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FEDERAL RESERVE BANK O F N EW YORK r Circular No. 3 9 5 6 1 L March 19, 1953 J Fiscal Agent o f the United States Offering o f $1,200,000,000 o f 91-Day Treasury Bills Dated M arch 26, 1953 Maturing June 25, 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, March 19, 1953. TREASU RY DEPARTM ENT W ashington The Secretary o f the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing March 26, 1953, in the amount o f $1,200,337,000, to be issued on a discount basis under competitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series will be dated March 26, 1953, and will mature June 25, 1953, when the face amount will be payable without interest. Th ey w ill be issued in bearer form only, and in denominations o f $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, March 23, 1953. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple o f $1,000, and in the case o f 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 w ill be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions w ill not be permitted to submit tenders except for their ow n 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 o f payment by an incorporated bank or trust company. Imm ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill 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 o f the acceptance or rejection thereof. T h e 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-com petitive 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 com pleted at the Federal Reserve Bank on March 26, 1953, in cash or other immediately avail able funds or in a like face amount of Treasury bills maturing March 26, 1953. Cash and exchange tenders will receive equal treatment. Cash adjustments w ill 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 h e 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. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation n ow 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. F or 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 income 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 o r loss. Treasury Department Circular N o. 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, March 23, 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. Payment f o r the Treasury bills cannot 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 (91 -d ay bills dated M arch 19, 1953, m aturing June 18, 1953) Total applied for......... $2,388,071,000 Total a ccep ted ............. $1,200,548,000 (includes $275,009,000 entered on a non-competitive basis and accepted in full at the average price shown below ) Average price....... 99.487+ Equivalent rate o f discount approx. 2.029% per annum Range of accepted competitive bids: H igh ...................... 99.500 Equivalent rate approx. 1.978% L o w ........................ 99.485 Equivalent rate approx. 2.037% o f discount per annum o f discount per annum (17 percent o f the amount bid for at the low price was accepted) Federal Reserve District .... New Y ork .................. .... Philadelphia .............. Cleveland .................. Richmond ................. St. Louis .................... Minneapolis .............. Kansas City ............. Dallas .......................... San Francisco .......... T otal ................... .... Total Applied for $ 27,649,000 1,583,126,000 34,008,000 68,664,000 25,361,000 44,558,000 248,990,000 50,596,000 15,057,000 55,754,000 72,560,000 161,748,000 $2,388,071,000 Total Accepted $ 17,505,000 660,778,000 17,408,000 46,699,000 21,011,000 32,501,000 166,971,000 21,446,000 13,352,000 40,733,000 40.360,000 121,784,000 $1,200,548,000 ( over ) 29 A IM P O R T A N T — I f you desire to bid on a c o m p e t i t i v e 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 n o n - c o m p e t i t i v e basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.” DO N O T fill in b o t h p a r a g r a p h s o n o n e f o r m . A separate tender m ust 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 amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid f o r his account, and method o f payment. Forms fo r this purpose w ill be furnished upon request. N o. __________________ T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS Dated M arch 26, 1953 M aturing June 25, 1953 Dated at.._ T o F e d e r a l R ese rv e B a n k of N e w Y o r k , Fiscal Agent o f the United States. .1953 COM PETITIVE BID N O N -C O M P E TIT IV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on March 19, 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 March 19, 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 5200,000) (Rate 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 b elow : (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 b elow : □ □ B y surrender o f maturing Treasury bills 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 March 26, 1953, and are to mature on June 25, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills” Name o f Bidder ....... By (Please print) (Official signature required) (Title) Street Address ............................................ (City, Town or Village, P.O. No., and State) I f this tender is submitted by a bank for the account o f 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 STR U C T IO N S: 1. N o tender for less than $1,000 will 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 ho should sign in the form “ ................................................................................................. a copartnership, by ............................................................................................................. . a member o f the firm.” 3. Tenders will 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. P a y m e n t b y c r e d i t t h r o u g h T r e a s u r y T a x a n d L o a n A c c o u n t w il l n o t b e p e r m itt e d . http://fraser.stlouisfed.org/ T E N T B — 1180-a Federal Reserve Bank of St. Louis ( over )