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F E D E R A L R E S E R V E B AN K O F N E W Y O R K f Circular X o. 4 0 6 7 L February 4. 1934 Fiscal Agent of the United States O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-Day Treasury B ills Dated February 11, 1954 Maturing May 13, 1954 T o all In corporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice published to d a y : TRE ASU RY D E PAR TM EN T 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 , F eb ru a ry 4, 1954. W a sh in gton T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders fo r $1,500,000,000, or th ereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g F eb ru a ry 11, 1954, in the am ou nt o f $1,500,060,000, 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 h ereinafter provided. T h e bills o f this series w ill be dated F eb ru a ry 11, 1954, and w ill m ature M a y 13, 1954, w hen the 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 va lu e). T e n d e rs w ill be received at Federal R e serv e Banks and B ran ch es up to the clo s in g hour, tw o o ’ c lo ck p.m ., E astern Standard tim e, M on d a y, F ebru ary 8, 1954. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be expressed 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 u rged that tenders be m ade 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 eral R e serv e Banks or B ran ches o n application therefor. O th e rs than b ankin g institutions w ill n ot be perm itted to subm it ten ders e x cep t fo r their ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t deposit fro m in corp ora ted banks and trust com panies a n d fr o m respon sib le and recog n ized dealers in in vest 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 applied fo r, unless the tenders are a ccom p a n ied b y an express guaranty 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 h our, tenders w ill be open ed at the F ed eral R es e rv e B anks 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 ra n ge o f a ccep ted bids. T h o s e s u 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 ex p ressly reserves the righ t to accep t o r re je ct any or all tenders, in w h ole or in part, and his a ction in a n y such resp ect shall be final. S u b je ct to these reservations, n on -com p etitive tenders fo r $200,000 or less w ith ou t stated price fro m a n y on e b idd er w ill be a ccep ted in full at the a verage price (in th ree decim a ls) o f a ccepted com p etitive bids. S ettlem ent fo r a ccep ted tenders in a ccord a n ce w ith th e bids m u st be m ade o r com p leted at the Federal R e serv e B ank on F eb ru a ry 11, 1954, 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 rea su ry bills m atu rin g F eb ru a ry 11, 1954. Cash and ex ch a n g e tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m a tu rin g 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 co m e derived fr o m T rea su ry bills, w hether interest or gain fro m th e sale or oth er d isp osition o f the bills, shall not have any exem ption , 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 In tern al 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 su b ject to estate, inheritance, gift, o r oth er excise taxes, w hether Federal or State, but shall be exem pt fro m all taxation n ow or h ere a fte r im p osed o n the principal o r interest th ereof b y a n y State, or any o f the p ossession s o f the U n ited 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 s o ld b y the U n ited States shall be con sid ered 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 e ctio n 115 o f the R even ue A c t o f 1941, the am ou nt o f d iscou n t at w hich bills issued hereunder are s o ld shall n o t be con sidered t o accru e until such bills shall be sold , red eem ed o r oth erw ise d isp osed of, and such bills are exclu d ed fr o m con sidera tion as capital assets. A cco 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 origin a l issue o r on su b sequent purchase, and the am ou nt actu ally received either upon sale or red em p tion at m aturity d u rin g the taxable year fo r w h ich the return is m ade, as ord in a ry 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, prescribe 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 be obtain ed from any Federal R eserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, February 8, 1954, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f 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 llan S proul, President. Results o f last offering o f Treasury bills (91-day bills dated February 4, 1954, maturing May 6, 1954) T o ta l applied fo r.......... $2,296,152,000 T o ta l a ccepted .............. $1,500,268,000 (in clu d es $181,373,000 entered on a n on -com p etitive basis and a ccep ted in full at the average price sh ow n b e lo w ) A v era ge p rice ........ 9 9 .739-f E quivalent rate o f discount a p p rox. 1.031% per annum R a n ge o f a ccep ted com p etitive b ids: H i g h .......................... 99.775 E quivalent rate o f discount app rox. 0.890% per annum L o w .......................... 99.734 E quivalent rate o f discount approx. 1.052% per annum Federal R eserve D istrict B o sto n .............................. N ew Y o r k ....................... P h iladelphia ................... C leveland ........................ R ich m o n d ....................... A t la n t a .............................. C h ica g o ............................ St. L ou is .......................... M inneapolis ................... K ansas C ity ................... D a lla s ................................ San F ra n cisco ............... Total A pplied f o r $ Total A ccepted 18,648,000 1,758,115,000 33,623,000 46,173,000 7,439,000 31,764,000 232,339,000 16,377,000 7.787.000 39,732,000 33,669.000 70,486,000 $ 16,748,000 1,036,423,000 18,623,000 41,173,000 7,239,000 31,652,000 190,179,000 16,377,000 7,787,000 39,032,000 29,109,000 65,926,000 $2,296,152,000 $1,500,268,000 (44 percent o f the am ount bid fo r at the low price w as a ccep ted) T otal ....................... (o v e r ) 30 U 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 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. No______________ T E N D E R FO R 91 -D A Y T R E A S U R Y BILLS Dated February 11, 1954 To F ederal R eser v e Ban k of N ew Y Maturing May 13, 1954 Dated at— ork, Fiscal Agent o f the United States. .1954 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions o f Treas ury Department Circular No. 418, as amended, and to the provisions o f the public no tice on February 4, 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 February 4, 1954, as issued by the Treasury Department, the undersigned offers a non-competitive tender ------------------------------------- * for a total amount of for a total amount of (Not 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, -with 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 February 11, 1954, and are to mature on May 13, 1954. This tender w ill 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) Street A d d ress (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (City, Town or Village, P. O. No., and State) (Name of Customer) 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 b e 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 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 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 s o authorized. I f the ten der is m ade b y a partnership, it sh ou ld b e sign ed b y a m e m b e r o f th e firm , w h o sh ou ld 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 e rs w ill b e 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 fr o m resp o n sible a n d 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 p a ym en t o f 2 p ercen t o f th e fa c e 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 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 ged in a n y respect, w h ich , in the op in 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 by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1232-a Federal Reserve Bank of St. Louis ( over )
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