The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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/ Federal T E N T B — Bank of St. Louis Reserve 1179-a ( over )