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FED ERAL RESERVE BANK O F N EW YO RK
C ir cu la r N o. 3 8 6 9 1
J u n e 19,1952
J

Fiscal Agent o f the United States

Offering of $1,200,000,000 of 91-Day Treasury Bills
Dated June 26, 1952

Maturing September 25, 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:
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 19, 1952.

TREASURY 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 T reas­
ury bills, for cash and in exchange for Treasury bills maturing June 26, 1952, in the amount o f $1,201,069,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. T h e bills o f this series w ill be dated
June 26, 1952, and w ill mature September 25, 1952, when the face amount will 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 closing hour, tw o o’clock p.m., Eastern
Daylight Saving time, M onday, June 23, 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 of competitive tenders the price offered must be expressed on
the basis o f 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 will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will 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.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g which
public announcement will 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 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 w ill 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 June 26, 1952, in cash or other immediately avail­
able funds or in a like face amount o f Treasury bills maturing June 26, 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.
The 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 o f 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. Under 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 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 ccordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income 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, June 23, 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 sub­
mit a tender, and return it in an envelope marked “Tender for Treasury Bills.” Tenders may be submitted by telegraph,
subject to written confirmation; they may not be submitted by telephone. Payment fo 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
f unds or in nurturing Treasury bills.
A l l a n S p r o u l , President.
Results of last offering of Treasury bills (91-d a y bills dated June 19, 1952, maturing September 18, 1952)
T otal applied for......... $2,049,015,000
Total accep ted ..............$1,202,128,000 (includes $212,066,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
Average price.......

99.589

Equivalent rate o f discount
approx. 1.626% per annum

Range o f accepted competitive bids:
H igh ............... ...... 99.592
Equivalent rate
approx. 1.614%
L ow ........................ 99.588
Equivalent rate
approx. 1.630%

o f discount
per annum
o f discount
per annum

(81 percent o f the amount bid for at the low
price was accepted)




Federal Reserve
District
....
N ew Y ork ................ ....
Philadelphia ..............
Cleveland ..................
Richm ond ..................
St. Louis ....................
Minneapolis ..............
Kansas City .............
San Francisco .........
T

otal

...................... ....

T otal
Applied for
$

46,201,000
1,412,150,000
31,247,000
62,847,000
25,983,000
29,490,000
195,329,000
30,649,000
24,617,000
34,207,000
57,942,000
98,353,000

$2,049,015,000

Total
Accepted
$

30,916,000
768,713,000
10,814,000
43,448,000
22,683.000
22,840,000
141,857,000
15,191,000
21,837,000
25,050,000
30.842,000
67,937,000

$1,202,128,000

(o v e r )

27N

IM P O R T A N T — I f you desire to bid on a competitive basis, fill in rate per 100 and m aturity
value in paragraph headed <(Competitive Bid.” I f you desire to bid on a non-competitive
basis, fill in only the maturity value in paragraph headed "N on-com petitive Bid.”
DO
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.

No. _________________

TENDER FOR 91-D AY TREASURY BILLS
Dated June 2 6, 1952

Maturing September 25 , 1952

Dated at-------------------To

F ed eral R eserve B a n k

of

N ew Y ork,

_1952

Fiscal Agent of the United States.
CO M PETITIVE BID

N O N -C O M P E T IT IV E BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
June 19, 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 June 19,
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
(N ot to exceed $200,000)

(R ate per 100)

$....................................................... (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 26, 1952, and are to mature
on September 25, 1952.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
Name o f Bidder ........
By

(Please print)

(Official signature required)

(T itle)

Street Address .............................................
(C ity, T ow n o r 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:
(N am e o f Custom er)

(City, T ow n or V illage, P.O. No., and State)

IM P O R T A N T IN ST R U C TIO 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 by 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 will 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 accompanied 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.

Payment b y credit through Treasury Tax and Loan Account will not be permitted.

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