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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States [ CirjU Jfyr^ 0i£53 9 9 ] 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 . http://fraser.stlouisfed.org/ T E N TB — 1204-a (OVER) Federal Reserve Bank of St. Louis
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