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F E D E R A L R E SE R V E BAN K O F N EW Y O R K Fiscal Agent of the United States [ Circular No. 4 0 8 0 March 4,1954 O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills D a te d M a rch 11, 1954 M a tu r in g J u n e 10, 1954 T o all Incorporated 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 N E W S P A P E R S , T h u r sd a y , M a rch 4, 1954. TREASURY DEPARTM ENT W a sh 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, in vites ten ders fo r $1,500,000,000, or th erea b ou ts, o f 9 1-d ay T rea su ry bills, f o 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 M a rch 11, 1954, in the a m ou n t o f $1,500,689,000, to be issued o n a d is co u n t basis u nder com p etitive and n o n -co m p e titiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated M a rch 11, 1954, and w ill m atu re June 10, 1954, w h en the face a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo r m 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 era l R eserve Banks and B ra n ch es up to th e clo s in g h our, tw o o ’ c lo c k p.m ., E astern S ta n da rd tim e, M on d a y, M a rch 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 a ch te n d e r m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive ten ders th e price o ffe re d m u st b e ex p re sse d o n the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rged that ten ders be m a d e o n the prin ted fo rm s and fo rw a rd e d in the special en velopes w h ich w ill be supplied b y F ed eral R es e rv e B anks o r B ra n ch e s o n a pp lication th erefor. O th e rs than b a n k in g in stitu tions w ill n ot be p erm itted t o 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 corp ora ted banks and trust com p a n ies and fro 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 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 for, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y . Im m e d ia te ly a fter the clo s in g h our, ten ders w ill be op en ed at the F ed eral R e serv 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 b e m ade b y the T r e a s u ry D epa rtm en t o f the a m ou n t and price ran ge o f a ccep ted b ids. T h o s e su b m ittin g ten ders 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 rea su ry ex p re s sly reserves the righ t to a cce p t o r re je c t a n y o r all ten ders, in w h o le o r in part, and his action in a n y such resp ect shall be final. S u b je ct to th ese reserva tion s, n o n -co m p e titiv e tenders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y o n e b id d er w ill b e a cce p te d in full at the a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitiv e bids. S ettlem en t fo r a ccep ted ten ders in a cco rd a n ce w ith th e bids m u st be m a d e o r com p leted at the F ed eral R eserve B a n k on M a rch 11, 1954, in cash o r oth er im m ed iately 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 M a rch 11, 1954. Cash and e x ch a n g e ten ders w ill receive equal treatm en t. Cash adju stm en ts w ill be m a d e fo r d ifferen ces betw een the par valu e o f m a tu rin g bills a ccep ted in ex ch a n g e and th e issue p r ice o f th e n ew bills. T h e in co m e derived fro m T rea su ry bills, w h eth er in terest o r gain fr o m the sale o r oth er d isp osition o f th e b ills, shall n ot have a n y e x e m p tion , as such, and loss 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 sp ecia l treat m en t, as such, under the 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 su b je ct to estate, in heritance, gift, o r oth er excise taxes, w h eth er Federal o r State, but shall b e exem p t fr o m all taxation n o w o r h ere a fter im p o se d o n the prin cip a l o r interest th ereof b y a n y State, o r a n y o f th e p ossession s o f the U n ited States, o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f taxation the am ou nt 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 e red to be interest. U n d er S ection s 42 and 117 ( a ) (1 ) o f th e Internal 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 issued h ereun der are s o ld shall n ot b e co n sid e re d to a ccru e u ntil such bills shall be sold , red eem ed o r oth erw ise d isp o se d 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 , th e o w n e r o f T r e a s u ry bills (o th e r than life insurance co m p a n ie s ) issued h ereu n d er n eed in clude in his in co m e ta x return o n ly the d ifferen ce betw een the p r ice pa id fo r su ch bills, w hether on origin a l issue o r on subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u pon sale o r red em p tion at m a tu rity d u rin g the taxable yea r f o r w h ich th e return is m ade, as o rd in a ry gain o r loss. T r e a s u ry D epa 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 the T rea su ry bills 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 obtain ed fr o m a n y F ed eral R e serv e B ank o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 8, 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. R e s u lts o f la s t o ffe r in g of T reasu ry b ills (9 1 -d a y T o t a l applied f o r . . .$2,220,841,000 T o ta l a c c e p t e d ......... $1,500,798,000 (in clu d es $201,950,000 entered on a n on -co m p e titiv e basis and a cce p te d in full at the average p rice sh ow n b e lo w ) A v e ra g e p rice . . 9 9 .7 3 2 + E q u iva len t rate o f d iscou n t a o o r o x 1 0 5 9 % o e r ann um a p p ro x . l.uayy© p er annum R a n g e o f a ccep ted co m p etitiv e b id s : (e x c e p tin g o n e ten der o f $85,000) H i g h .................... 99.752 E q u iva len t rate o f d is co u n t a p p rox . 0.981% per annum L o w .................... 99.728 E q u iva len t rate o f d iscou n t annrnx 1 0 7 6 % ner annum a p p rox . i.u /6 % p er ann um (49 percen t o f the a m ou n t b id fo r at the lo w price w as a cce p te d ) b ills d a t e d M a r c h 4 , 1 9 5 4 , m a t u r i n g J u n e 3 , 1 9 5 4 ) F ederal R eserv e T ota l T otal D istrict A pplied f o r A ccepted ' “ ~~ _ ---------------------~ B o s to n ............................... $ 33,637,000 $ 32,627,000 Ne\v Y o r k ...................... 1,674,105,000 1,016,858,000 P h iladelp hia .................... 35,874,000 20,874,000 C levelan d ......................... 48,543,000 46,033,000 R ich m o n d ......................... 10,102,000 10,102,000 A tla n ta ................................ 23,420,000 23,216,000 C h ica g o .............................. 223,826,000 182,766,000 St. L o u is .......................... 17,340,000 17,089,000 M in n ea p olis ..................... 8,885,000 8,634,000 K a n sa s C ity .................... S ’l K ’K S D allas .................................. 27,640,000 25,130,000 San F r a n cis co ................ 72,222,000 72,222,000 ----------------------------------------------T o ta l ......................... $2,220,841,000 $1,500,798,000 ( over) 30 Y IM PORTANT — I f 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 m aturity 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 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 for this purpose will be furnished upon request. N o................................ T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS Dated March 11, 1954 To F ederal R ese r v e Bank of N ew Maturing June 10, 1954 Y Dated at ork, Fiscal Agent of the United States. 1954 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on March 4, 1954, as issued by the Treasury Department, the Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on March 4, 1954, as issued by the Treasury Department, the undersigned offers a non-competitive tender undersigned o f fe r s ............................ ..........* for a (Rate per 100) total amount o f $ .................................. (maturity value) of 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 of maturing Treasury bills for a total amount o f $ .......................................... (Not to exceed $200,000) (maturity value) of the Treasury bills therein described, at the average price (in three decimals) 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 .................. $_____________________ Q □ By cash or other immediately available funds By cash or other immediately available funds * Price must be expressed on the basis o f 100. with not more than three decimal places, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated March 11, 1954, and are to mature on June 10, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B idder By ............. (Please print) (Official signature required) (Title) S treet A d d ress (City, Town or Village, P. O. No., and State) I f this te n d e r is su b m itted b y a b a n k f o r the a cco u n t o f a cu stom er, in dica te th e cu sto m e r’ s nam e on lin e b e lo w : (Name o f Customer) (City, Town or Village, P. O. No., and State) IM PORTANT INSTRUCTIONS: 1. N o ten d er f o 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 atu rity v a lu e ). 2. I f the p e r so n m a k in g the ten der is a co rp o ra tio n , the 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 the tender, and the s ig n in g o f the ten der b y an officer o f the co rp o ra tio n w ill be con stru ed as a rep resen tation b y him that he has been s o a u th orized . If the ten der is m ade b y a partnersh ip, it sh ou ld be sign ed b y a m em b er o f the firm , w h o sh ou ld sign in the fo r m “ .................................................................................................... , a cop artn ersh ip , b y .......................................................................................................................................... a m e m b e r o f the firm .” 3. T e n d e rs w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies and fro m re sp o n sible and r e co g n iz e d dealers in in vestm ent 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 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 pp lied fo r, unless the ten ders are a cco m p a n ie d b y an ex p re s s gu a ra n ty o f paym ent b y an in co rp o ra te d bank o r trust com p a n y . 4. I f the 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 the op in ion o f the S ecreta ry o f the T re a s u ry , is m aterial, the ten der m a y be disreg arded. Payment b y credit through Treasury Tax and Loan A ccount will not be permitted. TEN T B — 1236-a ( over)