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FEDERAL RESERVE BANK O F NEW YO RK J Circular No. 3 8 1 1 January 17,1952 Fiscal Agent of the United States Offering o f $ 1 ,2 0 0 ,0 0 0 ,0 0 0 of 91-Day Treasury Bills Dated January 24 , 1952 Maturing April 24 , 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: TREASURY DEPARTM ENT W ashington 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 17, 1952. T he Secretary o f the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, o f 91-day Treas ury bills, for cash and in exchange for Treasury bills maturing January 24, 1952, in the amount o f $1,200,782,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. T h e bills o f this series w ill be dated January 24, 1952, and will mature April 24, 1952, when the face amount w ill be payable without interest. Th ey w ill 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,. January 21, 1952. 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 competitive 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 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 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 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 will be opened at the Federal Reserve Banks and Branches, follow in g which public announcement will be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. Those submitting tenders w ill be advised o f the acceptance or rejection thereof. T he 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 will 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 com pleted at the Federal Reserve Bank on January 24, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing January 24, 1952. Cash and exchange tenders will receive equal treatment. Cash adjustments w ill be made for differences between the par value o f maturing bills accepted in ex change and the issue price o f the new bills. T he 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 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, o r other excise taxes, whether Federal or State, but shall be exempt from all taxation now or here after im posed 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. For 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 1 1 7 (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. A ccordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need in clude in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on-sub sequent 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 21, 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 fo r the Treasury bills can not be made by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other imme diately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. Results o f last offering of Treasury bills (91-d a y bills dated January 17, 1952, maturing April 17, 1952) T otal applied for......... $2,176,725,000 Total accep ted ............. $1,200,201,000 (includes $217,944,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price....... 99.574+ Equivalent rate o f discount approx. 1.684% per annum Range o f accepted competitive bids: (E xcep tin g three tenders totaling $2,400,000) Equivalent rate o f discount H igh ...................... 99.583 approx. 1.650% per annum L ow ........................ 99.572 Equivalent rate o f discount approx. 1.693% per annum (1 percent o f the amount bid for at the low price was accepted) Federal Reserve District Boston .................. Philadelphia ... Cleveland ....... Richm ond ....... Atlanta ........... Chicago ........... St. Louis ........ M inneapolis ... Kansas City .... Dallas .... ;...... San Francisco Total Applied fo r $ 39,600,000 1,454,147,000 34,086,000 140,854,000 32,013,000 30,418,000 205,396,000 42,782,000 11,172,000 64,321,000 69,393,000 52,543,000 $2,176,725,000 Total Accepted $ 29,410,000 658,325,000 17,086,000 138,874,000 29,007,000 23,932,000 128,592,000 24,962,000 10,974,000 45,671,000 47,758,000 45,610,000 $1,200,201,000 a CVJ1 (QVER) 26 R IM P O R T A N T — I f you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Com petitive Bid.” I f you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed "N on-com petitive Bid.” DO 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 of each bidder, the amount bid fo r his account, and method o f payment. Forms for this purpose w ill be furnished upon request. No........... ....................... T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Dated January 24 , 1952 Maturing April 2 4, 1952 Dated at.--------------------- To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States. .1952 COM PETITIVE BID N O N -C O M PE TITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on January 17, 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 17, 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 $., (Rate per 100) (Not to exceed $200,000) $---------------------------------------------- (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: □ □ By surrender of maturing Treasury bills By surrender of 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, f o r example, 99.925. The Treasury bills for which tender is hereby made are to be dated January 24, 1952, and are to mature on April 24, 1952. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” Name o f Bidder .......................................... By (Please print) (Official signature required) (Title) Street Address ............................................. (City, Town or Village, P.O. No., and State) I f t h is t e n d e r is s u b m it t e d b y a b a n k f o r t h e a c c o u n t o f a c u s t o m e r , in d ic a t e t h e c u s t o m e r ’ s n a m e o n lin e b e l o w : (Name of Customer) (City, Town or Village, P.O. No., and State) IM P O R T A N T IN S T R 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 o f $1,000 (maturity value). 2. I f 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 member o f the firm, w ho 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 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. 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 T ax and Loan A ccount will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1126-a (o v e r ) Federal Reserve Bank of St. Louis