The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FED ERAL RESER VE BANK O F NEW YORK Fiscal Agent of the United States C^july^o^iwa01 ] O ffe rin g o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T rea su ry B ills Dated August 6, 1953 Maturing November 5, 1953 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F o llo w in g is the te x t o f a n o tic e p u b lish ed t o d a y : 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, July 30, 1953. TREASURY DEPARTM ENT W ashington T h e Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing August 6, 1953, in the amount o f $1,500,380,000, 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 w ill be dated August 6, 1953, and will mature Novem ber 5, 1953, when the face amount w ill 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 closin g hour, tw o o’ clock p.m., Eastern D aylight Saving time, M onday, August 3, 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 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 forw arded in the special envelopes w hich w ill be supplied b y Federal Reserve Banks or Branches on application therefor. Others than banking institutions will 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 accom panied 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 o r trust com pany. Im m ediately 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 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 without stated price from any one bidder w ill be accepted in full at the average price (in three decim als) 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 on August 6, 1953, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing August 6, 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 o r 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 am endatory o r supplem entary thereto. T he bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exem pt 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, o r by any local taxing authority. F or purposes o f taxation the amount o f discount at w hich Treasury bills are originally sold by the United States shall be considered to be interest. U nder Sections 42 and 117 (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 ow ner 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 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. T h is B a n k w ill receiv e ten ders u p to 2 p .m ., E a stern D a y lig h t S a v in g tim e, M o n d a y , A u g u s t 3, 1953, at the S ecu rities D ep a rtm en t o f its H e a d O ffice an d at its B u ffa lo B ra n ch . P lea se u se the fo r m o n the r ev erse sid e o f th is c irc u la r to su bm it a ten der, a n d retu rn it in an en 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 e n d e r s m a y be su bm itted b y tele g ra p h , su b je ct to w ritten c o n fir m a tio n ; th ey m a y n o t be su bm itted b y telep h on e. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. immediately available funds or in maturing Treasury bills. Settlement must be made in cash or other A llan S proul, President. R e s u lts o f la s t o ff e r in g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a te d J u ly 3 0 , 1 9 5 3 , m a t u r in g O c t o b e r 2 9 , 1 9 5 3 ) T otal applied for . ..$2,262,326,000 Total accepted ........ $1,500,209,000 (includes $260,416,000 entered on a non-com petitive basis and accepted m full at the average price shown below ) A verage price . . 99.455 Equivalent rate o f discount approx. 2.157% per annum f , +.+. ... Range o f accepted competitive bids: High ................... 99.494 Equivalent rate o f discount approx. 2.002% per annum t nn aco tt • 1 * * f a* L o w ..................... 99-452 Equivalent rate o f discount approx. 2.168% per annum (79 percent o f the amount bid for at the low price was accepted) Federal Reserve Total District Applied fo r Boston ....................... $ 34,801,000 $ New Y o r k ..................... 1,584,558,000 Philadelphia ................. 34,828,000 Cleveland ...................... 69,937,000 Richm ond ...................... 16,048,000 Atlanta ........................... 29,884,000 Chicago ......................... 252,107,000 St. Louis ....................... 43,598,000 Minneapolis ................. 9,323,000 Kansas City ................ 54,254,000 D a l l a s . . . . ................... 41,839,000 gan Francisco ............. 91,149,000 ---------------------T otal ................. $2,262,326,000 Total Accepted 30,801,000 929,008,000 19,828,000 61,937,000 12,038,000 28,658,000 214,461,000 31,141,000 9,323,000 52,544,000 40,747,000 69,723,000 ---------------------$1,500,209,000 ( over ) 29 T IM P O R T A N T — I f y o u desire to bid on a com petitive basis, fill in rate per 100 and m aturity valu e in paragraph headed "C om petitive Bid.” I f you desire to bid on a non -com p etitive basis, fill in on ly the m atu rity value in paragraph headed "N on -com p etitive Bid.” D O N O T fill in both paragraphs on one fo rm . A separate tender m ust be used fo 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 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. No............................... TENDER FOR 91 -DAY TREASURY BILLS D ated A u gu st 6, 1953 T o F ederal R eserve B a n k of N e w Y Fiscal A gent o f the United States. M aturing N ovem ber 5, 1953 Dated at ork, 1953 C O M PE TITIV E BID N O N -C O M P E T IT IV E 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 July 30, 1953, as issued by the Secretary o f the Treas Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on July 30, 1953, as issued by the Secretary o f the Treas ury, the undersigned offers a non-competitive ury, the undersigned offers (R ate per 100) tender for a total amount o f $ .................................. (N ot to exceed $200,000) 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 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 below: □ □ B y surrender o f maturing Treasury bills amounting t o ................... $_______________________ □ B y cash or other immediately available funds B y surrender o f maturing Treasury bills amounting t o ................... $_______________________ □ By cash or other immediately available funds * P rice m ust b e exp ressed on the basis o f 100, w ith not m ore than three decimal places, f o r exam ple, 99.925. The Treasury bills fo r which tender is hereby made are to be dated August 6, 1953, and are to mature on November 5, 1953. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” Name o f B i d d e r ----- (P lease print) B y .................................................. (Official signature required) (T itle) Street Address ............................. (C ity, T ow n or 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) ity, T ow n o r Village, P . O . N o., and State) (C IM P O R T A N T IN S T 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. I f the person m aking 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 b y 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 m em ber 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 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 b y an incorporated bank or trust com pany. 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 may be disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. http://fraser.stlouisfed.org/ TEN TB— 1205-a Federal Reserve Bank of St. Louis ( over ) INTEREST ON DEPOSITS T im e C e rtifica te with Alternate Maturities Q uestions have recen tly been raised as to whether certain forms o f time ce rtifica te s o f d e p o sit providing for alternate maturities and in cre a s ing rates o f interest com ply with the requirements o f the B o a rd 's R egulation Q relating to payment o f in terest on d e p o sits by member banks, Under the Supplement to R egulation Q member banks may not pay interest at a rate in e x c e s s o f 2 1 /2 per cen t per annum on any time d e p o sit having a maturity date 6 months or more after the date o f d e p o sit or payable upon written n otice o f 6 months or more; in e x c e s s o f 2 per cen t on any time d e p o sit having a maturity date le s s than 6 months and not le s s than 90 days after the date o f d e p o sit or payable upon written n otice o f le s s than 6 months and not le s s than 90 days; or in e x c e s s o f one per cent on any time d e p o sit having a maturity date le s s than 90 days after the date o f d e p o sit or payable upon written n o tice o f le s s than 90 days. In applying th ese p ro v isio n s, it i s the B oard’ s p o sitio n that i f a time certifica te permits withdrawal at a stated maturity, the maximum rate o f interest payable is to be determined by the length o f time betw een the date o f is s u e and the maturity, or if the ce rtifica te d o e s not s p e c ify a maturity but permits withdrawal after a prescribed period o f written n o tice , the maximum rate o f interest is determined by the length o f such period o f n o tice . If a certificate permits withdrawal either at a s p e cifie d maturity or prior to such time after a s p e c ifie d period o f written n o tice , the maximum rate o f interest w ill depend upon which o f such withdrawal p riv ile g e s is e le cte d by the de p ositor and the rate a p p lica b le under the R egu lation in the circu m stan ces o f the withdrawal p rivilege s o e le cte d . F or exam ple, i f a c e rtifica te provides for payment 5 years after date o f iss u e with in terest at a rate o f 2 1 /2 per cen t, but a ls o p rovid es for earlier payment after 90 d a y s ’ written n otice with in terest at a rate o f 2 per cent, su ch a ce rtifica te com p lies with the requirements o f R egulation Q, Similarly, su ch a fiv e-y ea r c e rtifica te providing for earlier withdrawal after 30 d a y s’ written n o tice with in terest at a rate o f one per cent would meet the requirements o f the R egulation. R E P R I N T E D JN NE W Y O R K FROM F E D E R A L R E S E R V E B U L L E T I N J U L Y 1953
@FedFRASER