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FE D E R A L R E S E R V E BANK O F N E W YORK
Fiscal Agent o f the United States

I

Circular No. 3 8 5 6
M ay 22,1052

O fferin g o f $ 1 ,3 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills
D a te d M a y

29, 1952

M a tu r in g A u g u s t

28, 1952

T o all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

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, M ay 22, 1952.

T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day 7 reasury
bills, for cash and in exchange for Treasury bills maturing M ay 29, 1952, in the amount o f $1,101,051,000, to be issued on
a discount basis under com petitive and non-com petitive bidding as hereinafter provided. T he bills o f this series will be dated
M ay 29, 1952, and w ill mature August 28, 1952, when the face am ount will be payable without interest. T h ey will 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
Daylight Saving time, M onday, M ay 26, 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 form s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be
received without deposit from incorporated banks and trust com panies 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 accom panied 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 will 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. The 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-com petitive 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 com petitive bids. Settlement for accepted tenders in accordance
with the bids must be made or com pleted at the Federal Reserve Bank on M ay 29, 1952, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing May 29, 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 exchange
and the issue price o f the new bills.
T he 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,
or by any local taxing authority. F or purposes o f taxation the amount 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 11 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 owner 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 which the return is made, as ordinary gain or loss.
Treasury Department 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 Daylight Saving time, Monday, May 2 6 , 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.” Tenders may be submitted by tele­
graph, subject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills
cannot be made by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other
immediately available funds or in maturing Treasury bills.
A lla n Sproul, President.
R e s u lts o f la s t o ffe r in g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a te d M a y 2 2 , 1 9 5 2 , m a t u r in g A u g u s t 2 1 , 1 9 5 2 )
T otal applied f o r . . .$2,416,933,000

Federal Reserve Total

Total accepted.......... $1,303,494,000 (includes $195,436,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A verage price . . . 99.572
Equivalent rate o f discount
approx. 1.694% per annum

____ District____
, . Applted_!°!__
Boston ............................. $ 29,078,000
N cw Y ork .......................
1,724,731,000
Philadelphia ................... 41,592,000
Cleveland ....................... 55,091,000
Richm ond ....................... 14,639,000

Range o f accepted com petitive bids:
... ,
t
,
. i .
.
, j.
H « h ..................... 99-595
E quivalentrate o f discount
approx. 1.602/0 per annum
L o w ....................... 99.571
Equivalent rate o f discount
approx. 1.697% per annum
(70 percent o f the amount bid for at the low
price was accepted)

Atlanta .............................
Chicago ...........................
St L£ ujs .........................
Minneapolis ...................
Kansas City ...................
Dallas ...............................
San Francisco ...............




Total .....................

?A?’ r?o’nnn
262,620,000
38,155,000
10,011,000
60,492,000
55,819,000
97,068,000
---------------------$2,416,933,000

Total

Accepted
$

13,078,000
900,041,000
19,092,000
39,391,000
11,829,000
l ^ ’o m ’nnn
153,910,000
18,064,000
9,106,000
40,127,000
27,579,000
53,483,000
---------------------$1,303,494,000
( over)

27 J
IMPORTANT— If you desire to bid on a 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.” D O
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 for his account, and method
of payment. Forms for this purpose will be furnished upon request.

No......... ' ..................
TE N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS
Dated May 29, 1952
To

Maturing August 28, 1952
Dated at

F e d eral R eserve B a n k of N ew 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 22,
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 May 22,
1952, as issued by the Secretary of the Treas­
ury, the undersigned offers a non-competitive

ury, the undersigned offers. . .
(R a t e p e r 100)

tender for a total amount of $ ..................................

for a total amount o f $ .................................................
(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

( N o t to e x c e e d $20 0 ,0 0 0 )

(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 ................... $______________________

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, fo r example, 99.925.

The Treasury bills for which tender is hereby made are to be dated May 29, 1952, and are to mature
on August 28, 1952.
This tender -will be inserted in special envelope marked “ Tender f o r Treasury Bills.”
Name o f Bidder .................................................................................................................................
(P le a s e p rin t)

By
(O fficia l sig n a tu re r e q u ire d )

(T it le )

Street Address

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

If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on linf» below:
(N a m e o f 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 tate)

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 by an officer o f the corporation w ill 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 mem ber o f the firm.”
3. Tenders will 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 am ount 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 com pany.
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.

Vayment b y credit through Treasury Tax and Loan Account ivill not be permitted.

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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102