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F E D E R A L R E SE R V E BANK O F N E W YORK
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Fiscal Agent of the United States
Offering of $1,400,000,000 of 91-Day Treasury Bills
Dated October 16, 1952
Maturing January 15, 1953
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 ,
Tuesday, O ctober 7, 1952.
TREASURY DEPARTM ENT
W ashington
T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,400,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing O ctober 16, 1952, in the amount o f $1,400,395,000, to be issued on
a discount basis under competitive and non-com petitive bidding as hereinafter provided. T he bills o f this series w ill be dated
O ctober 16, 1952, and will mature January 15, 1953, when the face am ount will be payable without interest. Th 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, Friday, O ctober 10, 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 com petitive 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 w ill 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 ing 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 w hole 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 will 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 O ctober 16, 1952, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing O ctober 16, 1952. Cash and exchange tenders w ill receive
equal treatment. Cash adjustments w ill 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 o r 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 am endatory 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 or here
after 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 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 ow ner 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 or loss.
Treasury Departm ent 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 Standard time, Friday, October 10, 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.
(CLOSING D A Y FOR RECEIPT OF TENDERS IS F R ID A Y , OCTOBER 10, 1952)
RESULTS OF BIDDING FOR TREASURY BILLS
DATED OCTOBER 9, 1952 WERE N O T A V A IL
ABLE WHEN THIS CIRCULAR WAS PRINTED.
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28D
IM PORTANT— Please note that tenders for this issue must be received not later than 2
p.m., Eastern Standard time, Friday, October 10, 1952.
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.” If 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 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 o f 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-D A Y TREASURY BILLS
Dated October 16, 1952
To
Maturing January 15, 1953
Dated at ...................
F ed era l R eserve
B an k
o f N ew
Y ork ,
1952
Fiscal Agent o f the United States.
COMPETITIVE BID
NON-COMPETITIVE BID
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on October
7, 1952, as issued by the Secretary o f the Treas
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on October
7, 1952, as issued by the Secretary o f the Treas
ury, the undersigned offers a non-competitive
ury, the undersigned o f f e r s .................................... *
(Rate per 100)
tender for a total amount o f $ ................................
(N ot to exceed $200,000)
for a total amount o f $ ........................................
(maturity value) o f 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 b elow :
(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 .............
$----------------------------------
□
By surrender o f
maturing Treasury bills
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 October 16, 1952, and are to
mature on January 15, 1953.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.”
Name o f Bidder
B y .......................
(Please print)
(Official signature required)
(T itle)
Street Address
(C ity, Town or V illage, P. O . N o., and State)
I f t h is t e n d e r is s u b m it t e d b y a b a n k f o r t h e a c c o u n t o f a c u s t o m e r , in d ic a t e t h e c u s t o m e r ’ s n a m e o n lin e b e l o w :
(N am e o f Customer)
(C ity, T ow n or Village, P . O . N o., and State)
IM PORTANT 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 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 h o 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 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
b y 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.
Paym ent b y cred it through Treasury T a x and Loan A cco u n t w ill n ot be perm itted.
T E N T B — 1163-a
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@FedFRASER