View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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

f Circular No. 3 9 9 6 1
L
July 9. 1963
J

Offering o f $1,500,000,000 of 91-Day Treasury Bills
Dated July 16, 1953

Maturing O ctober 15, 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
T h u r s d a y , J u ly 9, 1953.

TREASURY DEPARTM ENT
W a s h in g to n

NEW SPAPERS,

T h e T r e a s u r y D e p a r tm e n t , b y th is p u b lic n o t ic e , in v ite s te n d e r s f o r $1,500,000,000, o r t h e r e a b o u ts , o f 9 1 -d a y T r e a s u r y
b ills , f o r c a s h a n d in e x c h a n g e f o r T r e a s u r y b ills m a t u r in g J u ly 16, 1953, in th e a m o u n t o f $1,400,736,000, to b e is s u e d o n
a d is c o u n t b a sis u n d e r c o m p e t it iv e a n d n o n -c o m p e t i t i v e b id d in g a s h e r e in a ft e r p r o v id e d . T h e b ills o f th is se r ie s w ill b e d a te d
J u ly 16, 1953, a n d w ill m a tu r e O c t o b e r 15, 1953, w h e n th e fa c e a m o u n t w ill b e p a y a b le w it h o u t in te r e s t. T h e y w ill b e
is s u e d in b e a r e r f o r m o n l y , a n d in d e n o m in a t io n s o f $1 ,000 , $5,000, $10,000, $1 00,0 00, $500,000, a n d $1,000 ,000 (m a t u r it y v a lu e ) .
T e n d e r s w ill b e r e c e iv e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s u p t o th e c l o s i n g h o u r , t w o o ’ c l o c k p .m ., E a s t e r n
D a y lig h t S a v in g tim e , M o n d a y , J u ly 13, 1953. T e n d e r s w ill n o t b e r e c e iv e d at th e T r e a s u r y D e p a r tm e n t , W a s h in g t o n . E a c h
t e n d e r m u s t b e f o r a n e v e n m u lt ip le o f $1,000, a n d in th e c a s e o f c o m p e t it iv e t e n d e r s th e p r ic e o ff e r e d m u s t b e e x p r e s s e d o n th e
b a s is o f 100, w ith n o t m o r e th a n t h r e e d e c im a ls , e .g ., 99.925. F r a c t io n s m a y n o t b e u se d . I t is u r g e d th a t te n d e r s b e m a d e
o n t h e p r in te d fo r m s a n d fo r w a r d e d in th e sp e c ia l e n v e lo p e s w h ic h w ill b e s u p p lie d b y F e d e r a l R e s e r v e B a n k s o r B r a n c h e s
o n a p p lic a t io n t h e r e fo r .
O t h e r s th a n b a n k in g in s titu tio n s w ill n o t b e p e r m it t e d t o s u b m it t e n d e r s e x c e p t f o r t h e ir o w n a c c o u n t. T e n d e r s w ill b e
r e c e iv e d w it h o u t d e p o s it f r o m i n c o r p o r a t e d b a n k s a n d tru s t c o m p a n ie s a n d fr o m r e s p o n s ib le a n d r e c o g n iz e d d e a le r s in in v e s t ­
m e n t s e c u r itie s . T e n d e r s fr o m o t h e r s m u s t b e a c c o m p a n ie d b y p a y m e n t o f 2 p e r c e n t o f th e fa c e a m o u n t o f T r e a s u r y b ills
a p p lie d f o r , u n le s s th e t e n d e r s a r e a c c o m p a n ie d b y a n e x p r e s s g u a r a n t y o f p a y m e n t b y a n in c o r p o r a t e d b a n k o r t r u s t c o m p a n y .
I m m e d ia t e ly a fte r th e c l o s i n g h o u r , t e n d e r s w ill b e o p e n e d a t t h e F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h ic h
p u b lic a n n o u n c e m e n t w ill b e m a d e b y th e S e c r e t a r y o f t h e T r e a s u r y o f th e a m o u n t a n d p r ic e r a n g e o f a c c e p t e d b id s . T h o s e
s u b m it t in g t e n d e r s w ill b e a d v is e d o f th e a c c e p t a n c e o r r e je c t io n t h e r e o f. T h e S e c r e t a r y o f t h e T r e a s u r y e x p r e s s ly r e s e r v e s
th e r ig h t t o a c c e p t o r r e je c t a n y o r a ll t e n d e r s , in w h o le o r in p a rt, a n d h is a c t io n in a n y s u c h r e s p e c t sh a ll b e fin al. S u b je c t
t o t h e s e r e s e r v a tio n s , n o n -c o m p e t it iv e t e n d e r s f o r $2 00,000 o r le s s w it h o u t sta te d p r ic e f r o m a n y o n e b id d e r w ill b e a c c e p t e d
in fu ll a t th e a v e r a g e p r ic e (in t h r e e d e c im a ls ) o f a c c e p t e d c o m p e t it iv e b id s . S e tt le m e n t f o r a c c e p t e d t e n d e r s in a c c o r d a n c e
w it h t h e b id s m u s t b e m a d e o r c o m p le t e d at t h e F e d e r a l R e s e r v e B a n k o n J u ly 16, 1953, in c a s h o r o t h e r im m e d ia t e ly
a v a ila b le fu n d s o r in a lik e fa c e a m o u n t o f T r e a s u r y b ills m a tu r in g J u ly 16, 1953. C a s h a n d e x c h a n g e te n d e r s w ill r e c e iv e
e q u a l t r e a tm e n t . C a s h a d ju s t m e n ts w ill b e m a d e f o r d i ffe r e n c e s b e t w e e n t h e p a r v a lu e o f m a t u r in g b ills a c c e p t e d in e x c h a n g e
a n d th e is s u e p r ic e o f t h e n e w b ills.
T h e in c o m e d e r iv e d f r o m T r e a s u r y b ills , w h e t h e r in te r e s t o r g a in f r o m th e s a le o r o t h e r d is p o s itio n o f t h e b ills , s h a ll n o t
h a v e a n y e x e m p t io n , a s s u c h , a n d lo s s fr o m th e sa le o r o t h e r d is p o s it io n o f T r e a s u r y b ills sh a ll n o t h a v e a n y s p e c ia l t r e a t ­
m e n t, a s s u c h , u n d e r t h e I n te r n a l R e v e n u e C o d e , o r la w s a m e n d a t o r y o r s u p p le m e n t a r y t h e r e t o . T h e b ills s h a ll b e s u b je c t
t o e sta te, in h e r ita n c e , g ift , o r o t h e r e x c is e ta x e s , w h e t h e r F e d e r a l o r S ta te , b u t s h a ll b e e x e m p t f r o m a ll t a x a t io n n o w o r h e r e ­
a fte r im p o s e d o n th e p r in c ip a l o r in te r e s t t h e r e o f b y a n y S ta te, o r a n y o f th e p o s s e s s io n s o f th e U n it e d S ta te s , o r b y a n y l o c a l
t a x in g a u th o r it y . F o r p u r p o s e s o f t a x a t io n th e a m o u n t o f d is c o u n t a t w h ic h T r e a s u r y b ills a r e o r ig in a lly s o ld b y t h e U n it e d
S ta te s sh a ll b e c o n s id e r e d to b e in te r e s t. U n d e r S e c t io n s 42 a n d T17 ( a ) ( 1 ) o f t h e I n te r n a l R e v e n u e C o d e , a s a m e n d e d b y
S e c t io n 115 o f t h e R e v e n u e A c t o f 1941, th e a m o u n t o f d is c o u n t at w h ic h b ills is s u e d h e r e u n d e r a re s o ld s h a ll n o t b e c o n s id e r e d
t o a c c r u e u n til s u c h b ills sh all b e s o ld , r e d e e m e d o r o t h e r w is e d is p o s e d o f, a n d s u c h b ills a r e e x c lu d e d fr o m c o n s id e r a t io n as
ca p ita l a ss e ts. A c c o r d i n g l y , th e o w n e r o f T r e a s u r y b ills ( o t h e r th a n life in s u r a n c e c o m p a n ie s ) is s u e d h e r e u n d e r n e e d in c lu d e
in h is in c o m e t a x re tu rn o n l y th e d iffe r e n c e b e t w e e n th e p r ic e p a id f o r s u c h b ills , w h e t h e r o n o r ig in a l issu e o r o n s u b s e q u e n t
p u r c h a s e , a n d th e a m o u n t a c t u a lly r e c e iv e d e it h e r u p o n sa le o r r e d e m p t io n at m a tu r ity d u r in g t h e t a x a b le y e a r f o r w h ic h t h e
r e tu r n is m a d e , as o r d in a r y g a in o r lo ss.
T r e a s u r y D e p a r t m e n t C ir c u la r N o . 418, as a m e n d e d , a n d th is n o t ic e , p r e s c r ib e t h e t e r m s o f th e T r e a s u r y b ills a n d g o v e r n
th e c o n d it io n s o f th e ir issu e . C o p ie s o f th e c ir c u la r m a y b e o b t a in e d f r o m a n y F e d e r a l R e s e r v e B a n k o r B r a n c h .

This Bank will receive tenders up to 2 p.m., Eastern Daylght Saving time, Monday, July 13, 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 tele­
graph, subject to written confirmation; they may not be submitted by telephone. Payment for the Treasury bills

cannot be made by credit through the Treasury Tax and Loan Account.
immediately available funds or in maturing Treasury bills.

Settlement must be made in cash or other
A lla n

S p r o u l,

Results o f last offering o f Treasury bills (9 1 -d a y bills dated July 9, 1953, m aturing O ctober
T o t a l a p p lie d fo r . .

$2,165,888,000

T o t a l a c c e p t e d ..........$1,500,174,000 (in c lu d e s $225,471,000
e n te r e d o n a n o n -c o m p e t it iv e b a sis
a n d a c c e p t e d in fu ll at th e a v e r a g e
p r ic e s h o w n b e l o w )
A v e r a g e p r ic e . . .

99.493

E q u iv a le n t ra te o f d is c o u n t
a p p r o x . 2 .0 0 7 % p e r an n u m

R a n g e o f a c c e p t e d c o m p e t it iv e
t e n d e r o f $ 2 0 0 ,0 0 0 )

b id s :

(e x c e p tin g

one

H ig h

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

99.499

E q u iv a le n t ra te o f d is c o u n t
a p p r o x . 1 .9 8 2 % p e r a n n u m

L ow

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

99.486

E q u iv a le n t r a te o f d is c o u n t
a p p r o x . 2 .0 3 3 % p e r an n u m

(76 percent o f the am ount bid fo r at the lo w
price was accepted)




B o s t o n ..........................
N e w Y o r k ...................
P h ila d e lp h ia ..............
C le v e la n d .....................
R ic h m o n d ...................
A tla n t a ..........................
C h ic a g o ........................
S t L o u is ......................
M in n e a p o lis
..............
K a n s a s C ity ..............
D a lla s ............................
S a n F r a n c is c o .........
T o ta l

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

$

27,743,000
1,581,015,000
42,253,000
30,162,000
11,369,000
28,047,000
239,396,000
35,875,000
10,186,000
50,112,000
45,531,000
64,199,000

$2,165,888,000

8,

1953)

Total
Accepted

Total
Applied fo r

Federal Reserve
District

President.

$

27,403,000
976,675,000
26,761,000
28,862,000
11,034,000
27,317,000
221,436,000
25,550,000
10,086,000
48,432,000
42,419,000
54,199,000

$1,500,174,000
( over )

29 Q
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 atu rity value in paragraph headed "N on -com petitive Bid.” 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 f o r m . A separate tender must be used fo r each bid,
except that banks subm itting bids on a com petitive basis fo r their ow n and their custom ers’
accounts m ay submit one tender fo r the total am ount bid at each price, provided a list is
attached show ing the name o f each bidder, the am ount bid f o 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 July 16, 1953

M aturing O ctober 15, 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 Agent o f the United States.

1953

C O M PETITIVE BID

N O N -C O M P E T IT IV E BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on July 9,
1953, as issued by the Secretary o f the Treas­

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on July 9,
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 $ ..................................
(N ot to exceed $200,000)

fo r a total amount o f $ ...............................................
(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 :

(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 ................... $_______________________

□

□

By cash or other immediately available funds

B y 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 fo r which tender is hereby made are to be dated July 16, 1953, and are to mature
on October 15, 1953.

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

(Please print)

By ...
(Official signature required)

(T itle)

Street A ddress .................................

(C ity, T ow n or V illage, P. O . N o., 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 Customer)

(C ity, T ow n or Village, P. O . N o., 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 b y 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
mem ber o f the firm ,'w h o should sign in the form “ ........................................................................................... . a copartnership, by
.............................................................................................................................. , a m em ber o f the firm.”
3. Tenders will be received w ithout deposit from incorporated banks and trust companies and from respon­
sible and recognizcd dealers in investment 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 accom panied by an express guaranty o f payment
b y 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.


TEN TB— 1202-a


( over )

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