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F E D E R A L R E S E R V E BAN K O F N E W Y O R K Fiscal Agent o f the United States Circular No. 3 8 4 2 A p r il 1 7 , 1 9 5 2 Offering of $1,400,000,000 of 91-Day Treasury Bills Dated April 24, 1952 Maturing July 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: TREASU RY 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, April 17, 1952. T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,400,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing A pril 24, 1952, in the amount o f $1,200,690,000, to be issued on a discount basis under com petitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated April 24, 1952, and w ill mature July 24, 1952, when the face amount w ill be payable without interest. T h 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). Tenders will be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Standard time, M onday, April 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 com petitive 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 form s and forwarded in the special envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor. O thers than banking institutions will not be permitted to submit tenders except fo r their ow n account. Tenders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accom panied 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 by an incorporated bank or trust company. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow in g 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. T h e Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reservations, non-com petitive 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 com petitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on A pril 24, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing April 24, 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. T h e incom e 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 o r 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. T h e bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exem pt from all taxation now or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States, o r b y any local taxing authority. F or purposes o f taxation the am ount o f discount at w hich 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 ccordin gly, the ow ner o f Treasury bills (other than life insurance companies) issued hereunder need include in his incom e 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 w hich the return is made, as ordinary gain or loss. Treasury 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 o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, April 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 f o r 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 l l a n S p r o u l , President. Results of last offering of Treasury bills (91-day bills dated April 17, 1952, maturing July 17, 1952) T otal applied f o r . . .$2,286,620,000 Total accepted.......... $1,400,318,000 (includes $208,925,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) Average price . . . 99.583 Equivalent rate o f discount approx. 1.650% per annum Range o f accepted competitive bids: ..................... 99.608 Equivalent rate o f discount approx. 1.551% per annum L ow ....................... 99.581 Equivalent rate o f discount approx. 1.658% per annum H igh (84 percent o f the am ount bid for at the low price was accepted) Federal Reserve District Boston ............................. New Y o r k ....................... Philadelphia .................. Cleveland ......................... R ichm ond ....................... Atlanta ............................. Chicago ........................... St. Louis ......................... Minneapolis .................. Kansas City .................. Dallas ............................... San Francisco .............. Total ..................... Total Applied fo r $ 40,434,000 1,553,642,000 40,471,000 46,585,000 20,325,000 37,069,000 233,118,000 47,681,000 12,467,000 82,530,000 61,315,000 110,983,000 $2,286,620,000 T otal Accepted $ 36,354,000 863.532.000 17.745.000 46.585.000 18.745.000 27.249.000 169.740.000 36.773.000 7,167,000 65.270.000 47.895.000 63.263.000 $1,400,318,000 ( over) 27E IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph beaded “ Competitive Bid.” If you desire to bid on a non -com p etitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O N O T fill in both paragraphs on one fo rm . 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 for his account, and method of payment. Forms for this purpose will be furnished upon request. N o.................................. T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS Dated April 24, 1952 Maturing July 24, 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 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 April 17, 1952, as issued by the Secretary of the Treas Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on April 17, 1952, as issued by the Secretary of the Treas ury, the undersigned offers a non-competitive ury, the undersigned offers...................................... * (Rate per 100) tender for a total amount of $ .................................. (Not to exceed $200,000) for a total amount of $ ................................................. (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 t o ................... $______________________ □ 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 April 24, 1952, and are to mature on July 24, 1952. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name o f Bidder ................................................................................................................................. (Please print) By (Official signature required) (Title) Street Address (City, Town or Village, P. O. No., and State) I f this tender is submitted b y a bank fo r the account o f a custom er, indicate the custom er’s name on line b elow : (Name of Customer) (City, Town or Village, P. O. No., and State) 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. If the person making the tender is a corporation, the tender should be signed b y an officer o f the corpora tion authorized to make the tender, and the signing o f the tender b y 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 mem ber o f the firm, w ho should sign in the form “ ........................................................................................... , a copartnership, by ............................................................................................................ . a m em ber o f the firm.” 3. Tenders w ill be received without deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f payment by an incorporated bank or trust company. 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 Treasury, is material, the tender may be disregarded. Paym ent b y cred it through Treasury T a x and Loan A cco u n t tvill n ot b e perm itted. http://fraser.stlouisfed.org/ TENTB— 1138-a (OVER) Federal Reserve Bank of St. Louis
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