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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 Fiscal Agent of the United States uoY I « -Ti'"-A T£<plBrtfclar No.^4109 j abi&ii iiqeiyf.n liq eig si-eq j;q ni wj Ib v ^ Offering of $1,500,000,000 of 91-Day Treasury B ills Uii ,2 « £ d UJl t o v I Dated May 27, 1954 Maturing August 26, 1954 M To all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: I I O 'I iv / Li .ja a m y tq Following is the text of a notice published today: TREASU RY D EPARTM EN T W a sh in g ton 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 y 20, 1954. T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders for $1,500,000,000, or thereabouts, o f 9 1-d ay T re a su ry bills, fo r cash and in exch a n ge for T rea su ry bills m aturing M a y 27, 1954, in the a m ou n t o f '$1,500,726,000, t o be issued on a d iscou n t basis under com petitive and 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 M a y 27, 1954, and w ill m ature A u g u st 26, 1954, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form 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 received at Federal R eserve B anks and B ran ches up to the clo s in g h our, tw o o 'c lo c k p.m ., E astern D a y light S avin g tim e, M on d a y, M a y 24, 1954. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . E ach tender 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 urged that tenders be m ade on the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y Federal R eserve B anks 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 excep t fo r their o w n it c o u n t . T e n d e rs w ill be received w ith ou t dep osit fro m in corp ora ted banks and trust com panies 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 ers 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 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 guaranty o f p a ym en t b y an in corp ora ted bank or trust com pan y. Im m ed ia tely after the clo s in g h our, tenders w ill be open ed at the Federal R e serv e Banks and B ran ches, fo llo w in g w hich public a n n ou n cem en t w ill be m ade b y the T rea su ry D epartm en t o f the am ou nt and price ran ge o f a ccep ted bids. T h o se 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 Secretary o f the T r e a s u ry exp ressly reserves the righ t to a ccep t o r reject any or all tenders, in w h ole o r in part, and his action in a n y such resp ect shall be final. S ubject to these reservations, n on com petitive tenders fo r $200,000 o r less w ith ou t stated price fro m a n y on e b idd er w ill be a ccepted in full at the a verage price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce with the bids m u st be m ade or com p leted at the Federal R eserve B ank on M a y 27, 1954, in cash o r oth er im m ediately available fun ds o r in a like face a m ou n t o f T rea su ry bills m aturing M a y 27, 1954. Cash and e x c h a n g e ten ders 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 atu 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 or gain fro m the sale or oth er disp osition Of the b ills, shall not have a n y exem ption , as such, and loss fro 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 ent, as such, under the Internal R even u e C ode, o r law s a m en da tory o r sup plem entary thereto. T h e bills shall be subject to estate, inheritance, gift, or oth er excise taxes, w hether Federal or State, but shall be exem p t from all taxation n ow or h ere after im posed on the principal o r interest th ereof b y a n y State, o r a n y o f the possession s o f th e U n ited States, or b y any local taxin g authority. F o r pu rposes o f taxation the am ou nt o f discou n t at w h ich T rea su ry bills are origin a lly sold b y th e U n ited 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 Internal R even u e C o d e , as am ended by S ection 115 o f the R even u e A c t o f 1941, the a m ou n t o f discou n t at w hich bills issued h ereunder are sold shall n ot be con sidered to a ccru e until such bills shall be sold, red eem ed or oth erw ise disp osed of, and such bills are exclu ded fro m con sideration as capital assets. A cco rd in g ly , the ow n er 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 tax return o n ly th e difference betw een the price paid fo r such bills, w hether on orig in a l issue o r on sub sequent purchase, and the am ou nt actu ally received either u pon sale or red em ption at m aturity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. . . W. l\:A T re a su ry D epa rtm en t C ircu lar N o . 418, R evised, and this notice, prescrib 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 ay be obtain ed from any F ed eral R eserve B ank o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, May 24, 1954, at the Securities Department of 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 (9 1 -d a y bills dated May 20, 1954, m aturing A u gust 19, 1954) T o ta l applied fo r .......... $2,227,835,000 T o ta l a ccepted ...............$1,501,255,000 (in clu d es $207,455,000 entered on a n on com petitive basis and a ccep ted in full at the average price sh ow n b e lo w ) A vera g e p rice........ 99.795 E quivalent rate o f discou nt app rox. 0.813% per annum R ange o f a ccep ted com p etitive b id s: (E x c e p t in g one tender o f $100,000) H i g h ......... ................ 99.800 L o w .......................... 99.793 E quivalent rate app rox. 0.791% E quivalent rate approx. 0.819% o f discount per annum o f discount per annum Federal R eserve D istrict Total A pplied fo r B o s to n ................... N ew Y o r k ....... Philadelphia ........ C leveland ............ R ich m on d ............ A tla n ta ------ --------C h ica go ................. St. L ou is .............. M in n ea p olis ........ K an sas C ity ...... ... D a lla s ..................... San F r a n cis co .... p 27,342,000 1,620.151.000 43.122.000 61.217.000 16.184.000 35.505.000 211.269.000 30.499.000 22645.000 44.529.000 43.085.000 72.287.000 24.592.000 974.831.000 28.122.000 55.917.000 15.658.000 23.314.000 191.059.000 , 28,985,000 21.838.000 40.529.000 34.185.000 62.225.000 $2,227,835,000 $1,501,255,000 Total A ccepted (93 percent o f the amount bid for at the low price was accepted) T o ta l ..................„.. (ovea) 31 j N ; ^ q y V-' ■ ;• IM P O R T A N T — I f y o u desire to bid on a c o m p e t i t i v e basis, fill in rate per 100 and m aturity value in paragraph headed "C om petitive B id.” I f you desire to bid on a n o n c o m p e t i t i v e basis, fill in on ly the m atu rity value in paragraph headed "N oncom petitive Bid.” DO N O T f il l i n b o t h p a r a g r a p h s o n o n e f o r m . A separate tender must be used f o r each bid, except that banks subm itting bids on a com petitive basis f o r their ow n and their customers’ accounts m ay submit one tender f o r the to ta l amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid f o r his account, and method o f payment. Forms f o r this purpose w ill be furnished upon request. N o........................ .. T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS Dated M ay 27, 1954 M aturing A u gu st 26, 1954 Dated at.. To F ed era l R eserve B a n k o f N ew Y ork , Fiscal Agent of the United States. .1954 C O M P E T I T I V E B ID N O N C O M P E T I T I V E B ID Pursuant to the provisions of Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on May 20, 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 of the public notice on May 20, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ........... ...................................* for a total amount of for a total amount of $............................................ $........... ................................................ (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) o f 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: O □ (Rate per 100) (N ot to exceed $200,000) By surrender o f maturing Treasury bills By surrender of maturing Treasury bills amounting t o ...................... $____________________ amounting t o ...................... $____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds * P rice m ust 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 May 27, 1954, and are to mature on August 26, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury B ills” 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 V illage, 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 o f Custom er) (C ity, T ow n o r V illage, P. O. No., and State) IM P O R T A N T IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be con sidered, and each ten der m u st be for an even m u ltiple o f $1,000 (m atu rity v a lu e ). 2. I f the person 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 authorized to m ake the tender, and the sig n in g o f the ten d er b y an officer o f the corp ora tion w ill be con stru ed as a representation b y him that he has b een so authorized. I f the ten der is m ade b y a partnership, it should be sign ed b y a m em b er o f the firm, w h o sh ou ld sign in the fo rm “ ........................................................................................................ , a cop artn ersh ip, by .........L........................................................................................................... a m em b er o f the firm .” 3. T en d ers 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 investm ent securities. T en ders fro m oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 percent o f the face am ount o f T rea su ry bills applied fo r, unless the tenders are a ccom p a n ied b y an express gu a ra n ty o f paym ent b y an in corpora ted bank o r trust com pan y. 4. I f the language o f this ten der is ch anged in any 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. P a y m e n t b y c r e d i t t h r o u g h T r e a s u r y T a x a n d L o a n A c c o u n t -w ill n o t b e p e r m i t t e d . http://fraser.stlouisfed.org/ T E IS 'T B — 124 7-a Federal Reserve Bank of St. Louis ( ovee )
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