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FEDERAL RESERVE BANK O F N EW YORK f C ircular N o . 3 8 1 3 1 I Jan uary 24, 1952 J Fiscal Agent o f the United States Offering of $ 1 ,3 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills Dated January 31, 1952 Maturing May 1, 1952 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice published today: TREASURY DEPARTM ENT W ashington 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, January 24, 1952. T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing January 31, 1952, in the amount o f $1,301,680,000, to be issued on a discount basis under com petitive and non-com petitive bidding as hereinafter provided. The bills o f this series will be dated January 31, 1952, and will mature M ay 1, 1952, when the face amount will be payable without interest. Th ey will 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, January 28, 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 com petitive 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 w hich w ill be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their ow n account. T enders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment b y an incorporated bank or trust company. Imm ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g w hich 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 o r 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 o r less without stated price from any one bidder will be accepted in full at the average price (in three decim als) o f accepted com petitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on January 31, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing January 31, 1952. Cash and exchange tenders w ill receive equal treatment. Cash adjustments will be made for 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 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 treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T h e bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal o r State, but shall be exem pt from all taxation n ow or hereafter im posed on the principal or interest thereof b y any State, or any o f 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. U nder Sections 42 and 1 1 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 w hich bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed o f, and such bills are excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (oth er than life insurance com panies) issued hereunder need include in his incom e tax return on ly 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. T reasury Departm ent Circular No. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern the conditions .of their issue. Copies o f the circular m ay be obtained from any Federal Reserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 28, 1952, at the Securities 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.” Payment f o 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-d a y bills dated January 2 4, 1952, maturing April 2 4, 1952) . otal applied f o r ..........$2,195,412,000 /otal accepted .............. $1,200,705,000 (includes $211,544,000 Average price . . . . Vaev ^ Si orice shown b d o w ) price shown below) 99.596 Equivalent rate o f discount approx. 1.599% per annum R a n g e o f accepted competitive bids: High .................. 99.608 Equivalent approx. Low .................... 99.593 Equivalent approx. rate o f discount 1.551% per annum rate o f discount 1.610% per annum Federal Reserve District Total Accepted Boston ................................. $ 67,536,000 $ 38.626,000 New Y ork ......................... 1,472,677,000 674;076,000 Philadelphia ........................ 34,638,000 15,338,000 Cleveland ............................ 100,484,000 71,124,000 Richmond ........................... 24,917,000 19,857,000 Chicago ‘ . ' . ' . ' . ' . ' . ' . ' gt. Louis .............................. Minneapolis ........................ Kansas City ........................ Dallas ................................... San Francisco .................... (24 percent o f the amount bid for at the low price was accepted) Total Applied for T otal 186,42^,000 128!504!000 46,504,000 34,884,000 11,545,000 10,703,000 51,842,000 46,638,000 41,390,000 29,652,000 122,047,000 102,402,000 --------------------........................ $2,195,412,000 $1,200,705,000 ( over) 26 S IM P O R T A N T — I f you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Com petitive Bid.” I f you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed "N on-com petitive 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. No................................. T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS Dated January 31, 1952 To F ederal R eserve B a n k o f N e w M a tu rin g M ay 1, 1952 Dated at Y o r k , Fiscal Agent of the United States. 1952 CO M PETITIVE BID N O N -C O M P E T IT IV E BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on January 24, 1952, as issued by the Secretary of the Treas ury, the undersigned offers.................................... * Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on January 24, 1952, as issued by the Secretary of the Treas ury, the undersigned offers a non-competitive tender for a total amount of $ ................. ................. (R a t e per 100) for a total amount of $ ............................................. (maturity value) of 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: □ By surrender of maturing Treasury bills (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Rank, on the date stated in the public notice, as indicated below: □ By surrender of maturing Treasury bills amounting t o ............... amounting t o ................... $._______________________ ( N o t to exceed $20 0 ,0 0 0 ) $_______ __________ _ C M iy c a s h or other immediately available funds Q 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 January 31, 1952, and are to mature on May 1, 1952. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills/' Name o f Bidder (P le a s e p rin t) B y ----(T it le ) (O fficia l sig n atu re re q u ire d ) Street Address ..................................... (C it y . T o w n o r V illa g e , P .O . N o ., and S tate) If this tender is submitted b y a bank for the account of a customer, indicate the customer’s name on line below: (N a m e o f C u stom er) (C it y , T o w n o r V illa g e , P .O . N o ., and S tate) IM P O R T A N T IN S T R U C T IO 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 corpora tion authorized to make the tender, and the signing o f the tender by an officer o f the'corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a m em ber o f the firm, w ho should sign in the form “ ......................................................................................... . a copartnership, by ............................................................................................................. . a m em ber o f the firm.” 3. Tenders will 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 o f the face am ount 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. Payment b y credit through Treasury Tax and Loan A ccount will not be permitted. TEN T B-1126-a ( ovfh ) a > t FEDERAL RESERVE BANK OF NEW Y O R K January 23, 1952. To all Member Banks in the Second Federal Reserve D istrict: It is with deep regret that I have to inform you of the death yesterday o f R obert P. P atterson , a Class C director of this Bank since A pril 21, 1950. R obert T. S teven s, Chairman of the Board. a f~ 3 S > 3 A E A S T E R N IN S U R A N C E V O L U N T A R Y C R E D IT R E S T R A IN T C O M M IT T E E Created pursuant to the Program for Voluntary Credit Restraint authorized by the Defense Production Act of 1950 33 LIBERTY STREET N E W Y O R K 4 5 . N . Y. January 24, 1952. To the Chief Executive Officer o f the Fraternal Insurance Association Addressed: The National Voluntary Credit Restraint Committee has completed arrangements where by the fraternal insurance associations o f the country will be represented along with other important classes o f financing institutions in the regional committee organization o f the V ol untary Credit Restraint Program. Under this plan representatives o f the fraternal associa tions have been appointed to the existing regional insurance committees, which have head quarters in New York, Chicago, Dallas, and San Francisco, respectively. The national committee has appointed E rn est R. D e m in g , President, The Unity Life and Accident Insurance Association, 636 South W arren Street, Syracuse 1, New York, and M acK ay, N orm an Secretary, Order o f Scottish Clans, 899 Boylston Street, Boston 15, Massachusetts, as members o f the Eastern Insurance Voluntary Credit Restraint Committee to represent the fraternal insurance associations o f the eastern area. The national committee has also appointed M ic h a e l J. W a r g o v ic h , President, The First Catholic Slovak Union of the United States of America, 3289 East 55th Street, Cleveland 27, Ohio, as an alternate fo r Mr. Deming. W ith these additions, the members o f the Eastern Insurance Voluntary Credit Restraint Committee are: F r azar B. W F r e d e r ic il d e , Chairman President, Connecticut General Life Insurance Company, Hartford, Connecticut J W . E c k e r , V ice Chairman Executive Vice President, Metropolitan Life Insurance Company, New York, New York u l ia n D. A nthony, President, Columbian National Life Insurance Company, Boston, Massachusetts W . W . B o d i n e , Chairman of the Board, The Penn Mutual Life Insurance Company, Philadelphia, Pennsylvania E. A . C a m p , Jr., Vice President and Treasurer, Liberty National Life Insurance Company, Birmingham, Alabama R. D e m i n g , President, The Unity Life and Accident Insurance Association, Syracuse, New York E rnest R obert N orm an W E. H e n l e y , President, Life Insurance Company of Virginia, Richmond, Virginia il l ia m M acK ay, Secretary, Order of Scottish Clans, Boston, Massachusetts F. T r e i b e r , Vice President, Federal Reserve Bank of New York, New York, New York ( over) The Eastern Insurance Voluntary Credit Restraint Committee is the regional committee designated to handle inquiries from life insurance companies and fraternal insurance associa tions located in the District o f Columbia and the following states: Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, West Virginia, Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Florida, Alabama, and Mississippi. Enclosed are copies o f the Program for Voluntary Credit Restraint and o f the six bulletins issued by the Voluntary Credit Restraint Committee. The basic purpose o f the Program is to provide credit necessary to sustain essential production and services, and at the same time to restrain financing which will add to inflationary pressures. A s the Program is entirely voluntary, the primary function of this Committee is to serve the life insurance companies and fraternal insurance associations within its area in an advisory capacity to aid them in their efforts to observe the principles set forth in the Program govern ing the extension of credit. To facilitate the work o f the Committee, please submit your request fo r consideration of a specific loan or investment in accordance with the form which is en closed. Form s should be prepared in triplicate and sent to G. M organ B row ne, Secretary of the Committee, 33 Liberty Street, New Y ork 45, N. Y. Additional copies o f the form , the P ro gram, and the bulletins will be furnished by the Secretary upon request. The Committee is confident that all fraternal insurance associations will cooperate to the fullest extent to make the Program successful. Copies o f this letter are being sent to all life insurance companies in the area served by this Committee fo r their information. F razar B. W il d e , Chairman.
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