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F E D E R A L R E SE R V E BAN K O F N EW Y O R K Fiscal Agent of the United States Offering of $1,500,000,000 of 91-Day Treasury B ills D ated D ecem b er 9, 1954 M aturing M arch 10, 1955 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve 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, D e ce m b e r 2, 1954. TREASURY DEPARTM ENT W a s h in g to n T h e T re a su ry D e p a rtm en t, b y this p u b lic n otice, in vites ten ders fo r $1,500,000,000, o r th ereabouts, o f 9 1-d ay T rea su ry bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m atu rin g D ecem b er 9, 1954, in the am ou nt o f $1,502,432,000, t o be issued on a d iscou n t basis under com p etitiv e and n on com p etitiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated D e ce m b e r 9, 1954, and w ill m ature M a rch 10, 1955, w h en the fa ce a m ou n t w ill b e pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo rm on 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 en d ers w ill be re ceiv ed a t F ed era l R e serv e B anks and B ra n ch es up to th e clo 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 , D e ce m b e r 6, 1954. T en d ers w ill n ot be received at the T rea su ry D epa rtm en t, W a sh in g ton . E a ch ten der m ust be f o r an even m u ltiple o f $1,000, and in th e ca se o f com p etitive ten ders the p r ice o ffe re d m u st be ex p resse d o n th e basis o f 100, w ith n ot m o re than th ree decim als, e. g., 99.925. F ra ction s m a y n ot be u sed. It is u rg ed that ten ders be m a d e on the printed fo rm s a n d fo rw a rd e d in th e sp ecia l en velop es w h ich w ill be supplied b y F ed eral R eserve B ank s o r B ra n ch es o n a pp lica tion 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 subm it ten ders e x c e p t f o r th eir o w n a ccou n t. T en d ers w ill be receiv ed w ith ou t d e p o s it fr o m in co rp o ra te d banks and trust com p a n ies a n d fr o m resp on sib le and re co g n iz e d dealers in in vest m en t securities. T e n d e rs fr o m oth ers m u st 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 c e a m ou n t o f T r e a s u ry bills applied for, unless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a y m en t b y an in co rp o ra te d b a n k o r trust com p a n y . Im m ed ia tely a fter the clo s in g h ou r, ten ders w ill be op en ed at the F ed era l R es e rv e B anks a n d B ra n ch es, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill be m ade b y the T rea su ry D ep a rtm en t o f th e a m ou n t and p r ice ra n g e o f a ccep ted 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 e x p re s sly reserves the righ t to a cce p t o r re je ct a n y or all tenders, in w h ole or in part, and his a ction in a n y such re s p e ct shall b e final. S u b je ct to th ese reserva tion s, n o n com p etitiv e ten ders f o r $200,000 o r less w ith ou t stated p rice fr o m a n y o n e b id d er w ill be a cce p te d in fu ll at the a vera ge p rice (in th ree d e c im a ls ) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a cce p te d ten ders in a cco rd a n ce w ith the bids m ust be m ade or com p le te d at the F ed eral R eserve Bank on D ecem b er 9, 1954, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m atu rin g D e ce m b e r 9, 1954. Cash and_ ex ch a n g e tenders w ill receive equal treatm ent. C ash adju stm en ts w ill be m ade f o r d ifferen ces b etw een th e pa r va lu e o f m a tu rin g bills a cce p te d in exchange a n d th e issue p r ice o f th e n ew bills. T h e in com e derived fr o m T rea su ry bills, w hether interest o r gain fro m the sale or oth er disp osition o f the bills, d oes n ot have any exem ption , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills d oes n ot have a n y special treat m en t, as such, under the In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w h eth er F ed eral o r State, but are exem p t fro m all taxation n ow or hereafter im p osed on the principal o r interest th ereo f b y any State, o r any o f the p ossession s o f the U n ited States, o r b y any lo ca l taxin g authority. F o r pu rp oses o f ta xation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are o rig in a lly sold b y the U n ited States is con sid ered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C ode o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder are sold is n o t co n sid ered t o a ccru e until such bills are so ld , red eem ed o r oth erw ise d isp osed of, and such bills are exclu ded fro m con sid era tion 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 co m p a n ie s ) issued hereun der need include in his in com 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 subsequent purchase, and the a m ou n t actu ally receiv ed either u p on sale o r red em ption at m atu rity d u rin g th e taxable yea r fo r w h ich the return is m ade, as ord in a ry ga in o r loss. T re a su ry D e p a rtm e n t C ircular N o . 418, R evised , and this n otice, p rescrib e th e term s o f th e T r e a s u ry bills 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 obtain ed fr o m a n y F ed era l R e s e rv e B a n k o r B ran ch. and govern This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, December 6, 1954, at the Securities 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, 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 l l a n Sproul, President. Results o f last offering o f Treasury bills (9 1 -d a y bills dated Decem ber 2, 1954, m aturing M arch 3, 1955) T o t a l applied fo r ...$ 2,1 4 2 ,8 4 3,0 0 0 T o t a l a ccep ted ......... $1,500,691,000 (in clu d es $201,061,000 entered on a n on com p etitiv e basis and a ccep ted in fu ll at the a vera ge p rice s h o w n b e lo w ) A v e ra g e price . . 99.740 E quivalent rate o f d iscou n t app rox. 1.029% p er annum R a n g e o f a ccep ted co m p etitive b id s : H ig h .................... 99.780 E quivalent rate o f d iscou n t a p p rox. 0.870% per annum a p p rox . l.U4oye per annum (76 percen t o f the a m ou n t b id fo r at th e lo w p rice w as a cce p te d ) Federal Reserve Total ____ District^____ ___________ Applied fo r B o s to n .............................. $ 27 163 000 N e w Y o r k ..................... 1,618,97^000 Ph iladelphia ................... 42,930,000 C levelan d ....................... 38,355,000 R ich m o n d ....................... 14,729,000 A tla n ta ........................... 23,979,000 C h ica g o ............................ ............194,561,000 St. L o u is ........................ 17,192,000 M in n eap olis ................... 14,537,000 S ir Cy■ it :::::::: San F r a n cis co ............. T o ta l ............. MS Total A ccepted $ 27,043,000 1,039 132 000 27,930,000 37,875,000 14,729,000 23,907,000 148,401,000 17]l92’000 14,537 000 « 82,709,000 S ^ IO O O -----------------------------------------------------$2,142,843,000 $1,500,691,000 ( over) 32 L IM PORTANT— I f 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 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 o f each bidder, the amount bid for his account, and method o f payment. Forms fo r this purpose will be furnished upon request. No.. TENDER FOR 9 1 -D A Y TREASURY BILLS Dated December 9, 1954 To F ederal R ese r v e Bank of N ew Maturing March 10, 1955 Y Dated at .............................................. ork, Fiscal Agent of the United States. 1954 COMPETITIVE BID N O N C O M P E T IT IV E Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on December 2, 1954, as issued by the Treasury Department, the undersigned o f f e r s ...................................... * for a B ID Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice on December 2, 1954, as issued by the Treasury Department, the undersigned offers a noncompetitive tender for a total amount of $ ............................................ (Rate per 100) 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: (Not to exceed $200,000) (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 .................. ______________________ □ By surrender of maturing Treasury bills 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, f o r example, 99.925. The Treasury bills for which tender is hereby made are to be dated December 9, 1954, and are to mature on March 10, 1955. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id d er ...................................................................................................................................... (Please print) B y. (Official signature required) (Title) Street A d d re s s (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (Name of Customer) (City, Town or Village, P. O. No., and State) IM PORTANT INSTRUCTIONS: 1. N o ten der f o r less th an $1,000 w ill be con sid ered , and each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f th e p erson m a k in g th e 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 co rp o ra tion a u th orized t o m a k e the tender, and th e sig n in g o f the ten der b y an officer o f th e corp o ra tio n w ill be con stru ed as a represen tation b y h im that he has b een s o authorized. I f the ten d er is m a d e 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 th e firm .” 3. T e n d e rs w ill b e 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 e n d e rs fr o m oth ers m ust b e a ccom p a n ied b y p a y m en t o f 2 p ercen t o f th e fa c e a m o u n t o f T r e a s u ry bills a pp lied fo r , unless th e ten ders 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 ba n k o r trust com p a n y . 4. I f th e la n g u a ge o f this ten der is ch a n g ed in a n y respect, w h ich , in th e op in ion o f the S ecreta ry o f the T re a su ry , is m aterial, th e ten der m ay b e disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. T E N T B — 1275-a ( over)