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FEDERAL RESERVE BANK OF N EW YORK fCircular No. 4 0 5 5 I Fiscal Agent o f the United States L December 23,1953 J Offering o f $1,500,000,000 of 91-Day Treasury Bills Dated December 31, 1953 Maturing April 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 : F ollow in g is the text o f a notice published tod a y: F O R R E L E A S E , M O R N IN G W e d n esd a y, D e ce m b er 23, 1953. NEW SPAPERS, TREASU RY DEPARTM ENT W a sh in g ton T h e T reasu ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,500,000,000, o r thereabouts, o f 91-day T re a su ry bills, fo r cash and in ex ch a n g e fo r T rea su ry bills m aturing D ecem b er 31, 1953, in the a m ou n t o f $1,500,943,000, t o be issued on a discou n t basis under com p etitive and n o n -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 D e cem b e r 31, 1953, and w ill m ature A p r il 1, 1954, w h en th e face a m ou n t 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 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 en d ers w ill be receiv ed at F ed eral R eserve B anks and B ran ches up to the clo s in g h our, tw o o ’ c lo ck p.m ., E astern Standard time, M o n d a y , D ecem b er 28, 1953. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . E ach tender 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 u st be ex p resse d on the basis o f 100, w ith n ot m ore than th ree decim als, e. g., 99.925. F raction s m ay n ot be used. It is u rged that ten ders be m ade o n the printed fo rm s and forw a rd ed in the special en velop es w hich w ill be supplied b y F ed eral R eserve B anks o r 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 to subm it tenders e x cep t fo r their ow n a ccou nt. T en d ers w ill be received w ith ou t dep osit fro m in corpora 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 ers from 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 for, 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 p a n y . Im m ed ia tely after the clo s in g hour, tenders w ill be op en ed at the Federal R eserve B anks and B ran ches, fo llo w in g w h ich pu blic a nn oun cem ent 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 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 or re je ctio n th ereof. T h e Secretary o f the T rea su ry ex p ressly reserves the righ t to a ccep 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 resp ect shall be final. S u b je ct to these reservations, n on -com p etitive tenders for $200,000 or less w ith ou t stated price fro m a n y on e b idder w ill be a ccep ted in full at the a verage price (in th ree decim a ls) o f a ccep ted com p etitive bids. S ettlem ent for a ccep ted tenders in a cco rd a n ce w ith the bids m u st be m ade or com p leted at the F ed eral R es e rv e Bank on D ecem b er 31, 1953, in cash or oth er im m ediately available fu n ds o r in a like face am ou nt o f T rea su ry bills m atu rin g D ecem b er 31, 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 e x ch a n g e and the issue price o f the n ew bills. T h e in com e derived from T rea su ry bills, w hether interest o r gain from the sale or oth er disp osition o f the bills, shall not have any exem ption , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills shall n ot have any special treat m ent, as such, under the Internal R even u e C ode, or laws am en da tory o r supplem entary thereto. T h e bills shall be su b ject t o estate, inheritance, g ift, or oth er excise taxes, w hether Federal o r State, but shall be exem p t fro m all taxation n o w o r h ere after im posed on the principal or interest th ereof b y any State, or any o f the possession s o f the U nited States, o r b y any local ta x in g authority. F o r pu rposes o f taxation the am ou nt o f d iscou 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 sidered to be interest. U n der S ection s 42 and 1 1 7 (a )(1 ) o f the Internal R even u e C ode, as a m en ded b y S ection 115 o f the R even u e A ct o f 1941, the am ou nt o f discou n t at w hich bills issued hereunder are sold shall n ot be con sidered to accru e until such bills shall be sold, redeem ed o r oth erw ise disp osed of, and such bills are exclu ded 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 hereun der need in clu de in his in com e tax return on ly the difference betw een the price paid fo r such bills, w hether on original issue o r on sub sequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity during the taxable yea r fo r w h ich the return is m ade, as ordinary gain or loss. T re a su ry D epartm en t C ircular 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 govern the con d ition s o f their issue. C opies o f the circular m ay be obtain ed fro m any Federal R eserve Bank or Branch. T his Bank will receive tenders up to 2 p.m ., Eastern Standard time, M on day, D ecem ber 28, 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 ender fo r Treasury B ills.” Tenders may be submitted b y telegraph, sub ject 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. Results of last offering of Treasury bills (91-day bills dated December 24, 1953, maturing March 25, 1954) T o ta l applied fo r .......... $2,289,605,000 T o ta l a c c e p te d ...............$1,500,575,000 (inclu des $241,195,000 entered on a n on-com p etitiv e basis and accepted in full at the average price show n b e lo w ) A vera ge p rice........ 9 9 .5 6 9 + E quivalent rate o f discou n t a p p rox. 1.704% per annum R a n g e o f a ccep ted com petitive b ids: H i g h .......................... 99.610 E quivalent rate o f discou nt a pp rox. 1.543% per annum L o w .......................... 99.566 E quivalent rate o f discou nt a p p rox. 1.717% per annum (80 percen t o f the am ount bid fo r at the low price w a s a ccep ted ) F ed era l R eserv e D is trict T o ta l A p p lie d f o r .... N ew Y o r k ................. .... P h iladelphia ............... C leveland ................... R ich m on d ................... C h ica go ........................ St. L ou is ................... M in neapolis .............. K an sas C ity ............ San F ra n cisco .......... T o t a l .............................. .... $ 26,549,000 1,752,532,000 36,682,000 39,500,000 20,091,000 27,120,000 184,491,000 31,888,000 11,577,000 57,998,000 26,978,000 74,199,000 $2,289,605,000 T o ta l A c cep te d $ 26,549,000 1,036,682,000 20,682,000 39,500,000 19,091,000 26,680,000 143,091,000 31,588,000 10,577,000 57,298,000 25,638,000 63,199,000 $1,500,575,000 ( over ) 30 O IMPORTANT— If you desire to bid on a c o m p e t i t i v e basis, fill in rate per 100 and maturity value in paragraph beaded "Competitive Bid.” If you desire to bid on a n o n - c o m p e t i t i v e basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O 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 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 __________________ TENDER FOR 91 -DAY TREASURY BILLS Dated December 31,1953 To F ed era l R eserve B an k o f N ew Maturing April 1, 1954 Dated at. Y ork , Fiscal A gen t o f the U nited States. ____ 1953 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions o f T rea s ury Departm ent C ircular N o. 418, as amended, and to the provisions o f the public n o tice on D ecem ber 23, 1953, as issued by the T reasury Departm ent, the undersigned offers Pursuant to the provisions o f T reasury D e partment Circular N o . 418, as amended, and to the provisions o f the public notice on D ecem ber 23, 1953, as issued by the T reasu ry Department, the undersigned offers a non-com petitive tender fo r a total am ount o f fo r a total amount o f (R a t e p e r 100) (N o t t o e x c e e d $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 you r Bank, on the date stated in the public notice, as indicated b e lo w : (m aturity value) 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 made 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 or other im mediately available funds By surrender o f am ounting to □ m aturing T reasu ry bills .......................$_______________________ B y cash o r other im mediately 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 im a l p l a c e s , f o r e x 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 31, 1953, and are to mature on A p ril 1, 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 ........................................................................................................................ ..................... (P le a s e p r in t ) By (O fficia l s ig n a tu re r e q u ire d ) (T it le ) Street A d d ress (C ity , T o w n o r V illa g e , P. O . N o ., a n d S ta te) I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N a m e o f C u s to m e r) (C ity , T o w n o r V illa g e , P. O. N o ., a n d S ta te) IMPORTANT INSTRUCTIONS: 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 ultiple 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 should be sign ed b y an officer o f the c o rp o ra tion a uthorized t o m ake the tender, and the sig n in g o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a representation b y him that he has been so 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 should 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 be received w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fro m resp o n sible and re co g n ize d dealers in investm ent securities. T en d ers from others m u st be a ccom p a n ied b y paym ent o f 2 percent o f the face am ou nt o f T rea su ry bills a pplied for, unless the tenders are a ccom p a n ied b y an express gu aranty o f paym ent b y an in corp ora ted b a n k o r trust com p a n y . 4. I f the language o f this tender 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, the ten der m ay be disregarded. Payment by credit through Treasury Tax and Loan Account ■will not be permitted. http://fraser.stlouisfed.org/ T E N TB — 122C-a Federal Reserve Bank of St. Louis ( over)