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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent o f the United States [ S& b^?i7,3i9 3 ] &7 Offering o f $1,300,000,000 of 91-Day Treasury Bills Dated February 26, 1953 Maturing May 28, 1953 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Follow ing 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 , Tuesday, February 17, 1953. TREASU RY DEPARTM ENT W ashington 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 February 26, 1953, in the am ount o f $1,300,013,000, 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 26, 1953, and w ill mature M ay 28, 1953, when the face am ount w ill 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 (m aturity value). T enders will be received at Federal R eserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Standard time, Friday, February 20, 1953. 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 not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes w hich will be supplied b y Federal Reserve Banks or Branches on application therefor. O thers than banking institutions w ill not be permitted to submit tenders except for their ow n 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 paym ent 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 w ill be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. Th ose subm itting 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 whole 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 com pleted at the Federal Reserve Bank on February 26, 1953, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing February 26, 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 he 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 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 exem pt 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 United States, or by any local taxing authority. F or purposes of taxation the amount o f discount at which Treasury bills are originally sold by the United States shall be considered to be interest. U nder 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 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 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 m ay be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Friday, February 20, 1953, 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 fo r 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 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. (CLOSIN G D A Y FOR RECEIPT OF TEN DERS IS F R I D A Y , F E B R U A R Y 2 0 , 1 9 5 3 ) RESULTS OF B ID D IN G FOR TR E A SU R Y BILLS D A T E D FEBRUARY 19, 1953 W ERE N O T A V A IL ABLE W H E N T H IS C IR C U L A R W AS PR IN TE D . ( over ) 28 W IM P O R T A N T — Please note that tenders fo r this issue must be received n ot later than 2 p.m ., Eastern Standard time, Friday, February 20, 1953. 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 value in paragraph headed "C om petitive Bid.” I f y o u desire to bid on a n on -com p etitive basis, fill in on ly the m atu rity value in paragraph headed "N on -com p etitive Bid.** D O N O T fill in b oth 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 fo 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 show ing the name o f each bidder, the am ount bid fo r his a ccou n t, and method o f paym ent. Forms f o r this purpose w ill be furnished upon request. N o ......................... TENDER FOR 91-D AY TREASURY BILLS Dated February 26, 1953 M aturing May 28, 1953 Dated at To F ed era l R eserve B a n k o f N ew Y ork , Fiscal A gent o f the United States. 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 17, 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 17, 1953, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitive ury, the undersigned offers . . (Rate per 100) 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 : tender for a total amount o f $ ................................ (Not to exceed $200,000) (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : □ .... B y surrender o f maturing Treasury bills □ amounting t o ....................$........................................... amounting t o ................... $------------------------------------ □ □ By cash or other immediately available funds B y surrender o f maturing Treasury bills 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 February 26, 1953, and are to mature on May 28, 1953. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” 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 $1,00Q 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 by 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 mem ber o f the firm.” 3. Tenders 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 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 may be disregarded. Paym ent b y cred it th rou gh T reasu ry T a x and Loan A cco u n t w ill n ot b e perm itted. http://fraser.stlouisfed.org/ TEN TB— 1182-a (OVEK) Federal Reserve Bank of St. Louis