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FEDERAL RESERVE BANK O F NEW YORK F isca l A g e n t o f the U n ited States f Circ“ lar£ ° - 4CJ ° 7 1 ° L May 13, 1954 J O fferin g o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T reasu ry B ills Dated M ay 20, 1954 Maturing August 19, 1954 T o all Incorporated B anks and Trust Companies, and O thers Concerned, in the S econd Federal R eserv e D istrict: F o llo w in g is the text o f a n otice p u blish ed to d a y : 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 ursday, M ay 13, 1954. TREASU RY DEPARTM ENT W ash ington T h e T reasu ry Departm ent, by this pu blic n otice, invites tenders fo r $1,500,000,000, o r thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch ange for T reasu ry bills m aturing M a y 20, 1954, in the am ount o f $1,499,945,000, to be issued on a discou n t basis under com petitive and noncom petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a y 20, 1954, and w ill mature A u gust 19, 1954, when the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity va lu e). T en ders w ill be received at Federal R eserve Banks and B ran ches up to the clo s in g h our, tw o o ’c lo ck p.m., E astern D a y light S a vin g time, M on day, M ay 17, 1954. T en ders w ill not be received at the T reasu ry Departm ent, W ash ington. E ach tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, w ith not m ore than three decim als, e. g., 99.925. F raction s m ay not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes w hich w ill be supplied by F ed eral R eserve Banks o r Branches on application th erefor. O thers than banking institutions w ill not be perm itted to subm it tenders excep t for their ow n account. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders from others must be accom panied by payment o f 2 percent o f the face amount o f T rea su ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank o r trust com pany. Im m ediately a fter the closin g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich public announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the right to accep t o r reject any or all tenders, in w h ole or in part, and his action in any such respect shall be final. S ubject to these reservations, n oncom petitive tenders for $200,000 or less w ithout stated price from any one bidder w ill be accepted in fu ll at the a verage price (in three decim a ls) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the Federal R eserve Bank on M ay 20, 1954, in cash or oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing M ay 20, 1954. Cash and exch ange tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r differences between the par value o f m aturing bills a ccepted in exch ange and the issue price o f the new bills. T h e incom e derived from T reasu ry b ills, whether interest or gain from the sale o r oth er disp osition o f the bills, shall not have any exem ption, as such, and loss from the sale or other disposition o f T reasu ry bills shall n ot have any special treatment, as such, under the Internal Revenue Code, or laws am endatory o r supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift, or oth er excise taxes, whether Federal or State, but shall be exem pt from all taxation now o r hereafter im posed on the principal or interest th ereof by any State, or any o f the possessions o f the U nited States, o r by any local taxin g authority. F o r purposes o f taxation the amount o f discou nt at w hich T reasu ry bills are origin a lly sold by the U nited States shall be con sid ered to be interest. U nder Sections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue Code, as am ended by S ection 115 o f the Revenue A c t o f 1941, the am ount o f discou nt at w hich bills issued hereunder are sold shall not be con sidered to accrue until such bills shall be sold, redeemed or otherw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A ccord in g ly , the ow ner o f Treasu ry bills (oth er than life insurance co m panies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid for such bills, whether on o rigin a l issue o r on subsequent purchase, and the amount actually received either upon sale or redem ption at m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry gain o r loss. Treasu ry Departm ent C ircu lar N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con ditions o f their issue. C opies o f the circu la r m ay he obtained from atiy Federal Reserve Bank or Branch. T h is Bank will receive tenders up to 2 p.m .. E astern D a y lig h t S avin g time, M on d ay, M ay 17, 1954, at the S ecu ri ties D epartm ent o f its H ead O ffice and at its B u ffa lo B ranch. Please use the form on the reverse side o f this circu lar to subm it a tender, and return it in an en velop e m arked “ T en d er fo r T rea su ry B ills.” T enders m ay be subm itted by telegraph, subject to written confirm ation; they m ay not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. immediately available funds or in maturing Treasury bills. Settlement must be made in cash or other A lla n S p r o u l, President. R esults o f last offe rin g o f T reasu ry b ills (91-day b ills dated M ay 13, 1954, m aturing A ugust 12, 1954) T ota l applied f o r .........$2,285,019,000 T otal a c c e p t e d .............$1,500,849,000 (in clu d es $211,012,000 entered on a noncom petitive basis and accepted in full at the aver age price show n below ) A v era ge p r ic e ........... 99.792 Equivalent rate o f discount approx. 0.825% per annum R ange o f accepted com petitive b id s : H i g h ........................... 99.835 Equivalent rate o f discount approx. 0.653% per annum L o w ............................. 99.789 Equivalent rate o f discount a pp rox. 0.835% per annum (2 percent o f the amount bid for at the low price was accepted) Federal R e s e n ’c D istrict B oston ............................. N ew Y o rk ..................... P h ila d e lp h ia ................... C leveland ....................... R ich m on d ....................... A t la n t a ............................. C h i c a g o ........................... St. L o u i s ......................... M inneapolis ................... K ansas C i t y ................... D allas ............................. San F r a n c i s c o ............... T o t a l ..................... Total Applied for $ 18,943,000 1,644,583,000 28,757,000 35,745,000 11,602,000 24,373,000 253,381,000 23,074,000 40,072,000 66,515,000 36,723,000 101,251,000 $2,285,019,000 Total A c cep ted $ 17,463,000 941,198,000 13,757,000 32,745,000 10,602,000 22,679,000 230,726,000 20,174,000 38,778,000 58,419,000 25,623,000 88,685,000 $1,500,849,000 ( over ) IM PORTANT— If you desire to bid on a com petitive 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 NOT 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 for this purpose will be furnished upon request. N o............................. TENDER FOR 91-DAY TREASURY BILLS Maturing August 19, 1954 Dated May 20, 1954 To F ederal R eserve B a n k of N ew Y ork, Dated a t ........................ Fiscal Agent of the United States. 1954 COMPETITIVE BID Pursuant to the provisions of Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on May 13, 1954, as issued by the Treasury Department, the undersigned offers ..........................................* for a total amount of (Rate 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 of maturing Treasury bills amounting: t o ..................$______________________ □ By cash or other immediately available funds NONCOMPETITIVE BID Pursuant to the provisions of Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on May 13, 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) 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 t o .................. $______________________ □ By cash or other immediately available funds * P r ice must be expressed on the basis o f 100, w ith not more than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated May 20, 1954, and are to mature on August 19, 1954. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N a m e o f B idder By (Please print) .... (Official signature required) (Title) Street A dd ress (City, Town or Village, P. O. No., and State) I f this tender is subm itted by a bank fo r the accou n t o f a custom er, indicate the cu stom er’ s name on line b e lo w : (Name of Customer) (City, Town or Village, P. O. No., and State) IM PORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 w ill be con sidered, and each tender must be fo r an even m ultiple o f $1,000 (m atu rity va lu e). 2. I f the person m aking the tender is a corp ora tion , the tender should be signed b y an officer o f the corp ora tion authorized to make the tender, and the sign in g o f the tender b y an officer o f the corp ora tion w ill be construed as a rep resentation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed b y a m em ber o f the firm, w h o should sign in the form “ ............................................................................................................... . a copartn ersh ip, by ....................................................................................................................... a m em ber o f the firm.” 3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en ders from others must be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T rea su ry bills applied for. unless the tenders are accom panied b y an express guaranty o f paym ent by an in corpora ted bank or trust com pany. 4. I f the lan gu age o f this tender is changed in any respect, w hich, in the opin ion o f the S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. — 1246-a (OVER)