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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. http://fraser.stlouisfed.org/ T Federal E N T B — 1153 a of St. Louis Reserve Bank ( over)