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FEDERAL RESERVE BANK O F N EW YORK
r Circular No. 4 0 0 5 1
L
August 6, 1953
J

Fiscal A gent o f the U nited States

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 13, 1953

Maturing November 12, 1953

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

F ollow in g 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, August 6, 1953.

TREASU RY DEPARTM ENT
Washington
The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing August 13, 1953, in the amount of $1,500,569,000, to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills o f this series w ill be dated
August 13, 1953, and will mature November 12, 1953, when the face amount w ill be payable without interest. 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, two o ’clock p.m., Eastern
Daylight Saving time, Monday, August 10, 1953. Tenders w ill not be received at the Treasury Department, Washington. 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 more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms 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 own account. Tenders w ill be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in­
vestment securities. Tenders from others must be accompanied by payment o f 2 percent of 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 ing which
public announcement will be made by the Treasury Department o f the amount and price range o f accepted bids. Those
submitting tenders will be advised o f the acceptance or rejection thereof. The 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-competitive 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 completed at the Federal Reserve Bank on August 13, 1953, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing August 13, 1953. Cash and exchange tenders w ill 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.
The income 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
treatment, 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
now or hereafter imposed 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 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. Accordingly, the owner o f Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his income 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 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 D aylight Saving time, Monday, August 10, 1953, at the Securi­
ties 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 telegraph, subject to written confirm ation; they may not be submitted by telephone. Payment for 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-day bills dated August
Total applied f o r ........$2,409,602,000
T otal a ccep ted ............$1,500,409,000 (includes $261,481,000
entered on a non-competitive basis
and accepted in full at the aver­
age price shown below)
Average price..........

99.460

Equivalent rate o f discount
approx. 2.136% per annum

Range o f accepted competitive b id s:
H igh .........................

99.481

Equivalent rate o f discount
approx. 2.053% per annum

L o w ...........................

99.459

Equivalent rate o f discount
approx. 2.140% per annum

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




6,

1953, maturing N ovem ber 5, 1953)

Federal Reserve
District
Boston ...........................
New Y ork ...................
Philadelphia ................
Cleveland .....................
Richmond .....................
Atlanta .........................
Chicago .........................
St. L o u i s .......................
Minneapolis .................
Kansas C i t y ..................
Dallas ...........................
San F r a n c is c o ..............
T o ta l

.....................

Total
Applied for
$

25,140,000
1,688,544,000
50,120,000
53,697,000
21,583,000
40,195,000
262,645,000
40,322,000
17,073,000
69,198,000
46,762,000
94,323,000

$2,409,602,000

Total
Accepted
$

21,790,000
959.804.000
29.520.000
44.277.000
14.773.000
26.235.000
211.312.000
20.672.000
13.738.000
55.403.000
31.542.000
71.343.000

$1,500,409,000
( over )

29 U
IM P O R T A N T — I f you desire to b id on a competitive basis, fill in rate per 100 and maturity
value in paragraph headed “ C om petitive B id.” I f you desire to b id on a non-competitive
basis, fill in on ly the m aturity value in paragraph headed “ N on-com petitive B id.” D O
N O T f l in both paragraphs on one form. A separate tender must be used fo r each bid,
il
except that banks submitting 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 amount b id at each price, p rovid ed a list is
attached showing the name o f each bidder, the amount b id fo r his account, and m ethod
o f paym ent. Form s fo r this purpose w ill be furnished u p on request.
No.

T E N D E R FOR 91-D A Y T R E A S U R Y BILLS
Maturing N ovem ber 12, 1953

Dated August 13, 1953

Dated a t ..........................

To F e d e ra l R eserve B a n k o f N ew Y o rk ,
Fiscal A gen t o f the United States.

1953
N O N -C O M P E TIT IV E B ID

C O M P E T IT IV E BID
Pursuant to the provisions o f Treas­
ury Department Circular No. 418, as amended,
and to the provisions o f the public no­
tice on August 6 , 1953, as issued by the
Treasury Department, the undersigned offers

Pursuant to the provisions of Treasury D e­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on August 6 ,
1953, as issued by the Treasury Department,
the undersigned offers a non-com petitive tender

.............................................* for a total amount of

fo r a total amount o f $ ...............................................

(R a te per 100)

(N o t to ex ce e d $200,000)

$ ....................................................... (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) o f accepted competitive bids, settlement
therefor to be made at you r Bank, on the date
stated in the public notice, as indicated b e lo w :

□ ...................................................... By surrender o f maturing □Treasury bills
B y surrender o f maturing Treasury bills
amounting t o ................... $..........................................

amounting t o

$

0 ......................................................B y cash or other immediately available funds
□
By cash or other immediately available funds
* Price must be expressed on the basis of 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 August 13, 1953, and are to
mature on N ovem ber 12, 1953.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
Name o f B id d e r .................................................................................................................
(P le a se print)

By
(O fficial signature required)

(T itle )

Street Address .........................................
(C ity , T ow n o r V illa g e , P. O. N o., 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:
(N am e o f Custom er)

(C ity , T ow n or V illa g e , 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 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 corporation
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 rep­
resentation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a mem­
ber o f the firm, who 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 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 of the
Treasury, is material, the tender may be disregarded.

Payment by credit through Treasury Tax and Loan Account will not be permitted.

T E N T B —1206-a
fo v m r t



Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102