1,500,000,000 of 91-Day Treasury Bills D a ted D e ce m b e r 17, 1953 M a t u r in g M a r c h 18, 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 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 u rsd a y , D e ce m b e r 10, 1953. TREASURY 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 ereabouts, o f 9 1-d ay T rea su ry bills, fo r cash and in e x ch a n g e fo r T r e a s u ry bills m a tu rin g D e ce m b e r 17, 1953, in the a m ou n t o f $1,500,290,000, to be issued on a d isco u n t basis u nder com p etitive and n on -co m p e titiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated D e ce m b e r 17, 1953, and w ill m ature M a rch 18, 1954, w h en th e fa ce a m ou n t w ill be p a ya b le w ith ou t interest. T h e y w ill be issued in b ea rer 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 v a lu e ). T e n d e rs w ill be re ce iv e d at F ed era l R e serv e B anks and B ra n ch es up to th e clo s in g h our, tw o o ’c lo c k p.m ., E astern S tandard tim e, M o n d a y , D e ce m b e r 14, 1953. T en d ers w ill n ot be receiv ed at th e T r e a s u ry D ep a rtm en t, W a s h in g to n . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitiv e ten ders th e p r ice o ffe re d m ust be exp ressed on th e basis o f 100, w ith n ot m o re than th ree decim als, e. g., 99.925. F ra ction s m a y n ot be used. I t is u rg ed th at ten ders 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 ank s o r B ran ch es o n a pp lica tion th erefor. O th ers than b a n k in g institutions w ill n o t b e perm itted to subm it ten ders e x ce p t f o r th eir o w n a ccou n t. T e n d e rs w ill be received 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 fa ce a m ou n t o f T rea su ry bills a pp lied fo r, u nless 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 b a n k o r trust com p a n y . Im m ed ia tely after the clo s in g h our, ten ders w ill be o p e n e d at the F ed era l R e serv e B an ks and B ra n ch es, fo llo w in g w hich pu blic an n ou n cem en t w ill be m ade b y the T rea su ry D ep a rtm en t o f th e a m ou n t and p rice ra n ge o f a cce p te d bids. T h o s e su b m ittin g ten ders 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 r e a s u ry e x p re s sly reserves the righ t to a cce p t o r reject a n y o r all tenders, in w h ole o r in part, and his a ction in a n y su ch resp ect shall be final. S u b je ct to these reserva tion s, n o n -co m p e titiv e tenders for $200,000 o r less w ith ou t stated p rice fr o m any on e b idd er w ill b e a ccep ted in full at the a vera ge price (in th ree d ecim a ls) o f a ccep ted com p etitiv e b ids. S ettlem en t fo r a ccep ted ten ders in a ccord a n ce w ith th e bids m u st be m ade o r com p le te d at th e Federal R eserve B ank on D e ce m b e r 17, 1953, in cash o r oth er im m ediately available fun ds o r in a like face a m ou n t o f T r e a s u ry bills m atu rin g D e ce m b e r 17, 1953. Cash and ex ch a n g e ten ders w ill receive equal treatm ent. Cash adju stm en ts w ill be m ade f o r d ifferen ces betw een th e par va lu e o f m atu rin g bills a cce p te d in exch a n ge and the issue p rice o f th e n ew bills. T h e in co m e d eriv e d fr o m T r e a s u ry b ills, w h eth er interest or gain fro m the sale o r oth er d isp osition o f th e bills, shall n ot have a n y e x e m p tion , as such, and loss fro m the sale o r oth er d isp osition o f T r e a s u ry bills shall n ot have a n y special treat m en t, as such, under the Internal R even u e C ode, o r law s a m en d a tory o r su p p lem en ta ry thereto. T h e bills shall be su b je ct to estate, inheritance, g ift, o r oth er excise taxes, w h eth er F ed era l o r S tate, b u t shall be ex em p t fro m all taxation n o w o r h e re after im p o se d o n the principal or interest th e re o f b y a n y State, or any o f the p oss e s s io n s o f th e U n ited States, o r b y a n y loca l ta x in g authority. F o r pu rp oses o f taxation th e a m ou n t o f d iscou n t at w h ich T r e a s u ry bills are o rig in a lly sold b y th e U n ited States shall be co n sid ered to be interest. U n d e r S ection s 42 and 117 (a ) ( 1 ) o f the In tern al R even u e C ode, as a m en d ed b y S e ctio n 115 o f the R e ven u e A c t o f 1941, th e a m ou n t o f d iscou n t at w h ich bills issued h ereu n der are sold shall n o t be con sid e re d 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 fr o m con sid era tio n as capital assets. A c c o r d in g ly , the ow n er o f T r e a s u ry bills (o th e r than life insurance com p a n ies) issued h ereu n der n eed include in his in co m e ta x return on ly the differen ce betw een the p r ice paid for such bills, w h eth er on orig in a l issue o r on subsequent pu rch ase, and th e a m ou n t actu ally receiv ed either u pon sale o r red em p tion at m atu rity du rin g the ta x ab le yea r fo r w h ich the return is m ade, as o rd in a ry gain o r loss. T re a su ry D ep a rtm en t C ircu la r N o. 418, as am en ded, and this n otice, prescrib e the term s o f the T r e a s u ry bills and g o v e rn the co n d itio n s o f th eir issue. C op ies o f th e circu la r m a y be ob ta in ed fr o m a n y F ed era l R eserve B ank or B ran ch. T h is Bank w ill receive tenders up to 2 p.m ., Eastern Standard time, M on d ay, D ecem ber 14, 1953, at the Securities D epartm 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 m arked “ T en d er fo r Treasury B ills.” T en d ers m ay be submitted b y telegraph, sub ject to written con firm ation ; they m ay 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 su lts o f la st o ffe rin g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a te d D e c e m b e r 1 0 , 1 9 5 3 , m a t u r in g M a r c h 1 1 , 1 9 5 4 ) T o t a l a pplied fo r . . .$1,999,199,000 F ed era l R eserv e T o ta l T o ta l T o ta l a ccep ted ......... $1,500,739,000 (in clu d es $231,576,000 entered on a n on -co m p e titiv e basis and a ccep ted in fu ll at the a vera ge price show n b e lo w ) A v e ra g e p r ic e . . . 99.595 E q u iva len t rate o f d iscou n t a p p rox . 1.603% p er annum ________ Accepted B o s to n ............................. $ 42,232,000 $ 42,232,000 N e w Y o r k .................... 1,452,239,000 1,019,599,000 P h iladelphia .................. 30,467,000 14,467,000 C levelan d ....................... 29,887,000 29,887,000 R ich m o n d ...................... 16,659,000 14,659,000 R a n g e o f a ccep ted co m p etitive b id s : (e x c e p t in g on e tender o f $300,000) TT. , ,, r• 1 * * c a* H lSh ...................... 99615 E ^u lvalef o f d 's c o u n t app rox. 1.523% per annum L o w ...................... 99.589 E q u iva len t rate o f d iscou n t a p p rox. 1.626% p er annum (2 p ercen t o f the a m ou n t bid fo r at th e lo w price w a s a cce p te d ) A tla n ta ............................. C hlcTaS °. ........................... St. L ou is ......................... M in n ea p olis .................. K an sas C ity .................. D allas ............................... San F r a n c i s c o ................ DistrictApplied for T o ta l .............. o n iH o i’ finn 34,857,000 10,421,000 34,716,000 44,425,000 68,854,000 ----------------------$1,999,199,000 ^ ’ c S ’nXX 33,577,000 10,221,000 29,636,000 39,245,000 65,914,000 -----------------------$1,500,739,000 ( over ) 30 M I M P O R T A N T — I f y o u desire to b id on a c o m p e t i t i v e b asis, fill in r a te p e r 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 i t iv e B id .” I f y o u desire to b id o n 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 r a p h h ea d e d "N o n -c o m p e t i t i v e B id .” DO N O T fill in b o t h 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 b e u se d f o r ea ch b id , e x c e p t t h a t b a n k s s u b m ittin g b ids o n 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 r ic 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 am e o f ea ch b id d e r , th e a m o u n t b id f o r his a c c o u n t, a n d m eth od o f p a y m e n t. F o rm s f o r th is p u rp o se w ill be fu r n ish e d u p o n re q u e st. N o ................................ TENDER FOR 91 -DAY TREASURY BILLS D a ted D ecem ber 17, 1953 M a tu r in g M a r c h 18, 1954 D ated at T o F e d e r a l R ese rv e B a n k o f N e w Y o r k , Fiscal A gen t o f the U nited 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 provisions o f T reasury Departm ent C ircular N o. 418, as amended, and to the provisions o f the public notice on D ecem ber 10, 1953, as issued b y the T reasu ry Department, B ID Pursuant to the provisions o f T reasu ry Departm ent C ircular N o. 418, as amended, and to the p rovisions o f the public notice on Decem ber 10, 1953, as issued b y the T reasu ry Department, the undersigned offers 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 m ay 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 o f m aturing T reasury bills (N ot to exceed $200,000) (m aturity value) o f the T reasu ry bills therein described, at the average price (in three decim als) o f accepted com petitive bids, settlement therefor 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 am ounting t o ....................... $------------------------------------ am ounting t o ....................... $________________________ □ □ B y cash or other immediately available funds By 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 i t h n o t m o r e th a n t h r e e d e c i m 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 D ecem ber 17, 1953, and are to mature on M arch 18, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B idder By . . . . (Please print) (Official signature required) (Title) Street A d d re ss ...................................... (C ity, T ow n or Village, P. O. N o., and State) I f this tender is submitted by a bank for the account o f 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 o r Village, P. O. N o., and State) IN S T R U C T IO N S : 1. N o tender fo r less than $1,000 w ill 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 v a lu e). 2. I f the person m a k in g the tender is a corp ora tion , the tender sh ou ld b e sign ed b y an officer o f the c o r p o r a tion a u th orized to m ak e the tender, and the sig n in g o f the tender b y an officer o f the corp o ra tio n will b e co n stru ed as a represen tation b y him that he has been so authorized. If the ten der is m ade b y a partnership, it sh ou ld be sig n ed b y a m em b er o f the firm , w h o sh ou ld sign in the fo r m “ ...................................................................................................... a cop artn ersh ip, b y ........................................................................................................................................ . a m e m b e r o f th e firm .” 3. T e n d e rs w ill be received w ith ou t d ep osit fro m in corp ora ted banks and trust com p a n ies and fr o m re s p o n sible and re co g n iz e d d ea lers in in vestm ent securities. T e n d e rs fr o m oth ers m u st be a cco m p a n ie d b y paym ent o f 2 p ercen t o f the fa ce 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 exp ress gu a ra n ty o f p a 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 the la n g u a ge o f this ten der is ch a n g ed in any respect, w hich, in the o p in io n o f the S ecreta ry o f the T r e a s u ry , is m aterial, the ten der m a y be disreg arded. P a y m e n t b y c r e d it th r o u g h T r e a s u r y T a x a n d L oa n A c c o u n t w ill n o t b e p e r m itte d . TENTB—1224-a ( over)
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