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 C ircu la r N o . 4 1 5 6 1 O cto b e r 2 1 , 1954 J [ Fiscal Agent of 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 October 28, 1954 Maturing January 27, 1955 T o all In corpora ted B anks and Tru st Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of 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 , O c t o b e r 21, 1954. TREASURY DEPARTM ENT W a sh in g to n T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, in vites ten ders f o r $1,500,000,000, or th ereabouts, o f 91-day T re a su ry bills, f o r cash and in e x ch a n g e fo r T r e a s u ry bills m aturing O c t o b e r 28, 1954, in the a m ou n t o f $1,500,200,000, t o be issued on a d isco u n t basis under com p etitive and n on com p etitiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill b e dated O c t o b e r 28, 1954, and w ill m ature Janu ary 27, 1955, w h en the fa ce a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill b e issued in b ea rer fo r m o n 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 b e receiv ed at F ed era l R e serv e B anks and B ran ches up to th e c lo s in g h ou r, tw o o ’ c lo c k p.m ., E astern Standard tim e, M o n d a y , O c t o b e r 25, 1954. T en d ers w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E a ch ten der m u st be f o r an even m u ltiple o f $1,000, and in the ca se o f com p etitive ten ders th e p r ice o ffe re d m u st be ex p resse d on the basis o f 100, w ith n ot m ore than th ree decim als, e. g., 99.925. F ra ction s m ay n ot be u sed. It is u rg ed that ten ders be m ade on the printed fo rm s a n d fo rw a rd e d in th e special en v elop es w h ich w ill b e sup plied b y F ed eral R es e rv e B anks o r B ra n ch es o n a pp lication th erefor. O th e rs than b a n k in g in stitu tions w ill n ot b e perm itted to su b m it ten ders e x ce p t fo r their o w n a ccou n t. T en d ers w ill be received w ith ou t d ep o sit fro m in corp ora ted banks and trust com p a n ies and fro m resp on sib le and r e co g n iz e d 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 the fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r, u nless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t b y an in corp ora ted b a n k o r trust com p a n y . Im m e d ia te ly after th e clo s in g h ou r, ten ders w ill be op en ed at the F ed era l R e serv e B anks and B ran ches, fo llo w in g w h ich p u b lic an n ou n cem en t w ill be m ade b y the T r e a s u ry D ep a rtm en t o f the a m ou n t and p r ice ra n ge o f a cce p te d bids. T h o s e su b m ittin g ten ders w ill be advised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e T r e a s u ry ex p re s sly reserves the righ t t o a cce p t o r reject a n y o r all ten ders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b je ct to th ese reserva tion s, n on com p etitiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y on e b idd er w ill be a ccep ted in full at the a vera ge p rice (in th ree d e c im a ls ) o f a ccep ted co m p e titiv e bids. S ettlem en t fo r a cce p te d tenders in a cco rd a n ce w ith the b id s m u st b e m ade o r com p le te d at the F ed eral R e serv e B ank on O c t o b e r 28, 1954, in cash o r oth er im m ediately available fu n ds o r in a like fa ce a m ou n t o f T rea su ry bills m atu rin g O c t o b e r 28, 1954. Cash and ex ch a n g e ten ders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces b etw een the par valu e o f m a tu rin g bills a cce p te d in ex ch a n g e and th e issue p r ice o f th e 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 sale o r oth er d isp osition o f th e bills, shall n ot have a n y e x e m p tion , as such, and lo s s fro m the sale o r oth er d isp osition o f T r e a s u ry bills shall n ot have a n y sp ecia l treat m en t, as such, under the Internal R even u e C ode, o r law s a m en d a tory o r su p p lem en ta ry th ereto. T h e bills shall b e s u b je ct to estate, inheritance, g ift, o r oth er excise taxes, w h eth er F ed eral or State, but shall b e exem p t from all ta xation n o w o r h ere after im p o se d on the principal o r interest th ereof b y any State, o r a n y o f the p ossession s o f the U n ited States, o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T r e a s u ry bills are o rig in a lly s o ld b y th e U n ited States shall be co n sid ered to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the In tern al R even u e 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 d iscou n t at w h ich bills issued h ereun der are sold shall n o t be con sid ered to a ccru e until such bills shall be sold, red eem ed or oth erw ise disp osed o f, and such bills are exclu d ed fr o m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued h ereun der need in clude in his in co m e ta x return o n ly th e differen ce betw een the p rice pa id fo r such bills, w h eth er on origin a l issue o r o n subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m atu rity du rin g the ta xab le y e a r f o r w h ich the return is m ade, as o rd in a ry ga in o r loss. T r e a s u ry D ep a rtm en t C ircu lar N o . 418, R evised , and this n otice, p rescrib e the term s o f th e T rea su ry bills and g o v e rn th e co n d itio n s o f their issue. C op ies o f th e circu la r m a y b e ob ta in ed fr o m a n y F ed era l R es e rv e B ank o r B ra n ch . This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, October 25, 1954, at the Securities Department of 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 for 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 October 21, 1954, maturing January 20, 1955) T o ta l a p p lied f o r ........... $2,185,113,000 T o t a l a c c e p t e d ................$1,500,256,000 (includes $245,062,000 entered on a noncompetitive basis and accepted in full at the average price show n below ) A verage price ........... 99.745 Equivalent rate o f discount approx. 1.009% per annum Range o f accepted competitive b id s : H igh ........................... 99.765 Equivalent rate o f discount approx. 0.930% per annum L o w ............................. 99.743 Equivalent rate o f discount approx. 1.017% per annum (59 percent o f the amount bid for at the low price was accepted) F ed era l R eserv e D istrict Boston ....................... N ew Y o rk ............... Philadelphia ............ Cleveland ................. Richm ond ................. Atlanta ....................... Chicago ..................... St. Louis ................... M in n e a p o lis ............... Kansas City ............. Dallas ......................... San F r a n c is c o .......... T otal A pplied f o r $ 35,727,000 1,600,993,000 31,236,000 45,179,000 15,786,000 26,412,000 211,029,000 32,907,000 14,238,000 45,992,000 25,571,000 100,043,000 $2,185,113,000 T o ta l A ccep ted $ 34,227,000 1,014,313,000 16,236,000 43,179,000 15,081,000 25,948,000 156,519,000 30,857,000 13,738,000 43,382,000 25,489,000 81,287,000 $1,500,256,000 ( over ) 32 F IMPORTANT— 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 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 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 S U R Y BILLS Maturing January 27, 1955 Dated October 28, 1954 To F ederal R eserve B a n k o f N e w Dated at Y o r k , Fiscal Agent of the United States. 1954 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on October 21, 1954, as issued by the Treasury Department, the Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on October 21, 1954, as issued by the Treasury Department, the the undersigned offers a noncompetitive tender undersigned o ffe r s .....................................* for a (R a t e p e r 100) total amount of $ ................................. (maturity value) of 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: for a total amount of $ ........................................... ( N o t to e x ce e d $20 0 ,0 0 0 ) □ By surrender of maturing Treasury bills amounting to ..................$____________________ (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 of maturing Treasury bills amounting to ................. $____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds *P rice must be ex p ressed on the basis o f 100, w ith tiot m ore than th ree decim al places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated October 28, 1954, and are to mature on January 27, 1955. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N a m e o f B id d er ............................................... (P le a s e p rin t) B y. (O fficia l sig n atu re re q u ire d ) (T itle ) S treet A d d re s s (C ity , T o w n o r V illa g e , P . O . N o ., and S tate) I f this te n d e r is su b m itted b y a b a n k f o r th e a cco u n t o f a cu stom er, in dicate th e cu sto m e r’ s n am e o n lin e b e lo w : (N a m e o f C u sto m e r) (C it y , T o w n o r V illa g e , P . O . N o ., a n d S tate) IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill b e con sidered, and each ten der m u st b e fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f th e person m a k in g the ten der is a co rp o ra tio n , the ten der sh ou ld b e sign ed b y an officer o f the c o rp o ra tion a u th orized to m a k e th e tender, and the sign in g o f the ten der b y an officer o f th e co rp o ra tio n w ill be con stru ed as a rep resen tation b y h im that he has been s o a uthorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a m em b er o f th e firm , w h o sh ou ld sign in the fo r m “ ...................................................................................................... a cop artn 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 d ep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m re s p o n sible and re co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m ust be a cco m p a n ie d b y p a ym en t o f 2 p ercen t o f th e 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 co rp o ra ted b a n k o r trust com p a n y . 4. I f th e la n g u a ge o f this tender is ch a n ged in any respect, w h ich , in th e op in ion o f the S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m a y be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. TENTB— 1269-a (OVER)
@FedFRASER