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FEDERAL RESERVE BANK O F NEW YORK ^ Fiscal A gent o f the United States [ May 7,°iM3 ] Offering o f $1,500,000,000 of 91-Day Treasury Bills D a ted M a y 14, 1953 M a tu r in g A u g u s t 13, 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, M ay 7, 1953. TREASU RY DEPARTM ENT W ashington T h e 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 M ay 14, 1953, in the amount o f $1,500,475,000, 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 M ay 14, 1953, and will mature August 13, 1953, when the face amount will be payable w ithout interest. T h ey 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Daylight Saving time, M onday, M ay 11, 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 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 w ill not be permitted to submit tenders except for their ow n account. Tenders w ill 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 accompanied by an express guaranty o f payment b y 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 will 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 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 com pleted at the Federal Reserve Bank on M ay 14, 1953, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing M ay 14, 1953. Cash and exchange tenders will 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. 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 o r 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 now or here after im posed on the principal or interest thereof b y 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 am ount o f discount at w hich Treasury bills are originally sold by the United States shall be considered to be interest. U nder 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 of discount at w hich 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 ow ner 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 or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for w hich the return is made, as ordinary gain or loss. Treasury Department 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. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, M ay 11, 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 for Treasury Bills.” Tenders may be submitted by tele graph, subject to written confirmation; they may not be submitted by telephone. P a y m e n t f o r th e T r e a s u r y bills c a n n o t b e m a d e b y c re d it th r o u g h th e T r e a s u r y T a x and L o a n A c c o u n t . im m ed ia tely available fu n d s o r in m a tu rin g T r e a s u r y bills. S e ttle m e n t m u st b e m a d e in cash o r o th e r A l l a n S p r o u l , P r es id e n t. Results o f last offering o f Treasury bills (9 1 -d a y bills dated May 7, 1953, m aturing A u gust Total applied for Total accepted Average price . . . $2,166,360,000 $1,500,400,000 (includes $247,734,000 s n s s j price shown below ) 99.405+ Equivalent rate o f discount approx. 2.352% per annum Range o f accepted competitive bids: H i g h ..................... 99.450 Equivalent rate o f discount approx. 2.176% per annum T nw 99 400 Equivalent rate o f discount L ° W ..................... approx. 2.374% per annum 11 (49 percent o f the amount bid for at the low price w as accepted) Federal Reserve 6, Total Applied fo r 1953) Total Accepted » or k ... .. Philadelphia ................. Cleveland ...................... Richm ond ..................... Atlanta ........................... Chicago ......................... St. Louis ....................... Minneapolis ................. Kansas City ................. Dallas .............................. San Francisco ............ \ 4« 8 48.964,000 43,234,000 17,752,000 27,972,000 268,364,000 36,338,000 15,154,000 80,684,000 36,710,000 81,061,000 $ Total ............... $2,166,360,000 $1,500,400,000 33,454,000 43,234,000 16,997,000 27,672,000 200.224,000 31,528,000 14,144,000 77,624,000 36,200,000 81,061,000 ( over ) 29 H IM P O R T A N T — I f you desire to bid on a c o m p e t i t i v e 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 n o n - c o m p e t i t i v e basis, fill in only the m aturity value in paragraph headed "N on -com p etitive Bid.” DO N O T fill in b o t h p a r a g r a p h s o n o n e f o r m . A separate tender m ust 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 submit one tender fo 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 91-DAY TREASURY BILLS D ated May 14, 1953 M aturing A u gu st 13, 1953 Dated at To F e d e ra l R eserv e B a n k o f N ew Y o rk , Fiscal A gent o f the United States. 1953 C O M PE TITIV E BED 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 M ay 7, 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 May 7, 1953, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitive ury, the undersigned o f f e r s .................................... * (Rate per 100) tender fo r 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 below : □ (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 ................... $_______________________ □ □ B y 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 M ay 14, 1953, and are to mature on August 13, 1953. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Nam e o f B i d d e r ___ (Please print) By (Official signature required) (Tide) Street Address (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account o f a customer, indicate the custom er’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 w ill 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 b y 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 mem 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 without deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investment 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 accom panied 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. Payment by credit through Treasury Tax and Loan A ccount -will not be permitted . http://fraser.stlouisfed.org/ TE N TB — 1193-a Federal Reserve Bank of St. Louis (O T * » )