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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. http://fraser.stlouisfed.org/ T E N T B — 1134-a Federal Reserve Bank of St. Louis 'x v e r ) o