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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
Circular No. 4 0 9 4 1
A p ril 8, 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 April 15, 1954

Maturing July 15, 1954

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the text of 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, A p ril 8, 1954.

TREASU RY DEPARTM EN T
W a sh in g to n

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, o r th ereabouts, o f 91-day T re a su ry
bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing A p ril 15, 1954, in the a m ou n t o f $1,500,428,000, to be issued on
a discou n t basis under com p etitive a n d n on com p etitive bid d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated
A p ril 15, 1954, and w ill m ature Ju ly 15, 1954, w hen the face a m ou n t w ill be payable 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 va lu e).
T e n d e rs w ill be receiv ed at Federal R eserve Banks and B ran ches up t o the clo s in g h ou r, tw o o ’ c lo c k p.m ., E astern
Standard time, M on d a y, A p ril 12, 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 ust be fo r an even m u ltiple 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 o re than three decim als, e. g., 99.925. F raction s m a y n ot be used. It is urged that tenders be
m a d e on the printed fo rm s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed era l R eserve Banks o r
B ran ches o n a pp lication th erefor.
O th ers than b a n k in g institutions w ill n ot be perm itted to subm it tenders e x cep t fo r their o w n a ccou n t. T en d ers w ill be
received w ith ou t d esp osit fro m in corp ora ted banks and trust com pa n ies and fr o m respon sib le and r e co g n iz e d dealers in in vest­
m en t securities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f th e face am ou nt o f T rea su ry bills
applied for, unless the tenders are a ccom p a n ied b y an express gu aranty o f pa ym en t b y an in corp ora ted bank or trust com p a n y .
Im m ed ia tely a fter the clo s in g h our, ten ders w ill be op en ed at the Federal R eserve Banks and B ran ches, fo llo w in g w h ich
pu blic a n n ou n cem en t w ill be m ade b y th e T rea su ry D epa rtm en t o f the am ou nt 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 o r rejection th ereof. T h e S ecreta ry o f the T r e a s u ry exp ressly reserves
the righ t to a ccep t o r re je ct any o r all tenders, in w h ole o r in part, and his a ction in a n y such resp ect shall be final. S u b ject
t o these reservations, n on com p etitive tenders for $200,000 o r less w ith ou t stated p rice from a n y on e b idd er w ill be a ccepted
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 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 Federal R e serv e B ank on A p ril 15, 1954, in cash o r oth er im m ediately
available fu n ds o r in a like face am ou nt o f T rea su ry bills m atu rin g A p ril 15, 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 differences betw een the par value o f m a tu rin g bills a ccep ted in
exch a n ge 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 hether interest o r gain fr o m the sale or oth er d isp osition o f th e bills, shall n ot
have a n y exem p tion , as such, and loss fr o m the sale o r oth er disp osition o f T rea su 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 supplem entary thereto. T h e bills shall' be subject
t o estate, inheritance, gift, or oth er excise taxes, w hether F ed eral or State, but shall be exem pt from all taxation n o w or h ere­
a fter im p osed o n the principal o r interest th e re o f b y a n y State, o r any o f the possession 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 hich T rea su ry bills are o rig in a lly sold b y the U nited
States shall be con sidered to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the In tern a l R even u e C od e, as am ended b y
S ection 115 o f the R even 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 hereunder are s o ld shall n o t.b e con sidered
to a ccru e until such bills shall be sold , red eem ed o r oth erw ise disp osed of, and such bills are exclu ded fro m con sidera tion as
capital assets. A cco 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 co m e ta x return o n ly th e differen ce b etw een the price paid fo r such bills, w h eth er on orig in a l issue o r on sub­
sequent purchase, and the a m ou n t actu ally received either u pon sale o r redem ption at m aturity d u rin g the taxable year for
w h ich the return is m ade, as ord in a ry gain o r loss.
T re a su ry D epartm en t Circular N o. 418, R evised , and this n otice, p rescrib e the term s o f the T rea su ry bills and govern
the con d ition s o f their issue. C op ies o f the circular m a y be obtain ed fr o m a n y F ed eral R eserve B ank or B ranch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, April 12, 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 April 8, 1954, maturing July 8, 1954)
T o ta l applied fo r ..........$2,137,984,000
T o ta l a c c e p t e d .............. $1,500,053,000 (in clu d es $194,245,000
entered on a n on com p etitive 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........ 99.744
E quivalent rate o f discou nt
a p p rox. 1.013% per annum
R a n g e o f a ccep ted com petitive b id s: (e x ce p tin g on e tender
o f $300,000)
H i g h .......................... 99.747
E quivalent rate o f discou nt
a p p rox. 1.001% per annum
L o w .......................... 99.742
E quivalent rate o f discount
app rox. 1.021% per annum
(60 percent o f the am ount bid fo r at the low
price w as a ccep ted)




Federal R eserve
D istrict

Total
A pplied f o r

$
38,592,000
B oston ..............................
N e w Y o r k ............ ...........
1,610,218.000
Philadelphia ...................
35,100,000
C leveland .......................
41,769,000 '
R ich m on d ........................
14.784,000
A tlanta ............................
25,635,000
C h ica g o ............................
202,859.000
St. L ou is ................... ......
18.009.000
M in n eap olis ...............
,
8.483,000
K an sas C ity ...................
31,803,000
D allas ..............................
37.688,000 '
San F r a n cis co ......73,044,000
T o t a l ...................... .....

$2,137,984,000

41 T otal
A ccep ted
$

32,983,000
1,050,718,000
18,600,000
38.669.000
11.984.000
22.843.000
180,709,000
17.709.000
8.043,000
24.303.000
36.828.000
56.664.000

$1,500,053,000
— . ( o veh )

31 D
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 noncompetitive
basis, fill in only the maturity 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 for this purpose w ill be furnished upon request.
N o______________

T E N D E R FO R 91 -D A Y T R E A SU R Y BILLS
Dated April 15, 1954

To

F

ederal

R

eserve

B

ank

of

N

ew

Y

Maturing July 15, 1954
Dated at..

ork,

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 April 8, 1954, as issued by the
Treasury Department, the undersigned offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, Revised, and to the
provisions o f the public notice on April 8,
1954, as issued by the Treasury Department,
the undersigned offers a noncompetitive tender

.............................. — --------* for a total amount of

for a total amount of $-------------------------------------

(R ate per 100)

(N ot to exceed $200,000)

(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:

(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:

□

amounting t o ...................... $____________________

□
By surrender of maturing Treasury bills
amounting t o ...................... $____________________

□

□

By surrender o f maturing Treasury bills

By cash or other immediately available funds

By cash or other immediately available funds

* P r ice 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 April 15, 1954, and are to
mature on July 15, 1954.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills”
N a m e o f B id d e r ..............................................................................................................................................
(P lease print)

B y.
(Official signature required)

(T itle)

Street A d d ress
(C ity, T ow n o r 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:
(N am e

ot

Custom er)

(C ity, T ow n o r V illage, P. O. No., and State)

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $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 the p erson m a k in g the ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the co rp o ra ­
tion a uthorized t o m ake the tender, and the sign 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
representation b y him that he has been s o authorized. 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 the firm , w h o sh ou ld sign in the fo r m “ ......................................................................................................... a copartn ersh ip, b y
......................................................................................................................... a m em b er o f the firm .”
3. T e n d e rs w ill be received w ith ou t deposit fro m in corpora ted banks and trust com pa n ies and fro m resp o n ­
sible and re co g n ize d dealers in in vestm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 percent
o f the face am ou nt o f T rea su ry bills a pplied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu aranty o f paym ent
b y an in co rp o ra te d b a n k o r trust com pan y.
4. I f the language o f this ten der is ch anged in a n y respect, w hich, in the op in ion o f the S ecreta ry o f the
T rea su ry, is m aterial, the ten der m a y be disregarded.

Payment b y credit through Treasury Tax and Loan Account will not be permitted.

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