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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 YO R K No. 4 0 6 8 T February [ Circular Fiscal Agent o f the United States 10. 1954 J O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated February 18, 1954 Maturing May'20,1954 T o all In corporated Banks and Tru st Com panies, and O thers C oncerned, 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 , W e d n e s d a y , F eb ru a ry 10, 1954. 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 f o r $1,500,000,000, o r th ereabouts, o f 9 1-d ay T rea su ry b ills, fo r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g F eb ru a ry 18, 1954, in the a m ou n t o f $1,501,687,000, 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 erein a fter p rov id ed . T h e bills o f this series w ill be dated F e b ru a ry 18, 1954, and w ill m ature M a y 20, 1954, w h en th e fa ce a m ou n t w ill be p ayable w ith ou t in terest. 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 e n d e rs w ill be receiv ed at F ed eral R es e rv e B an ks and B ra n ch es up t o th e c lo s in g h our, tw o o ’ c lo c k p.m ., E astern S ta n da rd tim e, M o n d a y , F eb ru a ry 15, 1954. T e n d e rs w ill n ot 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 ten der m u st be fo r an even m u ltiple o f $1,000, and in th e case o f com p etitiv e ten ders the p rice o ffe re d m u st be exp ressed o n 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 o t b e used. I t is u rg e d th at tenders be m a d e o n th e prin ted fo rm s and fo rw a rd e d in th e sp ecia l en v elop es w h ich w ill be su p plied b y F ed eral R e s e rv e B ank s o r B ra n ch es o n a p p lica tion th erefor. O th e rs than b a n k in g in stitu tions w ill n o t b e perm itted to su b m it ten ders e x ce p t fo r th eir ow n a ccou n t. T e n d e rs w ill be re ce iv e d w ith o u t d ep o sit fr o m in co rp o ra te d banks a n d 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 cco m p a n ie d b y p a y m 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 pp lied fo r , u nless th e ten ders are a cco m p a n ie d b y an ex p ress gu a ra n ty o f pa ym en t b y an in corp ora ted b a n k o r trust com p a n y . Im m e d ia te ly after th e clo s in g h ou r, ten ders w ill be o p e n e d at th e F ed era l R e serv e B anks and B ra n ch es, 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 r e a s u 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 or re je ctio n 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 rig h t t o a cce 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 th ese reservations, n o n -co m p e titiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y o n e b idd er w ill b e a ccep ted in full at the a vera ge price (in three d ecim a ls) o f a ccep ted co m p e titiv e b ids. S ettlem en t for a ccep ted ten d ers in a ccord a n ce w ith th e b id s m u st be m a d e o r com p le te d at the F ed era l R eserve B ank on F eb ru a ry 18, 1954, in cash o r oth er im m ediately available fu n ds o r in a like fa ce a m ou n t o f T rea su ry bills m a tu rin g F eb ru a ry 18, 1954. C ash and ex ch a n g e ten ders w ill receive equal treatm en t. C ash adju stm en ts w ill be m ade fo r d ifferen ces betw een the pa r va lu e o f m a tu rin g bills a cce p te d in exch a n ge a n d th e 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 bills, w h eth er 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 exem ption , as such, a n d loss fro m th e sale or 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, u nder 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 thereto. T h e bills shall be s u b je ct to estate, in heritance, g ift, o r oth er e x cis e taxes, w h eth er F ed eral o r State, b u t shall be ex em p t fro m all taxation n o w o r h e re a fter im p o se d o n th e principal o r interest th e re o f 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 rposes 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 rig in a lly s o ld b y the U nited States shall be co n sid e red to be interest. U n d e r S ection s 42 a n d 117 ( a ) ( 1 ) o f th e In tern al R e v en u e C od e, as a m en ded b y S e ctio n 115 o f the R e ven 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 issued h ereun der are sold shall n o t b e con sid ered 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 exclu d ed fr o m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T r e a s u ry bills (o th e r than life in su ran ce co m p a n ie s ) issued h ereun der need include in his in co m e ta x return o n ly the differen ce betw een the p rice pa id fo r such b ills, w h eth er o n origin a l issue o r on subsequent pu rch ase, a n d the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion a t m a tu rity d u rin g the ta x a b le y e a r f o r w h ich th e return is m a d e, as o rd in a ry gain o r loss. T r e a s u ry D ep a rtm en t C ircu la r N o . 418, as am en ded , and this n otice, p rescrib e the term s o f th e T r e a s u ry b ills and g o v e rn the co n d itio n s o f their issue. C op ies o f the circu la r m a y be ob ta in e d fr o m a n y F ed era l R es e rv e B a n k o r B ran ch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, February 15, 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 February 11, 1954, maturing May 13, 1954) T o t a l a p p lied fo r T o t a l a ccep ted . A v e ra g e price . . $2,252,689,000 $1,500,294,000 (in clu d es $221,447,000 en tered on a n on -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 ) 9 9 .7 7 4 + E quivalent rate o f discou n t a p p ro x . 0.893% p er annum R a n g e o f a ccep ted co m p etitive b id s: H i g h ....................... 99.780 E quivalent rate o f discou n t a p p rox . 0 .870% p er annum L ow 99.770 E quivalent rate o f discou n t a p p rox. 0.910% per annum ...................... (74 p ercen t o f the a m ou n t bid fo r at the lo w price w as a ccep ted ) Federal R eserv e D istrict B o s to n ............................. N e w Y o r k . . . ............. P h iladelphia .................. C l e v e l a n d ......................... R ich m o n d ...................... A tla n ta ............................. C h ica g o ........................... St. L o u i s .......................... M in n ea p olis .................. K ansas C ity .................. D a l l a s ............................... San F r a n c is c o ............. T o ta l ............... Total A pplied f o r $ Total A ccep ted 25,328,000 1,678,547,000 30,724,000 34,314,000 12,891,000 24,815,000 265,169,000 19,815,000 12,032,000 44,643,000 21.972,000 82,439,000 $ 20,368,000 1,004,487,000 15,224,000 33,671,000 12,449,000 21,944,01)0 221,963,000 18,659,000 11,036,000 41,418,000 21.722,000 77,353,000 $2,252,689,000 $1,500,294,000 ( over ) 30 V 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 "N on-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 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 for 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 FOR 91 -D A Y T R E A SU R Y BILLS Dated February 18, 1954 To F ederal R ese rv e Bank of N ew Maturing May 20, 1954 Y cit ork, Fiscal Agent o f the United States. N O N -C O M P E T I T I V E COMPETITIVE BED Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on February 10, 1954, as issued by the Treasury Department, 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 : □ 1954 ................ By surrender o f maturing Treasury bills B ID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on February 10, 1954, as issued by the Treasury Department, the undersigned offers a non-competitive tender for a total amount of $ .................... (Not to exceed $200,000) (maturity value) o f 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 o f 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 b e ex p ressed on the basis o f 100, w ith not m o re than three decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated February 18, 1954, and are to mature on May 20, 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 er (Please print) By .... (T ide) (Official signature required) S treet A d d re s s ...................................... (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: (Name o f Customer) (City, Town or Village, P. O. No., and State) IM PORTANT INSTRUCTIONS: 1. N o ten d er fo r less than $1,000 w ill be con sid ered , and each ten der m u st b e fo r an even m u ltiple o f $1,000 (m a tu rity va lu e). 2. I f the p e rso n m a k in g the ten der 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 a k e the tender, and the sign in g o f the tender b y an officer o f the corp o ra tio n w ill be con stru ed as a represen tation b y h im that he has been so authorized. I f the ten der is m ad e b y a partnership, it sh ou ld be sig n 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 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 be receiv ed w ith ou t d e p o s it fr o m in corp ora ted banks and trust co m p a n ie s and fr o m re sp o n sible and r e co g n iz e d d ea lers 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 pa ym en t o f 2 p ercen t o f th e fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r, 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 ba 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 ed in any respect, w hich, in th e op in io n o f the S ecreta ry o f the T r e a s u ry , is m aterial, th e ten der m a y be disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. DigitizedTE forNFRASER TB — 1233-a Cover )
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