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F E D E R A L R E SE R V E BANK O F N EW Y O R K
Fiscal Agent of the United States

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Offering of $1,500,000,000 of 91-Day Treasury B ills
Dated July

8

, 1954

Maturing October 7, 1954

T o all Incorporated Banks and Trust Companies, and O thers
Concerned, in the S econd 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 u e sd a y , J u n e 29, 1954.

TREASURY DEPARTM ENT
W a sh in g to n

T h e T r e a s u ry D epa rtm 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 rea su ry
bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g Ju ly 8, 1954, in the a m ou n t o f $1,499,953,000, t o be issued on
a d iscou n t basis under co m p etitive and n on com p etitiv e b id d in g as h erein a fter p rov id ed . T h e bills o f this series w ill be dated
Ju ly 8, 1954, and w ill m ature O c t o b e r 7, 1954, w hen the face a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be
issued in bearer fo rm o n 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 re ceiv ed at F ed eral R eserve B an ks and B ran ch es u p to th e clo s in g h our, tw o o ’c lo c k p.m ., E astern
D a y lig h t S a vin g tim e, F rida y, Ju ly 2, 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
ten der m ust be fo r an even m u ltiple o f $1,000, and in th e case o f com p etitiv e ten ders th e p rice offered m u st be exp ressed o n
the basis o f 100, w ith n o t m ore than th ree d ecim a ls, e. g., 99.925. F ra ction s m a y n ot be used. It is u rg ed that ten ders be
m ade o n th e printed fo rm s and fo rw a rd e d in th e special en velop es w h ich w ill be supplied b y F ed era l R es e rv e B ank s o r
B ra n ch es o n a pp lication th erefor.
O th e rs than b a n k in g institutions w ill n ot be perm itted t o subm it ten ders e x cep t fo r th eir o w n a c c o u n t T e n d e rs w ill be
receiv ed w ith o u t d ep o sit fro m in corp ora ted banks and trust com pa n ies and fr o m resp on sib le and re co g n iz e d dealers in in vest­
m en t securities. T e n d e rs fr o m oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills
a pplied fo r, u nless the tenders are a ccom p a n ied b y an exp ress gu aranty o f pa ym en t b y an in corp ora ted b a n k o r tru st com p a n y .
Im m ed ia tely a fte r th e clo s in g h our, ten ders w ill b e op en ed at the F ed eral R e s e rv e B anks and B ra n ch es, 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 the T rea su ry D epa rtm en t o f the a m ou n t and price ran ge o f a ccep ted b ids. T h o s e
su b m ittin g ten ders w ill b e advised o f the a ccep ta n ce or rejection th ereof. T h e S ecreta ry o f the T rea su ry ex p re s sly reserves
th e righ t to a cce p t o r re ject a n y o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b ject
to these reserva tion s, n o n com p etitiv e tenders fo r $200,000 o r less w ith ou t stated p rice fr o m any on e b id d er w ill b e a cce p te d
in fu ll at th e a vera ge p r ice (in th ree decim a ls) o f a ccep ted com p etitive bids. S ettlem en t fo r a ccep ted ten ders in a ccord a n ce
w ith the b id s m u st be m a d e or com p le te d at th e F ed eral R eserve B ank on Ju ly 8, 1954, in cash or o th e r im m ediately
available fun ds o r in a like fa ce am ou nt o f T r e a s u ry bills m atu rin g J u ly 8, 1954. Cash and ex ch a n g e ten ders w ill receive
equal treatm ent. Cash a dju stm en ts w ill be m ade fo r d ifferen ces betw een the pa r valu e o f m a tu rin g bills a ccep ted in ex ch a n g e
and th e issue p rice o f the n ew bills.
T h e in co m e derived fr o m T rea su ry bills, w h eth er in terest o r gain fro m th e sale o r o th e r d isp osition o f th e b ills, shall n o t
have a n y e x e m p tion , as such, a n d lo s s fro m th e sale o r oth er d isp osition o f T r e a s u ry bills shall n o t have a n y special treat­
m ent, as such, under th e In tern al R even u e C ode, o r law s a m en d a tory o r sup plem en ta ry thereto. T h e bills shall b e su b je ct
to estate, in heritance, g ift, o r oth er ex cise taxes, w h eth er Federal o r State, b u t shall be exem p t fr o m all ta xation n o w o r h ere­
a fter im p osed o n th e principal or interest th ereof b y a n y State, o r any o f the p ossession s o f the U n ited States, o r b y a n y lo ca l
ta x in g authority. F o r pu rp oses 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 o rig in a lly s o ld b y th e U n ited
States shall be co n sid ered t o be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the Internal R ev en u e C od e, as a m en ded b y
S e ctio n 115 o f the R even u e A c t o f 1941, the a m ou n t o f d is co u n t at w h ich bills issued h ereun der are s o ld shall n o t b e con sid ered
to a ccru e until such bills shall be sold , red eem ed o r oth erw ise disp osed o f, and such bills are exclu d ed fr o m con sid era tio n as
capital assets. A c c o 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 co m p a n ie s ) issued hereun der n eed in clu d e
in his in co m e ta x return o n ly th e differen ce betw een th e price paid fo r such bills, w h eth er on origin a l issue o r on subsequen t
pu rch ase, a n d th e a m ou n t actu ally receiv ed either u pon sale o r red em p tion at m atu rity d u rin g the ta xab le yea r fo r w h ich
th e return is m ade, as ord in a ry gain o r loss.
T r e a s u ry D ep a rtm en t C ircu lar N o. 418, R evised , and this n otice, prescrib e the term s o f th e T r e a s u ry bills a n d g o v e rn
the co n d itio n s o f th eir issue. C op ies o f th e circu la r m ay be ob ta in ed fro m any F ed era l R e serv e B ank o r B ranch.

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Friday, July 2, 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.

(CLOSING D A Y FOR RECEIPT OF TENDERS IS FRIDAY, fU L Y 2, 1954)




RESULTS OF BIDDING FOR TREASURY BILLS
DATED

JULY

1,

1954

WERE

NOT

AVA IL­

ABLE W HEN THIS CIRCULAR WAS PRINTED.

(O V E S )

31 P
IM P O R T A N T — Please note that tenders f o r this issue m ust be received not later than
p.m ., Eastern D aylight Saving time, Friday, July 2 , 1954.
IM P O R T A N T — I f you 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 Bid.” 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 aturity value in paragraph headed "N on com p etitive Bid.” D O
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 m ust be used fo r each bid,
except that banks subm itting bids on a com petitive basis fo r their ow n and their customers’
accounts m ay submit one tender f o r the total am ount bid at each price, provided a list is
attached showing the name o f each bidder, the am ount bid fo r his accou n t, and method
o f paym ent. Forms f o r this purpose w ill be furnished upon request.
2

N o..................................

T E N D E R F O R 91 - D A Y T R E A S U R Y BILLS
D ated July 8, 1954

M aturing O ctober 7, 1954

Dated at ...................................................................

T o F ederal R eserve B a n k of N ew Y ork ,
Fiscal Agent o f the United States.

........................................................................... 1954

COMPETITIVE BID

N O N C O M PE TITIV E BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, Revised, and to
the provisions o f the public notice on June 29,
1954, as issued by the Treasury Department, the

Pursuant to the provisions of Treasury
Department Circular No. 418, Revised, and to
the provisions of the public notice on June 29,
1954, as issued by the Treasury Department,
the undersigned offers a noncompetitive tender

undersigned o f f e r s .........................................* fo r a

for a total amount o f $ ............................................

(Rate per 100)

(Not to exceed $200,000)

------ (maturity
total amount o f $ ........................... _
value) o f the Treasury bills therein described, or
for any less amount that may be awarded, settle­
ment therefor to be made at your Bank, on the
date stated in the public notice, as indicated b elow :
□

(maturity value) of the Treasury bills therein
described, at the average price (in three decimals)
of accepted competitive bids, settlement therefor
to be made at your Bank, on the date stated in
the public notice, as indicated below:

B y surrender o f maturing Treasury bills

□

By surrender o f maturing Treasury bills

amounting to ................... $----------------------------------

amounting to .................. $_____________________

□

□

B y cash or other immediately available funds

* P r ice must be exp ressed on the basis o f 100, w ith not
m ore than three decimal places, f o r exam ple, 99.925.

By cash or other immediately available funds

|

The Treasury bills for which tender is hereby made are to be dated July 8, 1954, and are to
mature on October 7, 1954.

This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
N a m e o f B id d er ...........................................................................................................................................
(Please print)

B y ......................................................................................................
(Official signature required)

........................................................
(Title)

S treet A d d re ss .............................................................................................................................................

(City, Town or 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:
(Name of Customer)

(City, Town or Village, P. O. No., and State)

IM P O R T A N T IN STR U CT IO N S:
1. N o ten d er fo r less than $1,000 w ill b e con sidered, and each tender m ust b e fo r an even m u ltiple o f $1,000
(m atu rity v a lu e ).
2. I f the p e rso n m a k in g the ten der is a corp ora tion , the tender shou ld be sign ed b y an officer o f the c o r p o r a ­
tion authorized to m ak e the ten der, and the sign in g o f the tender b y an officer o f the corp o ra tio n w ill be con stru ed as a
represen tation b y h im that he has been s o authorized. I f the tender is m ade b y a partnership, it shou ld b e sig n ed b y a
m em b er o f the firm , w h o shou ld sig n in the fo r m “ .................................................................................................... . a cop artn ersh ip , b y
.......................................................................................................................................... a m em b er o f th e firm .”
3. T e n d e rs w ill be receiv ed w ith ou t d e p o s it fr o m in corp ora ted banks and trust com p a n ies and fr o m re s p o n ­
sible and r e co g n iz e d dealers in in vestm en t securities. T en d ers fr o 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 fa c e a m ou n t o f T r e a s u ry bills applied for, unless th e 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 tru st com p a n y .
4. I f th e language o f th is ten der is ch a n ged in a n y respect, w h ich , in the o p in io n o f th e S ecreta ry o f the
T re a su ry , is m aterial, th e ten d er m a y b e disregarded.

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

TENTB— 1253-a


(OVER)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102