The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E BAN K O F N E W Y O R K Circular No. 4 1 6 7 1 November 25,1954 J Fiscal Agent of the United States Offering of $1,500,000,000 of 91-Day Treasury B ills Dated December 2, 1954 Maturing March 3, 1955 To all Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserve D istrict: 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, N o v e m b e r 25, 1954. . . ?l TREASURY DEPARTM ENT W a s h in g to n T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders for $1,500,000,000, or thereabouts, o f 91-day T re a su ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g D e ce m b e r 2, 1954, in the a m ou n t o f $1,500,236,000, t o be issued on a discou n t basis under com petitive and n on com p etitive b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated D e ce m b e r 2, 1954, and w ill m ature M a rch 3, 1955, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill b e issued in bearer fo rm 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 Federal R eserve Banks and B ran ches up to the closin g hour, tw o o ’ c lo ck p.m ., E astern Standard tim e, M o n d a y , N ov em b er 29, 1954. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a sh in g ton . E ach tender m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m ust be ex p resse d 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 o n the printed fo rm s and forw a rd ed in the special en velopes w hich w ill be supplied b y Federal R eserve B anks o r B ran ches o n application therefor. O th ers than b ankin g institutions w ill n ot be perm itted to subm it tenders ex cep t fo r their ow n a ccou n t. T en d ers w ill be received w ith ou t d ep osit fro m in corp ora ted banks a n d trust com pa n ies and fro m respon sible and recog n ized dealers in in vest m ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 percent o f the face am ou nt o f T rea su ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely after the closin g h ou r, tenders w ill be op en ed at the Federal R eserve Banks and B ran ches, fo llo w in g w hich pu blic a n n ou n cem en t w ill be m ade b y the T rea su ry D epartm en t o f the am ount and price ran ge o f a ccep ted bids. T h o s e subm itting tenders w ill be advised o f the a ccep ta n ce or rejection th ereof. T h e S ecretary o f the T reasu ry exp ressly reserves the right to a ccep t o r re je ct any or all tenders, in w h ole or in part, and his action in a n y such respect shall be final. S u b ject to these reserva tion s, n on com petitive tenders fo r $200,000 or less w ith ou t stated price fro m a n y on e bidder w ill be a ccep ted in full at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a cco rd a n ce w ith the bids m u st be m ade or com pleted at the F ed eral R es e rv e Bank on D ecem b er 2, 1954, in cash o r oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m a tu rin g D ecem b er 2, 1954. Cash and exch a n ge tenders w ill re ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m aturing bills a ccep te d in exch ange and the issue price o f the new bills. T h e in co m e derived fro m T rea su ry bills, w h eth er interest or gain fro m the sale o r oth er disp osition o f the bills, shall n o t have any exem p tion , as such, and loss fro m th e sale or oth er disp osition o f T rea su ry bills shall n ot have a n y special treat m ent, as such, under the Internal R even u e C ode, o r la w s am en da tory o r supplem entary th ereto. T h e bills shall b e su b je ct t o estate, inheritance, gift, or oth er excise taxes, w h eth er Federal or State, but shall be exem p t fr o m all taxation n o w o r h ere after im p o se d on the principal o r interest th ereof b y a n y State, or any o f the possession s o f the U n ited States, o r b y a n y loca l ta x in g authority. F o r pu rposes o f taxation the am ou nt o f d iscou n t at w hich T rea su ry bills are origin a lly sold b y the U n ited States shall be con sidered to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the Internal 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 am ou nt o f d iscou n t at w h ich bills issued h ereunder are s o ld shall n ot be con sidered t o a ccru e until such bills shall be sold , redeem ed o r oth erw ise disp osed of, and such bills are exclu d ed fro m con sideration as capital assets. A c co r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance com p a n ies) issued hereun der need in clu de in his in co m e ta x return on ly the differen ce betw een the price paid fo r such bills, w h eth er on original issue o r o n sub sequent purchase, and the am ount actu ally receiv ed either u pon sale o r red em ption at m atu rity d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain or loss. T re a su ry D epartm en t Circular N o . 418, R evised , and this n otice, prescribe the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C opies o f the circular m a y be obtain ed fr o m a n y F'ederal R e serv e B a n k o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, November 29, 1954, at the Securi ties Department o f 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 llan S proul, President. Results o f last offering o f Treasury bills (90-day bills dated November 26, 1954, maturing February 24, 1955) T ota l applied f o r .......... $2,126,520,000 T o ta l a cce p te d ...............$1,500,115,000 (in clu des $224,164,000 entered on a n on com petitive basis and a ccepted in full at the average price show n b elow ) A vera g e p rice ........ 99.776 E quivalent rate o f discou nt a p p rox. 0.897% per annum R a n g e o f a ccep ted com petitive bids: E quivalent H i g h .......................... 99.782 0.872% per L o w .......................... 99.771 E quivalent 0.916% per rate o f discount annum rate o f discount annum (88 percent o f the am ount bid fo r at the low p rice w as accep ted) Federal Reserve District B oston ....................... .... N ew Y o r k ................. .... R ich m on d ................... A tlanta ........................ St. L ou is ..................... M in n eap olis .............. K ansas C ity ............... Dallas .......................... San F ra n cisco .......... T otal ............................ Total Applied fo r $ 15,820,000 1,536,005,000 25,624,000 54,032,000 17,314,000 21,386,000 215,137,000 21,581,000 23,030,000 48,820,000 57,701,000 90,070,000 $2,126,520,000 Please n ote th a t th e results show n a b ov e are f o r 9 0 -d a y T re a su ry Bills. Total Accepted $ 15,820,000 970,925,000 10,424,000 52 927 000 17,314,000 21,326,000 179,777,000 21,481,000 21,230,000 47,620,000 51,201,000 90,070,000 $1,500,115,000 ( over) 32 K IM PORTANT— 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 N O T fill in both paragraphs on one form , A separate tender must be used fo r each bid, except that banks submitting bids on a competitive basis fo r their own and their customers* accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and method o f payment. Forms fo r this purpose w ill be furnished upon request. N o_____________ TEN D ER FO R 91 -D AY TREASU RY BILLS Maturing March 3, 1955 Dated December 2, 1954 To Dated at. F ederal R e ser v e B a n k of N ew Y ork, Fiscal Agent o f the United States. .1954 COMPETITIVE BID NONCOMPETITIVE BID Pursuant to the provisions o f Treas ury Department Circular No. 418, Revised, and to the provisions o f the public no tice on November 25, 1954, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions of Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on November 25, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender ------------------------------------- * for a total amount of for a total amount of $_ (Rate per 100) (N ot to exceed $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) o f 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: □ □ $- By surrender of maturing Treasury bills By surrender of maturing Treasury bills amounting t o .......................$____________________ amounting to .......................$ ____________________ □ □ By cash or other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis o f 100, with not more than three decimal places, for example, 99.925. The Treasury bills for which tender is hereby made are to be dated December 2, 1954, and are to mature on March 3, 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name o f B i d d e r ................................................ . ............................................... ......................................... (Please print) By., (Official signature required) (Title) Street Address. (City, Town or V illage, P. O. N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Nam e o f Customer) (City, Tow n or Village, P . O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sidered, and each tender m u st be fo r an even m ultiple o f $1,000 (m atu rity va lu e). 2. I f the person m ak in g the ten der is a corp ora tion , the tender should b e signed b y an officer o f the c o rp o ra tion authorized t o m ake th e tender, and the sig n in g o f the tender b y an officer o f the co rp o ra tio n w ill be con stru ed as a representation by him that he has been s o authorized. I f the tender is m ade b y a partnership, it sh ou ld be signed b y a m em ber o f the firm , w h o shou ld sign in the fo r m “ ........................... .......................................................................... . a copartn ersh ip, b y __. . . ...................... ....... . . . .... .. ______________, a m em ber o f the firm .” 3. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corpora ted banks an d trust com panies and fro m resp on sible and recog n ized dealers in investm ent securities. T en d ers fro m others m u st be a ccom p a n ied b y paym ent o f 2 percent o f the face am ount o f T rea su ry bills applied fo r, unless the tenders are accom panied b y an exp ress gu aranty o f paym ent b y an in corpora ted bank o r trust com pany. 4. I f th e language o f this tender is ch an ged in any respect, w hich, in the op in ion o f the Secretary o f the T reasu ry, is m aterial, the tender m a y b e disregarded. http://fraser.stlouisfed.org/Payment by credit through Treasury T ax and Loan Account will not be permitted. TEN T B — 1274-a Federal Reserve Bank of St. Louis (over)
@FedFRASER