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FE D E RA L R E SE R V E BANK O F N EW YO RK
Fiscal A gent o f the United States

[

Circular No. 4014
September 10, 1953

Offering o f $1,500,000,000 of 91-Day Treasury Bills
Dated September 17, 1953

Maturing December 17, 1953

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

F ollow ing 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 SP A P E R S ,
Thursday, September 10, 1953.

TREASU RY DEPARTM ENT
Washington

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 17, 1953, in the amount o f $1,500,503,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills o f this series w ill be dated
September 17, 1953, and w ill mature December 17, 1953, when the face amount w ill be payable without interest. They 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern
Daylight Saving time, Monday, September 14, 1953. Tenders will not be received at the Treasury Department, W ashington. 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 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 forms and forwarded in the special envelopes which w ill 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 in­
vestment 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 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, 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. The 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 September 17, 1953, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing September 17, 1953. Cash and exchange tenders w ill receive
equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange
and the issue price o f 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 o f Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or 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 hereafter 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 117(a)(1) o f the Internal Revenue
Code, as amended by Section 115 o f the Revenue A ct o f 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 o f Treasury bills (other than life insurance com ­
panies) 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 No. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and
govern the conditions o f 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 Daylight Saving time, Monday, September 14, 1953, at the Securi­
ties 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, subject to written confirm ation; they may not be submitted by telephone. Payment for 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 (91-day bills dated September 10, 1953, maturing D ecem ber 10, 1953)
Total applied for . . . . . $2,022,888,000
Total a ccep ted ............$1,500,288,000 (includes $221,801,000
entered on a non-competitive basis
and accepted in full at the aver­
age price shown below)
Average price..........

99.506+Equivalent rate o f discount
approx. 1.953% per annum

Range o f accepted competitive b id s :
H igh .........................

99.519

Equivalent rate o f discount
approx. 1.903% per annum

L o w ...........................

99.502

Equivalent rate o f discount
approx. 1.970% per annum

(The entire amount bid for at the low
price was accepted)




Federal Reserve
District
Boston ...................
New Y o r k .............
Philadelphia ........
Cleveland ..............
Richmond ..............
Atlanta .................
Chicago .................
St. L o u i s ...............
Minneapolis ..........
Kansas C i t y ..........
Dallas ....................
San Francisco
T otal

Total
Applied for
$

21,871,000
1,459,461,000
30.912.000
50.287.000
18.822.000
28.358.000
233,829,000
25.273.000
15.415.000
39.123.000
27.745.000
71.792.000

$2,022,888,000

Total
Accepted
$

21,771,000
965.461.000
15.812.000
50.217.000
15.922.000
26.058.000
230.729.000
25.273.000
15.315.000
36.693.000
25.645.000
71.392.000

$1,500,288,000
( over)

29 Z

IMPORTANT— I you desire t bid on a competitive b s s fl in rate per 100 and maturity
f
o
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 bi
il
d,
except that banks submitting bids on a competitive basis for their own and their 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 hi account, and method
s
of payment. Forms for t i purpose w ll be furnished upon request.
hs
i
No...........
TEN DER FOR 91-DAY TREASURY BILLS
Dated September 1 , 1953
7
Maturing December 1 , 1953
7
To

F ed era l R eserve

B an k

o f

N ew

Dated a t .........................................................

Y ork ,

Fiscal A gent 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 September 10, 1953, as issued by the
Treasury Department, the undersigned offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on September 10,
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 a te per 100)

(N o t 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 e lo w :
□

By surrender o f maturing Treasury bills

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

B y cash or other immediately available funds

(m aturity 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 e lo w :
□

By surrender o f maturing Treasury bills

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

B y cash or 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 September 17, 1953, and are to
mature on December 17, 1953.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
Name o f B id d e r ..................................................................................................................................
(P le a se print)

B y ..............................................................................,

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

(O fficial signature required)

(T itle )

Street Address ..................................................................................................................................
(C ity , T ow n o r V illa g e , P. O. N o., and S tate)

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 o f Custom er)

(C ity , T ow n or V illa g e , P . O . N o., and State)

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 w ill 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 o f the corporation
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 rep­
resentation 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, who should sign in the form “ ......................................................................................................... . a copartnership, by
............................................................................................................. . a member 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 of
2 percent o f 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.
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 Account will not be permitted.
http://fraser.stlouisfed.org/
T E N T B 1211-a
(o v e r )
Federal Reserve Bank of St. Louis


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102