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FEDERAL RESERVE BANK O F N EW YORK
Fiscal Agent of the United States

r Circular No. 3 9 9 1 1
L
Ju ly 2, 1953
J

Offering o f $1,500,000,000 o f 91-Day Treasury Bills
Dated July 9, 1953

Maturing October 8, 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 today:
TREASURY DEPARTM ENT
W ashington

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, July 2, 1953.

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 Treas­
ury bills, for cash and in exchange for Treasury bills maturing July 9, 1953, in the amount o f $1,400,812,000, 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
July 9, 1953, and will mature O ctober 8, 1953, when the face amount will be payable without interest. Th 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, July 6, 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 w ill 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 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 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.
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 am ount and price range o f accepted bids. Those
submitting tenders will 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 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 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 completed at the Federal Reserve Bank on July 9, 1953, in cash or other immediately avail­
able funds or in a like face amount of Treasury bills maturing July 9, 1953. Cash and exchange tenders will 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 grain 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 or supplementary thereto. T h e bills shall be subject
to estate, inheritance, gift, o r other excise taxes, whether Federal or State, but shall be exempt 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 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 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 ccordingly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need in­
clude in his income 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 No. 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, July 6, 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 telegraph, sub­
ject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by

credit through the Treasury Tax and Loan Account.
funds or in maturing Treasury bills.

Settlement must be made in cash or other immediately available
A l l a n S p r o u l,

President.

R e s u lts o f la st o ffe r in g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a te d J u ly 2 , 1 9 5 3 , m a t u r in g O c t o b e r 1, 1 9 5 3 )
T otal applied for......... $2,191,934,000
Total accep ted ............. $1,500,254,000 (includes $203,894,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
Average price.......

99.468

Equivalent rate o f discount
approx. 2.107% per annum

Range o f accepted competitive bids:
H ig h .... ................... 99.524
Equivalent rate o f discount
approx. 1.883% per annum
L ow ........................

99.457

Equivalent rate o f discount
approx. 2.148% per annum

(70 percent o f the amount bid for at the low
price was accepted)




Federal R eserv e
D istrict

Boston ............................
New Y ork ....................
Philadelphia ..................
Cleveland ........................
Richm ond ......................
Atlanta ..........................
Chicago ........................
St. Louis ........................
Minneapolis .................
Kansas City ..................
Dallas ..... :.....................
San Francisco ........ .
T

otal

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

Total
A pplied f o r

$

14,350,000
1,649,653,000
38,581,000
44,050,000
15,076,000
28,351,000
185,518,000
49,954,000
10,012,000
45,037,000
37,253,000
74,099,000

$2,191,934,000

Total
A ccepted

$

14,350,000
993,553,000
23,381,000
43,150,000
12,576,000
27,501.000
175,518,000
44,824,000
10,012,000
45,037,000
37,253,000
73,099,000

$1,500,254,000
( over )

29

P

IM P O R T A N T — I f you 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 non-com petitive
basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.”
DO
N O T fill in both paragraphs on one form . A separate tender m ust be used f o r each bid,
except that banks subm itting bids on a com petitive basis fo r their ow n and their customers*
accounts may 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 amount bid f o r his accou n t, and method
o f payment. Forms f o r this purpose w ill be furnished upon request.
N o ...... ................... .....

TENDER FOR 91-DAY TREASURY BILLS
D ated July 9, 1953
M aturing O ctober 8,
To

1953

Dated at..
F ed era l R eserve B an k o f N ew Y ork ,

.1953

Fiscal Agent o f the United States.
COM PETITIVE BID

N O N -C O M P E TIT 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
July 2, 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 July 2,
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 $..
(N ot to exceed $200,000)

(R a t e p e r 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 b elow :
□

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 :
□

B y surrender o f

maturing Treasury bills

amounting t o ..................... $----------------------------------

amounting t o ......................$ ----------------------------------

□

□

B y cash o r other immediately available funds

By cash o r 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 fo r which tender is hereby made are to be dated July 9, 1953, and are to mature
on October 8 1953.
,

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

(Please print)

(Official signature required)

(T itle)

Street Address ............................................
i

>

(City, T ow n or V illage, 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:

............................. (N am e o f Custom er)

(C ity, T ow n or V illage, 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 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 by an officer o f the corporation will 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
m em ber o f the firm, w ho should sign in the form “ ................................................................................................ . 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 o f 2 percent
o f ths 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. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary of the
Treasury, is material, the tender may be disregarded.


Paym ent b y cred it through T reasury T a x and Loan A cco u n t w ill n ot be perm itted.
http://fraser.stlouisfed.org/
T E N TB — 1201-a
(OVER)
Federal Reserve Bank of St. Louis

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