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F E D E R A L R E S E R V E B AN K O F N E W Y O R K Fiscal Agent o f the United States [ Cioctober2 ius^3 ] Offering of $1,400,000,000 of 91-Day Treasury Bills Dated October 9, 1952 Maturing January 8, 1953 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, O c to b e r 2, 1952. TREASU RY DEPARTM ENT W a sh in g ton T h e S ecreta ry o f the T reasu ry, b y this pu blic n otice, invites tenders fo r $1,400,000,000, o r th ereabouts, o f 91-day T re a s ury bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g O c to b e r 9, 1952, in the a m ou n t o f $1,400,368,000, to be issued on a discou n t basis under com p etitive and n on -com p etitiv e bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated O c to b e r 9, 1952, and w ill m ature January 8, 1953, 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 on 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 F ed eral R e serv e B anks and B ran ches up to the clo s in g hour, tw o o ’ c lo ck p.m ., E astern Standard tim e, M on d a y, O c to b e r 6, 1952. T e n d e rs w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . E ach 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 etitive tenders the price o ffe re d m ust be exp ressed on the basis o f 100, w ith n ot m ore 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 ten ders be m ade on the printed fo rm s and forw a rd ed in the special en velopes w hich w ill be supplied b y Federal R eserve B anks o r B ran ch es o n application th erefor. O th e rs than b a n k in g institutions w ill n ot be perm itted to subm it tenders e x cep t fo r their ow n a ccou n t. T e n d e rs w ill be receiv ed 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 invest 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 a pp lied fo r, 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 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 Federal R eserve B anks and B ranches, fo llo w in g w h ich pu b lic 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 su b m ittin g 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 e x p ressly reserves the righ t t o a cce p t o r re je ct any o r all tenders, in w h ole o r in part, and his a ction in a n y such resp ect shall be final. S u b je ct to these reservations, n on -com p etitiv e ten ders f o r $200,000 o r less w ith ou t stated p rice fro m any one b idder w ill be a ccep ted in full at the a vera ge price (in th ree d ecim a ls) o f a ccep ted com petitive bids. Settlem ent fo r a ccep ted tenders 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 O c to b e r 9, 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 O c to b e r 9, 1952. Cash and exch an ge tenders w ill receiv e equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m aturing bills a ccep ted in exch a n ge and the issue price o f the new bills. T h e in co m e derived fr o m T rea su ry bills, w hether interest o r ga in fro m the sale o r oth er d isp osition o f th e bills, shall n ot have a n y exem ption , as such, and lo s s fro m the sale or oth er disp osition o f T rea su ry bills shall n ot have a n y special treat m en t, as such, under the In tern al R even u e C ode, o r law s a m en da tory or sup plem entary th ereto. T h e bills shall be su b je ct to estate, inheritance, gift, o r oth er excise taxes, w hether F ed eral or State, but shall be exem p t fro m all taxation npw o r h ere after im p osed o n the principal o r interest th e re o f b y a n y State, or a n y o f the possession s o f th e U n ited States, o r b y any lo ca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f discou n t at w h ich T rea su ry bills are origin a lly s o ld 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 even u e A c t o f 1941, the a m ou n t o f discou n t at w hich bills issued hereunder are sold shall n ot be con sidered to accrue until such bills shall be sold, redeemed or otherwise disp osed o f, and such bills are exclu d ed fro 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 on ly th e differen ce betw een th e price paid fo r such bills, w hether on origin a l issue o r on sub sequen t purchase, and the am ou nt actu a lly received either u pon sale or 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 epa rtm en t Circular 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 and g o v e rn the conditions o f their issue. Copies o f the circular m ay be obtained fro m any Federal R eserve B ank o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, October 6, 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 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 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 o f last offering o f Treasury bills (92-day bills dated October 2, 1952, maturing January 2, 1953) T o ta l applied fo r .......... $1,915,928,000 T o ta l a c c e p te d ...............$1,200,090,000 (in clu des $195,361,000 entered on a n on -com p etitiv e basis and a ccep ted in full at the average price sh ow n b e lo w ) A ve ra g e price ........ 9 9 .5 5 0 + E quivalent rate o f discou nt a p p rox. 1.760% per annum R a n g e o f a ccep ted com p etitive b ids: H ig h ....................... 99.617 E quivalent rate a p p rox. 1.499% L o w .......................... 99.543 E quivalent rate a pp rox. 1.788% o f discou nt per annum o f discount per annum (32 percent o f the am ou nt bid fo r at the low price w as a ccep ted) Federal Reserve District Total Applied fo r .... N ew Y o r k ................... .... Philadelphia .............. C leveland ................... R ich m on d ................... C h ica g o ....................... St. L ou is ..................... M in n eap olis ............... K ansas City ............... San F ra n cisco .......... T otal ......................... .... $ 26,887,000 1,278,535,000 25,102,000 30,255,000 21,038,000 26,660,000 250,334,000 35,789,000 15,613.000 45,550.000 58,146,000 102,019,000 $1,915,928,000 Total Accepted $ 26,887,000 596,085,000 10,102,000 29,255,000 21,038,000 26.660,000 240,284.000 33,841.000 15.613.000 45.200,000 58,146,000 96,979,000 $1,200,090,000 ( over) 28C IM PORTANT— 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 non-com petitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O N O T fill in both paragraphs on one form . A separate tender must be used fo r each bid, except that banks submitting bids on a competitive basis fo r their own and their customers’ accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and method of payment. Forms fo r this purpose w ill be furnished upon request. N o ................................... TENDER FOR 91 -D A Y TREASURY BILLS Dated October 9, 1952 T o F e d e r a l R eser v e B a n k o f N e w Y Fiscal A gent o f the United States. Maturing January 8, 1953 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 October 2, 1952, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular N o. 418, as amended, and to the provisions o f the public notice on October 2, 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 ate per 100) (N ot 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 below: □ By surrender o f maturing Treasury bills (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 e lo w : □ 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, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated October 9, 1952, and are to mature on January 8, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills” N a m e o f B id d er ........ By (Please p rin t) (Official signature required) (Title) Street A d d ress ................................................ (C ity, T ow n o r V illage, P.O. No., and State) I f this tender is submitted b y a bank for the account o f a customer, indicate the custom er’s name on line below : (Name o f Custom er) (C ity, T ow n or Village, P.O. N o., and State) 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 should be sign ed b y an officer o f the co rp o ra tion authorized to m ake the tender, and the sig n in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a representation b y h im that he has been so authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a m em b er o f the firm , w h o sh ou ld sign in the fo r m “ ....................................................................................................... a copartn ersh ip, b y ....................................................................................................................... a member o f the firm.” 3. T e n d e rs w ill be receiv ed w ith ou t deposit from in corpora ted banks and trust com pa n ies and from resp o n sible and re co g n ize d dealers in investm ent securities. T e n d e rs fro m oth ers m ust be a ccom p a n ied b y p a ym en t o f 2 percent o f the face am ou nt o f T r e a s u ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted b a n k or trust com pan y. 4. I f the language o f this ten der is ch a n ged in any respect, w hich, in the op in ion o f the S ecretary o f the T rea su ry, is m aterial, th e ten der m ay be disregarded. 'Payment b y cred it through Treasury T a x and Loan A cco u n t -will n ot b e perm itted. http://fraser.stlouisfed.org/ TEXTB—1162-a Federal Reserve Bank of St. Louis ( over)