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F E D E R A L R E S E R V E BAN K O F N E W Y O R K
Fiscal A gent o f the United States

[

C ircular N o. 3 8 9 9 1
Septem ber 25, 1952 J

Offering of $1,200,000,000 of 92-Day Treasury Bills
Dated October 2, 1952

Maturing January 2, 1953

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

F ollow ing is the text of a notice published to d a y :
TREASU RY DEPARTM ENT
W ash in gton

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 ursday, Septem ber 25, 1952.

T h e S ecretary o f the T reasu ry, by this pu blic notice, invites tenders fo r $1,200,000,000, or thereabouts, o f 92-day T reasu ry
bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing O ctober 2, 1952, in the am ount o f $1,200,257,000, to be issued on
a discou n t basis under com petitive and n on -com p etitive b id d in g as h ereinafter provided . T he bills o f this series w ill be dated
O cto b e r 2, 1952, and w ill mature January 2, 1953, when the face am ount w ill be payable w ithout interest. T h ey w ill
be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity v a lu e ).
T en ders w ill be received at Federal R eserve Banks and Branches up to the clo s in g hour, tw o o ’c lo ck p.m., E astern
Standard time, M on day, Septem ber 29, 1952. T en ders w ill not be received at the T reasu ry D epartm ent, W ash ington. E ach
ten der must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on
the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay not be used. It is urged that tenders be
m ade on the printed form s and forw a rd ed in the special en velopes w hich w ill be supplied by F ed eral R eserve Banks o r
B ran ches on application therefor.
O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be
received w ith ou t deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in­
vestm ent securities. T en ders fro m others m ust be accom panied b y paym ent o f 2 percent o f the face am ount o f T rea su ry bills
applied for, unless the tenders are accom panied by an express gu aranty o f paym ent by an in corporated bank o r trust com pany.
Im m ediately a fter the closin g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich
pu blic announcem ent w ill be made b y the Secretary o f the T rea su ry o f the am ount and price range o f a ccepted bids. T h ose
subm itting tenders w ill be advised o f the acceptance or re je ctio n thereof. T h e Secretary o f the T reasu ry exp ressly reserves
the righ t to accep t o r re ject any or a ll tenders, in w hole or in part, and his action in any such respect shall be final. S u b ject
to these reservations, n on -com p etitive tenders f o r $200,000 o r less w ith ou t stated price from any one b idder w ill be accepted
in fu ll at the a verage price (in three decim als) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce
w ith the bids must be made or com pleted at the Federal R eserve Bank on O ctob er 2, 1952, in cash o r oth er im m ediately
available funds o r in a like face am ount o f T reasu ry bills m aturing O ctob er 2, 1952. Cash and exch ange tenders w ill receive
equal treatment. Cash adjustm ents w ill be m ade fo r differences between the par value o f m aturing bills a ccepted in exch ange
and the issue price o f the new bills.
T h e incom e derived from T reasu ry b ills, w hether interest o r gain fro m the sale o r oth er disp osition o f the b ills, shall
not have any exem ption, as such, and loss fro m the sale or oth er disp osition o f T rea su ry bills shall n ot have any special
treatment, as such, under the Internal Revenue Code, or law s am endatory or supplem entary thereto. T h e bills shall be
subject to estate, inheritance, g ift, o r oth er excise taxes, w hether F ed eral o r State, but shall be exem pt from all ta xation
n ow o r hereafter im posed on the principal or interest th ereof b y any State, o r any o f the possessions o f the U nited States,
o r by any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are o rigin a lly
sold b y the U n ited States shall be con sidered to be interest. U n der S ections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue
C ode, as am ended b y S ection 115 o f the Revenue A ct o f 1941, the am ount o f discou n t at w hich bills issued h ereunder are
so ld shall not be con sid ered to accru e until such bills shall be sold , redeem ed o r otherw ise disposed of, and such bills are
exclu d e d from con sideration as capital assets. A cco rd in g ly , the ow ner o f T rea su ry bills (oth er than life insurance co m ­
pan ies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid f o r such bills,
w hether on o rigin a l issue or on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption at
m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry ga in o r loss.
T re a su ry D epartm ent C ircu lar N o. 418, as amended, and this notice, prescribe the terms o f the T rea su ry bills and
govern the con dition s o f their issue. Copies o f the circu la r m a y be obtained from any F ed eral R eserve B ank o r Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, September 29, 1952, at the Securi­
ties Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular
to submit 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 for 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 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 (92-day bills dated September 25,1952, maturing December 26, 1952)
T o ta l applied f o r .........$2,109,049,000
T o ta l a c c e p t e d ............. $1,200,506,000 (in clu des $231,078,000
entered on a non-com p etitive basis
and accepted in fu ll at the aver­
age price show n b elow )
A ve ra g e p r ic e ........... 99.582+ E qu ivalent rate o f discount
a pp rox. 1.635% per annum
R ange o f accepted com petitive b id s :
H ig h ...........................

99.605

E quivalent rate o f discount
app rox. 1.546% per annum

L o w ..............................

99.579

Equivalent rate o f discount
approx. 1.647% per annum

(89 percent o f the am ount b id fo r at the low
price w as accepted)




Federal Resen/e
District

Total
Applied for

B oston ........................... .
N ew Y o r k .....................
P h ila d e lp h ia .................
C leveland .....................
R ich m on d .....................
A tlanta .........................
St. L ou is .....................
M inneapolis .................
K ansas C i t y .................
D allas ............................
San F r a n c i s c o .............
T otal

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

.

$

34,160,000
1,411,653,000
35,720,000
48,612,000
21,947,000
29,784,000
224,901,000
29,368,000
12,100,000
74,694,000
41,035,000
145,075,000

$2,109,049,000

Please note that the current offering is for 92-day Treasury bills.

Total
Accepted
$

20,085,000
680,053,000
19,744,000
48,202,000
16,447,000
19,294,000
144,611,000
20,591,000
11,400,000
69,109,000
37,105,000
113,865,000

$1,200,506,000

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28B

IMPORTANT— Please note that this offering is for 92-day Treasury bills which will
mature on Friday, January 2, 1953, because Thursday, January 1, will b e N ew Y e a r s Day.
IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity
value in paragraph headed “Competitive Bid.” If you desire to bid on a n on-com petitive
basis, fill in only the maturity value in paragraph headed “Non-competitive Bid.” DO
N O T fill in both, paragraphs on on e 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...............................

T E N D E R FOR 92-D A Y T R E A S U R Y BILLS
Maturing January 2, 1953

Dated October 2, 1952

Dated a t .........................................................

T o F ed eral R eserve B a n k of N e w Y o r k ,
Fiscal A gent o f the United States.

.............................................................. 1952

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
September 25, 1952, as issued by the Secretary
o f 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 September 25,
1952, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

............................................ * for a total amount of

for a total amount of $ ...............................................

(Rate per 100)

(Not to exceed $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 b e lo w :

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

□

□

B y surrender

o f maturing Treasury bills

amounting t o ................... $_______________________
□

B y cash or other immediately available funds

By surrender

o f maturing Treasury bills

amounting t o ................... $_______________________
□

B y cash or other immediately available funds

* Price must be expressed on the basis o f 100, with not
more than three decimal places, for example, 99.925.

T he Treasury bills for which tender is hereby made are to be dated O ctober 2, 1952, and are to
mature on January 2, 1953.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
N am e o f B id d er ...........................................................................................................................................
(Please print)

B y .....................................................................................
(Official signature required)

(T itle)

Street A d d ress ...............................................................................................................................................
(City, Town or Village, P. O. No., and State)

I f this tender is submitted by a bank for the account of a customer, indicate the customer's name on line below:
(Name of Customer)

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

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 w ill be con sidered, and each tender must be fo r an even m ultiple o f
$1,000 (m aturity va lu e).
2. I f the person m a k in g the tender is a corp ora tion , the tender should be sign ed b y an officer o f the corp ora tion
authorized to make the tender, and the sign in g o f the ten der by an officer o f the corp ora tion w ill be construed as a rep­
resentation b y him that he has been so authorized. I f the tender is made b y a partnership, it should be signed b y a m em ­
ber o f the firm, w h o should sign in the fo rm “ ................................................................................................................... , a copartnership, by
.....................................................................................................................

a m em ber o f the firm .”

3. T en ders w ill be received w ithout deposit fro m in corporated banks and trust com panies and fro m respon­
sible and recogn ized dealers in investm ent securities. T en ders from others must be accom panied b y paym ent of
2 percent o f the fa ce am ount o f T reasu ry bills applied for. unless the tenders are accom panied b y an express guaranty
o f paym ent b y an in corpora ted bank or trust com pany.
4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the S ecreta ry o f the
T reasu ry, is m aterial, the tender m ay be disregarded.

P aym ent b y credit through Treasury Tax and Loan A ccou n t w ill n ot b e perm itted.


TENTB—1161-a


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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102