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FEDERAL RESERVE BANK O F NEW YORK Fiscal A gen t o f the U nited States [ Offering of $1,200,000,000 of 90-Day Treasury Bills Dated December 26, 1952 Maturing March 26 , 1953 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 tod ay: TREASURY DEPARTM ENT 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 , W ashington Thursday, D ecem ber 18, 1952. T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, of 90-day Treasury bills, for cash and in exchange for Treasury bills maturing D ecem ber 26, 1952, in the amount o f $1,200,432,000, to be issued on a discount basis under competitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated D ecem ber 26, 1952, and w ill mature March 26, 1953, when the face amount will be payable without interest. Th ey w ill 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o’clock p.m., Eastern Standard time, M onday, D ecem ber 22, 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 m ay not be used. It is urged that tenders be made on the printed form s and forwarded in the special envelopes which w ill 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 ow n account. Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by payment o f 2 percent of 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 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. T h e 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 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 D ecem ber 26, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing D ecem ber 26, 1952. Cash and exchange tenders w ill re ceive equal treatment. Cash adjustments w ill be made for differences between the par value o f maturing bills accepted in exchange and the issue price of the new bills. T h e 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 or other disposition o f Treasury bills shall not have any special treat ment, as such, under the Internal Revenue Code, o r 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 exempt from all taxation now or here after im posed on the principal o r 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 which 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 ccordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need in clude in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on sub sequent 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 m y be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, December 22, 1952, at the Securities De partment o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph sub ject 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 l l a n S p r o u l , President. Results o f last offering o f Treasury bills (91-day bills dated December 18, 1952, maturing March 19, 1953) Total applied for......... $1,713,330,000 Total accep ted ..............$1,200,217,000 (includes $240,940,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) Average price....... 99.460 Equivalent rate o f discount approx. 2.138% per annum Range o f accepted competitive bids: H igh ...................... 99.555 Equivalent rate approx. 1.760% L ow ........................ 99.450 Equivalent rate approx. 2.176% o f discount per annum o f discount per annum (41 percent o f the amount bid for at the low price was accepted) Federal Reserve District T otal Applied fo r .... New Y ork ................ .... Philadelphia .............. Cleveland .................. Richm ond .................. Atlanta ...................... Chicago ...................... St. Louis .................... Kansas City ............. San Francisco ......... T otal ........................ .... $ 18,366,000 1,213,834,000 35,988,000 37,576,000 22,033,000 34,636,000 142,063,000 36,120,000 15,015,000 46,704,000 43,188,000 67,807,000 $1,713,330,000 Total Accepted $ 18,366,000 741,334,000 20,988,000 37,576,000 21,738,000 34,636,000 117,063,000 35,861,000 15,015,000 46,704,000 43,129,000 67,807,000 $1,200,217,000 Please note that the current offering is for 90-day Treasury bills. ( over) 28 N IM PORTANT— Please note that this offering is for 90-day Treasury Bills, which will be dated Friday, December 26, 1952, because Thursday, December 25, will be Christmas Day. IM PORTANT— I f you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” I f you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed "N on-competitive Bid.” DO N O T fill in both paragraphs on one form. A separate tender must be used fo r each bid, except that banks submitting bids on a competitive basis fo r their own and their customers* accounts may submit 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 method o f payment. Forms fo r this purpose will be furnished upon request. N o ___________________ T E N D E R FOR 9 0 -D A Y T R E A SU R Y BILLS Dated December 26, 1952 Maturing March 26, 1953 Dated a t_______ ___ 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. .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 December 18, 1952, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular N o. 418, as amended, and to the provisions o f the public notice on December 18, 1952, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender ................................................ * for a total amount o f fo r a total amount o f $.. (R ate per 100) (N ot to exceed $200,000) $---------------------------------------------- (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : □ B y surrender o f (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b e lo w : maturing Treasury bills □ B y surrender o f maturing Treasury bills amounting t o ......................$______________________ amounting t o ..................... $______________________ □ □ B y cash or other immediately available funds B y 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 December 26, 1952, and are to mature on March 26, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” Name o f Bidder ........ (P lease p rin t) By (Official signature required) (Title) Street Address ............................................. (C ity, T ow n o r V illage, P.O. N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Custom er) (C ity, T ow n o r V illage, P.O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple o f $1,000 (maturity value). 2. I f the person making the tender is a corporation, the tender should be signed by an officer o f the corpora tion authorized to make the tender, and the signing o f the tender b y an officer o f the corporation w ill be construed as a representation b y him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a mem ber o f the firm, w ho 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 accom panied by payment o f 2 percent of 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. I f 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. http://fraser.stlouisfed.org/ Payment b y credit through Treasury Tax and Loan Account will not be permitted. TENTB—1173-a Federal Reserve Bank of St. Louis ( over) FE D E R A L R E SE R V E BANK O F NEW YORK December 19, 1952. T o all Banking Institutions in the Second Federal Reserve District: W e are pleased to announce that The Sullivan County Trust Company, Monticello, New York, has become a member of the Federal Reserve System today. The Sullivan County Trust Company first became a member bank on September 4, 1941. It withdrew from membership on M ay 25, 1951, in order to establish an out-of-town branch. On July 15, 1952, the law was amended to revise the minimum capital requirements for member banks operating out-of-town branches, thus enabling the bank to rejoin the Federal Reserve System. A llan S proul, President.