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FED ERAL RESER VE BANK O F NEW YO RK Fiscal Agent of the United States [ C ir c u la r N o . 4 1 6 1 N o v e m b e r 11, 1954 O ffering o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills Dated November 18, 1954 Maturing February 17, 1955 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve 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 ay, N ovem ber 11, 1954. TREASURY DEPARTM ENT W ash in gton T h e T reasu ry D epartm ent, b y this public notice, invites tenders fo r $1,500,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing N ovem b er 18, 1954, in the am ount o f $1,500,800,000, to be issued on a discou nt basis under com petitive and noncom petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated N ovem ber 18, 1954, and w ill mature F ebru ary 17, 1955, w h en the face am ount w ill be payable w ith ou t 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 v a 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., E astern Standard time, M on day, N ovem ber 15, 1954. T en ders w ill not be received at the T reasu ry Departm ent, 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 must be expressed on the basis o f 100, w ith not m ore than three decim als, e. g., 99.925. F raction s m ay not be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the special en velopes w hich w ill be supplied b y Federal R eserve Banks o r B ranches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t for their ow n account. 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 m ust be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T rea su ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent b y an in corpora ted bank o r trust com pany. Im m ediately a fter the closin g hour, tenders w ill be opened at the F ed eral R eserve Banks and Branches, fo llo w in g w hich pu blic announcem ent w ill be made 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 ecreta ry 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 b idd er w ill be accepted in fu ll at the a verage price (in three decim a ls) o f accepted com petitive bids. Settlem ent f o r accepted tenders in a ccord a n ce w ith the bids m ust be made or com pleted at the Federal R eserve Bank on N ovem ber 18, 1954, in cash o r oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing N ovem ber 18, 1954. Cash and exch a n ge tenders w ill re ceive equal treatment. Cash adjustm ents w ill be made fo r differences betw een the par value o f m aturing bills a ccepted in exch a n 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 oth er disp osition o f the b ills, shall not have any exem ption, as such, and loss fro m the sale o r other disposition o f T reasu ry bills shall not have any special treatment, as such, under the Internal Revenue C ode, 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 all taxation n ow o r hereafter im posed on the principal or interest th ereof by any State, or 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 amount o f discou nt at w hich T reasu ry bills are origin a lly sold 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 C ode, as amended b y Section 115 o f the R evenue A c t o f 1941, the am ount o f discou nt at w hich bills issued hereunder are so ld shall not be con sid ered to a ccru e until such bills shall be sold , redeem ed or otherw 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 reasu ry bills (oth er than life insurance co m pan ies) 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 fo r w hich the return is made, as ord in a ry gain o r loss. T reasu ry Departm ent C ircu lar N o. 418, Revised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con dition s o f their issue. Copies o f the circu la r m ay be obtained from any F ed eral Reserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, November 15, 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 inade 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 (90-day bills dated November 12, 1954, maturing February 10, 1955) T o ta l applied f o r .........$2,215,088,000 T o ta l a c c e p t e d .............$1,500,452,000 (in clu des $249,416,000 entered on a noncom petitive basis and accepted in fu ll at the aver age price show n b elow ) A v e ra g e p r ic e ........... 99.765-f E quivalent rate o f discount approx. 0.940% per annum R a n ge o f accepted com petitive b id s : H i g h ........................... 99.770 Equivalent rate a pp rox. 0.920% L o w ............................. 99.764 E quivalent rate approx. 0.944% o f discount per annum o f discount per annum (96 percent o f the am ount bid fo r at the low price w as accep ted) Federal R eserve D istrict Total A pplied fo r .. N ew Y o r k ................. P h iladelphia ............. C leveland ................... R ic h m o n d ................... A tlanta ....................... C h ica go ..................... St. L ou is ................... M in neapolis ............. K ansas City ............. San F r a n c is c o ........... T o t a l ........................ .. $ 52,661,000 1,527,806,000 29,419,000 48,397,000 17,897,000 24,718,000 209,006,000 29,213,000 34,160,000 70,831,000 69,174,000 101,806,000 $2,215,088,000 http://fraser.stlouisfed.org/ Please note that the results shown above are for 90-day Treasury Bills. Federal Reserve Bank of St. Louis Total A ccepted $ 43,239,000 923,566,000 14,419,000 41,034,000 16,859,000 23,266,000 182,266,000 24,579,000 27,010,000 67,064,000 55,061,000 82,089,000 $1,500,452,000 ( over ) 32 I 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............................ TENDER FOR 9 1 -D A Y T R E A S U R Y B ILLS Dated November 18, 1954 To F ederal R eserve B ank of N ew Y Maturing February 17, 1955 Dated at ork, Fiscal Agent of 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 11, 1954, as issued by the Treasury Department, the undersigned offers ........................................ * for a total amount of (Rate per 100) NONCOMPETITIVE BID Pursuant to the provisions of Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on November 11, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender for a total amount of $ .......................................... ( N o t to e 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 rice must be exp ressed on the basis o f 100, w ith not m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated November 18, 1954, and are to mature on February 17, 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 (O ffic ia l s ig n a tu r e r e q u ir e d ) (T itle ) 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 ) If 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 i t 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 tender fo r less than $1,000 w ill be con sidered, and each tender must be $1,000 (m atu rity va lu e). fo 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 signed b y an officer o f the corp oration authorized to 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 by a partnership, it should be signed b y a m em ber o f the firm, w ho sh ou ld 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 pa n ied b y paym ent o f 2 percent o f the fa ce am ount o f T rea su 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 or 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— 1272-a ( over )