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FEDERAL

RESERVE

BANK

OF

NEW

YORK
f Circular No. 3 0 3 5 "
1
L
March 12, 1953
J

Fiscal A gent o f the United States

Offering o f $1,200,000,000 of 91-Day Treasury Bills
Dated March 19, 1953

Maturing June 18, 1953

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

F ollow in g is the text o f a notice published to d a y :
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, March 12, 1953.

TREASURY DEPARTM ENT
Washington

The Secretary of the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing March 19, 1953, in the amount of $1,199,975,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated
March 19, 1953, and will mature June 18, 1953, when the face amount will be payable without interest. They will
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).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Standard time, Monday, March 16, 1953. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis of 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 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 in­
vestment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of 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) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on March 19, 1953, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing March 19, 1953. Cash and exchange tenders will receive
equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not have any exemption, as such, and loss from the sale or other disposition of 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 of the possessions of the United States,
or by any local taxing authority. For purposes of taxation the amount of 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) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount of 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 of 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 of the Treasury bills and
govern the conditions of their issue. Copies of 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, M onday, March 16, 1953, at the Securi­
ties Department o f its H ead 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, subject to written confirm ation; 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 (91-day bills dated March 12, 1953, maturing June 11, 1953)
Total applied f o r .........$2,442,093,000
Total accepted.............$1,201,878,000 (includes $230,117,000
entered on a non-competitive basis
and accepted in full at the aver­
age price shown below)
Average price........... 99.470 Equivalent rate of discount
approx. 2.098% per annum
Range of accepted competitive bids: (Excepting one
tender of $200,000)
High ........................... 99.476 Equivalent rate of discount
approx. 2.073% per annum
L o w .............................
99.468 Equivalent rate of discount
approx. 2.105% per annum

Federal R eserve
D istrict
Boston ......................... . .
New Y o r k ...................
Philadelphia .............
Cleveland ...................
Richmond ...................
Atlanta .......................
St. L o u is .....................
Minneapolis ...............
Kansas C i t y ...............
Dallas .........................
San F ran cisco ...........

Total
A ccepted

Total
A pplied for
$

20,054,000
1,682,267,000
29,433,000
59,767,000
17,128,000
33,890,000
237.888,000
39,945,000
11,631,000
76,818,000
73,164,000
160.108,000

$

11,732,000
811,631,000
13,731,000
35,855,000
14,477,000
23,529,000
88,626,000
18,745,000
10,606,000
29,743,000
30,892,000
112,311,000

(22 percent of the amount bid for at the low

price was accepted)



T

otal

...................... ..

$2,442,093,000

$1,201,878,000
( over)

28 Z
IM P O R T A N T — I f you desire to b id on a c o m p e t i t i v e basis, fill in rate p er 100 and maturity
value in paragraph headed “ Com petitive B id .” I f you desire to b id on a n o n - c o m p e t i t i v e
basis, fill in on ly the m aturity value in paragraph headed “ N on-com petitive B id .” D O
N O T fill in b o t h p a r a g r a p h s o n o n e fo r m . A separate tender must b e used fo r each b id ,
except that banks submitting bids on a com petitive basis fo r their own and their customers’
accounts m ay subm it 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. Forms fo r this purpose w ill be furnished u pon request.
N o ...............................

T E N D E R FOR 91-D A Y T R E A S U R Y BILLS
Dated March 19, 1953
To

F

ederal

R

eserve

B

a n k

o f

N

e w

Y

ork

Maturing June 18, 1953
Dated a t ..........................................................
................................................................I 953

,

Fiscal A gent o f the United States.
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
March 12. 1953, as issued by the Secretary
of
the Treasury, the undersigned offers
.............................................* for a total amount o f
(R a te per 100)

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

Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the
provisions o f the public notice on March 12,
1953, as issued by the Secretary o f the Treasury’
the undersigned offers a non-com petitive tender

:
!
j

j

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

(N o t to exce e d $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 com petitive 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 ................... $_______________________
□

B y cash or other immediately available funds

By surrender

o f m aturing 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 March 19, 1953, and are to
mature on June 18, 1953.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
Name o f Bidder ....................................................................
(P le a se print)

By ...............................................................................

.......................................

(O fficial signature required)

(T itle )

Street Address .........................................................................................................................
(C ity , T ow n or V illa g e , P . O. N o., and S tate)

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 C ustom er)

(C ity , T o w n or V illa g e . P. O. N o., 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 w ill 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 w ill 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 “ ......................................................................................................... t 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.


P a y m e n t b y c r e d i t t h r o u g h T r e a s u r y T a x a n d L o a n A c c o u n t w ill n o t b e p e r m itt e d .
http://fraser.stlouisfed.org/
T E N T B 1185-a
(q v e r)
Federal Reserve Bank of St. Louis

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