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FED ERAL RE SE R V E BANK O F N EW Y O R K — ICHMI r C ir cu la r N o. 3 8 8 7 L A u g u s t 21,11)52 Fiscal Agent o f the United States O ffering o f $ 1 ,3 0 0 ,0 0 0 ,0 0 0 o f 92-Day Treasury Bills Dated August 28, 1952 Maturing November 28, 1952 To 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 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 , T h u rsd a y, A u g u st 21, 1952. TREASU RY DEPARTM ENT W a sh in g ton 0 T h e Secretary o f the T reasu ry, b y this p u b lic notice, invites tenders for $1,300,000,000, or thereabouts, o f 92-day T rea su ry bills, fo r cash and in exch a n ge for T rea su ry bills m aturing A u g u st 28, 1952, in the am ou nt o f $1,300,474,000, to be issued on a d iscou n t basis under com petitive and n on -com p etitiv e b id d in g as h ereinafter provided . T h e biils o f this series w ill be dated A u g u st 28, 1952, and w ill m ature N ov em b er 28, 1952, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm o n ly , and in den om in ation s o f $1,000, $5,000, $10,000, $100,000, §500,000, and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill be received at Federal R eserve B anks and B ran ches up to the clo s in g h our, tw o o ’ c lo ck p.m ., E astern D a y ligh t S a vin g tim e, M o n d a y , A u g u st 25, 1952. T en d ers w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a sh in g ton . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive tenders th e price o ffe re d m u st be, exp ressed on th e basis o f 100, w ith n ot m o re than three decim als, e.g., 99.925. F ra ction s m a y n ot be used. I t is urged that tenders be m ade on the printed form s and forw a rd ed in the special en velopes w h ich w ill be sup plied b y F ed eral R e serv e B anks o r B ran ches o n application th erefor. O th ers than b ank in g institutions w ill n ot be perm itted to subm it tenders e x cep t fo r their o w n a ccou nt. T e n d e rs w ill be re ce iv e d w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and from respon sible and recog n ized dealers in in vest m en t securities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face am ou nt o f T rea su ry bills applied fo r, unless the tenders are a ccom p a n ied b y an express gu aranty o f paym ent b y an in corpora ted bank or trust com p a n y . Im m ed ia tely a fter the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve B anks and B ranches, fo llo w in g w h ich pu blic a n n ou n cem en t w ill be m ade b y the S ecretary o f the T rea su ry o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e subm itting tenders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T rea su ry ex p ressly reserves th e righ t to a ccep t o r reject a n y or a ll tenders, in w h ole o r in part, and his a ction in a n y such respect shall be final. S u b ject to these reservations, n on -com p etitiv e tenders fo r $200,000 or less w ith ou t stated price fro m a n y on e b idd er w ill be a ccep ted in full at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. S ettlem ent for a ccep ted ten ders in a ccord a n ce w ith the bids m u st be m ade o r com p leted at the Federal R eserve B ank on A u gu st 28, 1952, in cash o r oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m aturing A u gu st 28, 1952. Cash and ex ch a n g e ten ders w ill receive equal treatment. Cash adjustments will be made f o r differences between the par value o f maturing bills accepted in exchange and the issue p rice o f th e n ew bills. T h e in co m e derived fro m T rea su ry bills, w h eth er interest or gain fro m the sale o r oth er disposition o f the bills, shall n ot have a n y exem ption , as such, and loss fro m the sale o r oth er disp osition o f T rea su ry bills shall n ot have any special treat m ent, as such, under th e Internal R even u e C ode, o r law s am en da tory or sup plem entary thereto. T h e bills shall be su b ject t o estate, inheritance, gift, or oth er excise taxes, w hether F ed eral or State, b u t shall be exem p t fro m all taxation n o w o r h ere a fter im p osed on the principal o r interest th e re o f b y a n y State, or a n y o f the p ossession s o f th e U n ited States, o r b y any local ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f d iscou n t at w hich T rea su ry bills are o rig in a lly sold b y the U n ited States shall be considered to be interest. Under Sections 42 and 1 1 7 (a )(1 ) o f the Internal R even u e C ode, as a m en ded b y S ection 115 o f the R e ven u e A c t o f 1941, the am ou nt o f discou n t at w h ich bills issued hereunder are sold shall n ot be con sidered to accrue until such bills shall be sold, redeemed or otherwise disp osed of, and such bills are exclu d ed fr o m con sidera tion as capital assets. A c co 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 ies) issued hereun der need in clu de in his in co m e ta x return o n ly the differen ce betw een th e price paid fo r such b ills, w hether o n origin a l issue o r on sub sequen t purchase, and th e am ou nt a ctu a lly received either u pon sale o r redem ption at m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epartm en t Circular N o . 418, as am en ded, and this n otice, prescrib e the term s o f th e T r e a s u ry bills and g o v e rn the conditions o f their issue. Copies o f the circular may be obtained fro m a n y F ed eral R eserve B a n k o r B ran ch. This bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, August 25, 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 sub mit a tender, and return it in an envelope marked “ Tender fo r 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 Tax 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 of last offering of Treasury bills (91-day bills dated August 21, 1952, maturing November 20, 1952) T o ta l applied f o r .......... $2,082,519,000 T o ta l a cce p te d ...............$1,300,266,000 (in clu des $211,539,000 entered on a n on -com p etitive basis and a ccep ted in full at the average price show n b e lo w ) A v e ra g e p r ice ........ 99.535 E quivalent rate o f discou n t app rox. 1.841% p er annum R a n g e o f a ccep ted com p etitive b ids: H ig h ........................ 99.553 E quivalent rate app rox. 1.768% L o w .......................... 99.531 E quivalent rate app rox. 1.855% o f discou n t per annum o f discount per annum (97 p ercen t o f the am ou nt bid for at the low price w as a ccep ted ) Federal Reserve District B oston ......................... N e w Y o r k ............... a. Philadelphia .............. C leveland ............. . R ich m on d .................. A tla n ta ...................... C h ica g o ...................... St. L ou is .................... M in n eap olis .......... ... K ansas C ity ............. D allas ......................... San F ra n cisco ......... T ota l ....................... Total Applied fo r Total Accepted 5 26,057,000 1,479,465,000 31.957.000 49.873.000 24.416.000 29.220.000 223,628,000 31.615.000 18.330.000 41.263.000 40.912.000 85.783.000 21.737.000 818,820,000 15.557.000 44.673.000 22.801.000 25.990.000 163,548,000 25.462.000 16.305.000 38.843.000 33.867.000 72.663.000 $2,082,519,000 $1,300,266,000 Please note that the current offering is for 92-day Treasury bills 27W IMPORTANT— Please note that this offering is for 92-day Treasury bills which will mature on Friday, November 28, 1952, owing to the fact that Thursday, November 27, will be Thanksgiving Day. 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 . __________________ TENDER FOR 92-DAY TREASURY BILLS Dated August 28, 1952 T o F e d e r a l R ese rv e B a n k o f N e w Y Fiscal Agent o f the United States. Maturing November 28, 1952 Dated at-........................ ork, .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 21, 1952, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular No. 418, as amended, and to the provisions o f the public notice on August 21, 1952, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender ----------------------------------------- * for a total amount o f fo r a total amount o f (R a t e p e r 100) (N o t t o e x c e e d $200,000) $---------------------------------------------- (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 below : (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 b elow : □ □ By surrender o f maturing Treasury bills By 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, f o r example, 99.925. The Treasury bills fo r which tender is hereby made are to be dated August 28, 1952, and are to mature on November 28, 1952. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” N a m e o f B id d er ........ (P le a s e p r in t ) By (O fficia l s ig n a t u r e r e q u ir e d ) ( T it le ) Street A d d ress ................................................ (C ity , T o w n o r V illa g e , P .O . N o ., a n d S ta te) If this tender is submitted by a bank for the account of a customer, indicate the customer’name on line below: s (N a m e o f C u s to m e r) (C it y , T o w n o r V illa g e , P .O . N o., a n d S ta te ; IMPORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 w ill be considered, and each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the 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 co rp o ra tion a uthorized t o m ake the tender, and th e sign in g o f th e ten der b y an officer o f the corp ora tion w ill be con stru ed as a represen tation b y him that he has been s o authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sig n ed b y a m e m b e r o f the firm , w h o sh ou ld sign in the fo rm “ ..................................................................................................... . a cop artn ersh ip, b y ....................................................................................................................... a member o f the firm.” 3. T e n d ers w ill be receiv ed w ith ou t dep osit from in corp ora ted banks and trust com pa n ies and fro m resp o n sible and re co g n ize d dealers in in vestm ent securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 percent o f the face am ou nt o f T rea su ry bills applied for, unless the tenders 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 corpora ted bank o r trust com pan y. 4. I f the la n g u a ge o f this ten der is ch a n g ed in a n y respect, w hich, in the op in ion o f the S ecreta ry o f the T re a su ry , is m aterial, th e ten der 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 — 1156-a (.OVER) Federal Reserve Bank of St. Louis