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FE D E R A L R E S E R V E BANK O F N E W YORK Fiscal Agent o f the United States I Circular No. 3 8 5 6 M ay 22,1052 O fferin g o f $ 1 ,3 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills D a te d M a y 29, 1952 M a tu r in g A u g u s t 28, 1952 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice published today: TREASU RY 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, M ay 22, 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 7 reasury bills, for cash and in exchange for Treasury bills maturing M ay 29, 1952, in the amount o f $1,101,051,000, to be issued on a discount basis under com petitive and non-com petitive bidding as hereinafter provided. T he bills o f this series will be dated M ay 29, 1952, and w ill mature August 28, 1952, when the face am ount 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 closin g hour, tw o o ’clock p.m.. Eastern Daylight Saving time, M onday, M ay 26, 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 may not be used. It is urged that tenders be made on the printed form s and forwarded in the special envelopes which will 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 own account. Tenders 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 accompanied 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 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. The 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 will be accepted in full at the average price (in three decimals) 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 M ay 29, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing May 29, 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. 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 o r 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 or State, but shall be exem pt from all taxation now or hereafter im posed on the principal or 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 w hich 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 ccordin gly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need include in his incom e 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 N o. 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 Daylight Saving time, Monday, May 2 6 , 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.” Tenders may be submitted by tele graph, subject 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 lla n Sproul, President. R e s u lts o f la s t o ffe r in g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a te d M a y 2 2 , 1 9 5 2 , m a t u r in g A u g u s t 2 1 , 1 9 5 2 ) T otal applied f o r . . .$2,416,933,000 Federal Reserve Total Total accepted.......... $1,303,494,000 (includes $195,436,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price . . . 99.572 Equivalent rate o f discount approx. 1.694% per annum ____ District____ , . Applted_!°!__ Boston ............................. $ 29,078,000 N cw Y ork ....................... 1,724,731,000 Philadelphia ................... 41,592,000 Cleveland ....................... 55,091,000 Richm ond ....................... 14,639,000 Range o f accepted com petitive bids: ... , t , . i . . , j. H « h ..................... 99-595 E quivalentrate o f discount approx. 1.602/0 per annum L o w ....................... 99.571 Equivalent rate o f discount approx. 1.697% per annum (70 percent o f the amount bid for at the low price was accepted) Atlanta ............................. Chicago ........................... St L£ ujs ......................... Minneapolis ................... Kansas City ................... Dallas ............................... San Francisco ............... Total ..................... ?A?’ r?o’nnn 262,620,000 38,155,000 10,011,000 60,492,000 55,819,000 97,068,000 ---------------------$2,416,933,000 Total Accepted $ 13,078,000 900,041,000 19,092,000 39,391,000 11,829,000 l ^ ’o m ’nnn 153,910,000 18,064,000 9,106,000 40,127,000 27,579,000 53,483,000 ---------------------$1,303,494,000 ( over) 27 J IMPORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” If you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed "Non-competitive 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......... ' .................. TE N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS Dated May 29, 1952 To Maturing August 28, 1952 Dated at F e d eral R eserve B a n k of N ew Y o r k , Fiscal Agent of the United States. 1952 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on May 22, 1952, as issued by the Secretary of the Treas Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on May 22, 1952, as issued by the Secretary of the Treas ury, the undersigned offers a non-competitive ury, the undersigned offers. . . (R a t e p e r 100) tender for a total amount of $ .................................. for a total amount o f $ ................................................. (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 ( N o t to e x c e e d $20 0 ,0 0 0 ) (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: □ By surrender of maturing Treasury bills amounting t o ................... $______________________ 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 May 29, 1952, and are to mature on August 28, 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) By (O fficia l sig n a tu re r e q u ire d ) (T it le ) Street Address ( C it y , T o w n o r V illa g e , P . O . N o ., a n d S ta te ) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on linf» below: (N a m e o f C u sto m e r) (C it y , T o w n o r V illa g e , P . O . N o ., a n d S tate) IMPORTANT INSTRUCTIONS: 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 b y 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 w ill 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 member o f the firm, w ho should sign in the form “ .....................•.................................................................... . a copartnership, by ............................................................................................................. a mem ber o f the firm.” 3. Tenders will be received without deposit from incorporated banks and trust com panies 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 accom panied by an express guaranty o f payment by an incorporated bank or trust com pany. 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. Vayment b y credit through Treasury Tax and Loan Account ivill not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1143-a Federal Reserve Bank of St. Louis (OVES)
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