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FEDERAL RESERVE BANK O F NEW YORK Circular No. 4 0 0 6 1 A u g u s t 13,1953 J Fiscal A gent o f the United States O ffe r in g o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 9 1-D ay T reasury B ills Dated August 20, 1953 Maturing November 19, 1953 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e 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, August 13, 1953. TREASURY DEPARTM ENT W ashington T h e 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 August 20, 1953, in the amount o f $1,501,213,000, to be issued on a discount basis under competitive and non-com petitive bidding as hereinafter provided. T he bills o f this series w ill be dated August 20, 1953, and will mature N ovem ber 19, 1953, when the face amount will be payable without interest. Th 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 jn ., Eastern Daylight Saving time, M onday, August 17, 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 will not be permitted to submit tenders except for their own 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 accom panied 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 w ill be made by the Treasury Department o f the amount 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-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 competitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on August 20, 1953, in cash or other immediately avail able funds or in a like face amount o f Treasury bills maturing August 20,1953. 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 income 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 o r 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 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, August 17, 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 b l s cannot be made by il credit through the Treasury Tax and Loan Account. funds or in maturing Treasury b l s il. Settlement must be made in cash or other immediately available A l l a n S p k o u l, President. Results of l s offering of Treasury b l s (91-day b l s dated August 1 , 1953, maturing November 1 , 1953) at il il 3 2 Total applied for......... $2,363,408,000 Total accepted............. $1,500,959,000 (includes $298,035,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price....... 99.465+ Equivalent rate o f discount approx. 2.116% per annum Range o f accepted competitive bids: H ig h ........................ 99.494 Equivalent rate o f discount approx. 2.002% per annum L o w ........................ 99.464 Equivalent rate o f discount approx. 2.120% per annum Federal R eserve D istrict Boston ............................ N ew Y o r k ...................... Philadelphia .................. Cleveland ...................... Richmond ................... Atlanta ______________ Chicago ........... .............. St. Louis ....................... Minneapolis .... - ....... Kansas City ...... ........... Dallas ........... .................. San F r a n cis c o ................ Total A pplied f o r $ 31,301,000 1,614,590,000 42,544,000 48,110,000 18,682,000 33,301,000 282,115,000 44,750,000 20,914,000 78,999,000 50,342,000 97,760,000 Total A ccepted $ 31,091,000 942,737,000 22,019,000 37,756,000 12,907,000 28,604,000 227,393,000 30,370,000 17,359,000 50,936,000 31,890,000 67,897,000 (95 percent of the amount bid for at the low price was accepted) T otal ...................... $2,363,408,000 $1,500,959,000 29 V IMPORTANT— I you desire to bid on a competitive b s s fl in rate per 100 and maturity f a i , il value in paragraph headed "Competitive Bid.” I you de i to bid on a non-competitive f s re b s s fl in only the maturity value in paragraph headed "Non-competitive Bid.” D O a i , il N O T f l in both paragraphs on one form. A separate tender must be used for each b d il i, except that banks submitting bids on a competitive b s s for their own and their customers* ai accounts may submit one tender for the total amount bid at each p i e provided a l s i rc, it s attached showing the name of each bidder, the amount bid for h s account, and method i of payment. Forms for t i purpose will be furnished upon request. hs N o_________________ T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Dated August 20, 1953 Maturing November 1 , 1953 9 Dated aL To F ed era l R eserve B a n k o f N ew Y ork , Fiscal Agent o f the United States. .1953 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions o f Treas ury Department Circular No. 418, as amended, and to the provisions o f the public no tice on August 13, 1953, as issued by the Treasury Department, 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 August 13, 1953, as issued by the Treasury Department, the undersigned offers a non-competitive tender — * for a total amount o f for a total amount o f $_ (R ate per 100) (Not to exceed $200,000) $---------------------------------------------- (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 : (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 By surrender o f maturing Treasury bills amounting t o ..................... $---------------------------------- amounting to . . . ............... $ ______________________ □ □ By cash or other immediately available funds By cash o r other immediately available funds *Price must be expressed on the basis of 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 August 20, 1953, and are to mature on November 19, 1953. This tender will be inserted in special envelope marked “Tender for Treasury Bills .” Name of Bidder ....... By (Please print) (Official signature required) (Title) Street Address .......................... ........... . (City, Town or VUlage, P. O. No., and State) I t i t n e i submitted by a bank f r t e account o a cu t m r i d c t t e customer’ name on l n below: f hs e d r s o h f s o e , niae h s ie (Name of Customer) (City, Town or Village, P. O. No., and State") IMPORTANT INSTRUCTIONS: 1 N o tender for less than $ , 0 will . 100 be considered, and each tender must be for an even multiple o f $ , 0 100 (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 w ill be construed as a representation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a member 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 th j 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 o f the Treasury, is material, the tender may be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ TE N TH 1207-a (o v e r ) Federal Reserve Bank of St. Louis