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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. http://fraser.stlouisfed.org/ T E N T B — 1147 a Federal Reserve Bank of St. Louis ( over)
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