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FE D E R A L R E SE R V E BAN K O F N E W YO R K r Circular No. 4 0 6 3 1 L January 21, 1954 J Fiscal Agent o f the United States O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay T reasury B ills Dated January 28, 1954 Maturing April 29, 1954 T o all In corporated Banks and T rust Com panies, and O thers Con cern ed, 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 N E W S P A P E R S , T h u rsd a y , January 21, 1954. TREASU RY DEPARTM EN T W a s h in g to n T h e T r e a s u ry D ep a rtm en t, b y this p u b lic n otice, in vites tenders fo r $1,500,000,000, o r th ereabouts, o f 9 1 -d a y T re a 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 January 28, 1954, in the a m ou n t o f $1,499,879,000, to be issued on a d is co 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 p rov id ed . T h e bills o f this series w ill b e dated January 28, 1954, a n d w ill m ature A p r il 29, 1954, w h en the fa ce a m ou n t w ill b e p a y a b le w ith ou t interest. T h e y w ill be issued in b ea rer fo rm o n ly, a n d 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 b e receiv ed at F ed era l R e serv e B anks and B ra n ch es up t o 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 , January 25, 1954. T e n d e rs w ill n o t be receiv ed at th e T rea su ry D ep a rtm en t, W a s h in g to n . E a ch te n d e r m u st be fo r an even m u ltiple o f $1,000, and in th e ca se o f co m p e titiv e ten ders th e p rice o ffe re d m u st b e exp ressed o n th e basis o f 100, w ith n o t m o re th an th ree decim als, e. g., 99.925. F ra ction s m a y n ot b e used. I t is u rg ed th at ten ders be m a d e o n the p rin ted fo rm s a n d fo rw a rd e d in the sp ecia l en v elop es w h ich w ill b e su p plied b y F ed eral R e serv e B a n k s o r B ra n ch e s o n a p p lica tion th erefor. O th ers than b a n k in g in stitu tions w ill n ot b e p erm itted to su b m it ten ders e x cep t f o r th eir o w n a ccou n t. T e n d e rs w ill be re ce iv e d w ith ou t d ep o sit fr o m in co rp o ra te d 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 fr o 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 r e a s u ry bills a p p lie d fo r , u nless the ten ders are a cco m p a n ie d b y an exp ress gu a ra n ty o f p a y m 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 e d ia te ly a fter th e clo s in g h our, ten ders w ill be o p e n e d at th e F ed eral R e s e rv e B an ks and B ra n ch es, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill be m a d e b y the T rea su ry D ep a rtm en t o f th e a m ou n t and price ra n ge o f a cce p te d bids. T h o s e su b m ittin g tenders w ill be advised o f the a cce p 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 c c e p t o r re je ct a n y o r all ten ders, in w h o le o r in part, and his a ction in a n y such re s p e ct shall be final. S u b je ct to these reserva tion s, n on -co m p e titiv e ten ders fo r $200,000 o r less w ith o u t stated p rice fr o m a n y on e b idd er w ill be a ccep ted in full at th e a vera ge price (in th ree d ecim a ls) o f a ccep ted co m p e titiv e b ids. S ettlem en t fo r a ccep ted ten ders in a ccord a n ce w ith the bids m u st be m ade o r com p le te d at th e Federal R e serv e B ank on J anu ary 28, 1954, in cash o r o th e r im m ediately available fu n ds o r in a like face a m ou n t o f T r e a s u ry bills m a tu rin g January 28, 1954. Cash and e x ch a n g e ten ders w ill receive eq u a l treatm en t. C ash adjustm ents w ill be m ade fo r d ifferen ces betw een th e pa r va lu e o f m atu rin g bills a cce p te d in exch a n ge a n d the issue p rice o f th e n e w 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 e th e r interest o r gain fr o m th e 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 lo s s fr o m th e 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 sp ecia l treat m en t, as such, under th e 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 th ereto. T h e bills shall be su b je ct to estate, inheritance, gift, o r oth er e x cis e taxes, w h eth er F ed era l o r State, b u t shall be e x e m p t fr o m all ta x ation n o w o r h e re after im p o se d o n the principal o r in terest th ereof b y a n y State, o r 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 ta xation 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 o rigin a lly sold b y th e U n ited States shall be co n sid ered to b e 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 od e, as a m en d ed b y S e ctio n 115 o f the R e v e n u e A c t o f 1941, the a m ou n t o f d iscou n t at w h ich bills issu ed h ereu n der are sold shall n ot b e con sid e re d to a ccru e u ntil such bills shall be sold, red eem ed o r oth erw ise disp osed o f, and such bills are exclu 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 in su rance co m p a n ie s ) issued h ereu n d er need in ciude in his in co m e ta x return o n ly the differen ce betw een the p rice paid fo r su ch b ills, w h eth er o n origin a l issue o r o n subsequent pu rch ase, a n d th e a m ou n t actu a lly re ce iv e d either u p on sale o r red em p tion at m a tu rity d u rin g th e ta xab le y e a r f o r w h ich the return is m a d e, as o rd in a ry gain o r loss. T r e a s u ry D e p a rtm e n t C ircu la r N o . 418, as am en ded , and this n otice, p rescrib e th e term s o f the T r e a s u ry b ills a n d g o v e rn the co n d itio n s o f their 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 a n k o r B ra n ch . This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 25, 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 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. Results o f last offering o f Treasury bills (91-day bills dated January 21, 1954, maturing April 22, 1954) T o t a l a pp lied fo r ...$ 2,5 5 8 ,6 0 1,0 0 0 T o t a l a c c e p t e d ......... $1,501,661,000 (in clu d es $259,052,000 en tered on a n o n -co m p e titiv e basis and a ccep ted in full at the a vera ge p rice sh ow n b e lo w ) A v e ra g e p r ic e . . . 99.695 E quivalent rate o f d iscou n t a p p rox . 1.208% p er annum R a n g e o f a ccep ted co m p etitive b id s: H ig h L ow .................... 99.701 E q u iva len t rate o f d iscou n t a p p rox . 1.183% per annum ...................... 99.692 E q u iva len t rate o f discou n t a p p rox. 1.218% p er annum (70 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 ) F ederal R eserv e D istrict B o s to n ............................. N e w Y o r k ...................... P h ila delp h ia .................. C levelan d ......................... R ich m o n d ....................... A tlanta ............................. C h ica g o ........................... St. L ou is ......................... M in n e a p o lis .................... K ansas C ity .................. D allas ............................... San F r a n cis co .............. T o ta l ................ T otal A p p lied f o r $ 29,523,000 1,835,058,000 34,960,000 45,712,000 13,668,000 32,595,000 283,159,000 57,616,000 12,959,000 56,533,000 49,700,000 107,118,000 $2,558,601,000 T otal A ccep ted $ 23,543,000 928,028,000 19,160,000 38,612,000 13,468,000 28,545,000 223,659,000 39,716,000 11,529,000 42,983,000 43,960,000 88,458,000 $1,501,661,000 ( over) 30 S IM PORTAN T — I f you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” I f 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 o f each bidder, the amount bid fo r his account, and method o f payment. Forms fo r this purpose w ill be furnished upon request. N o............................ T E N D E R FO R 9 1 -D A Y T R E A S U R Y BILLS Dated January 28, 1954 To F ederal R eserve Bank of N ew Maturing April 29, 1954 Y Dated at. ork, 1954 Fiscal Agent o f the United States. COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on January 21, 1954, as issued by the Treasury Department, Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on January 21, 1954, as issued by the Treasury Department, the undersigned offers a non-competitive tender the undersigned offers.................................. * for a (Rate per 100) total amount o f $ .................................... (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settle ment therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender o f maturing Treasury bills for a total amount of $ .......................................... (Not to exceed $200,000) (maturity value) of the Treasury bills therein described, at the average price (in three decimals) o f 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 t o .................... $--------------------------------- amounting t o .................... $-------------------------------- □ □ By cash or other immediately available funds By cash or other immediately available funds * P r ic e m ust be ex p ressed on the basis o f 100, w ith not m o re than th ree decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated January 28, 1954, and are to mature on April 29, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id d er By .... (Please print) (Title) (Official signature required) S treet A d d re s s ...................................... (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) IM PORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill b e con sid ered , a n d each ten d er m u st b e fo r an even m u ltip le o f $1,000 (m a tu rity v a lu e ). 2. I f th e p erson m a k in g the ten der is a co rp o ra tio n , th e ten der sh ou ld be sign ed b y an officer o f the c o r p o r a tion a u th orized t o m a k e th e tender, and th e s ig n in g o f th e ten der b y an officer o f th e co rp o ra tio n w ill b e co n stru ed as a rep resen tation b y h im th at he has b e e n so au th orized . I f th e ten der is m a d e b y a partnersh ip, it sh ou ld be sig n ed b y a m e m b e r o f th e firm , w h o sh ou ld sig n in the fo r m “ .................................................................................................... , a cop a rtn 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 b e receiv ed w ith o u t d ep osit fro m in corp ora ted banks a n d trust com p a n ies and fro m re sp o n sible and re c o g n iz e d dealers in in vestm en t 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 r e a s u ry b ills applied fo r, unless the tenders are a cco m p a n ie d b y an exp ress gu a ra n ty o f p a y m e n t b y an in co rp o ra te d b a n k o r tru st com p a n y . 4. I f th e la n g u a g e o f this ten der is ch a n g e d in a n y respect, w h ich , in th e o p in io n o f th e S ecreta ry o f the T re a s u ry , is m aterial, th e ten d er m a y be disreg arded. "Payment by credit through Treasury Tax and Loan A ccount will not be permitted. E NFRASER TB — 1230-a Digitized Tfor (OVER)