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F E D E R A L R E S E R V E BAN K O F N E W Y O R K r Circular No. 4 0 6 0 1 L January 14, 11)54 J Fiscal A gent o f the United States O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury Bills Dated January 21, 1954 Maturing April 22, 1954 To all In corporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following 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 T h u rsd a y, January 14, 1954. NEW SPAPERS, TREASU RY DEPARTM EN T W a s h in g to n T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,500,000,000, or thereabouts, o f 9 1-d ay T reasu ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g January 21, 1954, in tiie a m ou n t o f $1,500,749,000, to be issued on a d iscou n t basis under com p etitive and n on -com p etitiv e bid d in g as Hereinafter provid ed . T h e bills o f this series w ill be dated January 21, 1954, and will m ature A p ril 22, 1954, w hen tne face am ou nt w ill be p ayable w ith ou t interest. T h e y will 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 va lu e). T e n d e rs w ill be received 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 ., Eastern Standard tim e, M on d a y, January 18, 1954. T en d ers w ill n ot be receiv ed at the T rea su ry D epa 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 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 n ot be used. I t is u rg ed that tenders be m a d e o n the printed form s and forw a rd ed in the special en velopes w hich w ill be supplied b y F ed era l R eserve Banks or B ra n ch es o n a pp lication th erefor. O th e rs than b ank in g in stitu tions w ill n ot be perm itted to subm it tenders e x cep t fo r their o w n a ccou nt. T e n d e rs w ill be re ce iv e d w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fro m respon sib le and re co g n iz e d 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 percen 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 exp ress guaranty o f p a ym en t b y an in corp ora 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 F ed eral R es e rv e 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 range 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 or re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves the righ t to a ccep t o r re je ct any or all tenders, in w h o le or in part, and his action in any 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 a n y on e b idd er w ill be a ccepted in full at the a vera ge price (in th ree decim a ls) o f a ccep ted com p etitive bids. S ettlem ent fo r 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 e serv e Bank on January 21, 1954, in cash o r oth er im m ediately available fu n ds o r in a like face a m ou n t o f T rea su ry bills m aturing January 21, 1954. Cash and exch a n ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade for d ifferen ces betw een the par value o f m atu rin g bills a ccep ted in ex 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 or ga in fro m the sale or oth er d isp osition o f the bills, shall not 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 rea su 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, or law s a m en d a tory o r supplem entary thereto. T h e bills shall be subject t o estate, inheritance, g ift, or oth er excise taxes, w hether Federal o r State, but shall be exem pt fro m all taxation n o w or h ere a fter im p osed on the principal or interest th ereof b y a n y State, or 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 am ou nt o f discou n t at w h ich T rea su ry bills are origin a lly sold b y the U nited 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 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 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 hereun der need in clu de in his in com e ta x return on ly the differen ce betw een the price paid fo r such bills, w hether on original issue or on sub sequen t purchase, and the a m ou n t actu ally received either u pon sale or redem ption at m aturity du rin g the taxable year for w h ich the 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, p rescrib 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 b e obtain ed fr o m any F ed eral R eserve Bank or B ranch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 18, 1954, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, sub ject to written confirmation; they may not be submitted by telephone. Payment for 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. Results o f last offering o f Treasury bills (91-day bills dated January 14, 1954, maturing April 15, 1954) T o t a l applied fo r .......... $2,321,110,000 T o t a l a c c e p t e d .............. $1,500,528,000 (in clu d es $265,796,000 entered on a n on -com p etitiv e basis and a ccep ted in full at the average price sh ow n b e lo w ) A v era ge p rice ........ 99.662+ E quivalent rate o f discou n t app rox. 1.336% per annum R a n ge o f a ccep ted com p etitive b ids: H i g h .......................... 99.697 E quivalent rate o f discou nt app prox. 1.199% per annum L o w .......................... 99.659 E quivalent rate o f discount a pp rox. 1.349% per annum Federal R eserve D istrict B o sto n ............................ N ew Y o r k ..................... Ph iladelphia ................... C leveland ........................ R ich m on d ....................... Atlanta ............................ C h ica g o ............................ St. L ou is .......................... M in neapolis ................... K ansas C ity ................... D allas .............................. San F ra n cisco ............... Total Applied f o r $ 16,633,000 1,765,952,000 35,165,000 30,732,000 17,440,000 38,834,000 175,381,000 34,061,000 15,769,000 68,791,000 42,498,000 79,854,000 Total A ccepted $ 16,133,000 1,010,740,000 20,165,000 30,602,000 16,940,000 36,951,000 151,451,000 33,761,000 15,769,000 65,059,000 34,763,000 68,194,000 (39 percent o f the am ou nt bid for at the low price w as a ccep ted) T o ta l ..................... $2,321,110,000 $1,500,528,000 ( over) 30 R IM PORTANT— 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 fo r each bid, except that banks submitting bids on a competitive basis fo r their own and their customers’ accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and method o f payment. Forms fo r this purpose will be furnished upon request. N o________________ T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Dated January 21, 1954 To Maturing April 22, 1954 Dated at. F ed era l R eserve B an k o f N ew Y ork , Fiscal Agent of the United States. .1954 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treas ury Department Circular No. 418, as amended, and to the provisions o f the public no tice on January 14, 1954, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions of the public notice on January 14, 1954, as issued by the Treasury Department, the undersigned offers a non-competitive tender ................... ........................ * for a total amount of for a total amount of $....__ _____________________ (N ot to exceed $200,000) (R ate per 100) $.................................................... (maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender of maturing Treasury bills (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender of maturing Treasury bills amounting to .................... $------------------------------- amounting to .................... $------------------------------- □ □ By cash or other immediately available funds By cash or other immediately available funds * P rice must be expressed on the basis o f 100, w ith not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated January 21, 1954, and are to mature on April 22, 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 (I’ lease p rin t) (Official signature required) (T itle) Street A d d ress (C ity, T ow n or V illage, 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 : (N am e o f Custom er) (C ity, T ow n o r V illage, P. O. No., and State) 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 u ltiple o f $1,000 (m a tu rity va lu e). 2. I f the p erson m a k in g the ten der is a corp ora tion , the tender sh ou ld be sign ed b y an officer o f the co rp o ra tion authorized to m ake the tender, and the sig n in g o f the ten der 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 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 e m b e r o f the firm , w h o sh ou ld sign in the fo r m “ ........................................................................................................ a copartn ersh ip, b y ........................................................................................................................ a m em b er o f the firm .” 3. T en d ers w ill be receiv ed 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 ize d dealers in in vestm 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 applied fo r, unless the ten ders 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 corpora ted bank o r trust com p a n y . 4. I f the language o f this ten der is ch a n ged in any resp ect, w hich, in the opin ion o f the S ecreta ry o f the T rea su ry, is m aterial, the ten der m ay be disregarded. Payment b y credit through Treasury Tax and Loan A ccount will not be permitted. http://fraser.stlouisfed.org/ T E N TB — 1229-a Federal Reserve Bank of St. Louis ( over)
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