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FED ERAL RE SE R V E BANK O F N EW YO RK r Circular No. 4 0 0 9 1 L August 27, 1953 J Fiscal A gent o f the United 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 September 3, 1953 Maturing December 3, 1953 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: F ollow ing is the text of a notice published today: FO 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 27, 1953. TREASU RY DEPARTM ENT Washington The 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 September 3, 1953, in the amount o f §1,500,301,000, 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 September 3, 1953, and w ill mature December 3, 1953, when the face amount w ill be payable without interest. They 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 Brandies up to the closing hour, tw o o ’clock p.m., Eastern Daylight Saving time, Monday, August 31, 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 ottered 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 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. Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Treasury Department o f the amount and price range o f accepted bids. Those submitting tenders w ill 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 September 3, 1953, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 3, 1953. Cash and exchange tenders will receive equal treatment. Cash adjustments w ill be made for differences between the par value of 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 of 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 of 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 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 D aylight Saving time, Monday, August 31, 1953, at the Securi ties Department o f its H ead 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, subject to written confirm ation; they may not be submitted by telephone. Paym ent 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 (92-day bills dated August 27, 1953, maturing N ovem ber 27, 1953) Total applied f o r ........ $2,545,880,000 Total a c c e p te d ............$1,501,834,000 (includes $249,536,000 entered on a non-competitive basis and accepted in full at the aver age price shown below) Average price.......... 99.489 Equivalent rate o f discount approx. 2.001% per annum Range of accepted competitive b id s: H igh ......................... 99.490 Equivalent rate o f discount approx. 1.996% per annum L o w ........................... 99.487 Equivalent rate o f discount approx. 2.007% per annum (41 percent o f the amount bid for at the low price was accepted) Federal Reserve District Total Applied for .. New Y o r k .................... P h iladelph ia............... Cleveland ................... Richmond ................... A tla n ta ......................... 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 t a l ........................... . $ 35,156,000 1,873,403,000 31,988,000 40,174,000 18,175,000 35,959,000 265,011,000 33,770,000 12,067,000 44,519,000 59,991,000 95,667,000 $2,545,880,000 Please note that the results shown above are for 92-day Treasury bills. Total Accepted $ 20,977,000 1,057,281.000 13,029,000 24,412,000 13,486,000 19,597,000 199,525,000 16,848,000 10,397,000 32,168,000 32,270,000 61,844,000 $1,501,834,000 (o vk k) 29 X 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. N o. ........................... T E N D E R FO R 91-D A Y T R E A S U R Y BILLS Maturing December 3, 1953 Dated September 3, 1953 Dated at......... R eserve B a n k o f N ew Y o rk , To F ed eral Fiscal A gent o f the United States. 1953 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions o f Treas ury Department Circular N o. 418, as amended, and to the provisions o f the public no tice on A ugust 27, 1953, as issued by the Treasury Department, 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 August 27, 1953, as issued by the Treasury Department, the undersigned offers a non-competitive tender .............................................* for a total amount o f for a total amount o f $ ............................................... (R a te per 100) (N o t to exce e d $200,000) $ ....................................................... (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 : (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted com petitive 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 amounting t o ................... $-----------------------------------□ By surrender o f m aturing Treasury bills amounting t o ............ B y cash or other immediately available funds □ $____________________ _ B y 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 September 3, 1953, and are to mature on December 3, 1953. This tender will be inserted in special envelope marked “ Tender fo r 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 or V illa g e , P. O . N o., and State) If this tender is submitted by a bank for the account o f a customer, indicate the customer’s name on line below: (N am e o f Custom er) (C ity , T o w n or V illa g e , 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. I f 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 o r 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. Payment by credit through Treasury Tax and Loan Account will not be permitted. TENTB-1209-a ( o v e b )
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