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FEDERAL RESERVE BANK O F N EW YORK
r Circular No. 3 9 8 6 1

Fiscal Agent o f the United States

I

June 11,1953

J

Offering o f $1,500,000,000 o f 91-Day Treasury Bills
Dated June 18, 1953

Maturing September 17, 1953

T o all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal R eserv e D is tr ic t:

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, June 11, 1953.

TREASURY DEPARTM ENT
W ashington

T he Secretary o f the Treasury, b y this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 91-day Trea­
sury bills, for cash and in exchange for Treasury bills maturing June 18, 1953, in the amount o f $1,200,500,000, 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 will be dated
June 18, 1953, and w ill mature September 17, 1953, when the face amount 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 (maturity value).
Tenders will 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, June 15, 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 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 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 b y payment of 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 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 w ill 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 o r rejection thereof. T h e Secretary o f the Treasury expressly reserves
the right to accept or reject any o r 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 w ill 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 June 18, 1953, in cash or other immediately avail­
able funds or in a like face amount o f Treasury bills maturing June 18, 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 o r 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, o r other excise taxes, whether Federal o r State, but shall be exem pt from all taxation now or here­
after imposed 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. Under 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 o r 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 in­
clude in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on sub­
sequent purchase, and the amount actually received either upon sale o r redemption at maturity during the taxable year for
which 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, June 15, 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 telegraph, sub­
ject 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 ca n n ot b e m a d e b y
c re d it th rou 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 .
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 im m ed ia tely available
A l l a n S p r o u l , P r e s id e n t.

Results o f last offering o f Treasury bills (9 1 -d a y bills dated June 11, 1953, m aturing September 10, 1953)
Total applied for......... $2,290,690,000
T otal a ccep ted ..............$1,400,368,000 (includes $231,246,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
A verage price.......

99.413

Equivalent rate o f discount
approx. 2.324% per annum

Range o f accepted competitive bids:
H ig h ........................ 99.440
Equivalent rate o f discount
approx. 2.215% per annum
L ow ........................

99.407

Equivalent rate o f discount
approx. 2.346% per annum

Federal R eserve
D istrict

Boston
Philadelphia ...
Cleveland ......
Richm ond ......
Atlanta ...........
Chicago ...........
St. Louis ........ .
Minneapolis ....
Kansas City ....
D a lla s ...............
San Francisco

Total
Applied f o r

$

30,020,000
1,651,615,000
37,100,000
51,863,000
23,991,000
29,558,000
210,342,000
50,854,000
12,258,000
49,294,000
23,973,000
119,822,000

Total
A ccepted

$

24,592,000
928,948,000
17,540,000
42,763,000
21,891,000
25,424,000
136,482,000
26,054,000
8,528,000
41,144,000
23,673,000
103,329,000

(82 percent o f the am ount bid for at the low
price was accepted)



$2,290,690,000

$1,400,368,000

29 M

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 it i v e
basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.”
DO
N O T fill in b o t h p a r a g ra p h s o n o n e f o r m . A separate tender must be used f o 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 f o r the total am ount bid at each price, provided a list is
attached showing the name o f each bidder, the amount bid fo r his account, and method
o f payment. Forms f o r this purpose w ill be furnished upon request.
No.

TENDER FOR 91-DAY TREASURY BILLS
D ated June 18, 1953

M aturing September 17, 1953
Dated at_

To F e d e r a l R e s e rv e B a n k o f N e w Y o r k ,
Fiscal A gent o f the United States.

.1953

COM PETITIVE BID

N O N -C O M PE TITIV 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
June 11, 1953, as issued by the Secretary
of
the Treasury,
the
undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on June 11,
1953, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

— -- ----------------------------------* for a total amount o f

for a total amount o f $...
(Not to exceed *200,000)

(R a te p er 100)

$---------------------------------------------- (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 below :
□

By surrender o f

maturing Treasury bills

(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 b elow :
□

By 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, for example, 99.925.

The Treasury bills for which tender is hereby made are to be dated June 18, 1953, and are to mature
on September 17, 1953.

This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
Name o f Bidder ........
By

(Please print)

(Official signature required)

(Title)

Street Address ....................... ............ ..........
(City, Town or Village, P. O. No., 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 o f Customer)

(City, Town or VUlage, 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 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 mem ber o f the firm.”
3. Tenders w ill 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 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
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 T ax and Loan Account will not be permitted.
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Federal Reserve Bank of St. Louis

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