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FEDERAL RESERVE BANK O F NEW YORK
Circular N o. 3 8 8 5
August 7,1952

Fiscal Agent o f the United States

Offering of $1,500,000,000 of 91-Day Treasury Bills
Dated August 14, 1952

Maturing November 13, 1952

T o all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

Following is the text o f a notice published tod ay:
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 ,
T h u rsd a y , A u g u s t 7, 1952.

TREASURY DEPARTM ENT
W a sh in g to n

T h e S e cre ta ry o f the T rea su ry, b y this p u b lic n otice, invites tenders fo r $1,500,000,000, o r th ereabouts, o f 91-day T reasu ry
bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g A u g u s t 14, 1952, in th e a m ou n t o f $1,500,972,000, to be issued on
a d isco u n t basis under com p etitiv e and n o n -co m p e titiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated
A u g u st 14, 1952, and w ill m ature N o v e m b e r 13, 1952, w h en the face a m ou n t w ill b e payable w ith ou t interest. T h e y w ill be
issued in bearer fo r m o n ly, and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, a n d $1,000,000 (m a tu rity v a lu e ).
T e n d e rs w ill b e receiv ed at F ed eral R e serv e B anks and B ran ch es up to the clo s in g h ou r, tw o o ’ c lo c k ’ p.m ., E astern
D a y lig h t S a v in g tim e, M on d a y, A u g u st 11, 1952. T e n d e rs w ill n ot be receiv ed at the T rea su ry D ep a rtm en t, W a sh in g ton . E ach
te n d e r m u st b e fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive ten ders th e price o ffe re d m ust b e exp ressed on
the basis o f 100, w ith n o t m ore th an th ree decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is u rg ed that tenders be
m ade o n th e printed fo rm s and fo rw a rd e d in the special en velop es w h ich w ill be supplied b y F ed era l R e serv e B anks o r
B ra n ch es o n a pp lica tion th erefor.
O th e rs than b ankin g in stitu tions w ill n ot be perm itted to su b m it ten ders e x ce p t f o r their o w n a ccou n t. T e n d e rs w ill be
receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fr o m respon sib le and re co g n iz e d dealers in in vest­
m en t securities. T e n d e rs fr o m oth ers m u st be a cco m p a n ie d b y p a ym en t o f 2 p ercen t o f th e fa ce a m ou n t o f T rea su ry bills
a pplied for, u nless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a y m en t b y an in corp ora ted bank o r trust com p a n y .
Im m e d ia te ly a fter the clo s in g h our, ten ders w ill be op en ed at the F ed eral R e serv e Banks and B ra n ch es, fo llo w in g w h ich
p u b lic a n n ou n cem en t w ill be m ade b y the S ecreta ry o f the T rea su ry o f the a m ou n t and p rice ran ge o f a ccep ted bids. T h o s e
su b m ittin g tenders w ill be advised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T r e a s u ry e x p ressly reserves
the righ t to a cce p t o r re je ct a n y or all ten ders, in w h ole o r in part, and his action in a n y such resp ect shall be final. S u b ject
to these reserva tion s, n on -co m p e titiv e ten ders f o r $200,000 o r less w ith ou t stated p rice fr o m a n y on e b id d er w ill be a ccep ted
in fu ll at th e a vera ge p rice (in three decim a ls) o f a ccep ted com p etitive bids. S ettlem en t fo r a ccep ted tenders in a ccord a n ce
w ith the bids m u st be m ade or com p leted at the Federal R eserve B ank on A u g u st 14, 1952, in cash or oth er im m ediately
available funds o r in a like face a m ou n t o f T rea su ry bills m atu rin g A u g u st 14, 1952. Cash and ex ch a n g e tenders w ill receive
equal treatm ent. Cash adjustm ents w ill b e m ade fo r d ifferen ces betw een the pa r valu e o f m atu rin g bills a ccep ted in exch a n ge
and th e issue price o f th e n ew bills.
T h e in co m e d eriv e d fro m T rea su ry bills, w h eth er in terest o r gain fr o m th e sale o r oth er d isp osition o f th e bills, shall
n o t have a n y exem p tion , as such, and lo s s fr o m the sale o r oth er d isp osition o f T r e a s u ry bills shall n ot have a n y special
treatm en t, as such, u nder the In tern al R even u e C ode, o r law s a m en d a tory o r su p p lem en ta ry th ereto. T h e bills shall be
su b je ct to estate, inheritance, gift, o r o th e r excise taxes, w hether F ed era l o r State, b u t shall be e x e m p t fr o m all taxation
n o w o r h ereafter im p osed on the principal o r interest th e re o f b y any State, o r a n y o f th e p ossession s o f th e U n ited States,
o r b y a n y lo ca l ta x in g a u th ority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T r e a s u ry bills are o rigin a lly
so ld b y the U n ited States shall be con sid ered to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f th e In tern al R even u e
C ode, as a m en ded b y S ection 115 o f the R even u e A c t o f 1941, the a m ou n t o f d iscou n t at w h ich bills issued h ereun der are
s o ld shall n o t be co n sid e re d to a ccru e u ntil such bills shall be sold , red eem ed o r oth erw ise disp osed o f, and such bills are
e x clu d ed fr o m con sid era tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance com p a n ie s)
issued h ereun der need in clude in his in co m e ta x return o n ly th e differen ce b etw een th e price paid fo r such bills, w hether
o n o rigin a l issue o r o n subsequent pu rch ase, and the a m ou n t actu a lly receiv ed eith er u pon sale o r red em p tion at m atu rity
du rin g the ta xab le yea r fo r w hich th e return is m ade, as o rd in a ry gain o r loss.
T r e a s u ry D ep a rtm en t C ircu la r N o. 418, as am en ded, and this n otice, p rescrib e th e term s o f th e T r e a s u ry bills and g o v e rn
th e co n d itio n s o f their issue. C op ies o f the circu la r m a y be ob ta in ed fr o m a n y F ed era l R eserve B a n k o r B ra n ch .

This Rank will receive tenders up to 2 p.m.. Eastern Daylight Saving time, Monday, August 11, 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. Payment fo r the Treasury bills

cannot be made by credit through the Treasury Tax and Loan Account.
immediately available funds or in maturing Treasury bills.

Settlement must be made in cash or other
A lla n

S p r o u l,

President.

R e s u l t s o f la s t o f f e r i n 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 A u g u s t 7 , 1 9 5 2 , m a t u r i n g N o v e m b e r 6 , 1 9 5 2 )
T o ta l applied fo r . . .$1,934,791,000
T o t a l a ccep ted ......... $1,300,091,000 (in clu d es $188,152,000
entered on a n o n -co m p e titiv e basis
and a ccep ted in fu ll at the a verage
price sh ow n b e lo w )
A v e ra g e price . . .
99.530
E quivalent rate o f discou nt
app rox. 1.860% p er annum
R a n g e o f a ccep ted co m p etitive b id s : (e x ce p tin g o n e tender
o f $50,000)
H ig h
L ow

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

99.535

E quivalent rate o f discou n t
app rox. 1.840% p er annum
....................
99.521
E quivalent rate o f discou nt
app rox. 1.895% per annum
(40 p ercen t o f the am ou nt bid fo r at the low
p rice w a s a ccep ted )




Federal Reserve
District

Total
Applied fo r

B oston .............................
N ew Y o r k ......................
P h iladelphia ..................
C levelan d .........................
R ich m o n d ......................
A tla n ta .............................
C h ica g o ...........................
St. L ou is .........................
M in n ea p olis ..................
K ansas C ity ..................
D allas ................................
San F ra n cisco .............
T ota l

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

$

24,849,000
1,362,667,000
37,084,000
21,876,000
13,852,000
21,688,000
254,249,000
37,233,000
12,175,000
43,695,000
50,010,000
55,413,000

$1,934,791,000

Total
Accepted
$

21,599,000
790.417.000
22.084.000
21.576.000
13.802.000

.

21 688.000
220.049.000
33.633.000
11.975.000
43.345.000
49.510.000
50.413.000
$1,300,091,000
( over)

27U

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
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.
N o .................................

TENDER FOR 91-DAY TREASURY BILLS
Dated August 14, 1952
To

Maturing November 13, 1952
Dated at

F ed eral R eserve B a n k of N e w Y o r k ,

Fiscal Agent o f the United States.

1952

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and to
the provisions o f the public notice on August 7,
1952, as issued by the Secretary o f the Treas­
ury, the undersigned offers
(Rate per 100)

Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and to
th e p r o v is io n s o f th e p u b lic n o t ic e o n A u g u s t 7,

1952, as issued by the Secretary o f the Treas­
ury, the undersigned offers a non-competitive
tender fo r a total amount o f $ ....................................
(Not to exceed $200,000)

fo r a total amount o f $ ...............................................
(maturity value) o f 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 b elow :

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) o f accepted competitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below :

□

□

B y surrender o f maturing Treasury bills

B y surrender o f maturing Treasury bills

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

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

□

□

B y 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 fo r which tender is hereby made are to be dated August 14, 1952, and are to
mature on November 13, 1952.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
N a m e o f B id d er ...........................................................................................................................................
(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’ name on line below:
s
(Name o f Customer)

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

IMPORTANT INSTRUCTIONS:
1. N o ten der f o r less than $1,000 w ill b e con sid ered , and each ten der m u st be f o r an even m u ltip le o f $1,000
(m a tu rity v a lu e ).
2.
I f th e p erson m a k in g the ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the c o rp o ra ­
tio n a u th orized to m a ke th e tender, a n d th e s ig n in g o f the tender b y an officer o f the corp o ra tio n w ill be con stru ed as a
re p re se n ta tio n -b y h im th at he has b een s o authorized. I f the ten der is m ade b y a partnersh ip, it sh ou ld be sign ed b y a
m e m b e r o f the firm , w h o sh ou ld sign in the fo r m “ ................................................................................................, a cop a rtn ersh ip , b y
...................................................................................................................................... . a m e m b e r o f th e firm .”
3. T e n d e rs w ill be receiv ed w ith ou t d ep osit fr o m in co rp o ra te d banks and trust com p a n ies and fr o m respon ­
sible a n d re co g n ized dealers in in vestm ent securities. T e n d e rs fr o m oth ers m u st be a cco m p a n ie d b y p a ym en t o f 2 p ercen t
o f th e fa ce a m ou n t o f T r e a s u ry bills a p p lied fo r, u nless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent
b y an in co rp o ra te d b a n k o r trust co m p a n y .
4. I f th e la n g u a g e o f this ten der is ch a n g e d in a n y resp ect, w h ich , in th e op in ion o f the S ecreta ry o f the
T r e a s u ry , is m aterial, th e ten d er m a y be disregarded.


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