The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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 r Circular No. 4 1 2 3 T L J July 8, 1954 Offering of $1,500,000,000 of 91-Day Treasury B ills Dated July 15, 1954 Maturing October 14, 1954 T o all Incorporated Banks 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 published t o 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, J u ly 8, 1954. TREASU RY DEPARTM EN T W a sh in gton T h e T reasu ry Departm ent, by this pu blic notice, invites tenders fo r $1,500,000,000, o r thereabouts, o f 91-day T reasu ry b ills, fo r cash and in exch an ge fo r T reasu ry bills m aturing July 15, 1954, in the amount o f $1,501,274,000, to be issued on a discou nt basis under com petitive and noncom petitive bidding as h ereinafter provided . T h e bills o f this series w ill be dated July 15, 1954, and w ill mature O ctober 14, 1954, w hen the face am ount w ill be payable without 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 ranches up to the clo s in g hour, tw o o ’c lo ck p.m., E astern D a y ligh t Savin g time, M on day, July 12, 1954. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . E ach ten der 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 u rged that tenders be made on the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied by F ed eral R eserve B anks o r B ranches on application therefor. O thers than banking institutions w ill not be perm itted to subm it tenders excep t fo r their ow n a ccou nt. 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 paym ent o f 2 percent o f the face am ount o f T rea su ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent b y an in corporated bank o r trust com pany. Im m ediately after the closin g h our, tenders w ill be opened at the F ed era l R eserve Banks and B ranches, fo llo w in g w hich p u blic 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 o r 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 o r a ll tenders, in w hole o r in part, and his action in any such respect shall be final. S ubject to these reservations, n oncom petitive tenders fo r $200,000 or less w ithout stated price from any one b idder w ill be accepted in fu ll at the a verage price (in three decim a ls) o f a ccepted 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 July 15, 1954, in cash or other im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing July 15, 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 fro m T reasu ry bills, w hether interest o r gain from the sale o r oth er disposition o f the bills, shall n ot have any exem ption, as such, and loss from the sale or oth er disp osition o f T reasu ry bills shall n ot have any special treatment, as such, under the Internal Revenue Code, o r law s am endatory o r supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift, o r oth er excise taxes, w hether Federal or State, but shall be exem pt from a ll taxation n ow o r hereafter 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 loca 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 so ld b y the U nited States shall be con sid ered to be interest. U nder S ections 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 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 consideration as capital assets. A ccord in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com pan ies) issued hereunder need include in his incom e ta x return o n ly the difference between the price paid fo r such bills, w hether on origin a l issue or on subsequent purchase, and the am ount actu a lly 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 o r loss. T reasu ry D epartm ent C ircu lar N o. 418, R evised , and this n otice, prescribe the terms o f the T rea su ry bills and govern the con dition s o f their issue. Copies o f the circu la r m a y be obtained from any F ed eral R eserve Bank or B ranch. T h is Bank w ill receive tenders up to 2 p.m ., E astern D a y lig h t S avin g tim e, M on d ay, July 12, 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. P lease use the form on the reverse side o f this circu lar to subm it a tender, and return it in an en v elop e m arked “ T en d er fo r T rea su ry B ills.” T en d ers m ay b e subm itted by telegraph, subject to written con firm ation ; they may not be submitted by telephone. Paym ent 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 J u ly 8 , 1954, m aturing O cto b e r 7, 1954) T o ta l applied f o r ........ $2,198,797,000 T ota l a c c e p t e d .............$1,500,251,000 (in clu des $168,123,000 entered on a noncom petitive basis and a ccepted in full at the a ver age price shown b elow ) A vera ge p r ic e ........... 99.830+ Equivalent rate o f discount app rox. 0.671% per annum Federal R eserve D istrict Total Applied for .. $ .. $2,198,797,000 N ew Y o r k ................. P h ila d e lp h ia ............... Cleveland ................... R ic h m o n d ................... Range o f accepted com petitive b id s : H i g h ............................ 99.845 Equivalent rate o f discount app rox. 0.613% per annum L o w .............................. 99.828 Equivalent rate o f discount approx. 0.680% per annum St. L o u i s ..................... M in n e a p o lis ............... K ansas C i t y ............... San F r a n c i s c o ........... 31,995,000 1,656,557,000 28,227,000 22,541,000 9,599,000 15,676,000 235,936,000 24,881,000 8,503,000 21,090,000 42,693,000 101,099,000 (1 8 p e rc e n t o f th e a m o u n t b id fo r at the lo w p r ic e w a s a c c e p t e d ) T o t a l ........................ T otal A ccepted $ 24,055,000 1,031,777,000 13,227,000 20,901,000 8,779,000 14,330,000 207,416,000 24,881,000 8,203,000 21,090,000 33,593,000 91,999,000 $1,500,251,000 ( over ) 31 Q 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 October 14, 1954 D a ted J u ly 15, 1954 T o F e d e r a l R ese rv e B a n k o f N e w Y F iscal A gen t o f the U nited States. Dated a t ........................ ork, 1954 COMPETITIVE BID NONCOMPETITIVE BID P ursuant to the p ro v isio n s o f T re a s u ry D epartm ent C ircular N o . 418, R evised , and to the p ro v isio n s o f the p u b lic n o tice on July 8 , 1954, as issued b y the T reasu ry D epartm en t, the undersigned offers P ursuant to the p ro v is io n s o f T reasu ry D e partm ent C ircular N o. 418, R evised , and to the p rov ision s o f the p u b lic n otice on July 8 , 1954, as issued b y the T rea su ry D epartm ent, the undersigned offers a n on com p etitive tender ................................................* fo r a total am ount o f fo r a total am ount o f $ .................................................. (Rate per 100) (Not to exceed $200,000) $ ...........................................................(m a tu rity valu e) o f the T reasu ry b ills therein described, o r fo r an y less am ount that m ay be aw arded, settlement th e re fo r to be m ade at y o u r B ank, on the date stated in the p u b lic n otice, as indicated b e lo w : (m atu rity v a lu e) o f the T re a su ry b ills therein d escribed, at th e a vera ge p rice (in three deci m a ls) o f accepted com p etitiv e bids, settlement th e re fo r to be m ade at y o u r B ank, on the date stated in the p u b lic notice, as indicated b e lo w : □ □ B y surrender o f m aturing T rea su ry bills am ou n tin g t o .................... $-------------------------------------□ B y cash or oth er im m ediately available funds By surrender o f m aturing T rea su ry bills am ou n tin g t o .................... $_______________________ □ B y cash o r oth er im m ediately a vailable funds * P r ice must b e exp ressed on the basis o f 100, with not more than three decimal places, fo r exam ple, 99.925. T h e T rea su ry bills fo r w hich tender is hereby m ade are to be dated Ju ly 15, 1954, and are to m ature on O cto b e r 14, 1954. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id d er . . . . By (Please print) (Official signature required) (Title) Street A d d ress .......................................... (City, Town or Village, P. O. No., and State) I f this tender is subm itted b y a bank fo r the a ccou n t o f a custom er, in dicate the cu stom er’s nam e on line b e lo w : (Name o f 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 aturity va lu e). 2. I f the person m akin g the tender is a corp ora tion , the tender should be sign ed b y an officer o f the corp ora tion authorized to m ake the tender, and the sign 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 rep resentation b y him that he has been so authorized. I f the ten der is made b y a partnership, it should be signed b y a m em ber o f the firm, w h o should sign in the fo rm “ ................................................................................................................. a copartnership, by ....................................................................................................................... a m em ber o f the firm.” 3. T en ders w ill be received w ithout deposit fro m in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en ders from others m ust be accom pa n ied b y 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 b y an in corporated bank o r trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the op in ion o f the Secretary o f the T rea su ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B — 1254-a (O V E S )
@FedFRASER