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FEDERAL RESER VE BANK O F N EW YO RK
Fiscal A g e n t o f the U nited States
J" Circular No. 3 9 8 0 "1
I
May 26, 1953
J

Offering of $800,000,000 of 107-Day Treasury Bills
To Be Designated “ Tax Anticipation Series”
Dated June 3, 1953

Maturing September 18, 1953

To all In corporated B anks and Trust Companies, and O thers Concerned,
tn the Second Federal Reserve District:

Following is the text of a notice published today:
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, May 26, 1953.

TREASURY DEPARTM ENT

W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $800,000,000, or thereabouts, of 107-day Treasury
bills, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series
will be designated T ax Anticipation Series, they will be dated June 3, 1953, and will mature September 18, 1953. They will be
accepted at face value in payment of income and profits taxes due on September 15, 1953, and to the extent they are not presented
for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills
in payment o f September 15, 1953, income and profits taxes have the privilege o f surrendering them to any Federal Reserve Bank
or Branch not more than fifteen days before September 15, 1953, and receiving receipts therefor showing the face amount o f the bills
so surrendered. These receipts may be submitted in lieu of the bills on or before September 15, 1953, to the Director of Internal
Revenue for the district in which such taxes are payable. 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, one o ’clock p.m., Eastern
D aylight Saving time, Friday, M ay 29, 1953. Tenders w ill 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 competitive 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 w hich w ill 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 accompanied b y 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.
Imm ediately after the closin g hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g
w hich public announcement will be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids.
T h ose subm itting 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 w ithout stated price from any one bidder
w ill be accepted in full at the average price (in three decimals) 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 in cash or other immediately available
funds on June 3, 1953, provided, however, any qualified depositary w ill be permitted to make payment by credit in its
Treasury T a x and Loan A ccou n t for Treasury bills allotted to it for itself and its customers up to any amount for which
it shall be qualified in excess o f existing deposits when so notified by the Federal Reserve Bank o f its district.
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 o r other disposition o f Treasury bills shall not have any special
treatment, 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 exempt from all taxation
now or hereafter 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 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 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 o r otherwise disposed of, and such bills are
excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com ­
panies) issued^ hereunder need include in his incom e tax return on ly 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, or the amount o f incom e or profits taxes paid by means o f the bills, during the taxable year for which the return
is made, as ordinary gain or loss.
T reasury 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.

Please note that this Bank will receive tenders up to 1 p.m. (one hour earlier than the usual closing tim e), Eastern
Daylight Saving time, Friday, May 29, 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— T a x Anticipation Series.” Tenders may be submitted by telegraph, subject to written confirmation;
they may not be submitted by telephone. Settlement for accepted tenders must be made in cash or other immediately

available funds, except that any qualified depositary may make payment by credit in its Treasury Tax and Loan Account.
A

llan

S proul,

President.

S3?1 Closing hour fo r receipt o f tenders is 1 p.m., Friday, M ay 29, 1953
3




(o v e r )

IM P O R T A N T — Please note that this Bank w ill receive tenders up to 1 p.m. (on e hour
earlier than the usual closing tim e ), Eastern Daylight Saving time, Friday, May 29, 1953.
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 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 only the maturity value in paragraph headed “ N on-com petitive B id.” D O
N O T fill in both , p a r a g r a p h s o n o n e f o r m . A separate tender must b e used fo r each bid,
except that banks submitting bids on a com petitive basis fo r their own and their customers’
accounts m ay submit one tender fo r the total amount b id at each price, provided a list is
attached showing the name o f each bidder, the amount bid fo r his account, and m ethod
ot payment. Form s fo r this purpose w ill be furnished u pon request.
N o .............................

TEN D ER F O R 107-D AY T R E A S U R Y BILLS
TO BE D E SIG N A TE D “ T A X A N T IC IP A T IO N SERIES’
Dated June 3, 1953

Maturing Septem ber 18, 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 Agent of the United States.

1953

C O M P E T IT IV E B ID

N O N -C O M P E TIT IV E BID

Pursuant to the provisions of Treasury
Department Circular N o. 418, as amended, and
to the provisions of the public notice on
May 26, 1953, as issued by the Secretary
of
the
Treasury,
the
undersigned
offers

Pursuant to the provisions of Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on May 26,
1953, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

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

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

$ ...................................................... (maturity value)
of 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) of accepted competitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below :

□

By cash or other immediately available funds

□

By cash or other immediately available funds

□

By credit to Treasury T a x and Loan Account

□

By credit to Treasury T ax and Loan Account

(Rate per 100)

(N o t to exceed $200,000)

* Price must be expressed on the basis o f 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 June 3, 1953, and are to mature
on September 18, 1953.
T h is ten d er w ill b e in se rte d in sp ec ia l e n 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 a x A n tic ip a tio n
S e r ie s
Name o f B i d d e r ................................................................................................................................
(Please print)

By . . . .
(Official signature required)

(T itle)

Street Address .....................................
(City, Town or Village, P. O . N o., and State)

If 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. 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 b y an officer o f the corporation
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 rep­
resentation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed b y a mem ­
ber o f the firm, w h o 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. T enders 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 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.


T E N ST B
http://fraser.stlouisfed.org/ — 5
Federal Reserve Bank of St. Louis

B e s u r e t o r e t u r n t e n d e r in s p e c ia l e n v e l o p e m a r k e d
“ T e n d e r f o r T r e a s u r y B ills — T a x A n t ic ip a t io n S e r ie s
(OVER)

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