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F E D E R A L R E S E R V E BAN K O F N E W YO R K f Circular N o 3 9 1 4 “1 L Novem ber 6, 1962 J Fiscal Agent of the United States Offering of $1,500,000,000 of 92-Day Treasury Bills Dated November 13, 1952 Maturing February 13, 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: 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, N ovem ber 6, 1952. TREASURY DEPARTM ENT W ashington Th e Secretary o f the Treasury, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 92-day Treasury bills, for cash and in exchange for Treasury bills maturing N ovem ber 13, 1952, in the amount o f $1,500,759,000, to be issued on a discount basis under com petitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series will be dated N ovem ber 13, 1952, and will mature February 13, 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 10, 1952. Tenders w ill 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 w ill 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 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 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 by an incorporated bank o r trust company. Imm ediately after the closing hour, tenders w ill 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 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 w ithout 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 com pleted at the Federal Reserve Bank on Novem ber 13, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing N ovem ber 13, 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. 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 treat ment, as such, under the Internal Revenue Code, or laws am endatory o r supplementary thereto. T h e 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 here after im posed on the principal o r interest thereof b y 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 am ount 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 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 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 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, Monday, November 10, 1952, at the Securities Department o f its H ead 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. Payment 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. R e s u lts o f la s t 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 N o v e m b e r 6 , 1 9 5 2 , m a t u r in g F e b r u a r y 5, 1 9 5 3 ) Total applied for ...$2,116,288,000 Total accepted ........ $1,301,003,000 (includes $218,008,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price . . . 99.546+ Equivalent rate o f discount annrnx 1 706% ner annum approx. l./y o /b per annum Range o f accepted competitive bids: H igh ..................... 99.580 Equivalent rate o f discount approx. 1.662% per annum t . r a* * L ow ..................... 99.544 Equivalent rate o f discount approx. 1.804% per annum (75 percent o f the amount bid for at the low price was accepted) Please Federal Reserve ------- District-----B oston ........................... N ew Y ork .................. Philadelphia .................. C k v d a n d ........................ Richm ond ...................... Atlanta .................... Chicago ........................... St. Louis ........................ Minneapolis .................. Kansas City .................. DaHas J .................... San F r a n c is c o ................ T otal ............... Total _APP]l?.d. for... $ 38,675,000 1,424,371,000 46,798,000 36,376,000 21,050,000 30,867,000 277,098,000 42,260,000 12,304,000 54,056,000 48,794,000 83,639,000 ---------------------$2,116,288,000 Total — Accepted $ 29,050,000 753,121,000 30,548,000 28,876,000 18,325,000 29,555,000 213,250,000 34,910,000 12,304,000 45,806,000 40,094,000 65,164,000 $1,301,003,000 note that the current offering is for 9 2 -day Treasury bills. ( over) 28H IM PORTANT— Please note that this offering is for 92-day Treasury bills which will mature on Friday, F ebruary 13, 1953, because Thursday, F ebruary 12, w ill be Lincoln’s Birthday. 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 non-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 o f payment. Forms for this purpose will be furnished upon request. N o ........ 7 . .............. T E N D E R FOR 9 2 -D A Y T R E A SU R Y BILLS Dated November 13, 1952 Maturing February 13, 1953 Dated at ..................... T o F e d e r a l R eserve B a n k o f 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 November 6 , 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 November 6 , 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) 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 b elow : □ B y surrender o f maturing Treasury bills tender for a total amount o f $ ................................ (N ot 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 ................... $------------------------------------ amounting to ....................$------------------------------------ □ □ 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 13, 1952, and are to mature on February 13, 1953. T h is ten d er w ill b e in se rte d in sp ecia l e n v e lo p e m a rk ed “ T e n d e r f o r T r e a s u r y B ills.” Name o f Bidder By ................... (Please print) (Official signature required) (T id e ) Street Address (C ity, T ow n 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, T ow n or V illage, P. O . N o ., and State) IM PORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 w ill 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 by him that he has been so authorized. If the tender is made b y a partnership, it should be signed by 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 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 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 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 — 1167 a (OVER) Federal Reserve Bank of St. Louis
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