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FED ERAL RESERVE BANK O F N EW YORK

(

Fiscal Agent o f the United States

Circular N o. 3 8 7 9 1
July 17,1952
J

Offering of $1,400,000,000 of 91-Day Treasury Bills
Dated July 24, 1952

Maturing October 23, 1952

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:
F O R R E L E A S E , M O R N IN G
T h u rsd a y , Ju ly 17, 1952.

TREASU RY DEPARTM ENT
W a s h in g to n

NEW SPAPERS,

T h e S ecreta ry o f the T rea su ry , b y this p u b lic n otice, invites tenders fo r $1,400,000,000, o r th ereabouts, o f 91-day T reasu ry
b ills, fo r cash and in e x ch a n g e fo r T rea su ry bills m aturing July 24, 1952, in the a m ou n t o f $1,400,587,000, to be issued o n
a d iscou n t basis under com p etitive and n o n -co m p e titiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated
Ju ly 24, 1952, and w ill m ature O c to b e r 23, 1952, w h en the face a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be
issued in bearer fo rm o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, a n d $1,000,000 (m a tu rity v a lu e ).
T e n d e rs w ill be re ceiv ed at F ed eral R es e rv e B anks and B ran ches up to the c lo s in g h ou r, tw o o ’ c lo ck p.m ., E astern
D a y lig h t S a v in g tim e, M o n d a y , Ju ly 21, 1952. T en d ers w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E a ch
te n d e r m ust b e f o r an even m u ltiple o f $1,000, and in th e case o f com p etitive ten ders the price o ffe re d m ust b e exp ressed on
the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F ra ction s m ay n ot be used. It is u rged that tenders be
m ade o n th e printed fo rm s and fo rw a rd e d in the special en velop es w h ich w ill be supplied b y F ed eral R eserve B anks o r
B ran ch es o n a pp lica tion th erefor.
O th ers than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x cep t fo r their o w n a ccou n t. T en d ers w ill be
received w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fro m respon sib le and re co g n iz e d dealers in in vest­
m en t securities. T e n d e rs from o th ers m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T rea su ry bills
applied for, u nless the tenders are a ccom p a n ied b y an ex p ress gu aranty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y .
Im m ed ia tely a fter the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve Banks and B ra n ch es, fo llo w in g w h ich
p u b lic an n ou n cem en t w ill be m ade b y the S ecreta ry o f the T rea su ry o f th e a m ou n t and p rice ran ge o f a ccep ted bids. T h o s e
su b m ittin g tenders w ill be advised o f th e a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T r e a s u ry ex p ressly reserves
the righ t to a cce p t o r reject a n y o r all tenders, in w h o le o r in part, and his action in a n y such resp ect shall be final. S u b ject
to these reservations, n on -co m p e titiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fro m any on e b idd er w ill be a ccep ted
in fu ll at th e a vera ge price (in th ree decim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted tenders in a ccord a n ce
w ith the bids m u st be m ade o r com p leted at the F ed eral R eserve Bank on J u ly 24, 1952, in cash o r oth er im m ediately
available fu n ds o r in a like face a m ou n t o f T rea su ry bills m atu rin g J u ly 24, 1952. Cash and ex ch a n g e ten ders w ill receive
equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces b etw een the pa r value o f m aturing bills a ccep ted in exch a n ge
and the issue p rice o f the n e w bills.
T h e in co m e derived fro m T rea su ry bills, w h eth er interest o r gain fr o m the sale o r oth er d isp osition o f the b ills, shall
n o t have a n y exem ption , as such, and loss fro m the sale o r oth er d isp osition o f T r e a s u ry bills shall n ot have a n y special
treatm en t, as such, u nder the Internal R even u e C ode, o r law s am en da tory o r su p p lem en ta ry th ereto. T h e bills shall be
su b je ct to estate, inheritance, gift, o r oth er excise taxes, w hether F ed eral or State, but shall be ex em p t fro m all taxation
n o w o r hereafter im p o sed on the principal o r interest th ereof b y a n y State, or any o f th e p ossession s o f th e U n ited States,
o r b y any lo ca l ta x in g a u th ority. F o r pu rp oses o f ta xation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly
sold b y the U n ited States shall be con sid ered to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f th e In tern al R even u e
C ode, as a m en ded b y S ection 115 o f the R even u e A c t o f 1941, the a m ou n t o f d iscou n t at w hich bills issued h ereun der are
so ld shall n o t be co n sid ered to a ccru e until su ch bills shall be sold, red eem ed o r oth erw ise disp osed of, and such bills are
e xclu d e d fro m con sid era tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance com p a n ies)
issued h ereun der need in clu d e in his in com e ta x return o n ly the differen ce betw een th e price paid fo r such b ills, w hether
o n o rigin a l issue o r on subsequent pu rch ase, and th e a m ou n t actu a lly receiv ed either u pon sale o r red em p tion at m aturity
d u rin g the ta x ab le y e a r fo r w h ich th e return is m ade, as ord in a ry gain o r loss.
T re a su ry D epa rtm en t C ircu la r N o. 418, as am en ded, and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn
the co n d itio n s o f their issue. C op ies o f the circu la r m ay be ob ta in ed fro m a n y F ed eral R eserve B ank o r B ran ch.

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, July 21, 1952, at the Securities
Department 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 fo r Treasury Bills.” Tenders may be submitted by tele­
graph, subject to written confirmation; they may not be submitted by telephone. 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 of last offering of Treasury bills (91-day bills dated July 17, 1952, maturing October 16, 1952)
T o ta l a pplied fo r ...$1,981,995,000
T o t a l a cce p te d ......... $1,400,395,000 (in clu d es $206,707,000
entered on a n o n -co m p e titiv e basis
and a ccep ted in full at the average
p rice sh ow n b e lo w )
A v e ra g e p r i c e ......... 9 9 .5 4 2 +

E q u iva len t rate o f discou nt
a p p rox . 1.810% p er annum

R a n g e o f a ccep ted co m p etitive b id s:
H ig h

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

99.600

E quivalent rate o f d iscou n t
a p p rox. 1.582% p er annum

L ow

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

99.535

E q u iva len t rate o f discou nt
a p p rox . 1.840% p er annum

Federal Reserve
District
B o s to n .............................
N ew Y o r k ......................
P h iladelp hia ..................
C levelan d ......................
R ich m o n d ......................
A tla n ta .............................
C h ica g o ...........................
St. L ou is .........................
M in n ea p olis ..................
K ansas C ity ..................
D allas ...............................
San F r a n cis co .............

Total
Applied fo r
$

44,010,000
1,368,576,000
36,312,000
34,997,000
25,539,000
30,131,000
177,296,000
32,982,000
13,274,000
56,968,000
73,978,000
87,932,000

Total
Accepted
$

44,010,000
815.176.000
23.112.000
34.997.000
25.539.000
30.131.000
162.296.000
32.982.000
13.274.000
56.968.000
73.978.000
87.932.000

(36 p e rce n t o f the a m ou n t b id fo r at the lo w
price w as a ccep ted )



T o ta l ................

$1,981,995,000

$1,400,395,000
( over)

27R

IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity
value in paragraph headed "Competitive Bid.” If you desire to bid on a n on -com p etitive
basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O
N O T fill in b oth 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.
N o...............................

TENDER FOR 91-DAY TREASURY BILLS
Dated July 24, 1952
To

Maturing October 23, 1952
Dated at

F e d e r a l R eserve B a n k of N e w Y o r k ,

1952

Fiscal Agent o f the United States.

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 July 17,
1952, as issued by the Secretary o f the Treas­
ury, the undersigned offers
(R a t e

per

tender fo r a total amount o f $ ....................................

100)

fo r a total amount o f $ ...............................................
(maturity value) o f the Treasury bills therein
described, or fo r 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 o f

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on July 17,
1952, as issued by the Secretary o f the Treas­
ury, the undersigned offers a non-competitive

maturing Treasury bills

(Not to exceed $200,000)

(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 below :
□

By surrender o f 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 24, 1952, and are to mature
on October 23, 1952.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
N am e o f B id d er ...........................................................................................................................................
(Please print)

By

(Official signature required)

(Title)

Street A d d r e s s ..................................

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

I f this ten der is subm itted b y a bank fo r the a cco u n t o f a cu stom er, indicate the cu stom er’ s n am e on lin e b e lo w :
(Name of Customer)

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

IMPORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill be con sid ered , and each ten der m u st b e fo r an even m u ltiple o f $1,000
(m atu rity v a lu e).
2.
If the person m ak in g the tender is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the co rp o ra ­
tion a u th orized to m ak e the tender, and the s ig n in g o f the tender b y an officer o f the co rp o ra tio n w ill be con stru ed as a
represen tation b y him that he has been so authorized. I f the ten der is m ade b y a partnership, it shou ld be signed b y a
m em b er o f the firm, w h o sh ou ld sign in the fo r m “ ................................................................................................ . a cop artn ersh ip , b y
........................... ............................................................................................................ a m em b er o f th e firm .”
3. T e n d e rs w ill be received w ith ou t d ep osit fro m in corp ora ted banks and trust co m p a n ie s and fr o m respon ­
sible and re co g n ized dealers in in vestm ent securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t
o f th e fa ce a m ou n t o f T r e a s u ry bills applied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent
b y an in co rp o ra te d b a n k o r trust com p a n y .
4. I f the la n g u a ge o f this ten der is ch a n g ed in a n y respect, w hich, in th e op in ion o f the S ecreta ry o f the
T re a s u ry , is m aterial, th e ten d er m ay be disregarded.

Paym ent b y cred it through T reasury Tax and Loan A cco u n t -will n ot be perm itted.

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