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FEDERAL RESERVE BANK O F N EW YORK [C ir c u la r No. 4 1 4 4 1 I Septem ber 16,1954 J Fiscal Agent o f the United States O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated September 23, 1954 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Maturing December 23, 1954 . 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 u rsd a y, S ep tem ber 16, 1954. TREASU RY DEPARTM EN T W a sh in g ton T h e T r e a s u ry D epartm en t, b y this p u b lic n otice, invites ten ders fo r $1,500,000,000, or thereabouts, o f 91-day T re a su ry b ills, fo r cash and in exch a n ge fo r T reasu ry bills m atu rin g S ep tem ber 23, 1954, in the a m ou n t o f $1,500,973,000, t o be issued o n a discou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated S ep tem ber 23,1954, and w ill m ature D e ce m b e r 23,1954, w h en the face a m ou n t w ill be pa ya b le w ith ou t in te re s t T h e y w ill be issued in bearer fo r m on ly, and in den om in ation 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 era l R eserve Banks and B ran ch es up t o the clo s in g h ou r, tw o o ’ c lo c k p.m ., E astern D a y ligh t S a vin g tim e, M on d a y , S ep tem ber 20, 1954. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a sh in g ton . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in th e case o f com p etitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith n ot m o re than th ree decim als, e .g ., 99.925. F raction s m a y 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 v elop es w h ich w ill be supplied b y F ed eral R eserve B anks o r B ran ches o n application th erefor. O th e rs than b a n k in g institutions w ill n ot b e perm itted t o su b m it tenders e x cep t fo r th eir o w n a c c o u n t T en d ers w ill be re ce iv e d w ith o u t d ep osit fr o m in corp ora ted banks a n d trust com pa n ies a n d fr o m resp on sib le and recog n ized dealers in in vest 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 pa ym en t o f 2 p ercen t o f th e face a m ou n t o f T rea su ry bills a pplied fo r , unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted ba n k o r trust com p a n y . Im m ed ia tely after the clo s in g h our, tenders w ill b e op en ed at the F ed eral R es e rv e Banks and B ran ches, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill b e m a d e b y th e T rea su ry D epartm en t o f th e a m ou n t a n d p rice ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f th e T rea su ry ex p ressly reserves th e rig h t t o a cce p t o r re je ct a n y o r all ten ders, in w h o le o r in part, a n d his a ction in a n y such resp ect shall b e final. S u b je ct t o these reservations, n on com p etitive ten ders f o r $200,000 o r less w ith ou t stated p rice fr o m a n y o n e b id d er w ill b e a ccep ted in fu ll at the a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitive bids. Settlem ent f o r a ccep ted tenders in a ccord a n ce w ith the bids m u st b e m ade or com p leted at th e F ed eral R e serv e B a n k on S ep tem ber 23, 1954, in cash o r oth er im m ediately available fu n ds o r in a like face a m ou n t o f T rea su ry bills m aturing S ep tem ber 23, 1954. Cash and ex ch a n g e tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill b e m a d e fo r d ifferen ces betw een th e par valu e o f m atu rin g bills a ccep te d in exch a n ge and the issue p rice o f the n ew bills. T h e in co m e d erived fr o m T r e a s u ry bills, w h eth er in terest o r gain fr o m the sa le o r o th e r d isp osition o f th e b ills, shall not have a n y exem p tion , as such, and lo s s fr o m th e sale o r oth er d isp osition o f T rea su ry bills shall n ot have a n y sp ecia l treat m en t, as su ch , u n d er the In tern al R e v en u e C od e, o r la w s a m en d a tory o r su p plem en ta ry th ereto. T h e bills shall b e su b ject t o estate, inheritance, g ift, o r oth er ex cise taxes, w h eth er F ed eral o r State, b u t shall be exem p t fr o m a ll ta xation n o w o r here a fter im p o se d o n the principal o r interest th ereof b y a n y State, o r a n y o f the possession s o f th e U n ited States, o r b y a n y local ta x in g authority. F o r pu rposes 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 rigin a lly s o ld b y th e U nited States shall be co n sid ered t o b e in te re s t U n d er S ection s 42 and 1 1 7 (a )(1 ) o f th e In tern al R even u e C od e, a s a m en ded b y S e ctio n 115 o f th e R even u e A c t o f 1941, th e a m ou n t o f d iscou n t a t w h ich b ills issued hereunder are s o ld shall n o t be con sidered t o a ccru e until such bills shall b e sold , red eem ed o r oth erw ise disp osed o f , and su ch bills are ex clu d ed fro m con sidera tion as capital assets. A c co r d in g ly , th e o w n e r o f T rea su ry bills (o th e r than life in su rance com p a n ies) issued hereun der need in clu de in his in co m e ta x return o n ly th e differen ce betw een th e price pa id f o r such b ills, w h eth er on origin a l issue o r on sub sequen t pu rch ase, and the a m ou n t a ctu a lly receiv ed either u pon sale o r red em ption at m atu rity d u rin g the ta x a b le yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss. -. \ ..W T re a su ry D epa rtm en t Circular 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 th e con d ition s o f th eir issue. C op ies o f th e circular m a y b e ob ta in ed fr o m a n y F ed eral R es e rv e B a n k o r B ran ch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, September 20,1954, at the Securi ties Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f 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 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. Results of last offering of Treasury bills (91-day bills dated September 16, 1954, maturing December 16, 1954) T o ta l applied f o r .......... $2,460,361,000 T o ta l a c c e p t e d ............ $1,500,043,000 (in clu d es $283,553,000 entered on a n on com p etitive basis and a ccep ted in fu ll at the a verage price show n b e lo w ) A v e ra g e p r ice ........ 99.741-j- E quivalent rate o f discou n t a p p rox. 1.024% p er annum R a n ge o f a ccep ted com petitive b id s: H i g h .......................... 99.752 E quivalent rate o f discount approx. 0.981% per annum L o w .......................... 99.739 E quivalent rate o f discount a pp rox. 1.033% per annum (34 percent o f the amount bid for at the low price was accepted) Federal Reserve District B o s to n ............................ ,. N e w Y o r k ., Ph iladelphia ;.. C levela n d ........ R ich m o n d ...... A tla n ta ........... C h ica g o ........... St. L o u is .......... M in neapolis .... K ansas C ity .... D allas ........ . San F ra n cisco T o t a l .......................... Total Applied fo r $ Total Accepted 35,284,000 1,742,420,000 38.034.000 48.204.000 19.881.000 44.409.000 219.041.000 25.944.000 19.537.000 69.454.000 63.173.000 134.980.000 33.124.000 907.525.000 16.239.000 46.204.000 19.881.000 43.245.000 183.261.000 25.416.000 19.537.000 63.694.000 56.193.000 85.724.000 $2,460,361,000 $1,500,043,000 ( over ) 32 A 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 b oth 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 of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. N o _______________ T E N D E R F O R 91-D A Y T R E A SU R Y BELLS Dated September 23, 1954 Maturing December 23, 1954 Dated at. T o F e d e r a l R e ser v e B a n k o f N e w Y o r k , F iscal A g e n t o f the U nited States. — 1954 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f T reas u ry D epartm ent C ircular N o . 418, R evised, and to the provisions o f the public n o tice on- Septem ber 16, 1954, as issued b y the T reasu ry Departm ent, the undersigned offers Pursuant to the provisions o f T reasu ry D e partment C ircular N o . 418, R evised , and to the provisions o f the public notice on Septem ber 16, 1954, as issued b y the T reasu ry Department, the undersigned o ffers a noncom petitive tender —----- !------------------ ------------- * fo r a total am ount o f fo r a total am ount o f $- (Rato per 100) (Not to exceed $200,000) -____________ (m atu rity value) o f the T reasu ry bills therein described, o r fo r any less am ount that m ay be awarded, settlement th erefor to b e m ade at y o u r Bank, on the date stated in the public notice, as indicated b e lo w : (m aturity valu e) o f the T reasu ry 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 y o u r Bank, on the date stated in the public notice, as indicated b e lo w : □ □ By surrender o f m aturing T reasu ry bills By surrender o f am ounting to ......................... $ ____________ :_________ am ounting to ................ .. Q □ B y cash o r oth er im m ediately available funds m aturing T reasu ry bills $ _____________________ B y cash or other im m ediately available funds *Price must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. ... T h e T reasu ry bills fo r w hich tender is hereby made are to be dated Septem ber 23, 1954, and are to mature on Defcember 23, 1954. This tender will be inserted in special envelope marked “ Tender for Treasury Bills." -' ' •' N a m e o f B id d er ............... ........ ................................................................................................................. . (Please print) Jj; B y. (Official signature required) (Title) Street A dd ress. '• I f th is ten der (City, Town or VUlage, P. O. No., and State) is su b m itted b y a ba n k f o r th e a cco u n t o f a cu stom er, indicate th e cu stom er’ s n am e o n lin e b e lo w : (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 b e con sid ered , and each tender m u st be fo r an even m u ltiple o f $1,000 . (m a tu rity v a lu e ). 2. I f the p erson m a k in g th e ten der is a corp ora tion , the ten der sh ou ld b e sign ed b y an officer o f th e co rp o ra tio n a uthorized t o m a ke th e tender, and the sig n in g o f the ten der b y an officer o f th e corp ora tion w ill be con stru ed as a represen tation b y h im th at he has been s o authorized. I f th e ten der is m ade b y a partnership, it sh ou ld b e sign ed b y a m em b er o f the firm , w h o sh ou ld sig n 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 corp ora ted banks a n d trust com pa n ies and fro m resp o n sible and re co g n ize d dealers in in vestm en t securities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y paym ent 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 fo r, unless the 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 ba n k o r tru st com p a n y . 4. I f th e language o f this ten der is ch a n ged in a n y respect, w hich, in the o p in io n o f the S ecreta ry o f the T re a su ry , is m aterial, th e ten der m a y b e disregarded. Paym ent b y cred it through T reasury T a x and Loan A cco u n t tvill n ot be perm itted. http://fraser.stlouisfed.org/ T E N T B — 1264-a (OVER) Federal Reserve Bank of St. Louis AT O U FEDERAL RESERVE BANK O F N EW Y O R K September 16, 1954 To all Banking Institutions in the Second Federal Reserve D istrict: W e are pleased to announce that The North Fork Bank and Trust Company, Mattituck, New York, has become a member o f the Federal Reserve System effective today. The North Fork Bank and Trust Company was formerly known as The Mattituck National Bank and Trust Company. It converted to a State chartered institution under its present name on December 16, 1950, and simultaneously withdrew from member ship in order to establish an out-of-town branch. On July 15, 1952, the law was amended to revise the minimum capital requirements fo r member banks operating out-of-town branches, thus enabling The North Fork Bank and Trust Company to rejoin the Federal Reserve System. A llan S proul, President.
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