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FEDERAL

RESERVE

BANK

OF

NEW

YORK
Circular No. 3 9 3 7
January 22, 1953

Fiscal A gent o f the United States

Offering of $1,500,000,000 of 91-Day Treasury Bills
D ated January 29, 1953

M aturing April 30, 1953

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

F ollow in g is the text of a notice published today:
FO 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 22, 1953.

TREASU RY DEPARTM ENT
Washington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing January 29, 1953, in the amount of $1,501,416,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills o f this series w ill be dated
January 29, 1953, and w ill mature A pril 30, 1953, when the face amount w ill be payable without interest. They 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 will be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern
Standard time, Monday, January 26, 1953. Tenders w ill not be received at the Treasury Department, Washington. Each
tender must be for an even multiple o f $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions w ill not be permitted to submit tenders except for their own account. Tenders w ill be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in­
vestment securities. Tenders from others must be accompanied by payment o f 2 percent of 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 ing which
public announcement w ill be made by the Secretary of the Treasury o f the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The 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 w ill 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 29, 1953, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing January 29, 1953. 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.
The 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
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The 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 hereafter imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States,
or by any local taxing authority. For 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 117(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. Accordingly, the owner o f Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills,
whether on original issue or on subsequent 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 may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 26, 1953, 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 o f last offering o f Treasury bills (91-day bills dated January 22, 1953, maturing A p ril 23, 1953)
Total applied f o r ........ $2,127,340,000
Total a ccep ted ............ $1,400,603,000 (includes $240,139,000
entered on a non-competitive basis
and accepted in full at the aver­
age price shown below)
Average price..........

99.470

Equivalent rate o f discount
approx. 2.097% per annum

Range o f accepted competitive b id s :
H igh ......................... 99.520 Equivalent rate o f discount
approx. 1.899% per annum
L o w ...........................

99.464

Equivalent rate o f discount
approx. 2.120% per annum

(52 percent o f the amount bid for at the low
price was accepted)




Federal Reserve
District
...

$

...

$2,127,340,000

New Y o r k ................
P h iladelph ia............
Cleveland ................
Richmond ................
Atlanta ...................
Chicago ....................
St. L o u i s ..................
Minneapolis ............
Kansas C i t y ............
San F r a n c is c o ........
T o t a l ....................

Total
Accepted

Total
Applied for
35,860,000
1,486,122,000
36,126,000
63,938,000
16,688,000
21,358,000
243,767,000
52,588,000
10,574,000
41,850,000
53,244,000
65,225,000

$

29,940,000
856,776,000
17,646,000
61,442,000
14,148,000
20,558,000
191,887,000
47,338,000
10,574,000
36,695,000
50,594,000
63,005,000

$1,400,603,000
( over )

28 S
IM P O R T A N T — I f you desire to b id on a com petitive basis, fill in rate per 100 and maturity
value in paragraph headed “ Com petitive B id .” I f you desire to bid on a non-com petitive
basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive B id.” DO
N O T fill in b oth paragraphs on on e form . A separate tender must be used for each bid,
except that banks submitting bids on a com petitive basis for 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 b id fo r his account, and m ethod
o f payment. Form s fo r this purpose w ill be furnished upon request.
N o..............................

T E N D E R F O R 91-D A Y T R E A S U R Y B IL L S
Maturing A p ril 30, 1953

Dated January 29, 1953

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

T o F e d e r a l R e serve B a n k o f N e w Y o r k ,
Fiscal A gent o f the United States.

1953
N O N -C O M P E TIT IV E B ID

C O M P E T IT IV E B ID
Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on
January 22, 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 22,
1953, as issued by the Secretary of the Treasury,
the undersigned offers a non-com petitive tender

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

for a total amount o f $ ..............................................

(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 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 ................... $_______________________
□

By cash or other immediately available funds

By surrender

o f maturing Treasury bills

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

By cash or other immediately available funds

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

The Treasury bills for which tender is hereby made are to be dated January 29, 1953, and are to
mature on A pril 30, 1953.
This tender will be inserted in special envelope marked “ Tender for Treasury B ills”
Name o f Bidder ....................................................................................
(Please print)

By
(Official signature required)

(Title)

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

I f this tender is subm itted b y a bank fo r the accou n t o f a custom er, indicate the custom er’ s name on line b e lo w :
(Name of Customer)

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

IM PO R TA N T IN STR U CTIO N S:
1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of
$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 corporation
authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed as a rep­
resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem­
ber o f the firm, who 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 of
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 credit through Treasury Tax and Loan A ccou n t w ill not b e perm itted.
T EN TB—1178-a



( over )

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