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F E D E R A L R E S E R V E BANK O F N EW YO R K f Circular N o 3 9 1 2 1 L October 30,1952 J Fiscal Agent of the United States Offering of $1,300,000,000 of 91-Day Treasury Bills Dated November 6, 1952 Maturing February 5, 1953 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: TREASURY 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, O ctober 30, 1952. The Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange tor Treasury bills maturing Novem ber 6, 1952, in the am ount o f $1,300,141,000, to be issued on a discount basis under competitive and non-com petitive bidding as hereinafter provided. The bills of this series w ill be dated N ovem ber 0, 1952, and will mature February 5, 1953, when the face amount will be payable without interest. T h ey w ill 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 w ill be received at Federal R eserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Standard time, M onday, Novem ber 3, 1952. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price oitered 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 forw arded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. O thers than banking institutions w ill not be permitted to submit tenders except for their ow n account. Tenders will 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. Immediately 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 will be advised o f the acceptance or rejection thereof. T he 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-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 decim als) o f accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on N ovem ber 6, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing N ovem ber 6, 1952. Cash and exchange tenders will 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. Th e 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 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 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 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 1 1 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 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 am ount 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 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 Standard time, Monday, November 3, 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 for Treasury Bills.” Tenders may be submitted by tele graph, subject to written confirmation; they may not be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury T ax and Loan A ccount. 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. R e s u lts o f la st 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 O c t o b e r 3 0 , 1 9 5 2 , m a t u r in g J a n u a r y 2 9 , 1 9 5 3 ) Total applied for . . .$2,327,341,000 Total accepted ........ $1,501,296,000 (includes $214,417,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price . . . 99.556 Equivalent rate o f discount annrnx 1 7C7G npr an n u m L approx. l . / V / 0 per annum Range o f accepted competitive bids: H igh ..................... 99.580 Equivalent rate o f discount approx. 1.6629c per annum nn. . . ‘ t 4 . L ow ..................... 99 554 Equivalent rate o f discount approx. 1.764% per annum (92 percent o f the amount bid for at the low price w as accepted) Federal Reserve Total ------- R 1 ™ !-----!* Boston ............................ N ew Y ork ...................... Philadelphia .................. g lev d a n d R ichm ond ...................... ........................... Chicago .......................... St. Louis ......................... Minneapolis .................... Kansas City .................. D a,las ............................... San F r a n c is c o ................ -AP.PJle f £ l 1 A $ 25,271,000 1,526,346,000 30,288,000 £2,590,000 52,609,000 34,396,000 301,512,000 50,393,000 11,170,000 59,031,000 61,733,000 102,002,000 Total .............. $2,327,341,000 Total — d££.eP J f£ $ 19,191,000 850,538,000 14,288,000 *3,859,000 50,489,000 29,756,000 255,892,000 30,597,000 11,170,000 52,951,000 45,051,000 77,514,000 ---------------------$1,501,296,000 ( over) 28 G 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 m aturity value in paragraph headed "Non-competitive Bid.” D O N O T fill in both paragraphs on one fo r m . 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 fo r his account, and method o f payment. Forms for this purpose will be furnished upon request. N o ............................. T E N D E R FOR 91 -D A Y T R E A SU R Y BILLS Dated November 6, 1952 To Maturing February 5, 1953 Dated at F ed era l R eserve B a n k o f N ew Y ork , 1952 Fiscal Agent o f the United States. COMPETITIVE BED 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 October 30, 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 30, 1952, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitivc ury, the undersigned offers . . (R ate per 100) tender fo r a total amount o f $ ................................ (N ot to exceed $ 2 0 0 ,0 0 0 ) for 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 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 : □ □ B y surrender o f maturing Treasury bills 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 November 6 , 1952, and are to mature on February 5, 1953. This tender will be inserted in special envelope marked “ Tender fo r Treasury B ills” Name o f Bidder . . . . By (Please print) (Official signature required) (T itle) Street Address (C ity, Town or V illage, P. O . N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Customer) (C ity, Town o r V illage, 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. I f 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 b y him that he has been so authorized. If the tender is made by a partnership, it should be signed b y 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 w ill 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 b y payment o f 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 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. Paym ent b y cred it through T reasu ry T a x and Loan A cc o u n t w ill n ot be perm itted. T E N T B — 1166-a ( over)