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F E D E R A L R E S E R V E BAN K O F N E W Y O R K Fiscal Agent of the United States [ Cirju ^ 2U 954 1 8 ] O fferin g o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 9 1-D ay T reasu ry B ills Dated July 1, 1954 Maturing September 30, 1954 T o all Incorporated Banks and Trust Companies, and O thers 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 ursday, June 24, 1954. TREASU RY DEPARTM EN T W ash in gton T h e T reasu ry Departm ent, by this public n otice, invites tenders for $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 July 1, 1954, in the am ount o f $1,500,672,000, to be issued on a discou n t basis under com petitive and noncom petitive b idding as h ereinafter provided . T h e bills o f this series w ill be dated J u ly 1, 1954, and w ill mature Septem ber 30, 1954, w hen the face amount w ill be payable w ithout interest. T h e y 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 v a lu e ). T en ders w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’c lo ck p.m., E astern D a y light Savin g time, M on day, June 28, 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 n ot more than three decim als, e. g., 99.925. F raction s may not be used. It is urged that tenders be made on the printed form s and forw a rded in the special en velopes w hich w ill be supplied b y Federal R eserve Banks o r Branches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n account. T en d ers 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 paym ent o f 2 percent o f the face 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 corporated bank o r trust com pany. Im m ediately a fter the closin g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made by the T rea su ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ili be advised o f the acceptance o r rejection thereof. T h e Secretary o f the T reasu ry exp ressly reserves the right to accept o r reject any o r all tenders, in w h ole or in part, and his action in any such respect shall be final. S u b ject to these reservations, n oncom petitive tenders fo r $200,000 or less w ithout stated price from any one bidder w ill be accepted in full at the average price (in three decim a ls) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccordance with the bids must be made or com pleted at the Federal R eserve Bank on July 1, 1954, in cash o r oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing July 1, 1954. Cash and exch a n ge 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 an ge and the issue price o f the new bills. T h e incom e derived from T reasu ry b ills, w hether interest or gain from the sale o r other disposition o f the bills, shall not have any exem ption, as such, and loss from the sale or oth er disp osition o f T reasu ry bills shall not have any special treatment, as such, under the Internal Revenue Code, or law s am endatory o r supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift, or other excise taxes, w hether Federal o r State, but shall be exem pt from all taxation now o r h ereafter im posed on the principal o r interest th ereof by any State, or any o f the possessions o f the U nited States, o r by any lo ca l ta x in g authority. F o r purposes o f taxation the am ount 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 amended by Section 115 o f the Revenue A ct o f 1941, the am ount o f discou n t at w hich bills issued hereunder are sold shall not be con sidered to accrue until such bills shall be sold, redeem ed 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 T reasu 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 fo r such bills, w hether on origin al issue o r on subsequent purchase, and the amount actu ally received either upon sale o r redem ption at m aturity du rin g the taxable year fo r w hich the return is made, as ord in a ry gain or loss. T reasu 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 dition s o f their issue. C opies o f the circu la r m ay be obtained from any Federal R eserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, June 28, 1954, at the Securi ties 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, subject 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 of last offering of Ireasury bills (91-day bills dated June 24, 1954, maturing September 23, 1954) T ota l applied f o r .........$2,207,297,000 T ota l a c c e p t e d ............. $1,500,973,000 (inclu des $224,335,000 entered on a noncom petitive basis and accepted in fu ll at the aver age price shown b elow ) A vera ge p r ic e ........... 99.840 Equivalent rate o f discount approx. 0.635% per annum Range o f accepted com petitive b id s : H i g h ........................... 99.845 Equivalent rate o f discount approx. 0.613% per annum L o w ............................. 99.836 E quivalent rate o f discount approx. 0.649% per annum Federal R eserve D istrict B oston ............................. N ew Y o rk ..................... Philadelphia ................. C leveland ....................... R ic h m o n d ....................... A tlanta ........................... C h i c a g o ........................... St. L o u i s ......................... M inneapolis ................... K ansas City ................. D allas ............................. San F r a n c is c o ............... Total Applied fo r $ 29,051,000 1,569,696,000 31,067,000 49,888,000 15,847,000 30,552,000 237,575,000 19,603,000 15,386,000 44,891,000 46,955,000 116,786,000 Total A ccepted $ 25,051,000 898,156,000 16,067,000 49,888,000 15,847,000 29,522,000 230,695,000 19,603,000 15,286,000 44,547,000 46,955,000 109,356,000 (14 percent o f the amount bid for at the low price was accepted) T o t a l ..................... $2,207,297,000 $1,500,973,000 ( over ) 31 O 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............................. TEN DER FOR 91-DAY TREASURY BILLS Maturing September 30, 1954 Dated July 1, 1954 To F e d eral R eserve B a n k of N ew Dated a t ........................ Y ork, Fiscal Agent of the United States. 1954 NONCOMPETITIVE BID COMPETITIVE 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 24, 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 June 24, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ..........................................* for a total amount of for a total amount of $ (Rate per 100) (Not to exceed $200,000) $ ................................................... (maturity value) o f 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: □ □ By surrender o f maturing Treasury bills amounting t o ..................$______________________ □ By cash or other immediately available funds By surrender of maturing Treasury bills amounting t o ..................$______________________ □ By cash or other immediately available funds * P rice must be expressed, on the basis of 100, with 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 July 1, 1954, and are to mature 011 September 30, 1954. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B idder (Please print) By .... (Official signature required) (Title) Street Address (City, Town or Village, P. O. No., and State) I f this tender is subm itted by a bank fo r the a ccou n t o f a custom er, indicate the custom er’ s name on line b e lo w : (Name of Customer) (City, Town or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even m ultiple o f $1,000 (m aturity valu e). 2. I f the person m aking the tender is a corporation , the tender should be signed by an officer o f the corporation authorized to m ake the tender, and the sign ing o f the tendi-r by an officer o f the corp ora tion w ill be construed as a rep resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a m em ber o f the firm, w ho shou ld sign in the form “ ................................................................................................................. a copartnership, by ....................................................................................................................... a m em ber o f the firm.” 3. T en ders w ill be received w ithout deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investment securities. T enders from others must be accom panied by paym ent of 2 percent o f the face amount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an incorporated bank or trust com pany. 4. I f the language o f this tender is changed in any respect, which, in the opin ion o f the S ecretary o f the T reasu ry, is material, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ TEN'TB—1252-a Federal Reserve Bank of St. Louis ( over )