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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
Fiscal Agent o f the United States

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Offering of $1,500,000,000 of 91-Day Treasury Bills
Dated M ay

15, 1952

Maturing August

14, 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, M ay 8, 1952.

TREASURY DEPARTM ENT
W ashington

Th e Secretary o f the Treasury, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing M ay 15, 1952, in the amount o f $1,301,570,000, to be issued on
a discount basis under com petitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated
M ay 15, 1952, and w ill mature A ugust 14, 1952, when the face am ount w ill 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 w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern
Daylight Saving time, M onday, May 12, 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 may not be used. It is urged that tenders be
made on the printed form s and forwarded in the special envelopes w hich w ill be supplied by Federal R eserve Banks or
Branches on application therefor.
Others than banking institutions w ill not be permitted to submit tenders except for their ow n account. T enders w ill be
received w ithout deposit from incorporated banks and trust com panies 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 or trust company.
Imm ediately after the closing hour, tenders w ill be opened at the Federal R eserve 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 he 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 w ithout 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. Settlem ent for accepted tenders in accordance
with the bids must be made or com pleted at the Federal Reserve Bank on M ay 15, 1952, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing M ay 15, 1952. Cash and exchange tenders w ill receive
equal treatment. Cash adjustments w ill 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 exemption, 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 am endatory or supplementary thereto. T h e bills shall be
subject to estate, inheritance, gift, o r other excise taxes, whether Federal or State, but shall be exem pt from all taxation
now o r hereafter im posed on the principal o r interest thereof b y any State, or any o f the possessions o f the U nited States,
o r by any local taxing authority. F or purposes o f taxation the amount o f discount at w hich 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 c t 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 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 or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, May 12, 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.” Payment f o r the Treasury bills
cannot be made by credit through the Treasury T a x and Loan A ccount. Settlement must be made in cash or other
immediately available funds or in maturing Treasury bills.
A l l a n Sproul, President.
R e s u lts o f la s t o f fe r in g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a t e d M a y 8 , 1 9 5 2 , m a t u r in g A u g u s t 7 , 1 9 5 2 )
Total applied f o r .. .$2,225,987,000
T otal accepted.......... $1,303,448,000 (includes $184,926,000
entered on a non-com petitive basis
and accepted m full at the average
price shown below )
A verage price . . . 99.568
Equivalent rate o f discount
approx. 1710% per annum
Range o f accepted com petitive bids:
(E xcep tin g one tender o f $200,000)
Equivalent rate o f discount
H igh ..................... 99.592
approx. 1.614% per annum
. , ,
,
rj•
.
L o w ....................... 99-566
Equivalent rate o f discount
approx. 1.717% per annum
(87 percent o f the amount bid for at the low
price was accepted)




F ederal Reserve
____ District____ _
Boston .............................
N ew Y o r k .......................
Philadelphia ...................
Cleveland .......................
Richm ond .......................
Atlanta .............................
Chicago ...........................
^t. Louis .........................
M in n e a p o lis.....................
Kansas City ...................
D a l l a s . . . . .....................
San F r a n c is c o .................
Total .....................

Total
Applied for
$

39,609,000
1,458,058 000
50,596,000
49,640,000
22,250,000
29,722,000
271,937,000

J & ?5 ,0 0 °
57,514,000
65,315,000
122,425,000
___________ _
$2,225,987,000

Total
Accepted
$

35,459 000
710 005 000
13,341*000
36 640000
18^068^000
24,397*000
205,922,000
29,293,000
12,979,000
49 074 000
64,815 ,o S
103 455000
______ ’
*
$1,303,448,000
( over)

27H

IMPORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity
value in paragraph headed "Competitive Bid.” If you desire to bid on a non-competitive
basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” DO
NOT 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 15, 1952
To

Maturing August 14, 1952
Dated a t ................................ .

F e d e ra l R eserve B a n k o f N ew Y ork ,

1952

Fiscal Agent of the United States.
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 May 8,
1952, as issued by the Secretary of the Treas­

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on May 8,
1952, as issued by the Secretary of the Treas­
ury, the undersigned offers a non-competitive

ury, the undersigned offers.................................... *
(Rate per 100)

tender for a total amount o f $ ..................................

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

(Not 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:
□

By surrender of maturing Treasury bills

amounting t o .................. $--------------------------------

amounting t o ...................

□

□

By cash or other immediately available funds

$______________________

By cash or other immediately available funds

*P rice must be expressed on the basis o f 100, with not
m ore than three decimal places, fo r exam ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated May 15, 1952, and are to mature
on August 14, 1952.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills ”
N am e o f B i d d e r ----(Please print)

By

(Official signature required)

(Title)

Street Address
(City, Town or Village, 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:
(Name of Customer)

(City, Town or Village, P. O. No., and State)

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 w ill be considered, and each tender m ust be fo r an even multiple o f $1,000
(maturity value).
2. I f the person m aking 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 w ill be construed as a
representation b y him that he has been so authorized. I f the tender is made by a partnership, it should be signed b y a
m em 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. T enders w ill be received w ithout deposit from incorporated banks and trust com panies 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 am ount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment
by an incorporated bank o r trust com pany.
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.

Payment by credit through Treasury Tax and Loan Account -will not be permitted.

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