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FEDERAL RESER VE BANK O F N EW YO RK Fiscal A g e n t o f the U nited States J" Circular No. 3 9 8 0 "1 I May 26, 1953 J Offering of $800,000,000 of 107-Day Treasury Bills To Be Designated “ Tax Anticipation Series” Dated June 3, 1953 Maturing September 18, 1953 To all In corporated B anks and Trust Companies, and O thers Concerned, tn the Second Federal Reserve District: Following is the text of 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 , Tuesday, May 26, 1953. TREASURY DEPARTM ENT W ashington The Secretary o f the Treasury, by this public notice, invites tenders for $800,000,000, or thereabouts, of 107-day Treasury bills, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be designated T ax Anticipation Series, they will be dated June 3, 1953, and will mature September 18, 1953. They will be accepted at face value in payment of income and profits taxes due on September 15, 1953, and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment o f September 15, 1953, income and profits taxes have the privilege o f surrendering them to any Federal Reserve Bank or Branch not more than fifteen days before September 15, 1953, and receiving receipts therefor showing the face amount o f the bills so surrendered. These receipts may be submitted in lieu of the bills on or before September 15, 1953, to the Director of Internal Revenue for the district in which such taxes are payable. 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, one o ’clock p.m., Eastern D aylight Saving time, Friday, M ay 29, 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 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 w hich 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 accom panied by an express guaranty o f payment by an incorporated bank or trust company. Imm ediately after the closin g hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g w hich public announcement will be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. T h ose subm itting tenders w ill 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 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 w ithout stated price from any one bidder w ill be accepted in full at the average price (in three decimals) o f accepted com petitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank in cash or other immediately available funds on June 3, 1953, provided, however, any qualified depositary w ill be permitted to make payment by credit in its Treasury T a x and Loan A ccou n t for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess o f existing deposits when so notified by the Federal Reserve Bank o f its district. T he 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 o r other disposition o f Treasury bills shall not have any special treatment, as such, under the Internal Revenue Code, or laws am endatory 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 hereafter 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. U nder Sections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue Code, as amended by Section 115 o f the Revenue A ct o f 1941, the am ount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed o r otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) issued^ hereunder need include in his incom e tax return on ly 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, or the amount o f incom e or profits taxes paid by means o f the bills, during the taxable year for which the return is made, as ordinary gain or loss. T reasury 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 m ay be obtained from any Federal Reserve Bank or Branch. Please note that this Bank will receive tenders up to 1 p.m. (one hour earlier than the usual closing tim e), Eastern Daylight Saving time, Friday, May 29, 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— T a x Anticipation Series.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds, except that any qualified depositary may make payment by credit in its Treasury Tax and Loan Account. A llan S proul, President. S3?13 Closing hour fo r receipt o f tenders is 1 p.m., Friday, M ay 29, 1953 (o v e r ) IM P O R T A N T — Please note that this Bank w ill receive tenders up to 1 p.m. (on e hour earlier than the usual closing tim e ), Eastern Daylight Saving time, Friday, May 29, 1953. 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 p er 100 and maturity value in paragraph headed “ Com petitive B id.” I f you desire to b id on a n o n - c o m p e t i t i v e basis, fill in only the maturity value in paragraph headed “ N on-com petitive B id.” D O N O T fill in both , p a r a g r a p h s o n o n e f o r m . A separate tender must b e used fo r each bid, except that banks submitting bids on a com petitive basis fo r their own and their customers’ accounts m ay submit one tender fo r the total amount b id at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and m ethod ot payment. Form s fo r this purpose w ill be furnished u pon request. N o ............................. TEN D ER F O R 107-D AY T R E A S U R Y BILLS TO BE D E SIG N A TE D “ T A X A N T IC IP A T IO N SERIES’ Dated June 3, 1953 Maturing Septem ber 18, 1953 Dated at To F e d e ra l R eserv e B a n k o f N ew Y o rk , Fiscal Agent of the United States. 1953 C O M P E T IT IV E B ID N O N -C O M P E TIT IV E BID Pursuant to the provisions of Treasury Department Circular N o. 418, as amended, and to the provisions of the public notice on May 26, 1953, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions of Treasury De partment Circular N o. 418, as amended, and to the provisions o f the public notice on May 26, 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 $ ............................................... $ ...................................................... (maturity value) of 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 : (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below : □ By cash or other immediately available funds □ By cash or other immediately available funds □ By credit to Treasury T a x and Loan Account □ By credit to Treasury T ax and Loan Account (Rate per 100) (N o t to exceed $200,000) * Price must be expressed on the basis o f 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 June 3, 1953, and are to mature on September 18, 1953. T h is ten d er w ill b e in se rte d in sp ec ia l e n v e lo p e m a rk ed “ T e n d e r f o r T r e a s u r y B ills— T a x A n tic ip a tio n S e r ie s Name o f B i d d e r ................................................................................................................................ (Please print) By . . . . (Official signature required) (T itle) Street Address ..................................... (City, Town or Village, 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: (Name of Customer) (City, Town or Village, P. O. N o., 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 w ill be considered, and each tender must be for an even multiple of $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 corporation authorized to make the tender, and the signing o f the tender b y an officer o f the corporation w ill be construed as a rep resentation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed b y a mem ber o f the firm, w h o 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 com panies and from respon sible and recognized dealers in investment securities. T enders 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 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. T E N ST B — 5 B e s u r e t o r e t u r n t e n d e r in s p e c ia l e n v e l o p e m a r k e d “ T e n d e r f o r T r e a s u r y B ills — T a x A n t ic ip a t io n S e r ie s (OVER)
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