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

[ CirjU r^ 0i£53 9 9 ]
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Offering o f $1,500,000,000 o f 91-Day Treasury Bills
Avuc\ i n Ui\

Dated July 30, 1953

VOVv

Maturing O ctober 29, 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, July 23, 1953.

TREASURY DEPARTM ENT
W ashington

The Treasury Department, 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 July 30, 1953, in the amount o f $1,499,924,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. T he bills o f this series will be dated
July 30, 1953, and will mature O ctober 29, 1953, when the face amount will be payable without 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 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 27, 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 of competitive tenders the price offered must be expressed on
the basis o f 100, with not more 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 b y 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 will 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 of 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 ing which
public announcement will be made by the Secretary o f the Treasury o f the amount and price range of 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 decimals) o f accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on July 30, 1953, in cash or other immediately avail­
able funds or in a like face amount o f Treasury bills maturing July 30, 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 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. The 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 here­
after imposed on the principal or interest thereof by any State, or any of 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 owner o f Treasury bills (other than life insurance companies) 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 or 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, July 27, 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 for 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 lla n

S p r o u l,

President.

Results o f last offering o f Treasury bills (91 -d ay bills dated July 23, 1953, m aturing O ctober 22, 1953)
Total applied for......... $2,380,096,000
T otal a c c e p te d ..............$1,500,400,000 (includes $281,927,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
Average price.......

99.462+

Equivalent rate o f discount
approx. 2.126% per annum

Range of accepted competitive bids:
H ig h ........................ 99.507
Equivalent rate o f discount
approx. 1.950% per annum
L ow .......................

99.459

Equivalent rate o f discount
approx. 2.140% per annum

Federal Reserve
District
Boston ............................ $
New Y o r k ......................
Philadelphia ..................
Cleveland ........................
Richmond ......................
Atlanta ............................
Chicago ..........................
St. L o u is .........................
Minneapolis ..................
Kansas C it y ....................
D a lla s ..............................
San F ran cisco................

Total
Applied fo r
23,176,000
$
1,671,984,000
43,474,000
73,720,000
17,922,000
32,090,000
246,585,000
52,580,000
19,297,000
56,291,000
37,381,000
105,596,000

Total
Accepted
19,012,000
953,324,000
27,064,000
48,720,000
16,412,000
31,390,000
181,143,000
35,857,000
13,297,000
54,840,000
35,778,000
83,563,000

(59 percent o f the am ount bid fo r at the lo w

price was accepted)



T otal

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

$2,380,096,000

$1,500,400,000
( over )

29 S

r

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 B id.” I f you desire to bid on a n o n -c o m p e t i t iv 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 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 amount bid fo r his account, 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 30, 1953

To

M aturing O ctober 29, 1953
Dated aL

F ed era l R eserve B an k o f N ew

Y ork ,

Fiscal Agent o f the United States.

.1953

COM PETITIVE BID

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

Pursuant to thfc provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
July 23, 1953, as issued by the Secretary
of
the
Treasury,
the undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on July 23,
1953, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

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

fo r a total amount o f $..

(R ate per 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

(N ot to exceed $ 200,000)

(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 :
0

By surrender o f

maturing Treasury bills

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

amounting t o ..................... $ ______________________

0

□

By 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 July 30, 1953, and are to
mature on October 29, 1953.

This tender zvill be inserted in special envelope marked “ Tender for Treasury Bills”
Name o f Bidder — ....
(Please print)

By ....................................................................
(Official signature required)

(Title)

Street Address .............................................
(C ity, T ow n or V illage, 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:

(N am e of Customer)

(City, Tow n or Village, P. O. No., 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 will 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 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 b y a
member 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 th.- 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.
P a y m e n t b y c r e d i t t h r o u g h T r e a s u r y T a x a n d L o a n A c c o u n t -will n o t b e p e r m itte d .

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