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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 { Ckc$ fyS,°iffi|49 ) 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. http://fraser.stlouisfed.org/ T E N T B — 1141-a Federal Reserve Bank of St. Louis (O V E R )