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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.

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