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FEDERAL RESER VE BANK O F N EW YO RK
Circular No. 3 9 3 0

Fiscal Agent o f the United States

January 8,1053

Offering o f $1,400,000,000 o f 91-Day Treasury Bills
Dated January 15, 1953

Maturing April 16, 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 tod ay:
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, January 8, 1953.

TREASURY DEPARTM ENT
W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,400,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing January 15, 1953, in the amount o f $1,401,185,000, to be issued on a
discount basis under competitive and non-competitive bidding as hereinafter provided. T h e bills o f this series will be dated
January 15, 1953, and will mature April 16, 1953, when the face amount will be payable without interest. Th ey w ill be issued
in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
T enders w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o’clock p.m., Eastern
Standard time, M onday, January 12, 1953. Tenders w ill 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 competitive tenders the price offered must be expressed on
the basis o f 100, with not 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 forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. T enders will be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest­
ment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills
applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which
public announcement w ill be made by the Secretary o f the Treasury o f the amount 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 whole or in part, and his action in any such respect shall be final. Subject
to these reservations, non-competitive tenders for $200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) o f accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on January 15, 1953, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing January 15, 1953. Cash and exchange tenders will re­
ceive equal treatment. Cash adjustments will 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 income derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, shall not
have any exemption, as such, and loss from the sale or other disposition o f Treasury bills shall not have any special treat­
ment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T he bills shall be subject
to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or here­
after imposed on the principal or interest thereof by any State, or any o f the possessions of the United States, or by any local
taxing authority. F or purposes o f taxation the am ount o f discount at which Treasury bills are originally sold by the United
States shall be considered to be interest. Under Sections 42 and 11 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 ccordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on sub­
sequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 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 m y be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 12, 1953, at the Securities De­
partment 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 telegraph, sub­
ject to written confirmation; they may not be submitted by telephone. Payment fo 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.
Results o f last offering o f Treasury bills (9 1 -d a y bills dated January 8, 1953, m aturing A pril 9 , 1953)
T otal applied for......... $2,058,616,000
Total accepted..............$1,400,231,000 (includes $233,886,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
Equivalent rate o f discount
A verage price....... 99.498
approx. 1.986% per annum
Range o f accepted competitive bids: (excepting one
tender o f $50,000)
H igh ...................... 99.525
Equivalent rate o f discount
approx. 1.879% per annum
L ow ........................ 99.493
Equivalent rate o f discount
approx. 2.006% per annum
(58 percent o f the amount bid for at the low
price was accepted)




Federal Reserve
District
....
New Y ork ............... ....
Philadelphia ..............
Cleveland ..................
Richm ond .................
Chicago ......................
St. Louis ....................
Minneapolis ..............
Kansas City .............
San Francisco .........
T o t a l ...................... ....

Total
Applied fo r
$

24,694,000
1,404,432,000
47,552,000
34,157,000
19.299,000
35.465,000
263,113,000
38,610,000
13,172,000
53.813,000
67,410,000
56,899,000

$2,058,616,000

Total
Accepted
$

22,844,000
821,887,000
31,822,000
33,757,000
17,789,000
32,815,000
226,213,000
31,990,000
12,672,000
50,693,000
60,850,000
56,899,000

$1,400,231,000
( over )

28 Q
IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity
value in paragraph headed "C om petitive Bid.” I f you desire to bid on a non-com petitive
basis, fill in only the m atu rity value in paragraph headed "N on -com petitive Bid.”
DO
N O T fill in both paragraphs on one form . A separate tender must be used f o r each bid,
except that banks subm itting bids on a com petitive basis fo r their ow n and their customers*
accounts m ay submit one tender fo r the total am ount bid at each price, provided a list is
attached show ing the name o f each bidder, the am ount bid fo r his account, and method
o f payment. Forms fo r this purpose w ill be furnished upon request.

No_________________

TENDER FOR 91 -D A Y TREASURY BILLS
Dated January 15, 1953

M aturing A pril 16, 1953
Dated at_

T o F ederal R eserve B a n k o f N e w Y
Fiscal Agent o f the United States.

ork,

.1953

COM PETITIVE BID

N O N -CO M PETITIV E BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
January 8 , 1953, 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 January 8 ,
1953, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

___________________________ * for a total amount o f

for a total amount of

(Rate per 100)

(Not to exceed 1200,000)

$....................................................... (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 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 b elow :

□

□

By surrender o f

maturing Treasury bills

By surrender o f

maturing Treasury bills

amounting t o ..................... $----------------------------------

amounting t o ..................... $______________________

□

Q

By 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 January 15, 1953, and are to
mature on April 16, 1953.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
Name o f Bidder ........

(Please print)

B y ....................................................................
(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’s name on line below:
(Name of Customer)

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

IM P O R T A N T IN STR U C T IO N S:
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple o f $1,000
(maturity value).
2. If 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 by 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 by a partnership, it should be signed by a
member o f the firm, w ho should sign in the form “ .............................................................................................. . a copartnership, by
.............................................................................................................. a member o f the firm.”
3. Tenders will be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent
o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment
by an incorporated bank or trust company.
4. If 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 may be disregarded.

Paym ent b y cred it through Treasury T a x and Loan A cco u n t will n ot be perm itted.


TENTB—1176-a


(OVER)

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