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

1
[Circular No. 4 0 1 9 J
September 24, 1953

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

Maturing Decem ber 31, 1953

T o all In corporated B an ks and Tru st Com panies, and O th ers
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, September 24, 1953.

TREASURY DEPARTM ENT
Washington

The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing October 1, 1953, in the amount of $1,500,319,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated
October 1, 1953, and will mature December 31, 1953, when the face amount will be payable without interest. They will be
issued in bearer form only, and in denominations of $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
Standard time, Monday, September 28, 1953. Tenders will not be received at the Treasury Department, Washington.
Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed
on the basis of 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 forms 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 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 of Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of 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 will be accepted
in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on October 1, 1953, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing October 1, 1953. Cash and exchange tenders will receive
equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The 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 of Treasury bills shall not have any special treat­
ment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. Th e 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 of the United States, or by any local
taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United
States shall be considered to be interest. Under Sections 42 and 117 (a )(1 ) of the Internal Revenue Code, as amended by
Section 115 of the Revenue A ct of 1941, the amount of 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. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent
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 of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, September 28, 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. Paym ent f o r the Treasury bills
cannot be made by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other
immediately available funds or in maturing Treasury bills.
A l l a n S p r o u l , President.
Results o f last offering o f Treasury bills (9 1 -d a y bills dated September 24, 1953, m aturing Decem ber 24, 1953)
Total applied for ....$2,150,175,000
Total acce p ted ..............$1,500,148,000 (includes $286,901,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Average p rice........

99.587

Equivalent rate of discount
approx. 1.634% per annum

Range of accepted competitive bids:
H i g h .........................

99.596

Equivalent rate of discount
approx. 1.598% per annum

Low

99.575

Equivalent rate of discount
approx. 1.681% per annum

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

(72 percent o f the amount bid for at the low
price was accepted)




F ed era l R eserv e
D istrict
Boston ..................................
New Y o r k ............................
Philadelphia .......................
Cleveland ..............................
Richmond ............................
A tla n ta ..................................
Chicago ................................
St. Louis ..............................
Minneapolis.........................
Kansas City .......................
Dallas ....................................
San Francisco ...................
T

otal

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

Total
A pplied f o r
$

23,728,000
1,554,267,000
35,318,000
46,090,000
25,106,000
25,592,000
207,584,000
36,676,000
16,873,000
73,835,000
24,393,000
80,713,000

$2,150,175,000

T otal
A ccep ted
$

23,428,000
997,507,000
19,618,000
43,220,000
24,906,000
24,242,000
167,034,000
36,662,000
16,045,000
56,865,000
23,393,000
67,228,000

$1,500,148,000
( oveb)

30 B
IM P O R T A N T — I f you desire to bid on a com petitive 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 non-com petitive
basis, fill in only the m atu rity valu e in paragraph headed "N on -com petitive Bid.” D O
N O T fill in both paragraphs on one form . 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 customers’
accounts may subm it one tender f o r the total am ount bid at each price, provided a list is
attached showing the name o f each bidder, the am ount bid fo r his a ccou n t, and method
o f paym ent. Forms fo r this purpose w ill be furnished upon request.
N o . , ............................ .

T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS
D ated O ctober 1, 1953

M aturing D ecem ber 31, 1953
Dated at

To F e d e ra l R eserve B a n k o f N ew Y ork ,
Fiscal Agent o f the United States.

1953

C O M PE TITIV E 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 September 24,
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 24,
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 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 below:

□

□

By surrender o f maturing Treasury bills

By surrender o f maturing Treasury bills

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

amounting t o ................... $_______________________

□

□

B y cash or other immediately available funds

By cash or other immediately available funds

* P rice must b e exp ressed on the basis o f 100, w ith not
m ore than three decimal places, f o r exam ple, 99.925.

The Treasury bills fo r which tender is hereby made are to be dated October 1, 1953, and are to mature
on December 31, 1953.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.”
Nam e of Bidder . . . .
(Please print)

B y ..............................................................
(Official signature required)

(T itle)

Street Address ....................................

(City, Tow n or Village, 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:
(Nam e o f Customer)

(City, Tow n o r V illage, P. O. N o., 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 of $1,000
(maturity value).
2. If the person making the tender is a corporation, the tender should be signed by an officer of the corpora­
tion authorized to make the tender, and the signing of the tender by an officer of 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
member of the firm, who 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 of 2 percent
of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment
by an incorporated bank or trust company.
4. I f the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
Treasury, is material, the tender may be disregarded.

Paym ent b y cred it through Treasury T a x and Loan A cc o u n t uHll n ot be perm itted.

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