The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FE D E RA L R E SE R V E BANK O F N EW YO RK Fiscal A gent o f the United States [ Circular No. 4014 September 10, 1953 Offering o f $1,500,000,000 of 91-Day Treasury Bills Dated September 17, 1953 Maturing December 17, 1953 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: F ollow ing 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 SP A P E R S , Thursday, September 10, 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 17, 1953, in the amount o f $1,500,503,000, 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 17, 1953, and w ill mature December 17, 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, September 14, 1953. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of 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 will not be permitted to submit tenders except for their own account. Tenders will 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 of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will 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 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 September 17, 1953, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 17, 1953. Cash and exchange tenders w ill receive equal treatment. Cash adjustments will 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 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 of 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 of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, September 14, 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 September 10, 1953, maturing D ecem ber 10, 1953) Total applied for . . . . . $2,022,888,000 Total a ccep ted ............$1,500,288,000 (includes $221,801,000 entered on a non-competitive basis and accepted in full at the aver age price shown below) Average price.......... 99.506+Equivalent rate o f discount approx. 1.953% per annum Range o f accepted competitive b id s : H igh ......................... 99.519 Equivalent rate o f discount approx. 1.903% per annum L o w ........................... 99.502 Equivalent rate o f discount approx. 1.970% per annum (The entire amount bid for at the low price was accepted) Federal Reserve District Boston ................... New Y o r k ............. Philadelphia ........ Cleveland .............. Richmond .............. Atlanta ................. Chicago ................. St. L o u i s ............... Minneapolis .......... Kansas C i t y .......... Dallas .................... San Francisco T otal Total Applied for $ 21,871,000 1,459,461,000 30.912.000 50.287.000 18.822.000 28.358.000 233,829,000 25.273.000 15.415.000 39.123.000 27.745.000 71.792.000 $2,022,888,000 Total Accepted $ 21,771,000 965.461.000 15.812.000 50.217.000 15.922.000 26.058.000 230.729.000 25.273.000 15.315.000 36.693.000 25.645.000 71.392.000 $1,500,288,000 ( over) 29 Z 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........... TEN DER FOR 91-DAY TREASURY BILLS Dated September 17, 1953 Maturing December 17, 1953 To F ed era l R eserve B an k o f N ew Dated a t ......................................................... Y ork , Fiscal A gent o f the United States. ..................................................................1953 COMPETITIVE BID NON-COMPETITIVE 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 September 10, 1953, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions o f the public notice on September 10, 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 exceed $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 b e lo w : □ By surrender o f maturing Treasury bills amounting t o ................... $-----------------------------------□ B y cash or other immediately available funds (m aturity 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 b e lo w : □ By surrender o f maturing Treasury bills amounting t o ................... $_______________________ □ 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 17, 1953, and are to mature on December 17, 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) B y .............................................................................., ................................................... (O fficial signature required) (T itle ) Street Address .................................................................................................................................. (C ity , T ow n o r V illa g e , P. O. N o., and S tate) 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 Custom er) (C ity , T ow n or V illa g e , P . O . N o., and State) IMPORTANT INSTRUCTIONS: 1. N o tender fo r 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 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. If 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 of 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 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/ T E N T B 1211-a (o v e r ) Federal Reserve Bank of St. Louis
@FedFRASER