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F E D E R A L R E SE R V E BAN K O F N E W Y O R K /"Circular No. 4 0 9 0 1 I March 25,1954 J Fiscal Agent o f 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 April 1, 1954 Maturing July 1, 1954 T o all Incorporated Banks and T ru st 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 rsd a y , M a rch 25, 1954. TREASU RY DEPARTM ENT W a s h in g to n T h e T re a su ry D e p a rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,500,000,000, or th erea b ou ts, o f 9 1 -d a y 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 A p ril 1, 1954, in th e a m ou n t o f $1,502,270,000, to be issued on a d isco u n t basis u nder com p etitiv e and n o n co m p e titiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated A p r il 1, 1954, and w ill m ature Ju ly 1, 1954, w h en the fa ce a m ou n t w ill be p a ya b le w ith ou t interest. T h e y w ill be issued in bearer fo r m o n 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 b e re ceiv ed at F ed eral R e s e rv e B anks and B ra n ch es up t o th e clo s in g h ou r, tw o o ’ c lo c k p.m ., E astern S tandard tim e, M o n d a y , M a rch 29, 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 sh 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 ca se o f com p etitiv e ten ders the p rice o ffe re d m u st b e exp ressed o n the 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 ot be used. It is u rg e d th at tenders be m ade o n th e prin ted fo rm s and fo rw a rd e d in th e special en velopes w h ich w ill be sup plied b y F ed era l R e serv e B anks o r B ra n ch es o n a pp lica tion th erefor. O th ers than b a n k in g in stitu tions w ill n o t b e p erm itted to subm it ten ders e x ce p t fo r their o w 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 fr o m respon sib le and re co g n iz e d dealers in invest 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 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 , u nless the ten ders are a cco m p a n ie d 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 fte r the clo s in g h our, ten ders w ill be op en ed 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 blic 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 ep a rtm en t o f the a m ou n t and p rice ran ge o f a ccep ted b ids. T h o s e s u b m ittin g ten ders w ill be advised o f the a cce p ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e T r e a s u ry e x 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 ten ders, in w h o le or in part, and his a ction in a n y such resp ect shall be final. S u b ject t o these reserva tion s, n o n com p etitive ten ders fo r $200,000 o r less w ith ou t stated p r ice fr o m a n y o n e b id d er w ill be a ccep ted in fu ll at th e a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith th e b id s m u st be m ade o r co m p le te d at the F ed era l R es e rv e B ank on A p r il 1, 1954, in cash o r o th e r im m ediately availa b le fu n ds o r in a lik e face a m ou n t o f T r e a s u ry bills m atu rin g A p r il 1, 1954. Cash and ex ch a n g e ten ders w ill receive equal treatm en t. Cash adju stm en ts w ill be m ade fo r differences betw een the p a r valu e o f m a tu rin g bills a cce p te d 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 fr o m T rea su ry bills, w h eth er interest or gain fr o m the sale o r oth er d isp osition o f th e b ills, shall n ot h av e a n y e x e m p tion , as such, and lo s s fr o m th e 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 Internal R even u e C od e, 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, inheritance, g ift, o r oth er e x cis e taxes, w h e th e r Federal or State, but shall b e ex em p t fr o m all ta xation n o w o r h ere a fter im p o se d on the prin cip a l or in terest th e re o f 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 lo ca l ta x in g authority. F o r p u rp oses o f ta x ation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are o rig in a lly sold b y the U n ited States shall b e co n sid e re d to b e interest. U n d er S ection s 42 and 117 ( a ) ( 1 ) o f the Internal R even u e C od e, as a m en d ed b y S e ctio n 115 o f th e R e v e n u e A c t o f 1941, th e a m ou n t o f d iscou n t at w h ich bills issued hereun der are s o ld shall n ot be con sid e re d to a ccru e u ntil su ch bills shall be sold , red eem ed o r oth erw ise d is p o se d o f, and such bills are e x clu d e d fr o m con sid era tio n as capita l assets. A c c o 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 co m p a n ie s ) issued h ereu n d er need include in his in co m e ta x return o n ly the differen ce b etw een th e p r ice paid fo r su ch bills, w h eth er on origin a l issue o r o n subsequent pu rch ase, and th e a m ou n t a ctu a lly receiv ed either u p on sale o r red em p tion at m atu rity d u rin g the ta x ab le y e a r f o r w h ich the 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 lar N o . 418, R ev ised , and this n otice, p rescrib e the term s o f th e T r e a s u ry bills and gov e rn the co n d itio n s o f th eir issue. C opies o f the circu la r m a y be ob ta in ed fr o m a n y F ed era l R eserve B ank o r B ran ch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 29, 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 March 25, 1954, maturing June 24, 1954) T o t a l a pplied f o r . . .$2,371,847,000 T o t a l a c c e p t e d ......... $1,501,440,000 (in clu d es $244,367,000 en tered on a n on com p etitiv e basis and a ccep ted in full at th e a verage p rice sh ow n b e lo w ) A v e ra g e p r ic e .. 99.740 E q u iva len t rate o f d iscou n t a p p rox . 1.030% p er annum R a n g e o f a ccep ted co m p etitiv e ten der o f $127,000) H i g h .................... 99.747 Low 99.737 .................... b id s : (e x c e p tin g E q u iva len t rate a p p rox. 1.001% E quivalent rate a p p rox . 1.040% on e o f d iscou n t p er annum o f d iscou n t p er annum F ederal R eserv e D istrict B o s to n ................................ N e w Y o r k ......................... P h iladelp hia .................... C le v e la n d ........................... R ich m o n d ......................... A tla n ta ............................... C h ica g o ............................. St. L o u is ........................... M in n ea p olis .................... K a n sa s C ity .................... D allas ............................... San F r a n cis co ................ T otal A pplied f o r $ T ota l A ccep ted 35,128,000 1,668,770,000 37,507,000 76,978,000 15,251,000 26,166,000 262,950,000 26,326,000 13,538,000 51,485,000 34,101,000 123,647,000 $ 29,338,000 875,180,000 22,507,000 66,658,000 15,251,000 . 25,240,000 234,010,000 25,784,000 12,712,000 50,232,000 31,801,000 112,727,000 $2,371,847,000 $1,501,440,000 (58 p ercen t o f the a m ou n t bid fo r at th e low p rice w as a cce p te d ) T o t a l ......................... ( over ) 31 B 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.” If 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 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 for his account, and method o f payment. Forms fo r 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 April 1, 1954 To F ederal R ese rv e Bank of N Maturing July 1, 1954 ew Y Dated at ork, Fiscal Agent of the United States. COMPETITIVE 1954 N O N C O M P E T IT IV E BED Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on March 25, 1954, as issued by the Treasury Department, the undersigned o ffe r s ...................................... * for a (Rate per 100) total amount of $ .................................. (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: □ By surrender o f maturing Treasury bills B ID Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on March 25, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive 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 of maturing Treasury bills amounting to .................. $--------------------------------- amounting to .................. $_____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds * P r ic e m ust be expressed 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 April 1, 1954, and are to mature on July 1, 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 re s s (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: 1. N o ten der fo r less th an $1,000 w ill be con sid ered , 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 th e p e r s o n m a k in g th e ten d er is a co rp o ra tio n , th e ten der sh ou ld be sig n ed b y an officer o f th e c o rp o ra tion a u th orized to m a k e th e tender, and the s ig n in g o f th e ten der b y an officer o f the corp o ra tio n w ill be con stru ed as a rep resen tation b y h im that he has been s o au th orized . I f the ten der is m a d e b y a partnersh ip, it sh ou ld be sig n e d b y a m e m b e r o f th e firm , w h o sh ou ld sign in th e fo r m “ .................................................................................................... . a cop artn 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 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 re s p o n sib le and re co g n iz e d dealers in in vestm ent 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 applied 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 b a n k 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 resp ect, 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. Digitized for T EFRASER N TB — 1239-a (OVER) a>f ifo 1o AMENDMENT T O T H E B Y -L A W S O F T H E B U F FA LO B RAN C H O F T H E F E D E R A L R ESER VE B A N K O F NEW Y O R K Effective A pril 1, 1954 The follow ing am endm ent to the by-law s o f the Buffalo Branch, w hich becam e effective A pril 1, 1954, is printed fo r use in connection w ith the booklet issued O ctober 1951 contain ing the by-law s o f the Federal R eserve Bank o f N ew Y ork and o f its Buffalo Branch. This am endm ent is in addition to the amend ments to the by-law s o f the Buffalo Branch, effective M arch 1, 1952, w hich were printed fo r use in connection w ith the same booklet. Section 2 o f A rticle I was amended, effec tive A pril 1, 1954, to read as fo llo w s : Branch territory.— The terri tory apportioned to the Branch shall be that part o f the State o f N ew Y ork included in the counties o f Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Livingston, M onroe, Niagara, Ontario, Orleans, Steuben, W ayne, W yom ing, and Y ates. S e c t io n 2.
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