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FEDERAL RESERVE BANK O F N EW YORK
r Circular No. 3 9 5 6 1
L
March 19, 1953
J

Fiscal Agent o f the United States

Offering o f $1,200,000,000 o f 91-Day Treasury Bills
Dated M arch 26, 1953

Maturing June 25, 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:
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, March 19, 1953.

TREASU RY DEPARTM ENT
W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing March 26, 1953, in the amount o f $1,200,337,000, to be issued on a
discount basis under competitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series will be dated
March 26, 1953, and will mature June 25, 1953, when the face amount will be payable without interest. Th 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 will be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern
Standard time, M onday, March 23, 1953. 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 competitive 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 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 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.
Imm ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which
public announcement w ill 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 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 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 com pleted at the Federal Reserve Bank on March 26, 1953, in cash or other immediately avail­
able funds or in a like face amount of Treasury bills maturing March 26, 1953. 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.
T h 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 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 n ow 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 or otherwise disposed of, and such bills are excluded from consideration as
capital assets. A ccordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for such bills, whether on original issue or on sub­
sequent 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 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, Monday, March 23, 1953, at the Securities De­
partment 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 telegraph, sub­
ject 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.
Results o f last offering o f Treasury bills (91 -d ay bills dated M arch 19, 1953, m aturing June 18, 1953)
Total applied for......... $2,388,071,000
Total a ccep ted ............. $1,200,548,000 (includes $275,009,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
Average price....... 99.487+ Equivalent rate o f discount
approx. 2.029% per annum
Range of accepted competitive bids:
H igh ...................... 99.500
Equivalent rate
approx. 1.978%
L o w ........................ 99.485
Equivalent rate
approx. 2.037%

o f discount
per annum
o f discount
per annum

(17 percent o f the amount bid for at the low
price was accepted)




Federal Reserve
District
....
New Y ork .................. ....
Philadelphia ..............
Cleveland ..................
Richmond .................
St. Louis ....................
Minneapolis ..............
Kansas City .............
Dallas ..........................
San Francisco ..........
T otal ................... ....

Total
Applied for
$

27,649,000
1,583,126,000
34,008,000
68,664,000
25,361,000
44,558,000
248,990,000
50,596,000
15,057,000
55,754,000
72,560,000
161,748,000

$2,388,071,000

Total
Accepted
$

17,505,000
660,778,000
17,408,000
46,699,000
21,011,000
32,501,000
166,971,000
21,446,000
13,352,000
40,733,000
40.360,000
121,784,000

$1,200,548,000
( over )

29 A
IM P O R T A N T — I f you desire to bid on a c o m p e t i t i v e basis, fill in rate per 100 and m aturity
value in paragraph headed "C om petitive Bid.” I f you desire to bid on a n o n - c o m p e t i t i v e
basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.”
DO
N O T fill in b o t h p a r a g r a p h s o n o n e f o r m . A separate tender m ust be used f o r each bid,
except that banks subm itting bids on a com petitive basis f o r their ow n and their customers’
accounts m ay submit one tender f o r the total amount bid at each price, provided a list is
attached showing the name o f each bidder, the amount bid f o r his account, and method
o f payment. Forms fo r this purpose w ill be furnished upon request.
N o. __________________

T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS
Dated M arch 26, 1953

M aturing June 25, 1953
Dated at.._

T o F e d e r a l R ese rv e B a n k of N e w Y o r k ,
Fiscal Agent o f the United States.

.1953

COM PETITIVE BID

N O N -C O M P E TIT IV E BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
March 19, 1953, as issued by the Secretary
of
the
Treasury,
the undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on March 19,
1953, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

................... .................. .......... * for a total amount o f

for a total amount of
(Not to exceed 5200,000)

(Rate per 100)

$................................................... .... (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 b elow :

□

□

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 March 26, 1953, and are to mature
on June 25, 1953.
This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills”
Name o f Bidder .......
By

(Please print)

(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)

IM P O R T A N T IN STR U C T IO N S:
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 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 by a
member o f the firm, w ho should sign in the form “ ................................................................................................. a copartnership, by
............................................................................................................. . a member o f the firm.”
3. Tenders will 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 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.
P a y m e n t b y c r e d i t t h r o u g h T r e a s u r y T a x a n d L o a n A c c o u n t w il l n o t b e p e r m itt e d .

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Federal Reserve Bank of St. Louis

( over )


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