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FEDERAL RESERVE BANK OF N EW YORK
Fiscal Agent o f the United States

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P u b l i c N o t i c e o f O f fe r in g o f $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t s , o f 9 1 - D a y T r e a s u r y B i lls
D a te d D ecem ber 1, 1949

M a tu rin g M a rch 2 , 1950

T o 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 ,
Friday, Novem ber 25, 1949.

TREASU RY DEPARTM ENT
W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing Decem ber 1, 1949, to be issued on a discount basis under com peti­
tive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated Decem ber 1, 1949, and w ill
mature M arch 2, 1950, 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern
Standard time, M onday, November 28, 1949. Tenders w ill not be received at the Treasury Department, W ashington. Each
tender must be fo r an even multiple of $1,000, and in the case of 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 forms and forw arded in the special envelopes which w ill be supplied by Federal Reserve Banks or
Branches on application therefor.
Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and
recognized dealers in investment 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 by an
incorporated bank or trust company.
Imm ediately after the closin g hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which
public announcement w ill be made by the Secretary of the Treasury o f the amount and price range of 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-com petitive 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 decim als) o f accepted com petitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on Decem ber 1, 1949, in cash or other immediately
available funds o r in a like face amount o f Treasury bills m aturing Decem ber 1, 1949. 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 incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, shall
not have any exem ption, 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 of the United States,
o r by any loca l 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
exclu ded from consideration as capital assets. A ccordin gly, the ow ner of 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
m aturity during the taxable year for which the return is made, as ordinary gain or loss.
Treasu ry 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 m ay 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 28, 1949. It is requested that tenders be
submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Payment for the

Treasury bills cannot be made by credit through the W ar Loan Deposit Account. Settlement must be made in cash
or other immediately available funds or in maturing Treasury bills.
A llan S proul, President.
(E xtract from Treasury Department statement released for publication November 22, 1949, announcing residts
after tenders were opened for 90-day Treasury bills dated November 25, 1949 maturing February 23, 1950)
T ota l applied f o r ........ $1,654,497,000
T ota l a c c e p te d ............ $1,000,861,000 (includes $97,740,000
entered on a non-com petitive basis
and accepted in full at the average price shown below )
A vera ge p r ice ----- 99.737+ Equivalent rate o f discount
a oorox
1 052 oercent oer
lln u m
,
*.
Range o f accepted com petitive b id s : (excepting one
tender o f $700,000)
H i g h ....................... 99.750
Equivalent rate o f discount
1.000 percent per annum
L o w ......................... 99.734
Equivalent rate o f discount
1.064 percent per annum
(55 percent o f the amount bid for at the low
price was accepted)

Federal R eserve
Total
Total
District
Applied for
Accepted
------------------------ ------------------------------------------------------- '
Boston ............................
$ 25,775,000
$ 24,675,000
N ew Y o r k ......................
1,198,008,000
601,183,000
P h ila d elp h ia ...................
28,624,000
laoJunnn
Cleveland ........................
22,379,000
18,804,000
R ic h m o n d ........................
10,226,000
9,416,000
Atlanta ............................
10,541,000
9,191,000
C h ic a g o ............................
163,214,000
132,414,000
St L o u i s ..........................
13,049,000
12,649,000
M in n e a p o lis ....................
7,825,000
7,425,000
Kansas C i t y ...................
43,765,000
42,040,000
Dallas ..............................
23,140,000
17,800,000
San F r a n c is c o ................
107,951,000
107,651,000
_
ns,
T o t a l .......................
$1,654,497,000
$1,000,861,000

 be noted that the results shown above are for 90-day Treasury bills.
It should


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22 J
IM PORTAN T— If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed “ Competitive Bid” . If it is desired to bid on a non­
competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive
B id” . DO NOT fill in both paragraphs on one form. A separate tender must be used for
each bid.
N o...........................

T E N D E R FOR 91-D A Y TR E A SU R Y BILLS
Maturing March 2, 1950.

Dated December 1, 1949.

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

T o F ederal R eserve B a n k o f N e w Y o r k ,
Fiscal Agent of the United States.

1949

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
November 25, 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 25,
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 of $ ............................................
(N o t to e x ce e d $200,000)

(R a t e per 100)

$ .....................................................(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 follow s:

(maturity value) of 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 of the maturing issue of

By surrender of the maturing issue of

Treasury b il ls .................. $ .......................................

Treasury b il ls .................. $ ......................................

By cash or other immediately available

By cash or other immediately available

funds ................................ $ .......................................

fu n d s ................................ $. .. ..................................

The Treasury bills for which tender is hereby made are to be dated December 1, 1949, and are to
mature on March 2, 1950.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name o f Bidder.
(P le a s e p rin t)

B y ...
(O fficia l sign atu re requ ired )

Street Address

( T itle )

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

( C it y , T o w n or V illa g e , P . O. N o., and S tate)

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

(N a m e o f C u stom er)

(C ity , T o w n o r V illa g e , P. O. N o ., and State)

Use a separate tender for each customer’s bid.

IM PO R TA N T INSTRUCTIONS:
1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple of
$1,000 (m aturity valu e). A separate tender must be executed for each bid.
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. If the tender is made by a partnership, it should be signed by a mem­
ber o f the firm, w ho 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 accom panied by payment of
2 percent o f the face amount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty
o f payment by an incorporated bank or trust company.
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 b y credit through War Loan Deposit Account will not b e permitted.

TENTB—1013-a



* P rice must be expressed on the basis of 100, with not m ore 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