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FEDERAL RESERVE BANK O F N EW YORK
r C ir cu la r N o. 3 8 3 3 1
t M a rch 20,1952 J

Fiscal Agent o f the United States

Offering o f $ 1 ,2 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills
Dated March 27 , 1952

Maturing June 2 6 , 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, March 20, 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 Treasury
bills, for cash and in exchange for Treasury bills maturing March 27, 1952, in the amount o f $1,204,475,000, to be issued on
a discount basis under competitive and non-com petitive bidding as hereinafter provided. The bills o f this series will be dated
M arch 27, 1952, and w ill mature June 26, 1952, when the face amount will be payable without interest. Th ey w ill 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).
T enders w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern
Standard time, M onday, M arch 24, 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 more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed form s and forw arded in the special envelopes which will 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 w ill be
received w ithout 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 w ill be opened at the Federal Reserve Banks and Branches, follow in g which
public announcement w ill be made b y 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 o r all tenders, in whole o r 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 decim als) 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 March 27, 1952, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing March 27, 1952. Cash and exchange tenders will receive
equal treatment. Cash adjustments will 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 h e incom e derived from Treasury bills, whether interest or gain from the sale o r other disposition o f the bills, shall not
have any exemption, as such, and loss from the sale o r other disposition o f Treasury bills shall not have any special treat­
ment, as such, under the Internal Revenue Code, o r 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 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. U nder 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 ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) 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
w hich the return is made, as ordinary gain or loss.
T reasury Departm ent Circular N o. 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, March 24, 1952, 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.” Payment fo r the Treasury bills can­

not be made by credit through the Treasury T ax and Loan A ccount. Settlement must be made in cash or other imme­
diately available funds or in maturing Treasury bills.
A llan S proul,

President.

Results of last offering of Treasury bills (91-d ay bills dated March 20 , 1952, maturing June 19, 1952)
T otal applied for ......... $1,962,982,000
Total accep ted ..............$1,200,597,000 (includes $199,741,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
Average price.......

99.595-f-

Equivalent rate o f discount
approx. 1.601% per annum

Range o f accepted competitive bids:
H igh ...................... 99.603
Equivalent rate
approx. 1.571%
L o w ........................ 99.591
Equivalent rate
approx. 1.618%

o f discount
per annum
o f discount
per annum

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




Federal Reserve
District
Boston ............................
N ew Y o r k ......................
Philadelphia
Cleveland ......
Richm ond ......
Atlanta ...........
Chicago ...........
St. Louis ........
Minneapolis ....
Kansas City ...
Dallas .............
San Francisco
T otal

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

Total
Applied for
$

38,963,000
1,320,512,000
26.950.000
87.882.000
21.003.000
32.302.000
217,860,000
30.163.000
9,092,000
47.815.000
61.763.000
68.677.000

$1,962,982,000

Total
Accepted
$

24,868,000
657.492.000
11.050.000
74.452.000
15.803.000
30.802.000
189.924.000
23.596.000
8,662,000
43.538.000
56.133.000
64.277.000

$1,200,597,000
( over)

27A
IMPORTANT— If you desire to bid on & competitive basis, fill in rate per 100 and maturity
value in paragraph headed "Competitive Bid.” If you desire to bid on a non-competitive
basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” DO
NOT 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*
accoiints 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 for his account, and method
of payment. Forms for this purpose will be furnished upon request.
No_____________:______

T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS
Maturing June 26, 1952

Dated March 27, 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 ,

.1952

Fiscal Agent of the United States.

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
March 20, 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 March 20,
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 $-

( K a t e p e r 100)

( N o t t o e x c e e d $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

. amounting t o ...............
■□

.$ —----------------------— »
—

By cash or other immediately available funds

By surrender of maturing Treasury bills

amounting to ............. ........ $--------------------.... —
,y—
□

By cash or other immediately available funds

*Pr\ce must be expressed on the basis o f 100, with not
L more than three decimal places, fo r example, 99.925.
'

The Treasury bills for which tender is hereby made are to be dated March 27, 1952, and are to mature
on June 26, 1952.
" , .

This tender mill be inserted in special envelope marked " Tender for Treasury Bills.’
Name o f Bidder .............................. ...........
By

iiVM

(Please print)

( O f f ic ia l s i g n a t u r e r e q u i r e d )

(T itle )

t.
,V
Street A ddress ..... ....................... ......- ......
( C it y , T o w n o r V illa g e , P .O . N o ., a n d S ta te )

I f this tender is submitted b y a bank for the account o f a customer, indicate the custom er’s name on line below :

(N a m e at C u sto m e r)

( C it y , T o w n o r V illa g e , P .O . N o ., a n d S t a t e )

IMPORTANT INSTRUCTIONS:
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 w ill be construed as a
representation b y him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
i;! m em ber o f the firm, w ho should sign in the form “ ................................................................................................. a copartnership, by
oiij'................................................................................... ........... 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 accom panied by an express guaranty o f payment
• b y an incorporated bank or trust company.
'
'1
4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the
T reasu ry, is material, the tender may be disregarded.

Payment by credit through Treasury Tax and Loan Account will not be permitted.

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