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FEDERAL RESERVE BANK O F NEW YORK r C ir cu la r N o. 3 8 2 5 1 L F e b r u a r y 28, 1952 J Fiscal Agent o f the United States Offering of $ 1 ,1 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills Dated March 6, 1952 Maturing June 5, 1952 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of a notice published today: TREASU RY DEPARTM ENT W ashington 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, February 28, 1952. T he Secretary o f the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, o f 91-day Treas ury bills, for cash and in exchange for Treasury bills maturing March 6, 1952, in the amount o f $1,103,622,000, 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 6, 1952, and w ill mature June 5, 1952, when the face amount w ill be payable without interest. Th ey will 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, March 3, 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 competitive tenders the price offered must be expressed on the basis o f 100, w ith 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 accom panied by payment o f 2 percent o f the face am ount 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 in g which public announcement w ill be made by the Secretary o f the Treasury o f the am ount 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 o r all tenders, in w hole o r 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 com pleted at the Federal Reserve Bank on March 6, 1952, in cash o r other immediately available funds or in a like face amount o f Treasury bills maturing M arch 6, 1952. 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 ex change 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 o r 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, o r other excise taxes, whether Federal or State, but shall be exempt from all taxation now or here after imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or b y any local taxing authority. F or purposes o f taxation the amount o f discount at which Treasury bills are originally sold b y the United States shall be considered to be interest. U nder Sections 42 and 117(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 owner o f Treasury bills (other than life insurance com panies) issued hereunder need in clude in his income tax return on ly 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 Departm ent 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 m ay be obtained from any Federal Reserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 3, 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 fo r the Treasury bills can not be made by credit through the Treasury T a x and Loan Account. Settlement must be made in cash or other imme diately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. Results of last offering of Treasury bills (9 1 -day bills dated February 28, 1952, maturing May 29 , 1952) Total applied for......... $1,783,203,000 Total accepted „........... $1,100,851,000 (includes $149,396,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price....... 99.605 Equivalent rate o f discount approx. 1.563% per annum Range o f acceptcd competitive bids: High ...................... 99.630 Equivalent rate approx. 1.464% L o w ........................ 99.600 Equivalent rate approx. 1.582% o f discount per annum o f discount per annum (68 percent o f the amount bid for at the low price was accepted) Federal Reserve District Boston ...................... ..... N ew Y o r k ............... ..... Philadelphia ............ Cleveland ............... Richm ond ................ St. Louis .................. M inneapolis ........... Kansas City ........... San Francisco ....... T otal ..................... Total Total Applied fo r ..... $ 26,928,000 1,262,130,000 25.231,000 59,122,000 11,720.000 23,505,000 157,644,000 23.006,000 6,135,000 34,474,000 42,475,000 110,833,000 $1,783,203,000 Accepted $ 25,948,000 658,590,000 10,231,000 52,482,000 10,220,000 23,205,000 104,772,000 21,818,000 6,135,000 34,442,000 42,175,000 110,833,000 $1,100,851,000 ( over) 26X 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 “ Competitive 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.” 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 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. N o ________ _________________ T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS Dated March 6, 1952 To M aturing June 5, 1952 Dated at. F e d e r a l R eserve B a n k o f N e w Y o r k , Fiscal Agent of the United States. .1952 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on February 28, 1952, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions of the public notice on February 28, 1952, as issued by the Secretary o f the Treasury, the undersigned offers a ; non-competitive tender ------------------------ ---------------- * for a total amount of for a total amount of $„ (R a te per 100) ( N o t t o e x c e e d $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: □ 0 By surrender of maturing Treasury bills By surrender of maturing Treasury bills amounting t o ..................... $______________________ amounting t o ................... .$_______________________ 0 0 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 6 , 1952, and are to mature on June 5, 1952. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name o f Bidder .......................................... (PleaBe print) By (Official signature required) (T itle) Street Address ............................................. (C ity, T ow n o r V illage, P.O. N o., an d State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Custom er) (City, T ow n o r V illage, P.O. No., an d State) IMPORTANT INSTRUCTIONS: 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 member o f the firm, w ho should sign in the form “ ................................................................................................., a copartnership, by .............................................................................................................. a mem 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 accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied b y 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. "Payment b y credit through Treasury T ax and Loan A ccount -will not be permitted. http://fraser.stlouisfed.org/ T E N T B 1131-a (o v e r) Federal Reserve Bank of St. Louis