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FED ERAL RE SE R V E BANK O F N EW YO RK Fiscal Agent of the United States ° L f cjrcu,ar,No- J4*®° 1 N o v e m b e r 4, 1954 O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 90-D ay Treasury B ills Dated November 12, 1954 Maturing February 10, 1955 T o all Incorporated Banks and T rust Companies, and Others 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 , Th ursd ay, N ovem ber 4, 1954. TREASU RY D EPARTM EN T W ash in gton . T h e T reasu ry Departm ent, by this public notice, invites tenders fo r $1,500,000,000, or thereabouts, o f 90-day T reasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing N ovem ber 12, 1954, in the amount o f $1,500,754,000, to be issued on a discou nt basis under com petitive and noncom petitive b idding as h ereinafter provided . T h e bills o f this series w ill be dated N ovem ber 12, 1954, and w ill mature F ebru ary 10, 1955, w hen the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity va lu e). T en ders w ill be received at Federal Reserve Banks and Branches up to the clo s in g hour, tw o o ’c lo ck p.m., Eastern Standard time, M on day, N ovem ber 8, 1954. T en ders w ill not be received at the T reasu ry D epartment, W a sh in gton . E ach tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust be expressed 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 u rged that tenders be m ade on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied b y Federal R eserve Banks o r Branches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n a ccou nt. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. Tenders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an in corporated bank o r trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be m ade by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the right to accept o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders fo r $200,000 or less w ithout stated price from any one bidder w ill be accepted in full at the a verage price (in three decim a ls) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be made o r com pleted at the F ed eral R eserve Bank on N ovem ber 12, 1954, in cash o r oth er im m ediately available funds o r in a like fa ce am ount o f T reasu ry bills m aturing N ovem b er 12, 1954. Cash and exch an ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r dilferen ces betw een the par value o f m aturing bills accepted in exch an ge and the issue price o f the new bills. T h e incom e derived from T reasu ry b ills, w hether interest o r gain from the sale or other disp osition o f the b ills, shall n ot have any exem ption, as such, and loss fro m the sale or other disp osition o f T reasu ry bills shall n ot have any special treatment, as such, under the Internal Revenue Code, or law s am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift, or oth er e x cis e taxes, w hether Federal o r State, but shall be exem pt from a ll taxation n ow o r hereafter im posed on the principal or interest th ereof b y any State, o r any o f the possessions o f the U n ited States, o r b y any loca l taxing authority. F o r purposes o f taxation the am ount o f discou n t at w hich T reasu ry bills are origin a lly so ld b y the U nited States shall be con sidered to be interest. U nder Sections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue Code, as amended b y S ection 115 o f the R evenue A ct o f 1941, the amount o f discou nt at w hich bills issued hereunder are sold shall not be con sidered to accrue until such bills shall be sold, redeem ed o r oth erw ise disposed o f, and such bills are e xclu ded from con sideration as capital assets. A cco rd in g ly , the ow n er o f T rea su ry bills (oth er than life insurance com panies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid fo r such bills, w hether on origin a l issue or on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity du rin g the taxable year for w hich the return is made, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu lar N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con ditions o f their issue. Copies o f the circu la r m ay be obtained from any Federal R eserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, November 8, 1954, at the Securi ties 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, subject 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 November 4, 1954, maturing February 3, 1955) T o ta l applied f o r .........$2,184,616,000 T o ta l a c c e p t e d ............. $1,500,836,000 (in clu des $207,336,000 entered on a noncom petitive basis and accepted in fu ll at the a ver age price shown b elow ) A vera ge p r ic e ........... 99.741-f-E quivalent rate o f discount approx. 1.023% per annum R ange o f accepted com petitive b id s : (E x ce p tin g one tender o f $50,000) H i g h ........................... 99.755 Equivalent rate o f discount approx. 0.969% per annum L o w ............................. 99.739 E quivalent rate o f discount approx. 1.033% per annum (38 percent o f the amount bid fo r at the low price was accepted) Federal R eserve D istrict B oston ............................. $ N ew Y o r k ....................... P h iladelphia ................. C leveland ....................... R ich m on d ....................... A tlanta ........................... C h ica go ......................... St. L ou is ....................... M in n e a p o lis ................... K ansas C i t y ................... D allas ............................. San F r a n c is c o ............... T o ta l ....................... Total A pplied fo r 35,900,000 1,535,503,000 29,173,000 67,362,000 19,858,000 29,702,000 276,741,000 25,257,000 14,488,000 27,780,000 37,147,000 85,705,000 $2,184,616,000 http://fraser.stlouisfed.org/ Please note that the current offering is for 90-day Treasury bills. Federal Reserve Bank of St. Louis Total A ccepted $ 34,780,000 925,543,000 13,553,000 60,712,000 19,858,000 29,154,000 241,159,000 25,257,000 14,488,000 27,580,000 28,527,000 80,225,000 $1,500,836,000 ( over ) 32 H IMPORTANT—Please note that this offering is for 90-day Treasury bills, which will be dated Friday, November 12, 1954, because Thursday, November 11, will be Veterans Day. 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 FO R 9 0 -D A Y T R E A S U R Y B IL L S Maturing February 10, 1955 Dated November 12, 1954 To F ederal R eserve B ank of N ew Y Dated a t ....................... ork, Fiscal Agent o f the United States. 1954 COMPETITIVE BID Pursuant to the provisions of Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on November 4, 1954, as issued by the Treasury Department, the undersigned offers ........................................ * for a total amount of NONCOMPETITIVE BID Pursuant to the provisions of Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on November 4, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender for a total amount of $ .......................................... ( R a t e p er 100) ( N o t t o c x c e e d $200,000) $ ................................................. (maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement 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 deci mals) 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 t o ................. $_____________________ □ By cash or other immediately available funds By surrender of maturing Treasury bills amounting t o ................. $_____________________ □ By cash or other immediately available funds * P r ic e must be expressed on the basis o f 100, with not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated November 12, 1954, and are to mature on February 10, 1955. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id der ........................................................................................................................................... ( P le a s e p r in t ) By (Title) (O ffic ia l s ig n a tu r e r e q u ir e d ) Street A d d ress ............................................ ( C it y , T o w n o r V i l la g e , P . O . N o ., a n d S ta te ) I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N a m e o f C u s to m e r ) ( C it y , T o w n o r V i l la g e , P . O. N o ., a n d S ta te ) IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less $1,000 (m atu rity va lu e). than $1,000 w ill be con sidered, and each tender must be f o r an even m ultiple o f 2. I f the person m akin g the tender is a corp ora tion , the tender should be sign ed b y an officer o f the corp ora tion authorized t o make the tender, and the sign in g o f the tender by an officer o f the corp ora tion w ill be construed as a rep resentation by him that he has been so authorized. I f the tender is made b y a partnership, it should be signed b y a m em ber o f the firm, w h o should sign in the form “ ................................................................................................................. a copartnership, by ........................................................................................ ............................ a m em ber o f the firm.” 3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en ders from others must be accom panied b y paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an in corporated bank o r trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the S ecreta ry o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. TENTB—1271-a ( over )
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