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FEDERAL RESERVE BANK O F N EW YORK
C ir c u la r N o. 3 8 4 0 1
A p r il 10, 1952
J

Fiscal Agent o f the United States

Offering o f $ 1 ,4 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills

Dated April 17, 1952

Maturing July 17, 1952

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

Following 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, April 10, 1952.

TREASURY DEPARTM ENT
W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,400,000,000, or thereabouts, o f 91-day Treas­
ury bills, for cash and in exchange for Treasury bills maturing April 17, 1952, in the amount o f $1,202,401,000, to be issued
on a discount basis under competitive and non-competitive bidding as hereinafter provided. T he bills o f this series will be
dated A pril 17, 1952, and will mature July 17, 1952, when the face amount will be payable without interest. T h 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 will be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern
Standard time, M onday, April 14, 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 more than three decimals, e.g., 99.925. Fractions may 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 own account. Tenders will 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 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 will 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 of 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-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 decim als) o f acceptcd competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or com pleted at the Federal Reserve Bank on April 17, 1952, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing April 17, 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 ex­
change and the issue price o f the new bills.
T he 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, or 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 o r here­
after im posed on the principal or interest thereof by any State, o r any o f the possessions o f the United States, or by any local
taxing authority. F or purposes o f taxation the amount of 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 of 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.
T reasury Department Circular No. 418, as amended, and this noticfe, 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, April 14, 1952, at the Securities Depart­
ment 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.” Paym ent 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 April 10, 1952, maturing July 10, 1952)
T otal applied for......... $2,312,927,000
T ota l accep ted ........... ..$1,401,872,000 (includes $203,834,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A verage price.......

99.588+

Equivalent rate o f discount
approx. 1.629% per annum

Range of accepted competitive bids:
.Equivalent rate
H igh ...................... 99.615
approx. 1.523%
L o w ........................ 99.585
Equivalent rate
approx. 1.642%

o f discount
per annum
o f discount
per annum

(10 percent o f the amount bid for at the low
price was accepted)




Federal Reserve
District
Boston ..................
N ew Y ork .........
Philadelphia .... .
Cleveland ............
R ichm ond ............
Atlanta ................
Chicago ...............
St. Louis ..............
Minneapolis .......
Kansas City .......
Dallas ..................
San Francisco ....
T otal

Total
Applied fo r
$

43,280,000
1,527.808,000
30.748.000
99.292.000
18.173.000
34.695.000
280.827.000
46.586.000
12.979.000
51.176.000
55.943.000
111.420.000

$2,312,927,000

Total
Accepted
$

38,330,000
750.988.000
11.448.000
89.292.000
16.673.000
32.795.000
247.977.000
34.751.000
10.779.000
43.076.000
48.143.000
77.620.000

$1,401,872,000
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over)

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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 "Competitive 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.”
DO
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 w ill 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 April 17, 1952

Maturing July 17, 1952
Dated at----------------------

To F e d e r a l R e s e r v e B a n k o f N e w Y o r k ,
Fiscal Agent of the United States.

.1952

COMPETITIVE BID

N O N -C O M P E TIT IV E BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
April 10, 1952, as issued by the Secretary
of
the Treasury, the undersigned offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on April 10,
1952, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

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

for a total amount of

(Rate per 100)

(N ot to exceed $200,000)

$ ...............................................................

(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 Bank, on the date
stated in the public notice, as indicated below:

(m a tu rity v a lu e )

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

□

By surrender of maturing Treasury bills

amounting to ......................$----------------------------------

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 April 17, 1952, and are to mature on
July 17, 1952.
This tender zvill be inserted in special envelope marked “ Tender fo r Treasury B ills”
Name o f Bidder ..........................................
By

(P lease print)

(Official signature required)

(T itle)

Street Address .............................................
(C ity, T ow n o r V illage, P.O. No., 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 or 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. 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 b y 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
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.


Payment b y credit through Treasury T ax and Loan Account will not be permitted.
http://fraser.stlouisfed.org/
T E N T Bank of St.
Federal Reserve B — 1137-a Louis

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