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FED ERAL RESERVE BANK O F N EW YORK

r Circular . % 3 8 6 5 \
I
June 12,1952
J

Fiscal Agent of the United States

Offering of $1,200,000,000 of 91-Day Treasury Bills
Dated June 19, 1952

Maturing September 18, 1952

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal R eserve 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, June 12, 1952.

TREASU RY DEPARTM ENT
W ashington

T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing June 19, 1952, in the amount o f $1,200,632,000, 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 will be dated
June 19, 1952, and will mature September 18, 1952, when the face amount w ill be payable without interest. T h ey w ill 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, June 16, 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 which w ill be supplied b y Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their ow n account. Tenders w ill be
received without 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 by an incorporated bank or trust company.
Imm ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which
public announcement w ill be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. Those
submitting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves
the right to accept o r 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 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 com petitive bids. Settlement for accepted tenders in accordance
with the bids must be made or com pleted at the Federal Reserve Bank on June 19, 1952, in cash o r other immediately
available funds or in a like face amount o f Treasury bills maturing June 19, 1952. Cash and exchange tenders will receive
equal treatm ent 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 o r 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, or other excise taxes, whether Federal or State, but shall be exem pt from all taxation
now or hereafter im posed on the principal o r interest thereof by any State, or any o f the possessions o f the United States,
o r by any local taxing authority. F or purposes o f taxation the am ount 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 1 1 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 arc
excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance companies)
issued hereunder need include in his incom e tax return on ly 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 which 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 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, June 16, 1952, at the Securities
Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to
submit a tender, and return it in an envelope marked “ Tender fo r Treasury Bills.” Tenders may be submitted by tele­
graph, subject to written confirmation; they may not be submitted by telephone. Paym ent f o r the Treasury bills
cannot be made by credit through the Treasury T a x 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 (9 1 -d a y bills dated June 12, 1952, maturing September 11, 1952)
T otal applied f o r . . .$2,015,147,000
Total accepted.......... $1,200,784,000 (includes $196,961,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A verage price . . .

99.557

Equivalent rate o f discount
approx. 1.753% per annum

Range o f accepted com petitive bids:
H igh .....................

99.583

Equivalent rate o f discount
approx. 1.650% per annum

L o w .......................

99.555

Equivalent rate o f discount
approx. 1.760% per annum

Federal Reserve
District
B oston .............................
New Y ork .....................
Philadelphia ..................
C le v e la n d .........................
Richm ond .......................
Atlanta .............................
Chicago ...........................
St. Louis .......................
M inneapolis ..................
Kansas City .................
Dallas ...............................
San Francisco ...............

Total
Applied fo r
$

33,231,000
1,349,315,000
41,490,000
66,802,000
31,397,000
39,853,000
228,927,000
27,590,000
20,670,000
24,608,000
45,985,000
105,279,000

Total
Accepted
$

32,231,000
690,980,000
16.961.000
54.801.000
27.853.000
37.933.000
168,287,000
18.220.000
17.187.000
24.148.000
36.865.000
75.318.000

(77 percent o f the am ount bid for at the low
price w as accepted)



Total .....................

$2,015,147,000

$1,200,784,000
( over)

27M
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 n on -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 fo rm . 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 ....................................

TENDER FOR 91 -D AY TREASURY BILLS
D a te d Ju n e 19, 1952

M a t u r in g S e p te m b e r 1 8 , 1 9 5 2

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

NON-COMPETITIVE BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on June 12,
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 June 12,
1952, as issued by the Secretary of the Treas­
ury, the undersigned offers a non-competitive

ury, the undersigned offers.......................................*
(R ate per 100)

tender for a total amount of $.
(Not to exceed $200,000)

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:

(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

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

*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 June 19, 1952, and are to mature
on September 18, 1952.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
Name o f Bidder .................................................................................................................................
(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)

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 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 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. If 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 44
........................................................................................... , a copartnership, by
............................................................................................................, a mem ber o f the firm.”
3. T enders w ill be received without 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 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 o r trust company.
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 may be disregarded.

"Payment b y cred it through T reasu ry T a x and Loan A cco u n t w ill n ot be perm itted.

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