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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 rCircular No. 4 0 7 7 1 L February 25,1954 J Fiscal Agent of 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 March 4, 1954 Maturing June 3, 1954 T o all In corporated Banks and Trust Companies, and Others 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, F eb ru a ry 25, 1954. N EW SPAPERS, TREASU RY DEPARTM ENT W a sh in g ton 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 thereabouts, 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 aturing M a rch 4, 1954, in the a m ou n t o f $1,500,262,000, to be issued on a d iscou n t basis under com p etitive a n d n on -com p etitiv e b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a rch 4, 1954, and w ill m ature June 3, 1954, w h en th e face a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer form 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 received at F ed eral R eserve Banks and B ran ches up t o the clo s in g h our, tw o o ’ c lo c k p.m ., E astern Standard tim e, M on d a y, M a rch 1, 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 sh in g ton . 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 ten ders the price o ffe re d m u st be exp ressed on the basis o f 100, w ith n ot m ore than th ree decim als, e.g., 99.925. F ra ction s m a y 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 velop es w h ich w ill be supplied b y F ed era l R e serv e B anks o r B ra n ch es o n application th erefor. O th ers than b ank in g institutions w ill n ot be perm itted t o subm it tenders excep t fo r their ow n a ccou n t. 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 pa n ies and fro m respon sible and re co g n iz e d dealers in in vest m en t securities. T en d ers fr o m oth ers m u st be a ccom p a n ied b y pa ym en t 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 paym ent b y an in corp ora ted ba n k o r trust com p a n y . Im m ediately after the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve Banks and B ran ches, fo llo w in g w hich pu b lic a nn oun cem ent w ill be m ade b y the T rea su ry D epa rtm en t o f th e a m ou n t and price ran ge 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 o r in part, and his a ction in any such resp ect shall be final. S u b ject t o these reservations, n on -com p etitive ten ders fo r $200,000 o r less w ith ou t stated price fro m a n y o n e b idd er w ill be a ccep ted in fu ll at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem 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 th e F ed eral R es e rv e B ank on M a rch 4, 1954, in cash or o th e r im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m aturing M a rch 4, 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 com e derived fro m T rea su ry bills, w h eth er interest or gain fro m the sale or oth er d isp osition o f the bills, shall not have a n y exem ption , as such, and lo s s fr o m the 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 special treat m en t, as such, under the In tern al R even u e C ode, or law s am en da tory o r supplem entary thereto. T h e bills shall be su b ject to estate, inheritance, gift, or oth er excise taxes, w hether F ed eral o r State, but shall be exem p t fro m all taxation n ow or h ere after im p osed o n the principal o r interest th ereof b y any State, o r a n y 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 a m ou n t o f d iscou 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 sidered 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 od e, 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 a m ou n t o f discou n t at w hich bills issued hereunder are s o ld shall n ot be con sidered to accru e until such bills shall be sold , red eem ed or oth erw ise d isp osed of, and such bills are exclu d ed fr o 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 sequent purchase, and the am ou nt actually received either u pon sale o r red em ption at m aturity du rin g th e taxable year fo r w h ich the return is m ade, as ordinary gain o r loss. T re a su ry D epartm en t Circular 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 or Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 1, 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 February 25, 1954, maturing May 27, 1954) T o t a l applied fo r .......... $2,189,285,000 T o ta l a c c e p t e d .............. $1,500,751,000 (in clu d es $175,508,000 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 e ra g e p rice........ 99.751 E quivalent rate o f discount a pp rox. 0.986% per annum R a n g e o f a ccep ted com p etitive b id s: H i g h .......................... 99.795 E quivalent rate o f discount approx. 0.811% per annum L o w .......................... 99.748 E quivalent rate o f discount a pp rox. 0.997% per annum (92 percent o f the am ount bid for at the low price w as acepted) Federal R eserve District Total Applied f o r .... N ew Y o r k ................... .... P h iladelphia ............... C leveland ................... R ich m on d ................... C h ica g o ........................ St. L ou is ..................... M in n eap olis ............... K ansas C ity .............. San F ra n cisco .......... T o t a l ........................ .... $ 18.834.000 1,647,026,000 23,331,000 64,900.000 8,501,000 18,250,000 193,924,000 28,057,000 7,345,000 43,611,000 40.438,000 95,068,000 $2,189,285,000 Total A ccepted $ 14,254,000 1,027,366,000 8,331,000 61,900,000 7,501,000 16,750,000 159,284,000 25.477,000 7,145,000 42,061,000 35,638,000 95,044,000 $1,500,751,000 ( over ) 30 X ,v * O Y ' - 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 for 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 for his account, and method o f payment. Forms for this purpose will be furnished upon request. i N o_____________ __ T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS .. To F Dated March 4, 1954 ederal R eserve Ban k of N ew Y Maturing June 3, 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 25, 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 25, 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) $_______________________ ____ (maturity value) Of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender o f maturing Treasury bills (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender of maturing Treasury bills amounting to .....................$------------------------------- amounting to .................... $------------- -------- 1—1---- Q 0 By cash or other immediately available funds By cash or other immediately available funds ------— . •i * * P rice m ust be expressed on the basis o f 100, with not m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated March 4, 1954, and are to mature on June 3, 1954. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N a m e o f B i d d e r ................................................................................................................................... ......... - (P lease p rin t) u i -: B y ....................................................................................................... (Official signature required) ................................................ (T itle) Street A d d ress ............................................................................................................................................... (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 o f Customer) (City, Town or Village, P. O. No., and State) IM PORTANT INSTRUCTIONS: v' ; 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 v a lu e ). 2. I f the person m a k in g the tender is a corp ora tion , the tender sh ou ld be sign ed b y an officer o f the c o rp o ra tion a uthorized to m ake the tender, and the sign in g o f the tender 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 a uthorized. If 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 rm “ ....................................................................................................... . a copartn ersh ip, b y ................................................ ...................................................................... a m em ber o f the firm .” 3. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corpora ted banks and trust com panies and fr o m respon sible and recog n ized dealers in investm ent securities. T en d ers fro m others m ust be a ccom pa 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 for, unless the tenders are accom panied b y an exp ress guaranty o f paym ent b y an in corpora ted bank o r trust com pany . 4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the Secretary o f the T reasu ry, is material, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1235 a Federal Reserve Bank of St. Louis (OVER)