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FED ERAL RE SER VE BANK O F NEW YORK Fiscal A gent o f the United States [ AugSt^o.iwa7 } O ffe r in g o f $ 1 ,5 0 0 ,0 0 0 ,0 0 0 o f 9 2 -D a y T r e a s u r y B ills D a ted A u g u st 2 7 , 1 9 5 3 M a tu rin g N o v e m b e r 2 7 , 1 95 3 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 , Thursday, August 20, 1953. TREASURY DEPARTM ENT W ashington T he Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 92-day Treasury bills, for cash and in exchange for Treasury bills maturing August 27, 1953, in the amount o f $1,500,777,000, to be issued on a discount basis under com petitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated August 27, 1953. and will mature N ovem ber 27, 1953, when the face amount will be payable w ithout interest. Th ey 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 will be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Daylight Saving time, M onday, August 24, 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 m ay 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 o r 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 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 b y 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 w ill be made by the Treasury Departm ent o f the amount and price range o f accepted bids. T h ose 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 whole 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) 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 A ugust 27, 1953, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing August 27, 1953. Cash and exchange tenders w ill receive equal treatment. Cash adjustments will be made for differences between the par value o f m aturing 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 or 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 n ow o r 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 which 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 am ended by Section 115 o f the Revenue A c t 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 R eserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, August 24, 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 by telephone. Paym ent 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 ro u l, President. R e s u lts o f la s t o ffe 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 A u g u s t 2 0 , 1 9 5 3 , m a t u r in g N o v e m b e r 1 9 , 1 9 5 3 ) T otal applied for . . . $2,494,745,000 T otal a c c e p t e d ........ $1,501,435,000 (includes $300,370,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage price . . 99.469 Equivalent rate o f discount approx. 2.101% per annum D t . . .... . .. . Range o f accepted competitive bids: H igh .................. 99.482 Equivalent rate o f discount approx. 2.049% per annum t nn AfQ t? ■ i + + f >• . L o w ..................... 99-468 Equivale" t1(T^/e o f dlscount approx. 2.105/o per annum (84 percent o f the amount bid for at the low price was accepted) Federal Reserve District Boston ........................... $ N ew Y ork .................. Philadelphia ................. Cleveland ..................... R ichm ond ..................... Atlanta ........................... Chicago ......................... St. Louis ...................... Minneapolis .................. Kansas City ................ Dallas ............................ gan Francisco .............. T otal ....................... Total Applied for Total Accepted 21,767,000 $ 18,619,000 1,734^54,000 971,559^00 38,468,000 23,468,000 45,376,000 43,300,000 33,737,000 30,479,000 43,255,000 31,883,000 262,956,000 160,440,000 38,222,000 26,967,000 23,735,000 16,665,000 59,297,000 53,821,000 73,236,000 49,520,000 120,242,000 74,714,000 ------------------------------------------- $2,494,745,000 $1,501,435,000 Please note that the current offering isfor 92-day Treasury bills. ( ovek) w IMPORTANT— Please note that this offering is for 92-day Treasury bills, which will mature on Friday, November 27, 1953, because Thursday, November 26, will be Thanks giving Day. IMPORTANT— If you desire to bid on a competitive basis, fillin rate per 100 and maturity value in paragraph headed "Competitive Bid.** If you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O N O T fill in both paragraphs on one form. A separate tender must be used for each bid, except that banks submitting bids on a competitive basis for their own and their customers* accounts may submit one tender for the total amount bid at each price, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. No............ T E N D E R F O R 9 2 -D A Y T R E A S U R Y BILLS Dated August 27, 1953 Maturing November 27, 1953 Dated at To F e d e ra l R eserve B a n k o f N ew Y o rk , Fiscal A gent o f the United States. 1953 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on August 20, 1953, as issued by the Treasury Department, the Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on August 20, 1953, as issued by the Treasury Department, the undersigned offers a non-competitive tender for undersigned offers * (R ate per 100) 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 fo r 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: □ ....B y surrender o f maturing Treasury bills □ amounting t o ................... $.......................................... amounting t o ................... $_______________________ □ □ By cash or other immediately available funds By surrender o f maturing Treasury bills 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 fo r which tender is hereby made are to be dated August 27, 1953, and are to mature on November 27, 1953. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills." Nam e o f Bidder ................................................................................................................................. (Please print) B y .......................................................... (Official signature required) (T itle) Street A ddress ................................. (C ity, T ow n o r V illage, P . O . N o., and State) I f this tender is submitted b y a bank fo r the account o f a customer, indicate the custom er’s name on line below : (N am e o f Customer) (C ity, T ow n or V illage, P. O . N o., and State) IMPORTANT INSTRUCTIONS: 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 mem ber o f the firm, w h o should sign in the form “ ........................................................................................... . a copartnership, by .............................................................................................................................. . a m em ber o f the firm.” 3. Tenders will be received without deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investment 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 b y 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 Account will not be permitted. http://fraser.stlouisfed.org/ TENTB— 1208-a Federal Reserve Bank of St. Louis (OVER)
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