The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK O F NEW YORK
Fiscal Agent o f the United States
{CAu*urt3i.‘ wm 11
O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills
Dated September 9, 1954
Maturing December 9, 1954
To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
Following is the text of a notice published today:
FO R R E L E A S E , M O R N IN G N E W S P A P E R S ,
Tuesday, August 31, 1954.
TREASURY DEPARTM ENT
Washington
The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing September 9, 1954, in the amount of $1,500,190,000, to be issued on
a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated
September 9, 1954, and will mature December 9, 1954, when the face amount will be payable without interest. They will be
issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Daylight Saving time, Friday, September 3, 1954. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest
ment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on September 9, 1954, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing September 9, 1954. Cash and exchange tenders will receive
equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special treat
ment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The bills shall be subject
to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or here
after imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local
taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United
States shall be considered to be interest. Under Sections 42 and 117(a)(1) of the Internal Revenue Code, as amended by
Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent
purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Friday, September 3, 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.
(CLOSIN G D A Y FOR RECEIPT OF TENDERS IS F R I D A Y , SEPTEM BER 3 , 1 9 5 4 )
RESULTS OF B ID D IN G FOR TR E A SU R Y BILLS
D A T E D SEPTEMBER 2, 1954 W ERE N O T A V A IL
ABLE W H E N TH IS C IR C U L A R W AS PR IN TE D .
( over )
31 Y
IM PORTANT— Please note that tenders for this issue must be received not later than 2
p.m., Eastern Daylight Saving time, Friday, September 3, 1954.
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 noncom petitive
basis, fill in only the maturity value in paragraph headed "Noncompetitive Bid.” DO
N O T fill in both paragraphs on one fo rm . 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 9 1-D A Y T R E A SU R Y BILLS
Dated September 9, 1954
To
F ed era l R eserve B a n k o f N ew
Maturing December 9, 1954
Dated at ..............................................
Y ork ,
1954
Fiscal Agent o f the United States.
COMPETITIVE BID
NONCOMPETITIVE BID
Pursuant to the provisions o f Treasury
Department Circular No. 418, Revised, and to
the provisions o f the public notice on August 31,
1954, as issued by the Treasury Department, the
Pursuant to the provisions o f Treasury
Department Circular No. 418, Revised, and to
the provisions of the public notice on August 31,
1954, as issued by the Treasury Department,
the undersigned offers a noncompetitive tender
undersigned o f f e r s
* for a
for a total amount of $ ..........................................
(Rate per 100)
(Not to exceed $200,000)
total amount o f $ .................................... (maturity
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 below:
(maturity value) o f the Treasury bills therein
described, at the average price (in three decimals)
o f 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 to .................. $.......................................
amounting to .................. $_____________________
□
□
By cash or other immediately available funds
*Price must be expressed on the basis o f 100, zvith not
more than three decimal places, fo r example, 99.925.
By surrender of maturing Treasury bills
By cash or other immediately available funds
1
The Treasury bills for which tender is hereby made are to be dated September 9, 1954, and are to
mature on December 9. 1954.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
Name of Bidder
B y .............
(Please print)
(Official signature required)
(Title)
Street Address
(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)
IMPORTANT INSTRUCTIONS:
1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000
(maturity value).
2. If the person making the tender is a corporation, the tender should be signed by an officer of the corpora
tion authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a
representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
member of the firm, who should sign in the form “ ............................................................................................. . a copartnership, by
.............................................................................................................................. . a member of the firm.”
3. Tenders will be received without deposit from incorporated banks and trust companies and from respon
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent
of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment
by an incorporated bank or trust company.
4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
Treasury, is material, the tender may be disregarded.
Paym ent b y cred it through T reasury T a x and Loan A cco u n t -will n ot be perm itted.
TEN
TB—
1262-a
(OVER)
@FedFRASER