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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 Y O R K F isca l A g e n t o f the U n ited States [ C ircular N o. 3 9 20 "I N ovem ber 20, 1952 J Offering of $1,300,000,000 of 90-Day Treasury Bills D ated November 28, 1952 Maturing February 26, 1953 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F ollow in g 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, November 20, 1952. TREASU RY DEPARTM ENT W ashington The Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 90-day Treasury bills, for cash and in exchange for Treasury bills maturing November 28, 1952, in the amount o f $1,299,887,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills o f this series w ill be dated November 28, 1952, and w ill mature February 26, 1953, when the face amount w ill be payable without interest. They 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern Standard time, Monday, November 24, 1952. Tenders w ill not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case o f competitive tenders the price offered must be expressed on the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms 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 own account. Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment 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 accompanied by an express guaranty o f payment by an incorporated bank or trust company. Immediately after the closing hour, tenders w ill 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 of the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in whole 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 w ill 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 completed at the Federal Reserve Bank on November 28, 1952, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing November 28, 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 income 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 treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The 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 hereafter 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. For purposes o f taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117(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. Accordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his income 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 Department 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, M onday, Novem ber 24, 1952, at the Securi ties Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury T a x 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 o f last offering o f Treasury bills (91-day bills dated N ovem ber 20, 1952, maturing February 19, 1953) Total applied f o r ........ $1,905,075,000 Total a c c e p te d ............ $1,300,719,000 (includes $231,706,000 entered on a non-competitive basis and accepted in full at the aver age price shown below) A verage p rice.......... 99.526 Equivalent rate o f discount approx. 1.877% per annum Range o f accepted competitive b id s: H igh ......................... 99.562 Equivalent rate o f discount approx. 1.733% per annum L o w ........................... 99.520 Equivalent rate o f discount approx. 1.899% per annum (44 percent o f the amount bid for at the low price was accepted) Boston ............ New Y ork . . . Philadelphia . Cleveland ----R ic h m o n d ___ Atlanta .......... Chicago .......... St. L o u i s ........ Minneapolis .. Kansas City .. Dallas ............ San Francisco Total Accepted Total Applied for Federal Reserve District $ 17,043,000 1,360,943,000 28,895,000 35,845,000 30,039,000 23,856,000 167,652,000 34,512,000 16,689,000 44,607,000 44,291,000 100,703,000 $1,905,075,000 Please note that the current offering is fo r 90-day Treasury bills. $ 17,043,000 816,803,000 13,895,000 35,845,000 30,039,000 23,856,000 124,732,000 33,392,000 16,689,000 44,607,000 44,235,000 99,583,000 $1,300,719,000 ( over) IM PORTANT— Please note that this offering is for 90-day Treasury Bills which will be dated Friday, November 28, 1952, owing to the fact that Thursday, November 27, will be Thanksgiving Day. IM PORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed “ Competitive B id.” If you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive Bid.” DO NOT 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. T E N D E R FO R 9 0 -D A Y T R E A S U R Y B IL L S Dated November 28, 1952 Maturing February 26, 1953 Dated a t .......................... To F e d e ra l R eserve B a n k o f N ew Y ork , Fiscal A gent 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 N ovem ber 20, 1952, as issued by the Secretary o f the Treasury, the undersigned offers Pursuant to the provisions o f Treasury D e partment Circular No. 418, as amended, and to the provisions o f the public notice on Novem ber 20, 1952, as issued by the Secretary o f the Treasury, the undersigned offers a non-com petitive tender ............................................ * for a total amount o f for a total amount o f $. (Rate per 100) (Not to exceed $200,000) $ ....................................................... (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 e lo w : (m aturity 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 b e lo w : □ □ By surrender o f maturing Treasury bills amounting t o ................... $_______________________ □ By cash or other immediately available funds B y surrender o f maturing Treasury bills amounting t o ................... $_______________________ □ B y cash or other immediately available funds * P rice must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. The Treasury bills for which tender is hereby made are to be. dated N ovem ber 28, 1952, and are to mature on February 26, 1953. This tender will be inserted in special envelope marked “ Tender for Treasury B ills” Name o f Bidder ................................................................................................................................. (Please print) By ....... (Official signature required) (Title) Street Address ......................................... ^ (City, Town or Village, P. O. No., and State) I f this tender is submitted by a bank for the account o f a customer, indicate the customer’s name on line below : (Name of Customer) (City, Town or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $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 corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed as a rep resentation 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, who 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 of 2 percent o f the face amount o f Treasury bills applied for. unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 4. I f 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. Payment b y credit through Treasury Tax and Loan Account will not be permitted. T E N T B —1169-a ( over) FE D E R A L R E SE R V E BANK O F NEW YORK November 20, 1952. To all Banking Institutions in the Second Federal Reserve District: W e are pleased to announce that the Bank o f New Hyde Park, New Hyde Park, New York, has become a member of the Federal Reserve System today. The Bank o f New Hyde Park first became a member bank on December 30, 1943. It withdrew from membership on August 10, 1951, in order to establish an out-of-town branch. On July 15, 1952, the law was amended to revise the minimum capital requirements for member banks operating out-of-town branches, thus enabling the bank to rejoin the Federal Reserve System. A llan S pro tjl, President.