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FED ERAL RESERVE BANK O F N EW YORK
Fiscal Agent o f the United States

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Offering of $1,300,000,000 of 91-Day Treasury Bills
Dated September 4, 1952

Maturing December 4, 1952

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:
F o llo w in g is the te x t o f a n o tic e p u b lish ed t o d a y :
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 u esd a y, A u g u s t 26, 1952.

TREASURY DEPARTM ENT
W a sh in g to n

T h e S ecreta ry o f the T rea su ry , b y this p u b lic n otice, invites ten ders fo r $1,300,000,000, o r th ereabouts, o f 9 1-d ay T re a su ry
bills, fo r cash and in e x ch a n g e for T rea su ry bills m aturing S ep tem ber 4, 1952, in the a m ou n t o f $1,300,077,000, to be issued on
a d isco u n t basis under com p etitive 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
S ep tem ber 4, 1952, and w ill m ature D e ce m b e r 4, 1952, w h en the fa ce a m ou n t w ill be pa ya b le 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, and $1,000,000 (m a tu rity v a lu e ).
T e n d e rs w ill be re ceiv ed at F ed eral R e serv e B anks and B ra n ch es up to th e clo s in g h our, tw o o ’ c lo c k p.m ., E astern
D a y lig h t S a vin g tim e, F riday, A u g u s t 29, 1952. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E a ch
ten der m u st be fo r an even m u ltiple o f $1,000, and in the case o f com p etitiv e ten ders the 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 th ree decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be
m ade o n th e printed fo rm s and forw a rd ed in the special en velopes w h ich w ill b e supplied b y F ed eral R es e rv e B ank s o r
B ra n ch es o n a pp lica tion th erefor.
O th ers than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x ce p t fo r th eir o w n a ccou n t. T e n d e rs w ill be
received w ith o u t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fr o m respon sible 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 ust be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T r e a s u ry bills
applied for, u nless th e 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 fte r the clo s in g h ou r, ten ders w ill b e op en ed at th e F ed eral R es e rv 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 th e S ecreta ry o f the T rea su ry o f th e 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 ten ders w ill b e advised o f the 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 ex p re s sly reserves
the righ t to a cce p t o r re je ct a n y or all tenders, in w h o le o r in part, and his action in a n y such resp ect shall be final. S u b je ct
to these reserva tion s, n on -com p etitiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fro m any o n e b idd er w ill be a cce p te d
in full at the a vera ge p rice (in th ree decim a ls) o f a ccep ted com p etitiv e bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce
with the bids m u st be m ade or com p leted at the F ed eral R eserve Bank on S ep tem ber 4, 1952, in cash or oth er im m ediately
available fu n d s o r in a like face a m ou n t o f T rea su ry bills m aturing S ep tem ber 4, 1952. Cash and ex ch a n g e ten ders 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 value o f m aturing bills a ccep ted in exch an ge
and th e issue p rice o f th e n ew bills.
T h e in co m e d eriv e d fro m T r e a s u ry b ills, w h eth er interest o r gain fr o m th e sale o r oth er d isp osition o f th e b ills, shall
n o t have a n y exem ption , as such, and loss 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 ent, as such, u nder the Internal 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, in heritance, gift, o r oth er e x cis e taxes, w h eth er F ed era l o r State, but shall be e x e m p t fro m all taxation
n o w o r hereafter im p o sed on th e principal o r interest th ereof b y any State, o r a n y o f the p ossession s o f the 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 ta xation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin 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 the In tern al R even u e
C o d e , as a m en ded b y S ection 115 o f the R even u e A c t o f 1941, th e a m ou n t o f d iscou n t at w h ich bills issued h ereun der are
so ld shall n ot be co n sid ered to a ccru e until such bills shall be sold, red eem ed o r oth erw ise d isp osed of, and such bills are
e x clu d e d 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 r e a s u ry bills (o th e r than life in su rance com p a n ies)
issued h ereun der need in clude in his in co m e ta x return on ly the differen ce betw een the price paid fo r such bills, w h eth er
o n o rigin a l issue o r o n su b seq u en t pu rch ase, and the a m ou n t actu a lly receiv ed either u pon sale o r red em p tion 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 ep a rtm en t C ircu la r N o. 418, as am en ded, and this n otice, p rescrib e the term s o f the T rea su ry bills a n d g o v e r n
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 fro m a n y F ed eral R eserve B ank or B ra n ch .

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Friday, August 29, 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.

(CLOSING DAY FOR RECEIPT OF TENDERS IS FRIDAY, AUGUST 29, 1952)




RESULTS OF BIDDING FOR TREASURY BILLS
DATED AUGUST 28, 1952 WERE NOT AVAIL­
ABLE WHEN THIS CIRCULAR WAS PRINTED.

( over)

IMPORTANT— Please note that tenders for this issue must be received not later than 2
p.m., Eastern Daylight Saving time, Friday, August 29, 1952.
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.
; Jx>!

No>

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

TENDER FOR 91-DAY TREASURY BILLS
Dated September 4, 1952
To

Maturing December 4, 1952
Dated at

F ederal R eserve B a n k o f N e w Y o r k ,

1952

Fiscal Agent o f the United States.

NON-COMPETITIVE BID

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 26,
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 No. 418, as amended, and to
the provisions o f the public notice on August 26,
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 fo r 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 for which tender is hereby made are to be dated September 4, 1952, and are to
mature on December 4, 1952.
This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills”
N a m e o f B i d d e r ____
(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 of Customer)

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

IMPORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill be con sid ered , an d each ten der m ust be fo r an even m u ltiple o f $1,000
(m a tu rity v a lu e ).
2.
I f the person m ak in g the tender is a co rp o ra tio n , the ten der shou ld be signed b y an officer o f the co rp o ra ­
tio n a uthorized to m ake the ten der, and the sig 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
represen tation b y him that he has been s o authorized. I f the ten der is m ad e b y a partnersh ip, it sh ou ld be sign ed b y a
m em b er o f the firm , w h o shou ld sign in the fo r m “ ................................................................................................ , a cop artn ersh ip, by
........................................................ . a m em b er o f th e firm .”
3. T e n d e rs w ill b e receiv ed w ith ou t d ep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m respon ­
sible a n d re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied 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 pp lied for, u nless th e 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 ted b a n k o r trust com p a n y .
4. I f th e la n g u a ge o f this tender is ch a n g e d in a n y resp ect, w h ich , in th e op in ion o f th e S ecreta ry o f the
T re a s u ry , is m aterial, th e ten der m a y be disregarded.


Payment b y credit through Treasury Tax and Loan Account will not be permitted.
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(O V E R )
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