The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK O F N EW YORK Fiscal Agent o f the United States r Circular No. 3 9 5 8 1 I March 26, 1953 J Offering o f $1,200,000,000 of 91-Day Treasury Bills D a te d A p r il 2 , 1 9 5 3 M a tu rin g J u ly 2 , 1 95 3 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 26, 1953. TREASURY DEPARTM ENT W ashington T h e Secretary of 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 A pril 2, 1953, in the amount o f $1,200,662,000, to be issued on a discount basis under competitive and non-com petitive bidding as hereinafter provided. The bills o f this series will be dated A pril 2, 1953, and will mature July 2, 1953, when the face am ount 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 Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Standard time, M onday, M arch 30, 1953. 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 will be supplied b y 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 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 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 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 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 decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on April 2, 1953, in cash o r other immediately available funds or in a like face amount o f Treasury bills m aturing A pril 2, 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. 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 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. For purposes of taxation the amount o f discount at which Treasury bills are originally sold b y the United States shall be considered to be interest. U nder 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 or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for w hich the return is made, as ordinary gain or loss. Treasury Department 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, March 30, 1953, 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 b y telephone. Paym ent f o 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 ro u l, President. Results o f last offering o f Treasury bills (9 1 -day bills dated M arch 2 6 , 1953, m aturing June 25, 1953) Total applied for . . .$2,230,081,000 T otal a c c e p t e d ........ $1,201,152,000 (includes $241,402,000 entered on a non-com petitive basis and accepted in full at the average orice shown below ) no qc . r , T t ♦ A verage price . . 99.485+ Equivalent rate o f discount approx. 2.036% per annum , t , .... . .. Range o f accepted competitive bids. High ..................... 99.522 Equivalent rate o f discount approx. 1.891% per annum L ow ..................... 99.484 Equivalent rate o f discount approx. 2.041% per annum (59 percent o f the amount bid for at the low price was accepted) Federal Reserve Total District Applied fo r T~, A _________ £ ° v " v ...................... i d7» ’S ? n S n N ew Y ork .................... 1,478,643,000 Philadelphia .................. 39,578,000 Cleveland ........................ 74,366,000 Richm ond ...................... 19,008,000 Atlanta ........................... 27,392,000 Chicago ......................... 252,206,000 St. Louis ....................... 37,348,000 Minneapolis ................. 11,148,000 Kansas City ................. 80,615,000 Dallas ............................. 62,892,000 San Francisco ............ 108,246,000 ---------------------Total .............. $2,230,081,000 Total Accepted ^ i i ’S S S 681,260,000 15,359,000 55,973 000 16,648,000 23,582,000 169,943,000 24,355,000 10,498,000 52,763,000 42,091,000 78,484,000 ---------------------$1,201,152,000 ( over ) 29 B IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity value in paragraph headed "C om petitive Bid.” I f y o u desire to bid on a n on -com petitive basis, fill in on ly the m aturity value in paragraph headed "N on -com petitive 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 subm itting bids on a com petitive basis fo r their ow n and their custom ers’ accounts m ay subm it one tender fo r the total am ount bid at each price, provided a list is attached showing the name o f each bidder, the am ount bid f o r his accou n t, and method o f paym ent. Forms f o r this purpose w ill be furnished upon request. N o............................ T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS D ated A pril 2, 1953 M aturing July 2, 1953 Dated at To F e d e ra l R eserve B a n k o f N ew Y ork , Fiscal Agent o f the United States. 1953 C O M PETITIVE 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 March 26, 1953, as issued by the Secretary o f the Treas ury, the undersigned o f f e r s .....................................* (Rate per 100) n on -c o m p e t it iv e b id Pursuant to the provisions o f Treasury Department Circular N o. 418, as amended, and to the provisions o f the public notice on March 26, 1953, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitive tender fo r a total amount o f $. (Not to exceed $200,000) fo r 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: (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 B y surrender o f maturing Treasury bills amounting t o ................... $------------------------------------ amounting t o ................... $_______________________ □ □ B y 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, f o r example, 99.925. The Treasury bills for which tender is hereby made are to be dated A pril 2, 1953, and are to mature on July 2, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills Nam e o f Bidder B y ....................... (Please print) (Official signature required) (Title) Street Address (City, Town or Village, P. O. No., and State) I f this tender is submitted b y a bank for the account o f a customer, indicate the custom er’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 ST R U C T IO N S: 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. 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 will 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, b y .............................................................................................................................. . a member o f the firm.” 3. Tenders w ill be received w ithout 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 accom panied by an express guaranty o f payment b y 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 m ay be disregarded. Paym ent b y cred it th rou gh T reasury T a x and Loan A cco u n t w ill n ot be perm itted. TENTB— 1187-a (o v n )
@FedFRASER