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FED ERAL RESERVE BANK O F N EW YORK Fiscal Agent o f the United States [°sS £ i2 r0i.1 S 1 ] Offering o f $1,500,000,000 of 91-Day Treasury Bills Dated September 10, 1953 Maturing December 10, 1953 T o all Incorporated B an ks and T ru st Com panies, and O thers Concerned, in the Second F ederal R eserv e D istrict: Following is the text o f a notice published today: 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 , Tuesday, September 1, 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 September 10, 1953, in the amount o f $1,399,956,000, to be issued on a discount basis under com petitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated September 10, 1953, and w ill mature D ecem ber 10, 1953, when the face amount w ill be payable without interest. T h ey will be issued in bearer form on ly, 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 closin g hour, tw o o ’clock p.m., Eastern Daylight Saving time, Friday, September 4, 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 com petitive 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 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 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 by an incorporated bank o r trust company. Imm ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcement w ill be made by the Treasury Departm ent o f the amount and price range o f accepted bids. Th ose submitting tenders will be advised o f the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole 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 will 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 September 10, 1953, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 10, 1953. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value o f m aturing bills accepted in exchange and the issue price o f the new bills. Th 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 or supplementary thereto. T h e bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exem pt from all taxation now or here after im posed on the principal or interest thereof by any State, o r any o f the possessions o f the United States, or b y 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. U nder Sections 42 and 117 (a )(1 ) o f the Internal Revenue Code, as amended by Section 115 o f the Revenue A c t 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 ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount 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 Departm ent 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 o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Friday, September 4, 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 tele graph, subject to written confirmation; they may not be submitted by telephone. Payment for the Treasury b l s il cannot be made by credit through the Treasury Tax and Loan Account. immediately available funds or in maturing Treasury b l s il. Settlement must be made in cash or other A l l a n S p r o u l, President. (CLOSING D A Y FOR RECEIPT OF TENDERS IS F R I D A Y , S E P T E M B E R 4 , 1953) RESULTS OF BIDDING FOR TREASURY BILLS DATED SEPTEMBER 3 1953 W E R E N O T AVAIL , ABLE W H E N THIS CIRCULAR W A S PRINTED. (O T O ) 29 Y IM P O R T A N T — Please note that tenders fo r this issue must be received not later than 2 p.m ., Eastern D ayligh t Saving time, Friday, September 4, 1953. IMPORTANT— I you de i to bid on a competitive b s s fl in rate per 100 and maturity f s re a i , il value in paragraph headed "Competitive Bid.” I you desire to bid on a non-competitive f 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 t ai heir customers’ accounts may submit one tender for the t t l amount bid at each p i e provided a l s i oa 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 No............................. T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS Dated September 1 , 1953 0 To Maturing December 1 , 1953 0 Dated at 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 Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on September 1, 1953, as issued by the Treasury Department, the Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on September 1, 1953, as issued by the Treasury Department, the undersigned offers a non-competitive tender for undersigned offers .... (R ate per 100) a total amount o f $ ................................................... (N ot to exceed $200,000) for a total amount o f $ ............................................... (maturity value) o f the Treasury bills therein described, or fo r 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: □ □ By surrender o f maturing Treasury bills By surrender o f maturing Treasury bills amounting t o ................... $----------------------------------- amounting t o ................... ■ $ □ □ 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, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated September 10, 1953, and are to mature on December 10, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” N am e o f Bidder (Please print) By ... (Official signature required) (T itle) Street A ddress ................................. (C ity, T ow n o r Village, P. O . N o., and State) If this tender is submitted b y a bank for the account o f a customer, indicate the custom er’s name on line below : (N am e o f Customer) (C ity, T ow n or V illage, P . O . N o., and State) IMPORTANT INSTRUCTIONS: 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 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 mem ber o f the firm, w ho should sign in the form “ ........................................................................................... . a copartnership, by .............................................................................................................................. . a m em ber o f the firm.” 3. T enders will be received w ithout deposit from incorporated banks and trust companies and from respon sible and recognized 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 by an incorporated bank o r trust com pany. 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 ccoun t -will not be permitted. http://fraser.stlouisfed.org/ TENTB— 1210-a Federal Reserve Bank of St. Louis ( over )