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FED ERAL R E SE R V E BANK O F N EW YORK Fiscal A gent o f the United States [ Circular No. 4 0 2 3 "1 October 1, 1953 J Offering o f $1,500,000,000 of 91-Day Treasury Bills Dated October 8, 1953 Maturing January 7, 1954 T o all In corporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice published today: FO 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, October 1, 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 8, 1953, in the amount of $1,501,179,000, 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 8, 1953, and will mature January 7, 1954, 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, two o’clock p.m., Eastern Standard time, Monday, October 5, 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 in vestment 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. 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 8, 1953, in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 8, 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 of 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 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 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 Act 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 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 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, October 5, 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 lla n S p r o u l , President. Results o f last offering o f Treasury bills (91-day bills dated O ctober 1, 1953, maturing D ecem ber 31, 1953) Total applied f o r .........$2,367,114,000 Total accepted.............$1,501,118,000 (includes $221,523,000 entered on a non-competitive basis and accepted in full at the aver age price shown below) Average price........... 99.600 Equivalent rate of discount approx. 1.583% per annum Range of accepted competitive bids: High ........................... 99.605 Equivalent rate of discount approx. 1.563% per annum L o w ............................. 99.598 Equivalent rate of discount approx. 1.590% per annum (38 percent o f the amount bid for at the low price was accepted) Federal R eserve District __________ Boston ............................. New York ..................... Philadelphia ................. Cleveland ....................... Richmond ....................... Atlanta ........................... Chicago ........................... St. L o u is ......................... Minneapolis ................... Kansas C i t y ................... Dallas ............................. San Fran cisco............... T otal ....................... Total Accepted Total Applied for $ 15,821,000 1,846,193,000 41.122.000 22.092.000 20.909.000 30.766.000 188.987.000 27.020.000 9,020,000 36.434.000 40.906.000 87.844.000 $2,367,114,000 $ 11,821,000 1,153,907,000 20.823.000 19.568.000 14.661.000 21.456.000 121.966.000 20.669.000 8 ,020,000 26.703.000 34.142.000 47.382.000 $1,501,118,000 ( over ) 30 C IM P O R T A N T — I f you desire to b id on a c o m p e t i t i v e basis, fill in rate per 100 and maturity value in paragraph headed “ Com petitive B id .” I f you desire to b id on a n o n - c o m p e t i t i v e basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive B id.” D O N O T fil l i n b o t h p a r a g r a p h s o n o n e fo r m . A separate tender must be used fo r each bid, except that banks submitting bids on a com petitive basis for their own and their customers’ accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount b id fo r his account, and m ethod o f paym ent. Forms fo r this purpose w ill be furnished upon request. N o ............................. T E N D E R FOR 91-DAY T R E A S U R Y BILLS Dated O ctober To F ed era l R eserve B an k o f 8, Maturing January 7, 1954 1953 N ew Dated a t .......................... Y ork, Fiscal A gent o f the United States. 1953 N O N -C O M P E TIT IV E B ID C O M P E T IT IV E B ID Pursuant to the provisions of Treas ury Department Circular No. 418, as amended, and to the provisions o f the public no tice on O ctober 1, 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 O ctober 1, 1953, as issued by the Treasury Department, the undersigned offers a non-com petitive tender ............................................ * for a total amount o f for a total amount o f $. (N o t to exce e d $200,000) (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 b e lo w : (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 e lo w : □ □ By surrender o f maturing Treasury bills By surrender o f maturing Treasury bills amounting t o ................... $----------------------------------- amounting t o ................... $_______________ _________ Q □ By cash or other immediately available funds By cash or other immediately available funds * P rice must b e expressed on the basis o f 100, with not m ore than three decimal places, for exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated O ctober mature on January 7, 1954. 8 , 1953, and are to This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills ” Name of B id d e r......... (P le a se print) By (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 S tate) IM P O R T A N T IN STR U CTIO N S: 1. No 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 corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a rep resentation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a mem ber of the firm, who should sign in the form “ ................................................................................................................... a copartnership, by ....................................................................................................................... a member of 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. If 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. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ TENTB—1214-a Federal Reserve Bank of St. Louis ( over )
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