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F E D E R A L R E SE R V E BAN K O F N E W Y O R K Fiscal Agent o f the United States Circular N 16 13, J [ Novem ber o. 3 91952 1 Offering of $1,300,000,000 of 91-Day Treasury Bills Maturing February 19, 1953 Dated November 20, 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: TREASURY DEPARTM ENT W ashington 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 , Thursday, Novem ber 13, 1952. T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing Novem ber 20, 1952, in the amount o f $1,300,266,000, to be issued on a discount basis under com petitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated Novem ber 20, 1952, and will mature February 19, 1953, when the face amount w ill be payable without interest. T h ey will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Standard time, M onday, N ovem ber 17, 1952. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple 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, with n ot m ore than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which w ill be supplied b y Federal Reserve Banks or Branches on application therefor. Others than banking institutions w ill not be permitted to submit tenders except for their ow n a ccou n t Tenders w ill be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust company. Imm ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcement will be made by the Secretary o f the Treasury o f the am ount and price range o f accepted bids. Those submitting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reservations, non-com petitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted in full at the average price (in three decim als) o f accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on N ovem ber 20, 1952, in cash or other immediately available funds o r in a like face amount o f Treasury bills maturing Novem ber 20, 1952. Cash and exchange tenders w ill receive equal treatment. Cash adjustments w ill be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. T h e incom e derived from Treasury bills, whether interest or gain from the sale o r other disposition o f the bills, shall not have any exemption, as such, and loss from the sale o r other disposition o f Treasury bills shall not have any special treat ment, as such, under the Internal Revenue Code, or laws am endatory or supplementary thereto. T h e bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation n ow or here after im posed on the principal or interest thereof by any State, or any o f the possessions o f the U nited States, or by any local taxing authority. F or purposes o f taxation the amount o f discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue Code, as amended by Section 115 o f the Revenue A ct o f 1941, the amount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (oth er than life insurance com panies) issued hereunder need include in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale o r redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Departm ent Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, November 17, 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 for 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 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. R e s u lts o f la st o ffe r in g o f T r e a s u r y b ills ( 9 2 - d a y b ills d a te d N o v e m b e r 1 3 , 1 9 5 2 , m a t u r in g F e b r u a r y 1 3 , 1 9 5 3 ) T otal applied for ...$2,222,822,000 T otal accepted ........ $1,500,752,000 (includes $239,546,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price . . . 99.529+ Equivalent rate o f discount annrox 1 ner annum approx. 1 . 6 4 per annum Range o f accepted competitive bids: 99.560 Equivalent rate o f discount High .................. approx. 1.722% per annum t nn • i + * f a* L ow ................... 99-525 EquivaIe,j toir ^ e o f dlscount approx. 1.859% per annum (23 percent o f the amount bid for at the low price was accepted) Please Federal Reserve -------District-----B oston ............................ New Y ork .................... Philadelphia .................. Cleveland ...................... Richm ond ...................... ........................... Chicago .......................... St. Louis ....................... Minneapolis .................. Kansas City ................ Dallas ............................ San F r a n c is c o ................. Total ............. Total Applied f o r $ 19,573,000 1,555,528,000 34,666,000 51,200,000 20,245,000 30,232,000 233,481,000 54,211,000 15,155,000 46,648,000 57,375,000 104,508,000 ---------------------$2,222,822,000 Total — Accepted _ $ 16,033,000 904,933,000 18,896,000 49,815,000 18,475,000 30!232;000 204,321,000 52,671,000 15,155,000 46,648,000 46,065^00 97,508,000 $1,500,752,000 note that the results shown above are for 9 2 -day Treasury bills. ( o veh) 28 I 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 n on -com petitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O N O T fill in b oth paragraphs on one form . A separate tender must be used for each bid, except that banks submitting bids on a competitive basis fo r 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 o f each bidder, the amount bid for his account, and method o f payment. Forms fo r this purpose w ill be furnished upon request. N o.............................. T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Dated November 20, 1952 Maturing February 19, 1953 Dated at T o F e d e r a l R ese rv e B a n k o f 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 N o. 418, as amended, and to the provisions o f the public notice on November 13, 1952, as issued by the Secretary o f the Treas Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on November 13, 1952, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitive ury, the undersigned offers . . (R ate per 100) tender for a total amount o f $. (N ot to exceed $200,000) for 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 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 below : □ □ By 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 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, fo r example, 99.925. The Treasury bills fo r which tender is hereby made are to be dated November 20, 1952, and are to mature on February 19, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” Name o f Bidder By ................... (Please print) (Official signature required) (T itle) Street Address (C ity, T ow n or V illage, P. O . N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Customer) T ow n or V illage, P. O . N o., and State) (C ity, IM PORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 w ill be considered, and each tender must be for an even multiple o f $1,000 (maturity value). 2. I f the person making the tender is a corporation, the tender should be signed by an officer o f the corpora tion authorized to make the tender, and the signing o f the tender b y an officer o f the corporation w ill be construed as a representation by him that he has been so authorized. If the tender is made b y a partnership, it should be signed by a mem ber o f the firm, w ho should sign in the form “ ........................................................................................... . a copartnership, by .............................................................................................................................. . a member o f the firm.” 3. T enders w ill be received without deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face am ount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f payment b y an incorporated bank or trust com pany. 4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender m ay be disregarded. Paym ent b y credit throu gh T reasu ry T a x and Loan A cco u n t w ill n ot b e perm itted. TENTB— 1168-a ( ovee)