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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 C ir c u la r N o. 4 1 3 3 A u g u s t 5 ,1 9 5 4 Fiscal Agent of the United States Offering of $1,500,000,000 of 92-Day Treasury B ills Dated August 12, 1954 Maturing November 12, 1954 T o all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice published to d a y : TREASU RY DEPARTM ENT W a sh in gton 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, A u g u st 5, 1954. T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders fo r $1,500,000,000, or thereabouts, o f 9 2-d ay T reasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing A u g u s t 12, 1954, in the a m ou n t o f $1,500,849,000, to be issued on a d iscou n t basis under com p etitive a n d n on com p etitive b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated A u g u st 12, 1954, and w ill m ature N o v e m b e r 12, 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 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 F ed eral R eserve Banks and B ran ch es up to the clo s in g h our, t w o o ’ c lo ck p.m ., E astern D a y light S a vin g time, M on d a y , A u gu st 9, 1954. T e n d e rs 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 u ltiple o f $1,000, and in the case o f com petitive tenders the p rice offered m u st be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F raction s m ay n ot be used. It is urged that ten ders be m ade on the printed fo rm s and forw a rd ed in the special en velop es w hich w ill be supplied b y Federal R eserve B anks or B ran ch es on application therefor. O th e rs than banking institutions w ill n o t be perm itted to subm it tenders e x cep t fo r their o w n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fro m respon sib le and recog n ized dealers in invest m en t securities. T e n d ers fr o 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 the fa ce a m ou n t o f T r e a s u ry bills applied fo r, 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 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, tenders w ill be open ed at the F ed eral R eserve Banks and B ran ches, fo llo w in g w hich pu b lic a n n ou n cem en t w ill be m ade b y th e T rea su ry D epartm en t o f the a m ou n t a n d price range 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 or rejection th ereof. T h e S ecreta ry o f the T rea su ry exp ressly re se iy e s the righ t t o a ccep t o r reject a n y or all tenders, in w h ole or in part, and his action in a n y such respect shall b e final. S u b je ct to these reservations, n on com petitive ten ders fo r $200,000 o r less w ith ou t stated price fro m any on e bidder w ill be a ccep ted in fu ll at the a vera ge price (in three d ecim a ls) o f a ccep ted com p etitive bids. S ettlem ent for a ccep ted tenders in a cco rd a n ce w ith the bids m u st be m ade or com p leted at the F ed eral R eserve B ank on A u g u st 12, 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 aturing A u g u st 12, 1954. Cash and exch a n ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een th e par value o f m aturing bills a ccep te d 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 h eth er interest o r gain fro m the sale o r oth er disp osition o f the bills, shall not have any exem ption , as such, and loss fro m the sale or oth er disposition o f T rea su ry bills shall n ot have a n y special treat m ent, as such, u nder the Internal R even u e C ode, o r law s a m en d a tory o r sup plem entary thereto. T h e bills shall be su b ject t o estate, inheritance, gift, or oth er excise taxes, w hether F ed eral or State, but shall be exem p t fro m all taxation n o w o r h ere after im p osed on the principal o r interest th ereof b y a n y State, or any o f the possession s o f the U n ited States, o r b y a n y loca l ta x in g authority. F o r pu rposes o f taxation the am ount o f d iscou 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 sid ered to be interest. U n der S ection s 42 and 1 1 7 (a )(1 ) o f the Internal R even ue 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 discou n t at w h ich bills issued h ereunder are sold shall n ot be con sid ered to a ccru e until such bills shall be sold, redeem ed o r oth erw ise disp osed o f , and such bills are exclu d ed fro m con sidera tion as capital assets. A cco r d 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 ta x return o n ly the differen ce betw een the price paid fo r such b ills, w hether on original issue o r on sub sequent purchase, and the am ou nt actu a lly receiv ed either u pon sale o r red em ption at m aturity du rin g the ta x a b le y e a 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 epartm en t Circular N o . 418, R evised , and this n otice, p rescrib e th e term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C opies o f th e circular m a y be obtain ed fro m any Federal R eserve B a n k o r B ranch. T his Bank will receive tenders up to 2 p.m ., Eastern D aylight S aving time, M onday, A ugu st 9, 1954, at the Securities Department o f its H ead Office and at its B uffalo Branch. Please use the fo rm on the reverse side o f this circular to submit a tender, and return it in an envelope m arked “ T en d er fo r T reasu ry Bills.” T enders may be submitted b y telegraph, sub je ct to written con firm ation ; they m ay not be submitted by telephone. Payment f o r the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. funds or in maturing Treasury bills. Settlement must be made in cash or other immediately available A llan S proul, President. Results o f last offering o f Treasury bills (91-day bills dated August 5, 1954, maturing November 4, 1954) T o ta l applied fo r .......... $2,448,454,000 T o ta l a cce p te d .............. $1,500,639,000 (in clu d es $226,039,000 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 ve ra g e p rice........ 99.799 E quivalent rate o f discount a p p rox. 0.797% per annum R a n g e o f a ccep ted com p etitive b id s: (E x c e p tin g tw o ten d ers tota lin g $805,000) E quivalent rate o f discou n t H ig h .......................... 99.803 app rox. 0.779% per annum E quivalent rate o f discou nt L o w .......................... 99.795 app rox. 0.811% per annum (10 percent o f the am ount bid fo r at the low price w as a ccep ted ) http://fraser.stlouisfed.org/ IdE f Federal Reserve Bank of St. Louis Federal R eserve District B oston ........................ .... N ew Y o r k ................. .... Philadelphia ............... C leveland ................... R ich m on d ................... Atlanta ........................ C h ica g o ........................ St. L ou is ..................... M in neapolis ............... K ansas C ity ............... Dallas .......................... San F ra n cisco .......... T o t a l ........................ Total A pplied f o r $ 27,952,000 1,772,500,000 33,170,000 44,076,000 14,679,000 23,233,000 260,507,000 25,430,000 25,787,000 41,873,000 61,540,000 117,707,000 $2,448,454,000 Please note that the current offering is for 92-day Treasury bills. Total A ccepted $ 24,552,000 899,425,000 16,270,000 44,076,000 10,579,000 22,183,000 237,407,000 25,430,000 25,187,000 40,993,000 50,990,000 103,547,000 $1,500,639,000 ( over) 31 U ? n IM PORTANT— Please note that this offering is fo r 92-day Treasury bills, which will mature on Friday, November 12, 1954, because Thursday, November 11, will be Armistice Day. >*U*H YUfSi IM PORTANT— If you desire to bid on a competitive 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 N O T fill in both paragraphs on one form . A separate tender must be used fo r each bid, except that banks submitting bids on a competitive basis fo r their own and their customers* accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and method o f payment. Forms fo r this purpose will be furnished upon request. N o _______________ T E N D E R F O R 9 2 -D A Y T R E A S U R Y BILLS Dated August 12, 1954 Maturing November 12, 1954 Dated at_ T o F ed eral R eserve B a n k of N e w Y o r k , F iscal A gen t o f the U nited States. .1954 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f T reas u ry Departm ent C ircular N o . 418, Revised, and to the provisions o f the public n o tice on A u gu st 5, 1954, as issued b y the T reasury Departm ent, the undersigned offers Pursuant to the provisions o f T reasury D e partment Circular N o . 418, R evised, and to the provisions o f the public notice on A u gu st 5, 1954, as issued by the T reasu ry Department, the undersigned offers a noncom petitive tender ___________________________ * fo r a total amount o f fo r a total am ount o f $_ (Rate per 100) (Not to exceed $200,000) $________________________________ (m aturity value) o f the T reasury bills therein described, o r fo r any less amount that may be awarded, settlement th erefor to be m ade at you r Bank, on the date stated in the public notice, as indicated b e lo w : 0 By surrender o f m aturing Treasury bills (m aturity valu e) o f the Treasury bills therein described, at the average price (in three deci m als) o f accepted com petitive bids, settlement th erefor to be m ade at you r Bank, on the date stated in the public notice, as indicated b e lo w : □ By surrender o f m aturing T reasury bills am ounting t o ..........................$ ---------------------------------- amounting to ......................... $ ______________________ □ □ B y cash o r other im mediately available funds B y cash o r other im mediately available funds *P rice must be expressed on the basis o f 100, with not m ore than three decimal places, fo r exam ple, 99.925. T h e T reasury bills fo r which tender is hereby made are to be dated A ugust 12, 1954, and are to mature on N ovem ber 12, 1954. This tender will be inserted in spccial envelope marked “ Tender fo r Treasury B ills” (Please print) B y. (OiUcial signature required) (Title) Street Address.. (City, Town or Village, P. O. No., and State) I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Name o f Customer) (City, Town or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sidered, and each tender m u st b e fo r an even m u ltiple o f $1,000 (m a tu rity va lu e). 2. I f the person m a k in g the ten der is a corp ora tion , the ten der should be sign ed b y an officer o f the c o rp o ra tion authorized to m ake the tender, and the sig n in g o f the ten der b y an officer o f the co rp o ra tio n w ill be con stru ed as a represen tation b y him that he has been so 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 ber o f the firm , w h o sh ou ld sign in the fo r m .................................................................................................... a copartn ersh ip, b y .......... ............................................................................................... ..._____ , a m em b er o f the firm .” 3. T e n d e rs w ill be receiv ed w ith ou t dep osit 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 in vestm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the fa ce a m ou n t o f T rea su ry bills applied for, unless the tenders are accom pa n ied b y an express gu aranty o f paym ent b y an in corp ora ted bank or trust com p a n y . 4. I f th e language o f this tender is ch a n ged in a n y respect, w h ich , in the o p in io n o f the S ecretary o f the T re a su ry , is m aterial, the ten der m a y be disregarded. Payment b y credit through Treasury Tax and Loan Account will not be permitted. T E N T B — 1258 a ( over ) 4 2 FEDERAL RESERVE BANK OF NEW YORK August 9, 1954. T o all M em ber Banks in the Second Federal R eserve D istrict: It is with deep regret that we announce the death today of R alph W. S cheffer, Manager of the Government Bond Department and of the Safekeeping Department of this Bank. A llan S proul, President. )/■ y /3 ^
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