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FEDERAL RESERVE BANK O F N EW YORK f Circular No. 3 9 6 1 L A p ril 9,1953 Fiscal A gent o f the United States Offering o f $1,400,000,000 of 91-Day Treasury Bills Dated April 16, 1953 Maturing July 16, 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 , TREASURY DEPARTM ENT W ashington T h u r s d a y , A p r il 9 , 1953. T h e S e c r e t a r y o f th e T r e a s u r y , b y th is p u b lic n o t ic e , in v ite s te n d e rs fo r $1,400,000,000, o r t h e r e a b o u ts , o f 9 1 -d a y T r e a s u r y b ills, f o r c a s h a n d in e x c h a n g e f o r T r e a s u r y b ills m a tu r in g A p r il 16, 1953, in th e a m o u n t o f $1,400,166,000, to b e issu e d o n a d is c o u n t b a s is u n d e r c o m p e t it iv e a n d n o n -c o m p e t it iv e b id d in g a s h e r e in a fte r p r o v id e d . T h e b ills o f th is se r ie s w ill b e d a ted A p r il 16, 1953, a n d w ill m a tu r e J u ly 16, 1953, w h e n th e fa c e a m o u n t w ill b e p a y a b le w it h o u t in te r e s t. T h e y w ill b e is s u e d in b e a re r fo r m o n ly , a n d in d e n o m in a t io n s o f $1,000, $5,000, $10,000, $100,000, $500,000, a n d $1,000,000 (m a t u r ity v a lu e ) . 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, April 13, 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 b y 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 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 or rejection thereof. T h e Secretary of 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-competitive tenders for $200,000 or less without 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 April 16, 1953, in cash or other immediately avail able funds or in a like face amount o f Treasury bills maturing April 16, 1953. Cash and exchange tenders will 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. 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 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. 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 ccordingly, the ow ner 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 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, April 13, 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 fo r Treasury Bills.” Tenders may be submitted by telegraph, sub ject 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 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 (9 1 -d a y bills dated A pril 9, 1953, m aturing July 9, 1953) T o t a l a p p lie d f o r ...........$2,275,152,000 T o t a l a c c e p t e d ............... $1,400,560,000 (in c lu d e s $220,606,000 en te re d o n a n o n -c o m p e t it iv e b a sis a n d a c c e p t e d in fu ll at th e a v e r a g e p r ic e s h o w n b e l o w ) A v e r a g e p r ic e ......... 99.476 E q u iv a le n t ra te o f d is c o u n t a p p r o x . 2 .0 7 3 % p e r a n n u m R a n g e o f a c c e p t e d c o m p e t it iv e b id s : H ig h ......................... 99.507 E q u iv a le n t ra te o f d is c o u n t a p p r o x . 1 .9 5 0 % p e r a n n u m L o w ........................... 99.472 E q u iv a le n t ra te o f d is c o u n t a p p r o x . 2 .0 8 9 % p e r an n u m Federal Reserve District Total Applied for .... N e w Y o r k .................. .... P h ila d e lp h ia ............... C le v e la n d .................... R ic h m o n d .................... A tla n t a ......................... C h ic a g o ......................... S t. L o u is ...................... M in n e a p o lis ............... K a n s a s C ity ............... S an F r a n c is c o ........... (9 5 p e r c e n t o f th e a m o u n t b id f o r at th e lo w p r ic e w a s a c c e p t e d ) T otal ........................ .... $ 28,339,000 1,607,903,000 34,945,000 43,268,000 13,361,000 27,228.000 250,891.000 49,169,000 10,968,000 57.315.000 72,264,000 79,501,000 $2,275,152,000 Total Accepted $ 22,314,000 851,603,000 18,945,000 43,028,000 12,836,000 26,716.000 190,116,000 33,869,000 10,853,000 52,065,000 67,014,000 71,201,000 $1,400,560,000 ( over ) 29 D 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 you desire to bid on a n on-com petitive basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.” DO N O T fill in both paragraphs on one form . A separate tender m ust be used f o r each bid, except that banks subm itting bids on a com petitive basis fo 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 am ount bid f o r his account, and method o f payment. Forms f o r this purpose w ill be furnished upon request. N o _________ __________ TENDER FOR 91 -DAY TREASURY BILLS D ated A pril 16, 1953 M aturing July 16, 1953 Dated at.................................... To F e d e r a l R e s e rv e B a n k o f 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 April 9, 1953, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular No. 418, as amended, and to the provisions o f the public notice on April 9, 1953, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender .......................................... ...... * for a total amount of for a total amount o f $_____ ____________________ _ (Not to exceed $200,000) (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 below : □ By surrender o f maturing Treasury bills (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 o r 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 April 16, 1953, and are to mature on July 16, 1953. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” 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 of 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 b y a m em ber 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 b y 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 through T reasu ry T a x and Loan A cco u n t w ill n ot be perm itted. http://fraser.stlouisfed.org/ T E N T B — HS9-a (OVER) Federal Reserve Bank of St. Louis
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