The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E SE R V E BANK O F N E W YO R K F iscal A g e n t o f the U n ited States r Circular N o. 3 9 2 7 T L December 24, 1952 J Offering of $1,200,000,000 of 90-Day Treasury Bills Dated January 2, 1953 Maturing April 2, 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 today: TREASURY DEPARTM ENT W ash ington 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 , W ednesday, D ecem ber 24, 1952. T h e Secretary o f the Treasury, b y this public notice, invites tenders for $1,200,000,000, or thereabouts, o f 90-day Treasury bills, for cash and in exchange for Treasury bills maturing January 2, 1953, in the am ount o f $1,199,990,000, 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 w ill be dated January 2, 1953, and w ill mature A pril 2, 1953, when the face amount w ill 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 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Standard time, M onday, D ecem ber 29, 1952. T enders 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 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 m ay 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 will 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 invest ment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face am ount 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 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 will be advised o f the acceptance o r rejection thereof. T h e 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-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 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 January 2, 1953, in cash o r other immediately available funds or in a like face amount o f Treasury bills maturing January 2, 1953. Cash and exchange tenders w ill receive equal treatment. Cash adjustments will 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 treat ment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T he bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation n ow o r here after imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or b y 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 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 o r 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 o r 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, December 29, 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. 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 ro 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 0 - d a y b ills d a te d D e c e m b e r 2 6 , 1 9 5 2 , m a t u r in g M a r c h 2 6 , 1 9 5 3 ) Total applied for . . .$1,774,952,000 T otal accepted ........ $1,200,112,000 (includes $222,996,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) Average price . . . 99.443 Equivalent rate o f discount approx. 2.228% per annum Range o f accepted competitive bids: H i g h ..................... 99.498 Equivalent rate o f discount approx. 2.008% per annum t on r ■ i , , t , Low .................. 99433 Equivalent rate of discount approx. 2.268% per annum (97 percent o f the amount bid for at the low price was accepted) Federal Reserve District Total Applied for B o s t o n .............................. New Y ork ...................... P h ila d elp h ia .................... Cleveland ........................ 'w S T C h ic a g o ............................ St. Louis ........................ Minneapolis .................... Kansas C i t y .................... ............. $ 24,421,000 1,212,620,000 30,891,000 62,500,000 19^000 178,643,000 35,575,000 14,647,000 66,930,000 45 349 000 64,855,000 T ota l .............. $1,774,952,000 Dallas .......................... San Francisco Total Accepted $ 24,221,000 699,130,000 25,741,000 62,500,000 lM ^ O O O 123,643,000 35,575,000 14,647,000 65,930,000 45 349 000 64,855,000 ---------------------$1,200,112,000 P lea se n o te th a t th e c u r r e n t o ffe r in g a n d th e r e s u lts s h o w n a b o v e a re f o r 9 0 - d a y T r e a s u r y b ills. ( over) 28 O IM PORTANT— Please note that this offering is fo r 90-day Treasury Bills, which will be dated Friday, January 2, 1953 , because Thursday , January 1, w ill b e N e w Year’s D a y. 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 non-com petitive basis, fill in only the maturity value in paragraph headed "N on-competitive Bid.” D O N O T fill in both paragraphs on one fo rm . 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 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 fo r this purpose will be furnished upon request. No............................ T E N D E R FOR 9 0 -D A Y T R E A SU R Y BILLS Dated January 2, 1953 T o F e d eral R eserve B a n k of N e w Y Fiscal Agent o f the United States. Maturing April 2, 1953 Dated at ork, 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 December 24, 1952, as issued by the Secretary o f the Treas Pursuant to the provisions o f Treasury Department Circular N o. 418, as amended, and to the provisions o f the public notice on December 24, 1952, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitive ury, the undersigned offers . . (Rate per 100) 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 below : □ By surrender o f maturing Treasury bills tender fo r 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 t o ................... $_______________________ □ □ By cash or other immediately available funds B y 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 January 2, 1953, and are to mature on A pril 2, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills” Name o f Bidder (Please print) B y ................... (Official signature required) (T itle ) Street Address (C ity, T ow n o r 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 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 b y 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 w ill 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 b y a mem ber o f the firm, w ho 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 accom panied 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. 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 th rou gh Treasury T a x and Loan A cco u n t w ill n ot b e perm itted. http://fraser.stlouisfed.org/ TENTB— 1174-a (OVER) Federal Reserve Bank of St. Louis
@FedFRASER