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FED ERAL RESERVE BANK O F N EW YORK r Circular No. 3 9 4 4 1 L February 5,1953 J Fiscal Agent o f the United States O ffe r i n g o f $ 1 , 5 0 0 , 0 0 0 , 0 0 0 o f 9 0 -D a y T r e a s u r y B ills Dated February 13, 1953 Maturing May 14, 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: 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, February 5, 1953. T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 90-day Treasury bills, for cash and in exchange for Treasury bills maturing February 13, 1953, in the amount o f $1,500,852,000, to be issued on a discount basis under competitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated February 13, 1953, and w ill mature M ay 14, 1953, when the face amount will be payable without interest. T h ey w ill 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, M onday, February 9, 1953. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case o f 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 form s and forwarded in the special envelopes which will 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. Tenders 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 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. Immediately after the closing hour, tenders will 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 amount and price range o f accepted bids. Those submitting tenders will be advised o f the acceptance o r 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 will be accepted in full at the average price (in three decim als) o f accepted com petitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on February 13, 1953, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing February 13, 1953. Cash and exchange tenders w ill receive 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 incom e 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 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 o r here after im posed 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. F or purposes o f taxation the amount o f discount at which Treasury bills are originally sold b y the United States shall be considered to be interest. Under Sections 42 and 1 1 7 (a )(1 ) of the Internal Revenue Code, as amended by Section 115 o f the Revenue A ct o f 1941, the am ount 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 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 o r on subsequent purchase, and the amount actually received either upon sale or redem ption at maturity during the taxable year for which the return is made, as ordinary gain o r 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 or Branch. T h is B a n k w ill receiv e ten ders u p to 2 p .m ., E astern S ta n d a rd tim e, M o n d a y , F e b r u a r y 9 , 1953, at the S e cu ritie s D ep a rtm en t o f its H e a d O ffice a n d at its B u ffa lo B ra n ch . P lea se u se the f o r m on the reverse sid e o f th is circu la r to su b m it a ten der, an d retu rn it in a n en v e lo p e m a rk ed “ T e n d e r f o r T r e a s u r y B ills.” T e n d e r s m a y be su b m itted b y tele g ra p h , su b je ct to w ritten c o n fir m a tio n ; th ey m a y n o t be su bm itted b y telep h on e. Payment 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 s t o ffe r in g o f T r e a s u r y b ills ( 9 1 -d a y b ills d a te d F e b r u a r y 5, 1 9 5 3 , m a t u r in g M a y 7 , 1 9 5 3 ) Total applied for ........$2,133,058,000 Total accepted ............$1,300,404,000 (includes $217,012,000 entered on a non-competitive basis and accepted in full at the average price shown below) Average price ----- 99.487 Equivalent rate o f discount approx. 2.031% per annum Range o f accepted competitive bids: (excepting two tenders totaling $300,000) r Low "•5S 2 onnoo 99482 t PP , ........................ Eqmvale" trtr ^ approx. 2.049% (67 percent o f the amount bid for at the price was accepted) Federal Reserve District Boston ............................... New Y ork ....................... Philadelphia .................... Cleveland .......................... Richmond .......................... Atlanta .............................. Chicago ............................ Total Applied fo r $ 22,984,000 1,443,673,000 34,252,000 72,008,000 15,866,000 28,738,000 250,291,000 Total Accepted $ 19 484 000 753,683!000 18,252,000 59,038,000 14,701,000 28,272,000 189,301,000 . .. .. . . . . . . . SoOO Hggffl Minneapolis per annum o f discount per annum low Kansas City ..................... Dallas ................................ San Francisco .................. T otal .......... ......... 53,729,000 66,626,000 85,445,000 --------------------$2,133,058,000 46,879,000 44 976 000 74,485’,000 --------------------$1,300,404,000 P lease n o te th a t th e c u r r e n t o ffe r in g is f o r 9 0 - d a y T r e a s u r y b ills. ( over ) 28 U IM P O R T A N T — Please note that this offering is fo r 9 0-day Treasury bills, w hich w ill be dated F r id a y , F e b r u a r y 1 3 , 1 9 5 3 , b e c a u s e T h u r s d a y , F e b r u a r y 1 2 , w il l b e L in c o ln ’ s B ir th d a y . IM P O R T A N T — I f y o u desire to bid on a com petitive basis, fill in rate per 100 and m aturity valu e in paragraph headed "C om petitive Bid.” I f y o u desire to bid on a n on -com petitive basis, fill in only the m atu rity value in paragraph headed "N on -com p etitive Bid.” D O N O T fill in both paragraphs on one fo rm . A separate tender must be used fo r each bid, except that banks subm itting bids on a com petitive basis f o r their ow n and their customers* accounts m ay subm it one tender f o r the total am ount bid at each price, provided a list is attached showing the name o f each bidder, the am ount bid fo r his accou n t, and method o f paym ent. Forms fo r this purpose w ill be furnished upon request. N o .............................. TENDER FOR 90-DAY TREASURY BILLS D ated February 13, 1953 T o F e d e r a l R eserve B a n k of N e w Y Fiscal Agent o f the United States. M aturing May 14, 1953 Dated at ork, 1953 C O M PE TITIV E BID N O N -C O M P E T IT IV E 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 February 5, 1953, as issued by the Secretary o f the Treas Pursuant to the provisions o f Treasury Department Circular N o. 418, as amended, and to the provisions o f the public notice on February 5, 1953, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitive ury, the undersigned offers .. (Rate per 100) tender for a total amount o f $ ................................ (Not to exceed $200,000) fo r 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 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 below : □ □ B y surrender o f maturing Treasury bills B y surrender o f maturing Treasury bills amounting t o ....................$------------------------------------ amounting t o ....................$_______________________ □ □ 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 fo r which tender is hereby made are to be dated February 13, 1953, and are to mature on M ay 14, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills” N am e of Bidder B y ......................... (Please print) (Official signature required) (Title) Street Address (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) IM P O R T A N T IN ST R 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 b y a partnership, it should be signed by a m em ber o f the firm, w ho should sign in the form “ ........................................................................................... , a copartnership, by ................................................................................................................................ a member o f the firm.” 3. Tenders w ill be received w ithout deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others m ust 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 com pany. 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 m ay be disregarded. Paym ent b y cred it through T reasu ry T a x and Loan A cc o u n t w ill n o t be perm itted. http://fraser.stlouisfed.org/ T E N TB — 1180-a Federal Reserve Bank of St. Louis ( over )