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FEDERAL RESERVE BANK O F NEW YORK
Circular No. 3 9 4 1 1
January 29,1953 J

Fiscal Agent o f the United States

Offering o f $1,300,000,000 of 91-Day Treasury Bills
Dated February 5, 1953

Maturing May 7, 1953

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 ,
Thursday, January 29, 1953.

TREASURY DEPARTM ENT
W ashington

T he Secretary of the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing February 5, 1953, in the amount o f $1,301,003,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. T he bills o f this series will be dated
February 5, 1953, and will mature M ay 7, 1953, when the face amount will be payable without interest. T h ey w ill be issued
in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, tw o o’ clock p.m., Eastern
Standard time, M onday, February 2, 1953. Tenders w ill not be received at the Treasury Department, W ashington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis o f 100, with not m ore than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed form s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders w ill be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest­
ment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g which
public announcement will be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, non-competitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted
in full at the average price (in three decimals) o f accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on February 5, 1953, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing February 5, 1953. Cash and exchange tenders will re­
ceive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in
exchange and the issue price o f the new bills.
T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, shall not
have any exemption, as such, and loss from the sale or other disposition o f Treasury bills shall not have any special treat­
ment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T he bills shall be subject
to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or here­
after im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local
taxing authority. For purposes o f taxation the amount o f discount at which Treasury bills are originally sold by the United
States shall be considered to be interest. Under Sections 42 and 11 7 (a )(1 ) o f the Internal Revenue Code, as amended by
Section 115 o f the Revenue A ct o f 1941, the amount o f discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. A ccordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on sub­
sequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern
the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, February 2, 1953, at the Securities De­
partment o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f 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. Paym ent fo r the Treasury bills camiot be made by
credit through the Treasury T ax 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 (9 1 -d a y bills dated January 29, 1953, m aturing A pril 30, 1953)
Total applied for......... $2,383,559,000
Total accep ted ............. $1,500,187,000 (includes $262,638,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
Average price....... 99.504-f- Equivalent rate o f discount
approx. 1.961% per annum
Range o f accepted competitive bids:
H igh ...................... 99.575
Equivalent rate
approx. 1.681%
L ow ........................ 99.500
Equivalent rate
approx. 1.978%

o f discount
per annum
o f discount
per annum

(31 percent o f the amount bid for at the low
price was accepted)




Federal Reserve
District

Total
Applied for

....
N ew Y ork ................ ....
Philadelphia ..............
Cleveland ..................
Richmond ..................
Atlanta ......................
St. Louis .................
Minneapolis .............
Kansas City ..............
San Francisco .........
T o t a l ......................

....

$

22,215,000
1,636,091,000
32,004.000
57,065,000
19,120,000
37,865,000
260,357,000
44,718,000
13,942,000
62,576,000
62,522,000
135,084,000

$2,383,559,000

Total
Accepted
$

19,580,000
978,574,000
13,976,000
38,840,000
14,875,000
34,125.000
166,337,000
27,334,000
13,444,000
53,026,000
42,789,000
97,287,000

$1,500,187,000
( over )

28 T
IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity
value in paragraph headed "C om petitive Bid.” I f you desire to bid on a non-com petitive
basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.”
DO
N O T fill in both paragraphs on one form . A separate tender must be used f o r each bid,
except that banks subm itting bids on a com petitive basis f o r their ow n and their customers’
accounts m ay submit one tender f o r the total am ount bid at each price, provided a list is
attached showing the name o f each bidder, the am ount bid fo r his account, and method
o f paym ent. Forms f o r this purpose w ill be furnished upon request.

No_________________

TENDER FOR 91 -D AY TREASURY BILLS
D ated February 5, 1953

M aturing May 7, 1953

Dated at.
To F e d e r a l R e s e rv e B a n k o f N e w Y o r k ,
Fiscal Agent o f the United States.

.1953

CO M PE TITIV E BID

N O N -C O M PE TITIV E BID

Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on
January 29, 1953, as issued by the Secretary
of
the Treasury,
the
undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on January 29,
1953, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

___________________________ * for a total amount o f

for a total amount of
(Not to exceed $200,000)

(Bate per 100)

__________________________(maturity value)
o f 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 :
□

By surrender o f

maturing Treasury bills

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) o f 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 ..................... $----------------------------------

amounting t o ..................... $----------------------------------

□

□

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, fo r example, 99.925.

The Treasury bills for which tender is hereby made are to be dated February 5, 1953, and are to
mature on May 7, 1953.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.”
Name o f Bidder ......
^

(Please print)

(Official signature required")

’

"(Title)

"(City, Town or Viiiage, 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 P O R T A N T IN ST R U C T IO N S:
1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple o f $1,000
(maturity value).
2. If the person making the tender is a corporation, the tender should be signed by an officer o f the corpora­
tion authorized to make the tender, and the signing o f the tender by an officer o f the corporation w ill be construed as a
representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
member o f the firm, w h o should sign in the form “ .............................................................................................. . a copartnership, by
............................................................................................................. . a member o f the firm.”
3. Tenders w ill be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent
o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment
by an incorporated bank or trust company.
4. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the
Treasury, is material, the tender may be disregarded.

Paym ent b y cred it through Treasury T a x and Loan A cco u n t w ill n ot be perm itted.

http://fraser.stlouisfed.org/
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Reserve 1179-a

( over )


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102