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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 of the United States £ C ircular N o. 3 8 5 3 M ay 15, 1952 Offering of $1,300,000,000 of 91-Day Treasury Bills Dated May 22, 1952 Maturing August 21, 1952 To all Incorporated Banks and Trust Companies, and Others Concerned, tn 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, M ay 15, 1952. TREASURY DEPARTM ENT Washington The Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing May 22, 1952, in the amount o f $1,099,998,000, 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 M ay 22, 1952, and w ill mature August 21, 1952, when the face amount w ill be payable without interest. They 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Daylight Saving time, Monday, M ay 19, 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 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 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 of the amount and price range o f accepted bids. Those submitting tenders w ill be advised of, the acceptance or rejection thereof. The Secretary of 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 May 22, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing May 22, 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 o r 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 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 o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, May 19, Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Payment cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be immediately available funds or in maturing Treasury bills. A llan 1952, at the Securities side of this circular to for the Treasury bills made in cash or other S proul, President. Results of last offering of Treasury bills (91-day bills dated May 15, 1952, maturing August 14, 1952) Total applied f o r ........ $2,438,761,000 Total accepted ............$1,500,772,000 (includes $203,033,000 entered on a non-competitive basis and accepted in full at the aver age price shown below) Average p rice.......... 99.564+Equivalent rate o f discount approx. 1.725% per annum Range o f accepted competitive b id s: H i g h .......................... 99.583 Equivalent rate o f discount approx. 1.650% per annum L o w ........................... 99.562 Equivalent rate o f discount approx. 1.733% per annum (29 percent o f the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Boston ......................... . New Y ork .................. Philadelphia .............. Cleveland ................... Richmond ................... Atlanta ....................... Chicago ....................... St. L o u i s ...................... Minneapolis ................ Kansas C i t y ................ San F r a n c is c o ............ T otal ........................... . $ 33,180,000 1,599,818,000 57,021,000 81,614,000 30,641,000 35,522,000 250,498,000 52,429,000 9,372,000 96,305,000 62,076,000 130,285,000 $2,438,761,000 Total Accepted $ 27,760,000 883,457,000 37,211,000 71,644,000 27,116,000 33,957,000 181,022,000 35,988.000 9,172,000 71,915,000 43,526,000 78,004,000 $1,500,772,000 (ovn) IMPORTANT— If you desire to bid on a com p etitive basis, fill in rate per 100 and maturity value in paragraph headed “Competitive Bid.” If you desire to bid on a n on -com petitive basis, fill in only the maturity value in paragraph headed “Non-competitive Bid.” DO N O T fill in b oth paragraphs on on e 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 for his account, and method of payment. Forms for this purpose will be furnished upon request. No............................ T E N D E R FOR 91-D A Y T R E A S U R Y BILLS Dated May 22, 1952 Maturing August 21, 1952 Dated a t ......................... 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 May 15, 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 May 15, 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 $. (Not to exceed $200,000) (Rate per 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: □ By surrender of maturing Treasury bills amounting to . . . □ .... $ ------------------------- By cash or other immediately available funds (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 * 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 May 22, 1952, and are to mature on August 21, 1952. This tender w ill be inserted in special envelope marked " Tender for Treasury Bills.” Name o f Bidder (Please print) By . . . . (Official signature required) (Title) Street Address ......................................... (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account o f a customer, indicate the customer’s name on line below: (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 of $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 corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation will 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 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 of 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. 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. P aym ent b y cred it through Treasury T ax and Loan A ccou n t w ill n ot b e perm itted. rB—1142-a ( ovek)