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FEDERAL RESERVE BANK O F NEW YORK r Circular No. 4 147"1 Fiscal Agent of the United States LSeptember 23, 1954 J O fferin g o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T rea su ry B ills Dated September 30, 1954 Maturing December 30, 1954 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f a notice published tod ay: 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 , Thursday, September 23, 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 30, 1954, in the amount of $1,500,616,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated September 30, 1954, and will mature December 30, 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 Standard time, Monday, September 27, 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 30, 1954, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 30, 1954. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made tor 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 Standard time, Monday, September 27, 1954, at the Securities 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, 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 lla n S proul , President. Results o f last offering o f Treasury bills (91-day bills dated September 2 3 , 1954, maturing December 2 3 , 1954) Total applied for ...$2,240,629,000 Total accepted . . . .$1,500,201,000 (includes $278,636,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Average price . . . 99.751 Equivalent rate of discount approx. 0.986% per annum „ , t . .... . ., Range of accepted competitive bids: High .................. 99.754 Equivalent rate of discount approx. 0.973% per annum t nw no 749 Fmiivalent rate of discount L ° W ..................... " aoorox 993% approx. O 0.996 7c ner per annum annum (24 percent of the amount bid for at the low price was accepted) Federal Reserve Total Total District Applied fo r Accepted Boston* ^1 014 000 « 7 1 OOT 000 New York 1,588,333,000 975,’353,’000 Philadelphia .................. 34,697,000 18,697,000 Cleveland .........................60,042,000 51,778,000 Richmond ....................... 22,052,000 17,040,000 Atlanta ............................. 26,336,000 23,010,000 Chicago ........................... 215,972,000 184,532,000 St; Louis ......................... 18,084,000 15,334,000 Minneapolis .................. 19,943,000 15,875,000 Kansas City .................. 45,772,000 32,867,000 Dallas ............................... 49,254,000 47,134,000 San Francisco ............... 129,130,000 95,578,000 ------------------------------------------T otal ....................... $2,240,629,000 $1,500,201,000 ( over ) 32 B 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.” D O N O T fill in b oth 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 91 -D A Y T R E A S U R Y BILLS M aturin g D ecem ber 3 0 , 1 9 5 4 D a te d September 3 0 , 1 9 5 4 To Dated at F ed era l R eserve B a n k o f N ew 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 September 23, 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 September 23, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender .* for a undersigned offers for a total amount o f $ .......................................... (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) 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: □ ....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, with not more than three decimal places, fo r example, 99.925. By surrender of maturing Treasury bills By cash or other immediately available funds I The Treasury bills for which tender is hereby made are to be dated September 30, 1954, and are to mature on December 30, 1954. This tender will be inserted in special envelope marked "Tender fo r Treasury Bills.” N a m e o f B id der B y ............. (Please print) (Official signature required) (Title) Street A d d ress (City, Town or Village, P. O. No., and State) I f this ten der is su b m itted b y a ba n k fo r th e a cco u n t o f a cu stom er, in dica te th e cu sto m e r’ s nam e o n lin e b e lo w : (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. P aym ent b y cred it through T reasu ry T a x and Loan A cco u n t w ill n ot be perm itted. DigitizedTENTB— for FRASER 1265-a (OVER)
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