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F E D E R A L R E S E R V E BAN K O F N E W Y O R K C ir c u la r N o. 3 8 4 6 M a y 1, 1952 Fiscal A g e n t o f the U n ited States O ffe r in g o f $ 1 ,3 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T reasury B ills Dated May 8, 1952 Maturing August 7, 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: TREASURY 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, M ay 1, 1952. T he Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 91-day Treas ury bills, for cash and in exchange for Treasury bills maturing M ay 8, 1952, in the amount o f $1,302,174,000, 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 M ay 8, 1952, and will mature August 7, 1952, when the face amount will be payable without interest. T h ey will 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 Daylight Saving time, M onday, M ay 5, 1952. 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 of 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 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 of 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 will be made by the Secretary o f the Treasury o f the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of 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 will be accepted in full at the average price (in three decim als) 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 M ay 8, 1952, in cash or other immediately avail able funds or in a like face amount o f Treasury bills maturing M ay 8, 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. Th 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. 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 of 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. 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 am ount 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 Daylight Saving time, Monday, May 5, 1952, at the Secu rities 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.” 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. d a te d M a y 1, 1 9 5 2 , m a t u r in g J u ly 3 1 , 1 9 5 2 ) Total applied for......... $2,492,320,000 Total accep ted ..............$1,502,963,000 (includes $175,728,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) Average price....... 99.573 Equivalent rate o f discount approx. 1.691% per annum Range o f accepted competitive bids: H igh ...................... 99.615 Equivalent rate approx. 1.523% L o w ........................ 99.571 Equivalent rate approx. 1.697% o f discount per annum o f discount per annum (85 percent o f the amount bid for at the low price was accepted) Federal Reserve District Boston ......................... ... New Y ork ................. ... Philadelphia ............... Cleveland ................... Richm ond ................... Atlanta ....................... Chicago ....................... St. Louis ..................... Minneapolis ............... Kansas City ............... San Francisco .......... T otal .......................... ... Total Applied for $ 28,947,000 1,694,765,000 47,272,000 53,598,000 31,853,000 40,083,000 307,217,000 39,207,000 8,265,000 59,583,000 50,227,000 131,303,000 $2,492,320,000 Total Accepted $ 18,547,000 948,795,000 15,672,000 43,398,000 25,178,000 27,513,000 209,367,000 21,350,000 6,265,000 52,083,000 39,477,000 95,318,000 $1,502,963,000 ( over) 27G Tenders will be received up to 2 p.m., Eastern Daylight Saving time, Monday, May 5, 1952 IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph headed ''Competitive Bid.” If you desire to bid on a non-com petitive basis, fill in only the maturity value in paragraph headed "Non-competitive 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 of each bidder, the amount bid for his account, and method of 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 May 8, 1952 To Maturing August 7, 1952 Dated at------------------- F ed era l R eserve B a n k o f N ew Y ork , .1952 Fiscal Agent of the United States. COMPETITIVE BID N O N -C O M P E T I T I V E B ID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on May 1, 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 May 1, 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 $__________ __ ______________ (B ate per 100) (N ot to exceed $200,000) $....................................................... (maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: Q By surrender of maturing Treasury bills (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender of maturing Treasury bills amounting t o ......................$---------------------------------- amounting to ......................$______________________ □ □ 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 May 8, 1952, and are to mature on August 7, 1952. This tender will be inserted in special envelope marked “ Tender fo r Treasury B ills” Name o f Bidder .................................................................................................................................. (P lease p rin t) By (Official signature required) (T itle) Street Address ............................................. (C ity, T ow n or V illage, 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 : (N am e o f Custom er) (C ity, T ow n or V illage, P.O. No., and State) 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. If the person making the tender is a corporation, the tender should be signed b y 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 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 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. Paym ent b y cred it through Treasury T a x and Loan A cco u n t w ill n o t be perm itted. http://fraser.stlouisfed.org/ T E N T B — 1140-a (OVER) Federal Reserve Bank of St. Louis