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FEDERAL RESERVE BANK O F N EW YORK C ir c u la r N o. 3 8 4 0 1 A p r il 10, 1952 J Fiscal Agent o f the United States Offering o f $ 1 ,4 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills Dated April 17, 1952 Maturing July 17, 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: 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, April 10, 1952. TREASURY DEPARTM ENT W ashington The Secretary o f the Treasury, by this public notice, invites tenders for $1,400,000,000, or thereabouts, o f 91-day Treas ury bills, for cash and in exchange for Treasury bills maturing April 17, 1952, in the amount o f $1,202,401,000, 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 A pril 17, 1952, and will mature July 17, 1952, when the face amount will be payable without interest. T h 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 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, April 14, 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, with not more 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 own 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 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. 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. 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-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 decim als) o f acceptcd competitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on April 17, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing April 17, 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 ex change 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 h e bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now o r here after im posed on the principal or interest thereof by any State, o r any o f the possessions o f the United States, or by any local taxing authority. F or purposes o f taxation the amount of 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 of 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. T reasury Department Circular No. 418, as amended, and this noticfe, 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, April 14, 1952, at the Securities Depart ment 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 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 a y bills dated April 10, 1952, maturing July 10, 1952) T otal applied for......... $2,312,927,000 T ota l accep ted ........... ..$1,401,872,000 (includes $203,834,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price....... 99.588+ Equivalent rate o f discount approx. 1.629% per annum Range of accepted competitive bids: .Equivalent rate H igh ...................... 99.615 approx. 1.523% L o w ........................ 99.585 Equivalent rate approx. 1.642% o f discount per annum o f discount per annum (10 percent o f the amount bid for at the low price was accepted) Federal Reserve District Boston .................. N ew Y ork ......... Philadelphia .... . Cleveland ............ R ichm ond ............ Atlanta ................ Chicago ............... St. Louis .............. Minneapolis ....... Kansas City ....... Dallas .................. San Francisco .... T otal Total Applied fo r $ 43,280,000 1,527.808,000 30.748.000 99.292.000 18.173.000 34.695.000 280.827.000 46.586.000 12.979.000 51.176.000 55.943.000 111.420.000 $2,312,927,000 Total Accepted $ 38,330,000 750.988.000 11.448.000 89.292.000 16.673.000 32.795.000 247.977.000 34.751.000 10.779.000 43.076.000 48.143.000 77.620.000 $1,401,872,000 ( over) 27D 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 maturity 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 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 of each bidder, the amount bid for his account, and method of payment. Forms for this purpose w ill be furnished upon request. No. _________________ T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS Dated April 17, 1952 Maturing July 17, 1952 Dated at---------------------- To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States. .1952 COMPETITIVE BID N O N -C O M P E TIT IV E BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on April 10, 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 April 10, 1952, as issued by the Secretary of the Treasury, the undersigned offers a non-competitive tender ............................. ................... * for a total amount of for a total amount of (Rate per 100) (N ot to exceed $200,000) $ ............................................................... (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: (m a tu rity v a lu e ) 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 □ By surrender of maturing Treasury bills amounting to ......................$---------------------------------- 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 April 17, 1952, and are to mature on July 17, 1952. This tender zvill be inserted in special envelope marked “ Tender fo r Treasury B ills” Name o f Bidder .......................................... By (P lease print) (Official signature required) (T itle) Street Address ............................................. (C ity, T ow n o r V illage, 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: (N am e o f Custom er) (C ity, T ow n or V illage, P.O. No., and State) IMPORTANT INSTRUCTIONS: 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 will 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 b y a mem ber o f the firm, w ho 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 accom panied 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. Payment b y credit through Treasury T ax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T Bank of St. Federal Reserve B — 1137-a Louis ( over)