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F E D E R A L R E SE R V E BANK O F N E W YO R K I Fiscal A gent o f the United States Circular No. 3 8 9 5 1 Septembei 18, 1952 J Offering of $1,200,000,000 of 92-Day Treasury Bills Dated September 25, 1952 Maturing December 26, 1952 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 N E W S P A P E R S , T h u rsd a y, S ep tem ber 18, 1952. TREASURY DEPARTM ENT W a s h in g to n 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 $1,200,000,000, or th ereabouts, o f 9 2-d ay T rea su ry bills, fo r cash and in e x ch a n g e for T rea su ry bills m aturing S ep tem ber 25, 1952, in the a m ou n t o f $1,200,060,000, to be issued on a d isco u n t basis under co m p etitive and n on -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 S ep tem ber 25, 1952, and w ill m ature D e ce m b e r 26, 1952, w h en the face a m ou n t w ill b e payable w ith ou t interest. T h e y w ill be issued in b ea rer fo r m o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill be re ce iv ed at Federal R es e rv e B anks and B ran ch es up to th e clo 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 on d a y , S ep tem ber 22, 1952. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a sh in g to n . E ach ten der m ust be fo r an even m u ltiple o f $1,000, and in the case o f com p etitive ten ders the p rice offered m ust b e exp ressed on the basis o f 100, w ith n ot m o re than three decim als, e.g., 99.925. F ra ction s m ay n ot be used. It is u rged that ten ders be m ade o n th e printed fo rm s and fo rw a rd e d in th e special en velop es w h ich w ill be sup plied b y F ed era l R es e rv e B anks o r B ra n 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 c e p t f o r their o w n a ccou n t. T e n d e rs w ill be receiv ed w ith o u t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fr o m respon sib le and recog n ized dealers in in vest m en t securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills applied for, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a y m en t b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely a fte r the clo s in g h ou r, ten ders w ill b e o p en ed at th e F ed era l R e serv e Banks a n d 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 a d e b y the S ecreta ry o f the T rea su ry o f th e a m ou n t and p r ice ra n ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be a d vised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e T rea su ry e x p re s sly reserves the righ t to a cce p t o r re je ct a n y or all ten ders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b ject to these reserva tion s, n o n -com p etitiv e tenders f o r $200,000 o r less w ith ou t stated p rice fro m a n y on e b id d er w ill be a ccep ted in fu ll at the a vera ge p r ice (in three d ecim a ls) o f a ccep ted com p etitive 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 a d e or com p leted at the F ed eral R eserve B ank on S ep tem ber 25, 1952, in cash o r oth er im m ediately available fu n ds o r in a like face am ou nt o f T rea su ry bills m a tu rin g S ep tem ber 25, 1952. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een th e par valu e o f m atu rin g bills a ccep ted in exch a n ge and th e issue p rice o f th e n ew bills. T h e in co m e d eriv e d fr o m T rea su ry b ills, w h eth er in terest o r gain fr o m the sale o r oth er d isp osition o f th e b ills, shall n o t have a n y exem ption , as such, and lo s s fr o m th e 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 ent, as such, under th e In tern al R even u e C ode, or law s a m en d a tory o r su p p lem en ta ry thereto. T h e bills shall be su b je ct to estate, in heritance, gift, or oth er e x cis e ta xes, w hether F ed eral o r State, but shall b e ex em p t fr o m all taxation n o w o r h ereafter im p o se d on th e principal or interest th ereof b y a n y State, or any o f th e possession s o f th e U n ited States, o r b y a n y lo ca l ta x in g a u th ority. F o r p u 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 so ld b y the U n ited States shall be con sidered to b e 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 e ction 115 o f th e R even u e A c t o f 1941, th e a m ou n t o f d iscou n t at w h ich bills issued h ereu n 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 o f, and su ch bills are e x clu d e d fro m co n sid e ra tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life in su rance com p a n ies) issued h ereun der n eed in clude in his in co m e tax return o n ly the differen ce betw een th e price pa id fo r such bills, w hether on origin a l issue o r o n subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u pon sale or red em p tion at m aturity du rin g the ta x ab le year fo r w h ich the return is m ade, as ord in a ry ga in o r loss. T re a su ry D ep a rtm en t C ircu la r N o. 418, as am en ded, and this n otice, p re scrib 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 opies o f the circu la r m a y be ob ta in ed fr o m a n y F ed era l R eserve B ank o r B ran ch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, September 22, 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. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. immediately available funds or in maturing Treasury bills. * Settlement must be made in cash or other A lla n S p r o u l, President. R e s u l t s o f la s t o f f e r i n g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a t e d S e p t e m b e r 1 8 , 1 9 5 2 , m a t u r i n g D e c e m b e r 1 8 , 1 9 5 2 ) T o ta l a pplied fo r ...$2,2 7 4 ,3 9 0,0 0 0 T o t a l a ccep ted ......... $1,202,093,000 (in clu d es $254,722,000 entered on a n o n -com p etitiv 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 rice . . . 99.5^2 E quivalent rate o f d iscou n t annrn-x 1 774<& ner annum a p p rox . 1.774% per ann um R a n g e o f a cce p te d co m p etitive b id s : H ig h ...................... 99.557 E quivalent rate o f d iscou n t a p p rox . 1.753% per annum t on c c i v ■ i + * f j * L o w ......................... " - 551 E quivalent rate o f d .s co u n t a p p rox . 1.776% per annum (98 p ercen t o f the a m ou n t b id fo r at the lo w p r ice w as a cce p te d ) 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 C h ica g o St. L ou is M in n ea p olis K a n sa s C ity D a lla s San F r a n c i s c o Total Applied fo r $ \.. Total ___ A ccepted 23,279,000 $ 11,768,000 1,566,495,000 864,452,000 32,471,000 13,471,000 37,751,000 17,849,000 37,634,000 21,169,000 254,207,000 76,441,000 22,197,000 13,431,000 21,652,000 19,152,000 55,633,000 29,982,000 43,524 000 32 498 000 112,947,000 80,998^00 -------------------------------------T o ta l $2,274,390,000 $1,202,093,000 Please n ote that the cu rren t offering is fo r 92-day Treasury bills ( over) 28A IM PORTANT— Please note that this offering is for 92-day Treasury bills which will mature on Friday , D ecem ber 26, 2952, because Thursday , D ecem ber 25, w ill b e Christmas D ay. IM PORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.'* I f you desire to bid on a n on -com petitive 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 fo r each bid, except that banks submitting bids on a competitive basis fo r their own and their customers' accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and method o f payment. Forms fo r this purpose w ill be furnished upon request. N o ................................. T E N D E R FO R 9 2 -D A Y T R E A SU R Y BILLS Dated September 25, 1952 Maturing December 26, 1952 Dated at T o F e d e r a l R eserve B a n k of N e w Y o r k , Fiscal Agent o f the United States. 1952 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 September 18, 1952, as issued by the Secretary o f the Treas ury, the undersigned offers (Rate per 100) Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on September 18, 1952, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitive tender fo r a total amount o f $ .................................... (Not to exceed $200,000) fo r a total amount o f $ ........................................... (maturity value) o f the Treasury bills therein described, or fo r any less amount that may>9be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : lo (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 : □ □ B y surrender o f maturing Treasury bills B y surrender o f maturing Treasury bills amounting t o ................... $------------------------------------ amounting t o ................... $------------------------------------ □ □ B y 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 fo r which tender is hereby made are to be dated September 25, 1952, and are to mature on December 26, 1952. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” Name o f Bidder ................................................................................................................................ (Please print) B y .. (Official signature required) (Tide) Street A ddress ................................. (City, Town or Village, P. O. No., and State) I f this tender is submitted b y a bank fo r the account o f a customer, indicate the customer’s name on line below : (Name o f Customer) (City, Town or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o ten d er fo r less than $1,000 w ill be con sid ered , and each ten d er m u st b e fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the person m ak in g the ten der is a co rp o ra tio n , the ten der sh ou ld be sign ed b y an officer o f the c o rp o ra tion a u th orized to m a k e the tender, and the sign in g o f the tender b y an officer o f the corp o ra tio n w ill b e con stru ed as a rep resen tation b y him that he h as been so authorized. I f the ten der is m ad e b y a partnership, it sh ou ld b e sign ed b y a m em b er o f the firm , w h o sh ou ld sig n in the fo r m “ ................................................................................................. a cop a rtn ersh ip , b y ...................................................................................................................................... . a m em b er o f th e firm .” 3. T e n d e r s w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies a n d fr o m respon sible a n d re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o m o th ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f the fa c e a m ou n t o f T r e a s u ry bills a p p lied fo r, u nless 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 co m p a n y . 4. I f th e la n g u a g e o f this ten der is ch a n g e d in a n y resp ect, w h ich , in th e op in ion o f th e S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m a y be disregarded. Paym ent b y cred it through T reasury T a x and Loan A cc o u n t w ill n ot be perm itted. http://fraser.stlouisfed.org/ T E N T B — 1160-a Federal Reserve Bank of St. Louis ( over)