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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 C ircular No. 4 1 7 2 1 D ecem ber 10,1954 J Fiscal Agent of the United States Offering of $1,500,000,000 of 91-Day Treasury B ills Dated December 23, 1954 Maturing March 24, 1955 To all In corporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e 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 , Th u rsd ay, D e ce m b e r 16, 1954. TREASU RY DEPARTM EN T W a sh in g ton T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders fo r $1,500,000,000, o r thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch a n ge for T rea su ry bills m atu rin g D e ce m b e r 23, 1954, in the a m ou n t o f $1,500,209,000, to be issued on a discou n t basis under com p etitive and n on com p etitive 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 23, 1954, and w ill m ature M a rch 24, 1955, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo r m 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 received at Federal R e serv e B anks and B ran ches up to the clo s in g h our, t w o o ’ c lo ck p.m ., E astern Standard time, M on d a y, D ecem b er 20, 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 must be exp ressed 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 urged that tenders be m ade o n the printed form s and forw a rd ed in the special en v e lo p e s w h ich w ill be supplied b y Federal R eserve B anks o r B ran ches o n a pp lication th erefor. O th ers than b ank in g institutions w ill n ot be perm itted t o subm it tenders e x cep t for their ow n a ccou nt. T e n d e rs w ill be received w ith ou t d ep o sit fro m in corp ora ted banks and trust com p a n ies and fro m respon sible and recog n ized dealers in in vest m en t securities. T e n d ers from others m ust be a ccom p a n ied b y paym ent o f 2 percent o f the face a m ou n t o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an express gu a ra n ty o f paym ent b y an in corp ora ted bank or trust com p a n y . Im m edia tely a fter the clo s in g hour, tenders w ill be op en ed at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich pu blic an 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 the am ou nt and price range 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 re je ctio n th ereof. T h e S ecretary o f the T rea su ry exp ressly reserves the righ t to a cce p t o r reject any o r all tenders, in w h o le or in part, and his action in any such resp ect shall be final. S u bject to these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m any on e bidder w ill be a ccep ted in full at the a verage price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent for a ccep ted tenders in a ccord a n ce with the bids m u st be m ade o r com p leted at the F ed eral R e s e rv e B ank on D ecem b er 23, 1954, in cash or 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 23, 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 a n ge and the issue price o f the new bills. T h e in co m e derived fro m T reasu ry bills, w hether interest or gain fro m the sale or oth er disposition o f the bills, does n ot have a n y exem ption , as such, and loss fro m the sale o r oth er disposition o f T rea su ry bills does n ot have a n y special treat ment, as such, under the Internal R even u e C ode o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er ex cise taxes, w hether Federal o r State, but are ex em p t fr o m all taxation n o w or hereafter im posed on the principal or interest th ere o f b y a n y State, o r any o f the possession s o f the U n ited States, or b y a n y local ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f discou nt at w hich T rea su ry bills are origin a lly s o ld b y the U n ited States is con sidered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C od e o f 1954 the a m ou n t o f discou n t at w h ich bills issued hereunder are sold is not con sidered to a ccru e until such bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu ded fto 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 (oth er than life insurance com p a n ies) issued h ereunder need include in his in com e ta x return on ly the d ifferen 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 am ou nt actu a lly re ce iv e d either u pon sale or redem ption at m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epartm en t Circular N o . 418, R evised, and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn the con dition s o f their issue. C op ies o f the circular m a y be obtain ed fr o m a n y Federal R eserve B ank or B ranch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, December 20, 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 telegraphy 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. < ... : .. . v.-. ;;,i • A l l a n Sproul, President. Results o f last offering o f Treasury bills (91-day bills dated December 16, 1954, maturing March 17, 1955) T o ta l applied f o r .......... $2,200,060,000 T o ta l a c c e p t e d .............. $1,500,323,000 (in clu d es $259,884,000 entered on a n on com p etitive basis and a ccep ted in fu ll at the average price sh ow n b e lo w ) A v era ge price........ 99.685 E q u iva len t rate o f discou n t app rox. 1.247% p er annum R a n ge o f a ccepted com p etitive b ids: H i g h .......................... 99.750 E quivalent rate app rox. 0.989% L o w .......................... 99.680 E quivalent rate a p p rox. 1.266% o f discou nt per annum o f discou n t per annum Federal R eserve D istrict Total A pplied for B o s to n .......................... .... N ew Y o r k ................... .... Philadelphia .............. C leveland ................... R ich m o n d ................... St. L o u i s ..................... M in n eap olis ............... K ansas C ity .............. D allas .......................... San F ra n cisco .......... $ 33,327,000 1,580,371,000 37,866,000 44,381,000 24,538,000 48,572,000 180,263,000 27,464,000 20,130,000 57,796,000 54,078,000 91,274,000 (39 percent o f the a m ou n t b id fo r at th e low price w as a ccep ted ) T o t a l .............................. .... $2,200,060,000 Total A ccep ted $ 33,022,000 954,209,000 32,866,000 44,381,000 24,538,000 48,572,000 122,823,000 27,464,000 20,130,000 55,796,000 52,248,000 84,274,000 $1,500,323,000 ( over) 32 N 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 f‘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 FOR 91-D A Y TREASU RY BILLS Maturing March 24, 1955 Dated December 23, 1954 To F ederal R ese rv e Bank of N ew Y Dated at ork, Fiscal Agent of 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 December 16, 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 16, 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) 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 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 23, 1954, and are to mature on March 24, 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) S treet A d d re ss ............................................ (City, Town or V illage, 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 VUlage, P . O. N o., and State) IMPORTANT INSTRUCTIONS: 1. N o tender fo r less than (m atu rity valu e). $1,000 w ill be con sidered, and each tender m u st be fo r an even m u ltiple o f $1,000 2. If the person m ak in g the ten der is a corp ora tion , the tender should be signed b y an officer o f the c o rp o ra tion authorized to m ake the 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 b e 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 shou ld b e sign ed b y a m em ber o f the firm , w h o shou 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 be received w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fr o m resp o n sible and re co g n iz e d dealers in in vestm 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 p ercen t o f the face a m ou n t o f T rea su ry bills applied fo r, unless th e ten ders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted bank o r trust com pan y. 4. I f the language o f this tender is ch a n ged in a n y respect, w hich, in th e op in ion o f th e S ecreta ry o f the T rea su ry, is m aterial, the ten der m a y be disregarded. http://fraser.stlouisfed.org/Payment b y credit through Treasury Tax and Loan Account will not be permitted. Federal Bank of St. Louis T EReserve N T B — 1277-a ( over)
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