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FED ERAL RESERVE BANK O F N EW YORK

(

Fiscal Agent of the United States

C ircu lar N o . 3 8 0 3
Jan uary 3, 1952

Offering of $ 1 ,2 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury Bills
Dated January 10, 1952

Maturing April 10, 1952

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

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 ,
Thursday, January 3, 1952.

TREASURY DEPARTM EN T
W ashington

T he 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 January 10, 1952, in the amount o f $1,200,685,000, 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
January 10, 1952, and w ill mature A pril 10, 1952, when the face amount will be payable without interest. T h 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern
Standard time, M onday, January 7, 1952. 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 com petitive 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 m ay 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 ow n account. Tenders will 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 accom panied by payment o f 2 percent o f the face amount o f Treasury bills
applied for, unless the tenders are accom panied by an express guaranty o f payment b y an incorporated bank o r trust company.
Immediately after the closin g 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 w ill 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 o r less without stated price from any one bidder w ill be accepted
in full at the average price (in three decim als) o f accepted com petitive bids. Settlement for accepted tenders in accordance
with the bids must be made or com pleted at the Federal Reserve Bank on January 10, 1952, in cash o r other immediately
available funds or in a like face amount o f Treasury bills maturing January 10, 1952. Cash and exchange tenders will receive
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 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 exem ption, as such, and loss from the sale or other disposition o f Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T h e bills shall be
subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exem pt from all taxation
now or hereafter 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. U nder 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 ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies)
issued hereunder need include in his incom e tax return only the difference between the price paid for such bills, whether
on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity
during the taxable year for w hich 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, January 7, 1952, at the Securities
Department of 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.” Paym ent f o r 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 lla n

S pro u l,

Results of last offering of Treasury bills (9 1 -d a y bills dated January 3, 1952, maturing April

3, 1952)

Total applied f o r ..........$2,117,782,000
Total accepted ..............$1,200,828,000 (includes $151,616,000
entered on a non-competitive basis

Federal Reserve
District
p.n*tnn

p r i c e A o ^ b i t a w ) 1 a‘ ‘ he aV" a8e
price shown below)
99.524+ Equivalent rate o f discount
approx. 1.883% per annum
Range o f accepted competitive bids:

New Y ork . .'
.
.. .
%
$ « $ 0 5 l£ »
Philadelphia ........................
31,499,000
10,973,000
C levela n d..............................
55,489,000
25,929,000
Richmond ...........................
20,922,000
12^922^000
Atlanta .................................
^U ’J S ’SK
Chicago ...........................................................
432,536,000
357,508,000
St. Louis ..............................
31,140,000
20,374,000
Minneapolis ........................
9,155,000
9,155!000
Kansas C i t y ..........................
43,299,000
40,487,000
Dallas ...................................
24,659,000
21,520,000
San F ran cisco......................
48,731,000
34,667,000
--------------------------T otal ........................ $2,117,782,000
$1,200,828,000

Average price -----

u

.

,

High

..................

Low

....................

OOAAQ

" - 608

99.520

T7

•

i

4-

*

Equivalent rate
approx. 1.551%
Equivalent rate
approx. 1.899%

C

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



A-

*

o f discount
per annum
o f discount
per annum

Total
Applied f o r
*
R<v*7 nnn

President.

Total
Accepted
«c
ainonnn

(o v e r )

26P
IM P O R T A N T — I f you desire to bid on a competitive basis, fill in rate per 100 and maturity
value in paragraph headed "Com petitive Bid.” I f you desire to bid on a non-competitive
basis, fill in only the m aturity value in paragraph headed "N on-com petitive Bid.” D O
N O T 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. . . . ' ........................

T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS
Dated January 10, 1952

To

F ederal R eserve

B a n k

o f

N e w

Maturing April 10, 1952

Dated a t ..................................

Y o r k ,

Fiscal Agent of the United States.
1952
CO M PETITIVE BID

N O N -C O M P E T IT IV E BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on January
3, 1952, as issued by the Secretary of the Treas­
ury, the undersigned offers.................................... *

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on January
3, 1952, as issued by the Secretary of the Treas­
ury, the undersigned offers a non-competitive
tender for a total amount of $ ..................................

(R a te per 100)

for a total amount of $ .............................................
(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:
□
By surrender of maturing Treasury bills

(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 of maturing Treasury bills

amounting t o ................... $_______________________

amounting t o ................... $_______________________

□

By cash or other immediately available funds

(N o t to e x c e e d $20 0,00 0)

□

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 January 10, 1952, and are to
mature on April 10, 1952.
This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills’ ’
Name o f Bidder
(P le a s e p rin t)

By ........
(T itle )

(O fficia l sig n atu re r e q u ire d )

Street Address .....................................

( C it y , T o w n o r V illa g e , P .O . N o ., a n d S tate)

If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below:
(N a m e o f C u sto m e r)

(C it y , T o w n o r V illa g e , P .O . N o ., a n d S ta te)

IM P O R T A N T IN S T R 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. I f 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 will be construed as a
representation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a
mem ber o f the firm, w h o should sign in the form “ ......................................................................................... . a copartnership, by
............................................................................................................... a m em ber 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 accom panied by payment o f 2 percent
o f the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment
by an incorporated bank or trust company.
4. I f 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 m ay be disregarded.

Vayment b y credit through Treasury Tax and Loan A ccount will not be permitted.

T E N T B — 1 1 2 3 -a


( over)

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