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FED ERAL RESER VE BANK O F N EW YO RK
Circular No. 3 8 8 2
J u ly 31,1852

Fiscal Agent o f the United States

Offering of $1,300,000,000 of 91-Day Treasury Bills
Dated August 7, 1952

Maturing November 6, 1952

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

Following is the text o f 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, ju ly 31, 1952.

TREASU RY DEPARTM EN T
W a sh in g to n

T he Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day Treasury
bills, fo r cash and in exchange fo r Treasury bills maturing August 7, 1952, in the amount o f $1,303,148,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. T he bills o f this series w ill be dated
August 7, 1952, and will mature Novem ber 6, 1952, when the face amount w ill be payable without interest. Th ey w ill be
issued in bearer fo rm only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e).
T e n d e rs w ill be receiv ed at Federal R eserve B anks and B ran ch es up t o the clo s in g h our, tw o o ’ c lo c k p.m ., Eastern
D aylight Saving time, M onday, A ugust 4, 1952. Tenders w ill not be received at the Treasury Department, W ashington. Each
ten der m u st be fo r an even m u ltiple o f $1,000, and in the case o f com p etitive tenders the price o ffe re d m ust be exp ressed on
the basis o f 100, w ith n ot m ore than three decim a ls, e.g., 99.925. F ra ction s m a y n ot be used. It is u rged that ten ders be
m ade on the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be supplied b y Federal R es e rv e B anks o r
B ran ch es o n a pp lication th erefor.
O th ers than b ankin g institutions w ill n ot be perm itted to subm it tenders e x cep t fo r their ow n a ccou n t. T e n d e rs w ill be
receiv ed w ith ou t deposit fro m in corp ora ted banks and trust com pa n ies and fro m respon sible and recog n ized dealers in invest­
m en t securities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills
applied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in corp ora ted bank or trust com p a n y .
Im m edia tely after the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich
p u b lic a n n ou n cem en t w ill be m ade b y the S ecreta ry o f the T rea su ry o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e
su b m ittin g tenders w ill be advised o f the a ccep ta n ce or rejection th ereof. T h e S ecreta ry o f the T r e a s u ry ex p ressly reserves
the righ t t o a ccep t o r reject a n y o r all tenders, in w h ole o r in part, and his a ction in any such resp ect shall be final. S u b ject
t o these reservations, n on -com p etitiv e ten ders fo r $200,000 or less w ith ou t stated p rice fro m any o n e b idd er w ill b e a ccep ted
in fu ll at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a cco rd a n ce
with the bids must be made or completed at the Federal Reserve Bank on A ugust 7, 1952, in cash o r other immediately
available funds o r in a like face amount o f Treasury bills maturing A ugust 7, 1952. Cash and exchange tenders w ill receive
equal treatment. Cash adjustments will be made f o r differences between the par value o f maturing bills accepted in exchange
and the issue price o f the n ew bills.
T h e in co m e derived fr o m T r e a s u ry bills, w h eth er interest or gain fro m the sale o r oth er d isp osition o f th e bills, shall n o t
have a n y exem ption , as such, and lo s s fr o m th e sale o r oth er disp osition o f T rea su ry bills shall n ot have a n y special treat­
m en t, as such, under the In tern al R even u e C ode, o r law s a m en d a tory o r supplem entary thereto. T h e bills shall be su b ject
to estate, inheritance, gift, o r oth er excise taxes, w hether F ed eral or State, b u t shall be exem p t from all taxation n o w o r h ere­
after im p osed on the principal o r interest th ereof b y a n y State, or a n y o f the p ossession s o f the U n ited States, o r b y any loca l
ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are o rig in a lly s o ld b y the U n ited
States shall be considered to be interest. Under Sections 42 and 1 1 7 (a )(1 ) o f the Internal R even u e C od e, as am ended b y
S ection 115 o f th e R even u e A c t o f 1941, the a m ou n t o f discou n t at w h ich bills issued hereunder are sold shall n ot be con sidered
to accrue until such bills shall be sold, redeemed or otherwise disp osed o f, and such bills are ex clu d ed fro m con sidera tion as
capital assets. A c c o r d in g ly , th e ow n er o f T rea su ry bills (o th e r than life insurance com p a n ies) issued h ereun der need in ­
clu de in his in co m e ta x return on ly the differen ce betw een the price paid fo r such bills, w hether o n origin al issue o r o n su b­
sequen t purchase, and the am ou nt actu a lly receiv ed either u p on sale o r redem ption at m aturity d u rin g th e taxable y e a r fo r
w h ich the return is m ade, as ord in a ry gain o r loss.
T re a su ry D epa rtm en t Circular N o . 418, as am en ded , and this n otice, prescrib e the term s o f th e T r e a s u ry bills and go v e rn
the conditions o f their issue. Copies o f the circular m ay be obtain ed fro m a n y F ed eral R eserve B ank o r B ranch.

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday August 4, 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 sub­
mit a tender, and return it in an envelope marked “ Tender fo r Treasury Bills.” Tenders may be submitted by telegraph,
subject to written confirmation; they may not be submitted by telephone. Paym ent 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 l l a n S p r o u l , President.

Results of last offering of Treasury bills (91-day bills dated July 31, 1952, maturing October 30, 1^52)
T o t a l applied f o r ............ $2,056,572,000
T o t a l a ccep ted .............-$ 1 ,500,622,000 (in clu d es $185,960,000
entered on a n o n -com p etitiv e basis
and a ccep ted in full at the a verage
price sh ow n b e lo w )
A v e ra g e p rice ........

99.526

E quivalent rate o f discou n t
a p p rox. 1.877% p er annum

R a n g e o f a ccep ted com p etitive b id s:
H ig h ........................ 99.555
E quivalent rate
a pp rox. 1.760%
L o w .......................... 99.517
E quivalent rate
a pp rox. 1.911%

o f discou nt
per annum
o f discount
per annum

(30 percent o f the am ou nt bid fo r at the low
price w as accep ted)




Federal Reserve
District
B o s to n ........................ ......
N ew Y o r k ............... .....
P h iladelp hia ....... ......
C leveland .................
R ich m on d .................

St. L ou is .................
M in n ea p olis .............
K ansas C ity ..............
D allas ........................
San F r a n cis co ........
T otal

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

Total
Applied f o r
$

40,968,000
1,474,072,000
33,091,000
31,830,000
16,772,000
24,375,000
246,463,000
28,451,000
8,313,000
43,574,000
29,621,000
79,042,000

$2,056,572,000

Total
Accepted
$

40,268,000
937,572,000
24,591,000
31,830,000
16,772,000
24,375,000
236,213,000
28,451,000
8,313,000
43,574,000
29,621,000
79,042,000

$1,500,622,000
( over)

27 T

IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity
value in paragraph headed "Competitive Bid.” If you desire to bid on a non-com petitive
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.
N o . _____________________

TENDER FOR

91 -DAY

TREASURY BILLS

Dated August 7, 1952
T o F ed eral R eserve B a n k o f N e w Y
Fiscal Agent o f the United States.

Maturing November 6, 1952
Dated at— ...— ... —

ork,

.1952

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on
July 31, 1952, as issued by the Secretary
of
the
Treasury,
the
undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on July 31,
1952, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

___________________________ * for a total amount o f

for a total amount o f $..

(R a t e p e r 100)

(N o t t o e x c e e d $200,000)

$______________________________ (maturity value)
o f 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) o f the Treasury bills therein
described, at the average price (in three deci­
mals) o f accepted competitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated b elow :

□

□

B y surrender o f

maturing Treasury bills

By surrender o f

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 August 7, 1952, and are to
mature on November 6 , 1952.
This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills”
N a m e o f B id d er ........
(P le a s e p r in t)

By

(O fficia l s ig n a tu re r e q u ir e d )

(T itle )

Street A d d re s s ................................................
(C ity , T o w n o r V illa g e , P .O . N o ., a n d S tate)

If this tender is submitted by a bank for the account of a customer, indicate the customer’name on line below:
s
(N a m e o f C u sto m e r)

(C ity , T o w n o r V illa g e , P .O . N o., a n d State*

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 will be considered, and each tender m u st be fo r an even m ultiple o f $1,000
(m a tu rity v a lu e ).
2. I f the person m a k in g the tender is a corp ora tion , the tender should be signed b y an officer o f the co rp o ra ­
tion authorized to m ake the tender, and the sig n in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a
representation b y him that he has been s o authorized. I f the tender is m ade b y a partnership, it shou ld be sign ed b y a
m em b er o f the firm , w h o shou ld sign in the fo rm “ ...................................................................................................... . a cop artn ersh ip, b y
....................................................................................................................... a member o f the firm.”
3. T e n d ers w ill be receiv ed w ith ou t d ep osit fro m in corp ora ted banks and trust com pa n ies and fro m respon ­
sible and re co g n iz e d dealers in investm ent securities. T e n d e rs fr o m oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 percent
o f the fa ce a m ou n t o f T r e a s u ry bills a pplied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent
b y an in corp ora ted b a n k o r trust com pan y.
4. I f th e language o f this ten der is ch a n g ed in a n y respect, w hich, in the op in ion o f the S ecreta ry o f the
T re a s u ry , is m aterial, the ten der m a y be disregarded.

Paym ent b y cred it through Treasury T a x and Loan A cco u n t w ill n ot b e perm itted.

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