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FEDERAL R E S E R V E

BANK
OF NEW
F isca l A g e n t o f the U nited States

YORK
C ircular No. 3 92 5 1
Decem ber 11, 1952 j

Offering of $1,200,000,000 of 91-Day Treasury Bills
Dated December 18, 1952

Maturing March 19, 1953

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

F ollow in g 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, December 11, 1952.

TREASU RY DEPARTM ENT
Washington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing December 18, 1952, in the amount of $1,202,812,000, 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
December 18, 1952, and will mature March 19, 1953, when the face amount w ill be payable without interest. They will
be issued in bearer form only, and in denominations of $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, two o’clock p.m., Eastern
Standard time, Monday, December 15, 1952. Tenders w ill not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $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 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.
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 o f the amount and price range of accepted bids. Those
submitting tenders will 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 December 18, 1952, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing December 18, 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.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of 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 of the possessions o f the United States,
or by any local taxing authority. For 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 or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, 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 or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, December 15, 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. Paym ent 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 o f last offering o f Treasury bills (91-day bills dated D ecem ber 11, 1952, maturing March 12, 1953)
Total applied f o r ........ $1,943,514,000
Total a c c e p te d ............ $1,200,142,000 (includes $234,059,000
entered on a non-competitive basis
and accepted in full at the aver­
age price shown below)
Average price..........

99.471 -(-Equivalent rate o f discount
approx. 2.091% per annum

Range o f accepted competitive b id s:
High .........................

99.517

Equivalent rate o f discount
approx. 1.911% per annum

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

99466

Equivalent rate of discount
approx. 2.113% per annum

Federal Reserve
District

Total
Applied for

.
New York .................. .
Philadelphia ..............
Cleveland ....................
Richmond ...................
Atlanta .......................
St. L o u i s .....................
Minneapolis ................
Kansas City ..............
Dallas .........................
San F r a n c is c o ............

$

22,107,000
1,367,389,000
33,200,000
31,298,000
31,184,000
25,569,000
202,007,000
40,262,000
16,985,000
49,015,000
40,630,000
83,868,000

Total
Accepted
$

20,477,000
706,824,000
16,200,000
31,298,000
28,924,000
25,443,000
166,858,000
32,502,000
16,985,000
44,015,000
37,878,000
72,738,000

(74 percent o f the amount bid for at the low


price was accepted)


T otal

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

.

$1,943,514,000

$1,200,142,000
( over)

28 M
IM P O R T A N T — If you desire to bid on a com petitive basis, fill in rate p er 100 and maturity
value in paragraph headed “ Com petitive B id .” I f you desire to b id on a non-com petitive
basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive B id .” DO
N O T fill in both paragraphs on on e form . A separate tender must be used fo r each bid,
except that banks submitting bids on a com petitive basis fo r their own and their customers’
accounts may subm it one tender fo r the total amount bid at each price, provided a list is
attached showing the name o f each bidder, the amount bid fo r his account, and m ethod
o f payment. Forms fo r this purpose w ill be furnished u pon request.
N o .............................

T E N D E R F O R 9 1 -D A Y T R E A S U R Y B ILLS
Dated D ecem ber 18, 1952

Maturing March 19, 1953

To F e d e ra l R eserve B a n k o f N ew Y ork ,
Fiscal A gent o f the United States.

Dated a t .........................
1952
N O N -C O M P E TIT IV E BID

C O M P E T IT IV E BID
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
December 11, 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 December 11,
1952, as issued by the Secretary o f the Treasury,
the undersigned offers a non-com petitive tender

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

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

(R ate per 100)

(N o t to exce 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 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 :

□

□

By 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 ...................$______________________ 1
□

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 December 18, 1952, and are to
mature on March 19, 1953.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
Name o f Bidder .......................................................................................................................
(P le a se print)

By

(O fficial signature required)

(Title)

Street Address .........................................
(C ity , T ow n or V illa ge, P. O. N o., 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:
(N am e o f Customer)

(C ity , T ow n or V illa ge, P. O. No., and State)

IM P O R T A N T IN STRU CTIO N S:
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 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. 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.


P aym ent b y credit through Treasury T ax and Loan A ccou n t w ill n ot b e perm itted.
http://fraser.stlouisfed.org/
T E N T B — 1172-a
Federal Reserve Bank of St. Louis

Co v k r )

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