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FEDERAL RESERVE BANK OF N EW YORK
f C ir c u la r N o. 3510 1
10,194!) J

Fiscal Agent of the United States

L ovem ber
N

Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills
Dated November 17, 1949

Maturing February 16, 1950

To all Incorporated Banks and Trust Companies in the
Second Federal R eserve District and Others Concerned:

Following is the text of a notice today made public by the Treasury Department with respect to a new offering of Treas­
ury bills payable at maturity without interest to be sold on a discount basis under competitive and non-competitive bidding.
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, N ovem ber 10, 1949.

TREASU RY DEPARTM ENT
W ashington

T he Secretary o f the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing N ovem ber 17, 1949, to be issued on a discount basis under com ­
petitive and non-com petitive bidding as hereinafter provided. T he bills of this series will be dated N ovem ber 17, 1949, and
w ill mature February 16, 1950, when the face amount will be payable w ithout interest. T h ey will be issued in bearer form
only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Ten ders will be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern
Standard Tim e, M onday, N ovem ber 14, 1949. Tenders w ill not be received at the Treasury Department, W ashington. Each
tender must be for an even multiple of $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 more 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 which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recog­
nized dealers in investment securities. Tenders from others must be accom panied by payment of 2 percent of the face amount
o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank
or trust com pany.
Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which
public announcem ent w ill be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of 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 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 N ovem ber 17, 1949, in cash or other immediately
available funds or in a like face amount o f Treasury bills m aturing N ovem ber 17, 1949. Cash and exchange tenders will
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.
T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not have any exem ption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary 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 or hereafter im posed on the principal or interest thereof by any State, or any of the possessions of 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 b y the United States shall be considered to be interest. U nder Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue
Code, as am ended by Section 115 o f the Revenue A ct of 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 on ly the difference between the price paid for such bills,
w hether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at
m aturity during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Departm ent Circular No. 418, as amended, and this notice, prescribe the terms of 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.

In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th
floor, 33 Liberty Street) New York 45, N. Y., or at the Buffalo Branch of this bank (270 Main Street) Buffalo 5, N. Y.,
up to two o ’clock p.m.. Eastern Standard time, on Monday, November 14, 1949. It is requested that tenders be submitted
on special form printed on reverse side and returned in special envelope enclosed herewith. Payment fo r the Treasury
bills cannot be made by credit through the War Loan Deposit Account. Settlement must be made in cash or other imme­
diately available funds or in maturing Treasury bills.
A

llan

S proul,

President.

(Extract from Treasury Department statement released fo r publication November 8, 1949, announcing results
after tenders were opened for 91-day Treasury bills dated November 10, 1949 maturing February 9, 1950)
T ota l applied fo r ............$1,523,655,000
T ota l accepted .............. $1,000,301,000 (includes $97,243,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A vera ge price........

99.728+

Equivalent rate o f discount
approx. 1.074% per annum
R ange o f accepted com petitive bids:
H igh

99.755

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

Equivalent rate o f discount
approx. 0.969% per annum
L o w ......................... 99.726
Equivalent rate o f discount
approx. 1.084% per annum
(99 percent o f the amount bid for at the low
price was accepted)




Federal R eserve
District
B oston .............................
N ew Y ork .......................
Philadelphia
Cleveland .......
R ich m on d .......
Atlanta .............
C hicago ...........
St. Louis .........
M inneapolis ...
Kansas City ...
Dallas .............
San Francisco
T otal

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

Total
Applied for

Total
Accepted

13,385,000
1,183,288,000
22.419.000
23.017.000
10.035.000
12.089.000
132,870,000
13.322.000
8,085,000
17.175.000
23.547.000
64.423.000

12.865.000
709.938.000
12.419.000
22.815.000
10.035.000
12.089.000
122.770.000
13.321.000
8,085,000
17.174.000
23.447.000
35.343.000

$1,523,655,000

$1,000,301,000

$

(o v e r )

22 H
IM P O R T A N T — If it is desired to bid on a competitive basis, fill in rate per 100 and
m aturity value in paragraph headed "Competitive Bid” . I f it is desired to bid on a non­
competitive basis, fill in only the maturity value in paragraph headed "Non-com petitive
Bid*’. DO NOT fill in both paragraphs on one form. A separate tender must be used for

each bid.

TENDER FOR 91-DAY TREASURY BILLS
Dated November 17, 1949.

To

Maturing February 16, 1950.

Dated a t ................ ..................
F ed e r al R eser ve B a n k

of

N ew

Y ork,

.1949

Fiscal Agent of the United States.
C OM PETITIVE BID

N O N -C O M P E T IT IV E BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
November 10, 1949, as issued by the Secretary
of
the Treasury,
the undersigned offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on November 10,
1949, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

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

for a total amount o f $...................... .......................

( R a t e p e r 100)

(N o t to exceed $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 follows:

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) of accepted competitive bids, settlement
therefor to be made at your bank, on the date
stated in the public notice, as follows:

By surrender o f the maturing issue of

By surrender o f the maturing issue of

Treasury bills--------- ----- $......... .............. ............. ...

Treasury bills..................$_______ ________________

By cash or other immediately available

By cash or other immediately available

The Treasury bills for which tender is hereby made are to be dated November 17, 1949, and are to
mature on February 16, 1950.
This tender will be inserted in special envelope entitled “ Tender fo r Treasury bills” .
Name o f Bidder.,
(Please print)

By
(Official signature required)

(T itle)

Street Address ............................................

(C ity, T o w n or Village, P .O . N o., and State)

If this tender is submitted for the account of a customer, indicate the customer’s name on line below:

(N am e of Custom er)

(City, Tow n or V illage, P.O. No., and State)

Use a separate tender for each customer’s bid.
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 will be considered, and each tender must be for an even multiple of $1,000
(m aturity value). A separate tender must be executed for each bid.
2. If 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 of 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
m em ber o f the firm, w ho should sign in the form “ ................................................................................................... . a copartnership, by
.............................................................................................................. a mem ber o f the firm.”
3. Tenders will be received without deposit from incorporated banks and trust com panies and from respon­
sible and recogn ized dealers in investm ent securities. Tenders from others must be accom panied by 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 or trust com pany.
4. I f the language o f this tender is changed in any respect, w hich, in the opinion o f the Secretary o f the
T reasury, is material, the tender m ay be disregarded.

Payment b y credit through W ar Loan Deposit Account -will not be perm itted.
Digitized for1011-a
T E N T B — FRASER


* Price must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.

(o v e r )

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