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FEDERAL

RESERVE

BANK

OF

NEW

YORK

Fiscal Agent of the United States

[

C ir c u la r N o. 3 8 0 7 "1
J a n u a r y 10, 1952 J

Offering of $ 1 ,2 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills
Dated January 17, 1952

Maturing April 17, 1952

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

Following is the text of 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 ,
Thursday, January 10, 1952.

TREASURY DEPARTM ENT
W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing January 17, 1952, in the amount o f $1,200,321,000, 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
January 17, 1952, and w ill mature A pril 17, 1952, 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, tw o o’clock p.m., Eastern
Standard time, Monday, January 14, 1952. Tenders w ill not be received at the Treasury Department, Washington. 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 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 w ill 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 in­
vestment 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 accompanied by an express guaranty o f payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which
public announcement w ill be made by the Secretary o f the Treasury 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 January 17, 1952, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing January 17, 1952. Cash and exchange tenders w ill receive
equal treatment. Cash adjustments w ill be made for differences between the par value o f 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 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. 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 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 Standard time, Monday. January 14, 1952, at the Securities
Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to
submit a tender, and return it in an envelope marked “Tender for Treasury Bills.” Payment for the Treasury bills
cannot be made by credit through the Treasury T a x and Loan Account. Settlement must be made in cash or other
immediately available funds or in maturing Treasury bills.
A llan

S proul,

President.

d a te d J a n u a r y 10, 1952, m a tu r in g A p r i l 10, 19 52 )
Total applied f o r ........ $2,104,985,000
Total a c c e p te d ............$1,201,102,000 (includes $224,209,000
entered on a non-competitive basis
and accepted in full at the aver­
age price shown below)
Average p r i c e . . . . . . 99.574 Equivalent rate o f discount
approx. 1.687% per annum
Range o f accepted competitive b id s: (Excepting one
tender o f $100,000)
H i g h ..................... 99.583 Equivalent rate o f discount
approx. 1.650% per annum
L o w ........................ 99.571 Equivalent rate o f discount
approx. 1.697% per annum
(49 percent o f the amount bid for at the low
price was accepted)




Federal Reserve
District
Boston ...........................
New Y ork ...................
P h iladelph ia.................
Cleveland .....................
Richmond .....................
Atlanta .........................
Chicago .........................
St. Louis .......................
Minneapolis ..................
Kansas C i t y .................
Dallas ...........................
San F r a n c is c o ..............
T otal

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

Total
Applied for
$

33,695,000
1,400,849,000
30,819,000
71,901,000
32.428.000
36,382,000
223,727,000
55,429,000
9,189,000
67,920,000
82,040,000
60,606,000

$2,104,985,000

Total
Accepted
$

29,532.000
681,809,000
15,517,000
70,851,000
29,148,000
31,222,000
151,657,000
39,164,000
8,889,000
49,410,000
42,960,000
50,943,000

$1,201,102,000
(

over)

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 maturity
value in paragraph headed “ Competitive B id .” I f you desire to bid on a non-competitive
basis, fill in only the maturity value in paragraph headed “ Non-competitive B id.” D O
N O T fill in both paragraphs on one form . A separate tender must be used for each bid,
except that banks submitting bids on a competitive basis for their own and their customers’
accounts may submit one tender for the total amount bid at each price, provided a list is
attached showing the name o f each bidder, the amount bid for his account, and method
of payment. Forms for this purpose will be furnished upon request.

No.
TENDER FOR 91-DAY TREASURY BILLS
Maturing A pril 17, 1952

Dated January 17, 1952

To

F ederal

R eserve

B a n k

o f

N ew

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

Y ork,

1952

Fiscal Agent of the United States.
C O M P E T IT IV E B ID

N O N -C O M P E T IT IV E BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
January 10, 1952, as issued by the Secretary
of the Treasury, the undersigned offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on January 10,
1952, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

. . . * for a total amount of

for a total amount of $.
(N o t t o e x c e e d $200,000)

( R a t e p er 100)

$ ..................................................... (maturity value)
of 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 below:

(maturity value) of the Treasury bills therein
described, at the average price (in three deci­
mals) of accepted competitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below:

0

0

By surrender of maturing Treasury bills

By surrender of maturing Treasury bills

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

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

0

0

By cash or other immediately available funds

By 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 January 17, 1952, and are to
mature on April 17, 1952.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
Name o f Bidder
( P l e a s e p r in t )

By . . . .
(O ffic ia l s ig n a t u r e r e q u ir e d )

(T itle )

Street Address .........................................
(C it y , T o w n o r V i lla g e , P . O . N o ., a n d S ta te )

I f th is te n d e r is su b m itted b y a b a n k f o r the a c c o u n t o f a cu s to m e r, in d ic a te th e c u s to m e r 's n a m e o n lin e b e lo w :

(N a m e o f C u s to m e r)

( C i t y , T o w n o r V i l la g e , P . O . N o ., a n d S ta te )

IM P O R T A N T IN ST R U C TIO 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 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 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 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 b y credit through Treasury Tax and Loan Account will not be permitted.

r B — 1124-a
(O V E R )


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