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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 C ir c u la r N o. 4 1 1 5 J u n e 10, 1954 Fiscal Agent of the United States Offering of $1,500,000,000 of 91-Day Treasury B ills Dated June 17, 1954 Maturing September 16, 1954 To all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second F ederal R eserv e D istrict: Following is the text o f a notice published today: TREASURY D EPARTM EN T W a s h in g to n 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, June 10, 1954. T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $1,500,000,000, o r thereabouts, o f 9 1-d ay T re a su ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g June 17, 1954, in the a m ou n t o f $1,501,048,000, to be issued on a d iscou n t basis under com p etitive and n on com p etitive bid d in g as hereinafter provided . T h e bills o f this series w ill be dated June 17, 1954, and w ill m ature Sep tem ber 16, 1954, w h en 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 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 v a lu e ). T e n d e rs w ill be received at Federal R eserve B anks and B ran ches up to th e c lo s in g hour, tw o o 'c lo c k p.m ., E astern D a y light S a v in g tim e, M on d a y, June 14, 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 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 ore than th ree decim als, e. g., 99.925. F raction s m a y n o t be used. It is u rged that tenders be m ade o n 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 ranches, o n application th erefor. O th ers than b a n k in g institutions w ill n ot be perm itted to subm it ten ders excep t fo r their o w n a ccou nt. T e n d e rs w ill be received w ith ou t deposit fro m in corp ora ted banks and trust com pa n ies and fr o m respon sib le and recog n ized 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 p ercen t 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 exp ress gu aranty o f p a ym en t b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely after the clo s in g h our, ten ders w ill be o p en ed at the F ed eral R eserve B anks and B ranches, fo llo w in g w h ich p u blic a n n ou n cem en t w ill be m ade b y th e T r e a s u ry D epa rtm en t o f the am ou nt and p r ice 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 rea su ry exp ressly reserves the righ t to a cce p t o r reject a n y or all tenders, in w h o le o r in part, and his action in a n y such resp ect shall b e final. S u b ject t o these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated p r ice fr o m a n y on e b idder w ill b e a ccep ted 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 tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the Federal R es e rv e Bank on June 17, 1954, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m atu rin g June 17, 1954. Cash and exch a n ge ten ders w ill re ceive equal treatm ent. C ash adju stm en ts w ill b e m ade fo r d ifferen ces betw een the p a r valu e 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 fr o m T rea su ry bills, w hether interest o r ga in fro m the sale o r oth er d isp osition o f the bills, shall n ot have a n y e x e m p tion , as su ch , and loss fr o m the 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 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 su b ject to estate, inheritance, gift, or oth er excise taxes, w hether Federal or State, but shall be exem p t fro m all taxation n o w or h ere after im p osed 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, o r b y any local taxin g authority. F o r pu rposes o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly sold b y the 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 ode, as a m en ded b y S ection 115 o f the R even u e A c t o f 1941, the a m ou n t o f d iscou n t at w h ich bills issued hereun der are sold shall n ot b e con sidered t o a ccru e u ntil such bills shall b e sold , red eem ed o r oth erw ise disp osed of, and such bills are exclu ded fr o 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 h ereun der need in clu de in his in co m e ta x return on ly th e differen ce betw een the p rice paid fo r such bills, w hether on origin a l issue o r o n sub sequent purchase, and the a m ou n t actu ally received cither u pon sale o r redem ption at m aturity du rin g th e 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 ep a rtm en t Circular N o . 418, R evised , and this n otice, 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 th e circular m a y be obtain ed fro m a n y 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, June 14, 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 (9 1 -day bills dated June 10, 1 9 5 4 , m aturing September 9, 1954) T o t a l applied fo r .......... $2,068,870,000 T o ta l a cce p te d .............. $1,500,160,000 (in clu d es $187,307,000 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 price........ 9 9 .8 4 4 + E quivalent rate o f discou nt app rox. 0.616% per annum R a n ge o f a ccep ted com petitive b ids: H i g h .......................... 99.846 L o w ........................... 99.842 E quivalent rate app rox. 0.609% E quivalent rate app rox. 0.625% o f discou nt per annum o f discou nt p er annum Federal R eserv e D istrict T otal A pplied f o r B oston ............................. $ 25,150,000 N ew Y o r k ............ ........... 1,508,989.000 Philadelphia .............. . 31,335,000 C leveland ...............28,942,000 R ich m on d ............................ . . . i : 12,338,000 A tla n ta .................................... 31,353,000 C h ica g o .......... ................. 227,788,000 St. L ou is ................ ......... 16,896,000 M in n eap olis ................... 9,450,000 K ansas C ity ................ 26,905,000 D allas ................. ............. 45,318,000 San F r a n cis co ................ 104,406,000 Total A ccepted $ 18,436,000 1,034,199,000 16,235,000 27,282,000 10,393^000 22,553,000 198,228,000 16,896,000 8,950,000 25,455,000 40,288,000 81,245,000 (86 percent o f the amount bid for at the low price was accepted) T o ta l .......... ...........k...„ $2,068,870,000 $1,500,160,000 ( over ) 31 M IMPORTANT— 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 n oncom petitive basis, fill in only the maturity value in paragraph headed "Noncompetitive Bid.” D O N O T fill in b oth 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 of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. No______________ T E N D E R F O R 91 -D A Y T R E A S U R Y BILLS Dated June 17, 1954 To Maturing September 16, 1954 Dated at-------------- F ederal R eserve Ban k of N ew Y 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 June 10, 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 June 10, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ------------------------------------- * for a total amount of for a total amount of ( N o t t o e x c e e d $20 0,00 0) ( R a t e p e r 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: (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: □ □ By surrender o f maturing Treasury bills By surrender o f maturing Treasury bills amounting t o ...................... _____________________ amounting t o ...................... $------------------------------- □ □ By cash or other immediately available funds By cash or other immediately available funds * P r ic e must b e expressed on the basis o f 100, w ith not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated June 17, 1954, and are to mature on September 16, 1954. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills” N am e o f B id d e r .............................................................................................................................................. (P le a s e p r in t) By.. (O f fi c i a l s i g n a t u r e r e q u i r e d ) (T itle ) Street A d d ress ( C i t y , T o w n o r V i l la g e , P . O . N o ., a n d S t a t e ) If this tender is submitted by a bank for the account of a customer, indicate the customer's name on line below: (N a m e o f C u s to m e r ) ( C i t y , T o w n o r V i l l a g e , P . O . N o ., a n d S t a t e ) IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sidered, and each ten der m u st be f o 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 the ten der is a corp ora tion , the tender should b e sign ed b y an officer o f the co rp o ra tion a uthorized to m ake the ten der, and the sig n in g o f the ten der 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 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 em b er o f the firm , w h o should sign in the fo rm “ ......................................................................................................... a cop artn ersh ip, by ....................................................................................................................... . a m em b er o f the firm .” 3. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corpora ted banks and trust com pa n ies and fr o m resp o n sible and reco g n ize d dealers in in vestm ent securities. T en d ers fro m oth ers m ust be a ccom p a n ied b y p a ym en t o f 2 percent 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 exp ress gu a ra n ty o f paym ent b y an in corpora ted b a n k o r trust com p a n y . 4. I f the la n g u a ge o f this ten der is ch a n ged in a n y respect, w hich, in the op in ion o f th e S ecreta ry o f the T rea su ry, is m aterial, the ten der m a y be disregarded. Paym ent b y cred it through Treasury T a x and Loan A ccou n t w ill n ot b e perm itted. http://fraser.stlouisfed.org/ T E N T B —1250-a Federal Reserve Bank of St. Louis ( over )
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