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F E D E R A L R E S E R V E B AN K O F N E W Y O R K Fiscal A gen t o f the U n ited States £^ e c i m b ^ } Offering of $1,500,000,000 of 91-Day Treasury B ills Dated December 16, 1954 Maturing March 17, 1955 T o all In corporated B anks and Trust 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 , Th ursday, D ecem ber 9, 1954. TREASU RY DEPARTM ENT W ash ington T h e T reasu ry Departm ent, by 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 an ge fo r T reasu ry bills m aturing D ecem ber 16, 1954, in the am ount o f $1,500,243,000, to be issued on a discou nt basis under com petitive and n oncom petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated D ecem ber 16, 1954, and w ill mature M arch 17, 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 aturity v a lu e ). T en ders w ill be received at Federal R eserve Banks and Branches up to the clo s in g hour, tw o o ’clo ck p.m., E astern Standard time, M on day, D ecem ber 13, 1954. T en ders w ill not be received at the T reasu ry D epartm ent, W ash ington. 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 n ot m ore than three decim als, e. g., 99.925. F raction s m ay not be used. It is urged that tenders be made on the printed fo rm s and forw a rded in the special envelopes w hich w ill be supplied b y F ed eral R eserve Banks o r B ranches on application th erefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n account. Tenders 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. T en ders fro m others must be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent by an in corpora ted bank or 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 B ranches, fo llo w in g w hich pu blic announcem ent w ill be made b y the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h o se subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry expressly reserves the righ t to accept o r reject any or all tenders, in w h ole 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 p rice from any one b idder w ill be accepted in fu ll at the a verage price (in three decim a ls) o f a ccepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be m ade o r com pleted at the F ed eral R eserve Bank on D ecem ber 16, 1954, in cash or oth er im m ediately available funds o r in a like fa ce amount o f T reasu ry bills m aturing D ecem ber 16, 1954. Cash and exch ange 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 bills, w hether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, as such, and loss fro m the sale or other disposition o f T reasu ry bills does n ot have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T he bills are subject to estate, inheritance, g ift o r other excise taxes, w hether F ed eral o r State, but are exem pt from all taxation n ow o r hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U nited States, or by any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are origin a lly sold by the U nited States is con sidered to be interest. U nder S ections 454(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou n t at w hich bills issued hereunder are sold is not con sidered to a ccru e until such bills are sold, redeem ed o r oth erw ise disposed of, and such bills are exclu ded from con sideration as capital assets. A ccord in g ly , the ow n er o f T reasu ry bills (oth er than life insurance com panies) issued hereunder need include in his incom e ta x return only the differen ce between the price paid fo r such bills, w hether on original issue o r on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity du rin g the taxable year f o r w hich the return is m ade, 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 term s 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 obtain ed from any F ed eral R eserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, December 13, 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 l l a n S p r o u l , President. Results o f last offering o f Treasury bills (91-day bills dated December 9, 1954, maturing March 10, 1955) T o ta l applied f o r .........$2,111,752,000 T o ta l a c c e p t e d ............. $1,500,232,000 (inclu des $223,301,000 entered on a noncom petitive basis and a ccepted in fu ll at the aver age price show n b elow ) A v era ge p r ice ........... 99.725-f-Equivalent rate o f discount approx. 1.087% per annum R a n ge o f accepted com petitive b id s : H i g h ........................... 99.752 E quivalent rate a pp rox. 0.981% L o w ............................. 99.720 E quivalent rate approx. 1.108% o f discount per annum o f discount per annum (66 percent o f the amount bid fo r at the low price w as accepted) Federal R eserve D istrict Total A pplied for .. $ .. $2,111,752,000 N ew Y o rk ................. Philadelphia .............. Cleveland ................... R ic h m o n d ................. .. A tlanta ....................... C h ica go ..................... St. L ou is ................... M in neapolis ............ K ansas C ity ............. San F ra n cisco ........ T o t a l ........................ 29,960,000 1,511,750,000 34,705,000 36,797,000 23,635,000 26,624,000 176,695,000 30,921,000 15,775,000 52,098,000 31,755,000 141,037,000 T otal A ccepted $ 29,960,000 960,230,000 19,705,000 36,797,000 23,635,000 26,624,000 131,695,000 30,921,000 15,775,000 52,098,000 31,755,000 141,037,000 $1,500,232,000 ( over) 32 M IM PORTAN T— If you desire to bid on a com petitive 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 o f each bidder, the amount bid for his account, and method o f payment. Forms for this purpose will be furnished upon request. No............................. TEN DER FOR 91-DAY TREASURY BILLS Dated December 16, 1954 To F ederal R eserve Bank of N ew Y Maturing March 17, 1955 Dated at ork, Fiscal Agent o f the United States. 1954 COM PETITIVE BID Pursuant to the provisions o f Treas ury Department Circular No. 418, Revised, and to the provisions of the public no tice on December 9, 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 December 9, 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) NONCOMPETITIVE BID (Not 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) 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 o f 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 exp ressed 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 December 16, 1954, and are to mature on March 17, 1955. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id der ................................................................................................... (Please print) B y ................................................................... (Official signature required) (Title) Street A dd ress ............................................ (City, Town or Village, P. O. No., and State) I f this tender is subm itted by a bank f o r the a ccou n t o f a custom er, indicate the custom er’ s name on line b e lo w : (Name of Customer) (City, Town or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o tender fo r less $1,000 (m aturity valu e). than $1,000 w ill be con sidered, and each tender must be fo r an even m ultiple o f 2. I f the person m aking the tender is a corporation , the tender should be signed by an officer o f the corp ora tion authorized to m ake 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 m ade by a partnership, it should be signed by a m em ber o f the firm, w ho 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 ith ou t 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 face am ount o f T reasu ry bills applied for, unless the tenders are accom pa n ied 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 op in 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—1276-a ( over)