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FEDERAL RESERVE BANK O F NEW YORK
Fiscal Agent of the United States

{

Circular No. 3 8 7 2
June 26, 1952

O fferin g o f $ 1 ,2 0 0 ,0 0 0 ,0 0 0 o f 91-D ay Treasury B ills
Dated July 3, 1952

Maturing October 2, 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:
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, June 26, 1952.

TREASURY DEPARTM ENT
W ashington

T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing July 3, 1952, in the amount o f $1,201,505,000, 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
July 3, 1952, and will mature O ctober 2, 1952, when the face amount w ill 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
Daylight Saving time, M onday, June 30, 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 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. 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 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 by 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 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 w ill 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 com pleted at the Federal Reserve Bank on July 3, 1952, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing July 3, 1952. Cash and exchange tenders w ill 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 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 he 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 imposed 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 am ount 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 o r 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 com panies)
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 o r 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 Daylight Saving time, Monday, June 30, 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 l l a n S p r o u l , President.
Results o f last offering of Treasury bills (9 1 -d a y bills dated June 2 6, 1952, maturing September 2 5, 1952)
Total applied for .. .$1,999,100,000
Total accepted ........ $1,200,060,000 (includes $180,317,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A verage price . . .

99.575

Equivalent rate o f discount
approx. 1.682% per annum

Range o f accepted competitive bids:
H igh

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

99.598

Equivalent rate o f discount
approx. 1.590% per annum

L ow

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

99.569

Equivalent rate o f discount
approx. 1.705% per annum

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




Federal Reserve
District
Boston ..................... . . .
New Y ork ..............
Philadelphia ..........
Cleveland ................
Richm ond ..............
Atlanta ....................
Chicago ....................
St. Louis .................
Minneapolis ..........
Kansas City ............
Dallas .......................
San Francisco ........
T otal ............ . . .

Total
A pplied fo r
$

17,668,000
1,397,033,000
26,714,000
43,817,000
19,388,000
23,730,000
162,642,000
21,907,000
9,092,000
39,571,000
70,335,000
167,203,000

$1,999,100,000

Total
Accepted
$

16,668,000
662,273,000
12,314,000
43,817,000
19,388,000
23,730,000
117,642,000
18,027,000
9,092,000
39,571,000
70,335,000
167,203,000

$1,200,060,000

(o v e r )

270

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 m aturity 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 will be furnished upon request.

No.

T E N D E R FO R 9 1 -D A Y T R E A SU R Y BILLS
Dated July 3, 1952

To

Maturing October 2, 1952

Dated at

F ed eral R eserve B a n k o f N e w Y o r k ,

Fiscal Agent of the United States.

1952

COM 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 June 26,
1952, as issued by the Secretary of the Treas­
ury, the undersigned offers
(Rate per 100)

tender for a total amount of $.

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:
□

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on June 26,
1952, as issued by the Secretary of the Treas­
ury, the undersigned offers a non-competitive

By surrender of maturing Treasury bills

(Not 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:
□

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 July 3, 1952, and are to mature
on October 2, 1952.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
Name o f Bidder ................................................................ ............
(Please print)

By

(Official signature required)

(Title)

Street Address ...............................

(City, Town or Village, P. O. No., and State)

I f this tender is submitted by a bank for the account o f a customer, indicate the custom er’s name on line below :
(Name of Customer)

(City, Town or Village, P. O. No., and State)

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
mem ber 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 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
b y an incorporated bank o r 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 Account will not be permitted.
http://fraser.stlouisfed.org/
T E N T B — 1148-a
Federal Reserve Bank of St. Louis

(o v e r )

FED ERAL RE SE R V E BANK
OF NEW YORK

N ew York 4 5 , N . Y .
June 2 7 , 1952.

NEW UNITED STATES SAVINGS BONDS

To the Chief Executive Officer of each Commercial Bank
in the Second Federal Reserve District:
Recently you received a letter, dated June 23, 1952, signed jointly in behalf of the Federal and
State supervisory authorities and by the President of the American Bankers Association, asking that you
support the Treasury Department’s new Savings Bond program by informing the public of the increased
attractiveness of the recently revised Savings Bonds.
It is only by bringing to the attention of the public the improved investment characteristics of the
new bonds, that the Savings Bond program can be made to contribute to sound debt management. In this
period of deficit financing it is particularly important that more of the public’s savings be invested in
United States Savings Bonds. In this way the public can help reduce the Treasury’s need to borrow from
commercial banks, thus tending to check inflationary additions to the money supply and upward pressures
on costs and prices.
You know of the recent changes in the terms o f Savings Bonds and you recognize the advantages of
the Savings Bond program. Many people do not. By reminding your customers of the program and
its opportunities you will be doing a service to them and to the nation. Posters, pamphlets, and envelope
stuffers (to be mailed with monthly statements) may be of assistance to you in bringing the facts about
Savings Bonds to the attention of your customers, thus stimulating their interest in buying and keeping
them. If you can use material of this sort, or if you would like any other assistance in connection with
the Savings Bond program, this Bank and your State office of the U. S. Savings Bonds Division of the
Treasury Department will be glad to help. U. S. Savings Bond Division offices are located at:
2 53 Broadway,

9 7 2 Broad Street,

N ew York 7, N . Y .

Newark 2, N . J.
4 0 3 Federal Building,
135 High Street,
Hartford 1, Conn.

Your continued cooperation in this important national effort will be appreciated.




President.

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