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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 Y O R K Circular No. 4 0 8 7 1 March 18,1954 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 B ills Dated March 25, 1954 Maturing June 24, 1954 T o all Incorporated Banks and Trust Companies, and O thers 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 rsd a y , M arch 18, 1954. TREASU RY DEPARTM ENT W a s h in g to n T h e T re a su ry D epa rtm en t, b y this p u b lic 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 M a rch 25, 1954, in the a m ou n t o f $1,501,272,000, t o be issued on a d iscou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a rch 25, 1954, and w ill m ature June 24, 1954, w hen the fa ce 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 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 en d ers w ill be received at Federal R eserve 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, M a rch 22, 1954. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a sh in g ton . 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 exp ressed on the basis o f 100, w ith n ot m ore than th ree decim als, e. g., 99.925. F raction s m ay n ot be used. It is u rg ed that tenders be m a d e o n the printed fo rm s and forw a rd ed in the special en v elop es w h ich w ill be supplied b y F ed eral R e serv e Banks o r B ra n ch es o n a pp lication th erefor. O th e rs than ban k in g in stitu tions w ill n ot b e perm itted t o subm it ten ders e x cep 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 d ep o sit fro m in corp ora ted banks and trust com pa n ies and fr o m respon sible and recog n ized dealers in in vest m en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 percen t o f the face a m ou n t o f T rea su ry bills applied fo r, u nless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t b y an in corp ora ted b a n k o r trust com p a n y . Im m edia tely after the clo s in g h our, ten ders w ill be op en ed at the F ed eral R eserve 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 ep a rtm en t o f the a m ou n t a n d 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 reje ctio n th ereof. T h e S ecretary o f the T rea su ry ex p re s sly reserves the righ t to a cce p t o r r e je c t a n y o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b ject to these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m a n y o n e bidder w ill b e a ccep ted in fu ll at the a vera ge price (in th ree d ecim a ls) o f a ccep ted com p etitive bids. S ettlem ent 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 leted at the F ed eral R eserve B ank on M a rch 25, 1954, in cash or oth er im m ediately available fun ds o r in a like face am ou nt o f T rea su ry bills m aturing M a rch 25, 1954. Cash and exch a n ge ten ders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een th e pa r value o f m a tu rin g bills a ccep ted in ex ch a n g e a n d th e issue price o f the n ew bills. T h e in co m e derived fro m T rea su ry bills, w hether interest or gain fr o m the sale o r oth er d isp osition o f the b ills, shall not have a n y exem ption , as such, and loss fro m th e 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 Internal 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 je ct to estate, inheritance, gift, or oth er excise taxes, w hether Federal o r State, but shall be exem p t fro m all taxation n ow o r h ere a fte r im p osed on the principal or interest th ereof b y a n y 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 am ou nt o f d iscou n t at w h ich T rea su ry bills are origin a lly sold b y the U nited States shall be con sid ered to be interest. U n d er 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 u e A c t o f 1941, the am ou nt o f discou n t at w h ich bills issued h ereunder are s o ld shall n ot be con sid ered to a ccru 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 c co r d in g ly , the o w n e r 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 tax return o n ly the differen ce betw een the price paid fo r such bills, w hether on origin a l issue o r o n su b sequen t purchase, and the a m ou n t actu ally received either u pon sale o r red em ption at m aturity du rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epa rtm en t C ircular N o. 418, R evised , 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 opies o f the circular m ay be obtain ed fro m any Federal R eserve B ank o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 22, 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 March 18, 1954, maturing June 17, 1954) T o t a l applied fo r .......... $2,531,185,000 T o t a l a c c e p t e d ...............$1,501,048,000 (inclu des $256,957,000 entered on a n on com petitive basis and a ccepted in full at the average price sh ow n b e lo w ) A v e ra g e p rice........ 9 9 .7 3 3 + E quivalent rate o f discou nt a p p rcx . 1.056% p er annum R a n g e o f a ccep ted com petitive b ids: H i g h .......................... 99.740 E quivalent rate o f discou nt a p p rox. 1.029% per annum L o w .......................... 99.731 E quivalent rate o f discount approx. 1.064% per annum (16 percent o f the am ount bid for at the low price w as a ccep ted) Federal R eserve D istrict Total Applied fo r .... N ew Y o r k ................... .... Philadelphia ............... C le v e la n d ..................... R ich m on d ................... A t la n t a .......................... C h ica g o ........................ St. L o u is ..................... M in n eap olis ............... K ansas C ity .............. San F ra n cisco .......... T otal ........................ .... $ 45,903,000 1,862,137,000 44,745,000 47,841,000 18,514,000 38,725,000 208,043,000 30,304,000 13.315,000 43,100,000 65,869,000 112,689,000 $2,531,185,000 Total A ccepted $ 42,403,000 982,653,000 16,154,000 41,757,000 16,174,000 37,013,000 151,663,000 25,804,000 12,631,000 38.038,000 52,729,000 84,029,000 $1,501,048,000 (O T E S ) 31 A 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.” I f you desire to bid on a noncompetitive basis, fill in only the m aturity value in paragraph headed "Noncompetitive 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 fo r 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 F O R 91 -D A Y T R E A S U R Y BILLS Dated March 25, 1954 To Maturing June 24, 1954 Dated at— F e d e ra l R eserve B a n k o f N ew Y o rk , Fiscal Agent o f the United States. .1954 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f Treas ury Department Circular No. 418, Revised, and to the provisions o f the public no tice on March 18, 1954, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on March 18, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ------------------------------------- * for a total amount of for a total amount of (Rate per 100) (Not to exceed $200,000) ________________________ (maturity value) o f 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: (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 o f maturing Treasury bills By surrender o f maturing Treasury bills amounting to .................... $------------------------------- amounting to .................... $____________________ □ Q 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, w ith 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 25, 1954, and are to mature on June 24, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B i d d e r .............................................................................................................................................. (Please print) By (Official signature required) (Title) 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 cu stom er, in dicate 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 be con sidered, and each tender 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 th e ten der is a corp ora tion , the tender should be sign ed b y an officer o f the co rp o ra tion a u th orized to m ake the tender, a n d the s ig n in g o f th e ten der b y an officer o f the corp ora tion w ill be con stru ed as a represen tation b y h im that he has been s o a uthorized. I f 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 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 ers w ill b e received 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 re s p o n sible and re co g n iz e d dealers in in vestm ent securities. T en d ers fro m oth ers m u st b e a ccom p a n ied b y paym ent o f 2 percent o f th e fa ce 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 exp ress gu a ra n ty o f paym ent b y an in corp ora ted b a n k o r trust com p a n y . 4. I f the lan gu age 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 the 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 A ccount will not be permitted. http://fraser.stlouisfed.org/ T E N T B —1238-a . Federal Reserve Bank of St. Louis (ovnt)