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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 A gent o f the United States

[

C ircular No. 3 8 9 1
Septem ber 4, 1952 .

Offering of $1,200,000,000 of 91-Day Treasury Bills
Dated September 11, 1952

Maturing December 11, 1952

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

F ollow ing 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 ,
T h u rsd ay, Septem ber 4, 1952.

TREASU RY DEPARTM ENT
W ash ington

T h e S ecretary o f the T reasu ry, by this public notice, invites tenders for $1,200,000,000, o r thereabouts, o f 91-day T reasu ry
b ills, f o r cash and in exch an ge fo r T reasu ry bills m aturing Septem ber 11, 1952, in the am ount o f $1,200,784,000, to be issued on
a discou n t basis under com petitive and n on -com p etitive b id d in g as h ereinafter provided. T h e bills o f this series w ill be dated
Septem ber 11, 1952, and w ill mature D ecem ber 11, 1952, w hen the face am ount w ill be payable w ithout interest. T h ey w ill
be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e).
T en ders w ill be received at F ed eral R eserve Banks and Branches up to the clo s in g hour, tw o o ’c lo ck p.m., Eastern
D ayligh t S avin g time, M on day, Septem ber 8, 1952. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . Each
tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust be expressed on
the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. Fraction s m ay not be used. It is urged that tenders be
m ade on the printed form s and forw a rd ed in the special en velopes w hich w ill be supplied by Federal Reserve Banks or
B ran ches on application therefor.
O thers than banking institutions w ill not be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be
received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in­
vestm ent securities. T en ders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills
applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank or trust com pany.
Im m ediately a fter the clo s in g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich
pu blic announcem ent w ill be m ade by the S ecretary o f the T rea su ry o f the am ount and price range o f a ccepted bids. T h ose
subm itting tenders w ill be advised o f the acceptance o r rejection thereof. T h e S ecretary o f the T reasu ry expressly reserves
the righ t to accept o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. S ubject
to these reservations, n on -com p etitive tenders fo r $200,000 or less w ithout stated price from any one bidder w ill be accepted
in fu ll at the average price (in three decim a ls) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce
with the bids must be made or com pleted at the Federal Reserve Bank on Septem ber 11, 1952, in cash o r other im m ediately
available funds o r in a like face amount o f T reasu ry bills m aturing Septem ber 11, 1952. Cash and exch ange tenders w ill receive
equal treatment. Cash adjustm ents w ill be m ade fo r differences between the par value o f m aturing bills accepted in exchange
and the issue price o f the new bills.
T h e incom e derived from T reasu ry bills, whether interest o r gain from the sale o r oth er disposition o f the b ills, shall
not have any exem ption, as such, and loss from the sale or oth er disp osition o f T reasu ry bills shall not have any special
treatment, as such, under the Internal R evenue Code, or law s am endatory or supplem entary thereto. T h e bills shall be
su b ject to estate, inheritance, gift, or oth er excise taxes, w hether F ed eral o r State, but shall be exem pt from all ta xation
n ow o r hereafter im posed on the principal o r interest th ereof b y any State, or any o f the possessions o f the U nited States,
o r by any loca l ta x in g authority. F o r purposes o f taxation the amount o f discou nt at w hich T reasu ry bills are origin a lly
so ld b y the U nited States shall be con sidered to be interest. U n der S ections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue
Code, as am ended b y S ection 115 o f the R evenue A ct o f 1941, the am ount o f discou n t at w hich bills issued hereunder are
so ld shall not be con sidered to accru e until such bills shall be sold, redeem ed o r otherw ise disposed of, and such bills are
e xclu ded from con sideration as capital assets. A ccord in g ly , the ow n er o f T reasu ry bills (oth er than life insurance co m ­
panies) issued hereunder need include in his incom e ta x return on ly the difference betw een the price paid fo r such bills,
w hether on origin al issue or on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption at
m aturity during the taxable year for w hich the return is made, as ord in a ry gain o r loss.
T reasu ry D epartm ent C ircu lar N o. 418, as amended, and this notice, prescribe the terms o f the T rea su ry bills and
govern the c o n d it io n s 'o f their issue. Copies o f the circu la r m ay be obtain ed from any Federal R eserve Bank o r Branch.

This bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, September 8, 1952, at the Securi­
ties 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 telegraph, subject to written confirmation; they may not be submitted by telephone. Payment for 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 September 4, 1952, maturing December 4, 1952)
T o ta l applied f o r .........$2,074,457,000
T ota l a c c e p t e d ............. $1,300,311,000 (in clu des $163,337,000
entered on a n on-com petitive basis
and accepted in full at the a ver­
a ge price show n b elow )
A vera ge p r ic e ...........

99.524

Equivalent rate o f discount
approx. 1.884% per annum

R ange o f accepted com petitive b id s :
H ig h ............................

99.550

E quivalent rate o f discount
approx. 1.780% per annum

L o w ..............................

99.521

E quivalent rate o f discount
approx. 1.895% per annum

Federal Reserve
District

Total
Applied for
.

$

.

$2,074,457,000

N ew Y o rk ...................
P h ila d e lp h ia .................
C leveland .....................
R ich m on d .....................
A tlanta .........................
St. L ou is .....................
M in n e a p o lis .................
K ansas C i t y .................
D allas ...........................
San F r a n c i s c o .............

29,401,000
1,435,109,000
43,686,000
55,163,000
19,435,000
24,679,000
233,441.000
22,223,000
11,432,000
79,079,000
35,565,000
85,244,000

Total
Accepted
$

24,811,000
845,747,000
28,450,000
43,674,000
15,794,000
19,539,000
152,981,000
18,033,000
11,432,000
59,054,000
25,139,000
55,657,000

(41 percent o f the am ount bid fo r at the low
price w as accep ted)



T otal

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

$1,300,311,000
( over)

27Y

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.” 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 FO R 91-D A Y T R E A S U R Y BILLS
Maturing December 11, 1952

Dated September 11, 1952
To

Dated a t .........................

F ed eral R eserve B a n k o f N e w Y o r k ,

Fiscal A gent o f the United States.

1952

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
September 4, 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 September 4,
1952, as issued by the Secretary o f the Treasury,
the undersigned offers a non-com petitive tender

............................................ * for a total amount of

fo r a total amount o f $ ...............................................

(Rate per 100)

(Not to exceed $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 b e lo w :

(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 e lo w :

□

□

B y surrender

o f maturing Treasury bills

amounting t o ................... $_______________________
□

B y cash or other immediately available funds

B y surrender

o f 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 September 11, 1952, and are to
mature on December 11, 1952.
This tender iviU be inserted in special envelope marked “ Tender for Treasury Bills.”
Nam e o f B id der
(Please print)

By . . . .
(Official signature required)

(T itle)

Street A dd ress ............................................
(City, Town or Village, P. O. No., and State)

I f 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
$1,000 (m aturity va lu e).

less than $1,000 w ill be con sidered, and each tender must be fo r an even m ultiple o f

2. I f the person m akin g the tender is a corporation , the tender should be signed by an officer o f the corp ora tion
authorized to make the tender, and the sign ing o f the tender by an officer o f the corp ora tion w ill be con stru ed as a rep­
resentation by him that he has been so authorized. If the ten der is made b y a partnership, it should be sign ed b y a m em ­
b er o f the firm, w ho should sign in the fo rm “ .....................................................................................................................a copartnership, by
................................................................................................................... . a m em ber o f the firm.”
3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon­
sible and recogn ized dealers in investm ent securities. T en d ers from others must be accom panied by paym ent of
2 percent o f the face am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied b y an express guaranty
o f paym ent by an in corpora ted bank or trust com pany.
4. I f the language o f this tender is changed
T reasu ry, is m aterial, the tender m ay be disregarded.

in any respect, w hich, in the opin ion o f the S ecretary o f the


Paym ent b y credit through Treasury T ax and Loan A ccou n t w ill n ot b e perm itted.
TENTB—1158-a


( over)

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