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FEDERAL RESERVE BANK OF N EW YORK

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Fiscal Agent of the United States

Public Notice of Offering of $900,000,000, or thereabouts, of 91-Day Treasury Bills
Dated December 29, 1949

Maturing March 30, 1950

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve 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 ,
Tuesday, December 20, 1949.

TREASU RY D EPARTM ENT
Washington

The Secretary of the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing December 29, 1949, to be issued on a discount basis under competi­
tive and non-competitive bidding as hereinafter provided. The bills of this series will be dated December 29, 1949, and will
mature March 30, 1950, when the face amount will be payable without interest. They 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).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Standard time, Friday, December 23, 1949. Tenders will not be received at the Treasury Department, Washington. 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 of 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 will be supplied by Federal Reserve Banks or
Branches on application therefor.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recog­
nized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount
of 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, following which
public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The 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-competitive 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) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on December 29, 1949, in cash or other immediately
available funds’ or in a like face amount of Treasury bills maturing December 29, 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 of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not haye any exemption, 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. 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 of the possessions of the United States,
or by any local taxing authority. For purposes of taxation the amount of 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) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 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 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
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 of the Treasury bills and govern
the conditions of their issue. Copies of 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.f
up to two o’clock p.m., Eastern Standard time, on Friday, December 23, 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 War Loan Deposit Account. Settlement must be made in cash or other imme­
diately available funds or in maturing Treasury bills.
A

llan

S pr o u l ,

President.

(PLEASE NOTE CHANGE IN THE CLOSING DAY ON THIS OFFERING.)




RESULTS OF BIDDING FOR TREASURY BILLS
DATED DECEMBER 22, 1949, WERE NOT AVAIL­
ABLE WHEN THIS CIRCULAR WAS PRINTED.

(ora.)

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PLEASE NOT& CHANGE IN THE CLOSING DAY ON THIS OFFERING.
Tenders for this issue must reach the Federal Reserve Bank of New York or its Buffalo Branch not
later than 2 p.m., Eastern Standard time, Friday, December 23, 1949.
IMPORTANT— 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 noncompetitive basis, fill in only the maturity value in paragraph headed "Non-competitive
Bid” . DO NOT fill in both paragraphs on one form. A separate tender must be used for
each bid.
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TENDER FOR 91-D A Y TREASURY BILLS
Dated December 29, 1949.

To

Maturing March 30, 1950.

Dated at
F ederal R

e serve

Ban k

of

N ew Y

ork,

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
December 20, 1949, as issued by the Secretary
of the Treasury, the undersigned offers
_______________________ * for a total amount of

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on December 20,
1949, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender
for a total amount of $.........................................
(Not to exceed $200,000)

(Kate per 100)

(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
Treasury bills................ $...................... ..............
By cash or other immediately available

$_________ ___________............ (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:
By surrender of the maturing issue of
Treasury bills-.------- ---....... — .....................
By cash or other immediately available

The Treasury bills for which tender is hereby made are to be dated December 29, 1949, and are to mature
on March 30, 1950.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills".
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Name of Bidder................ ;........ .............................................................................................................
(Please print)

B y .......

(Official signature required)

(Title)

Street Address ............ ............ .........................................................................................
(City, Town or Village, P.O. No., and State)
If this tender is submitted for the account of a customer, indicate the customer’s name on line below:

(Name of Customer)

(City, Town or Village, P.O. No., and State)

Use a separate tender for each customer’s bid.

IMPORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000
(maturity value). A separate tender must be executed for each bid.
2. If the person making the tender is a corporation, the tender should be signed by an officer of the corpora­
tion authorized to make the tender, and the signing of 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
member of the firm, who should sign in the form “..................................................................................................... a copartnership, by
..................................................... ........................................................ a member of the firm.”
3. Tenders will 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
of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment
by an incorporated bank or trust company.
4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
Treasury, is material, the tender may be disregarded.

Payment by credit through War Loan Deposit Account will not be permitted.

http://fraser.stlouisfed.org/
T fiN T B — 1017-a
Federal Reserve Bank of St. Louis

* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
(OVE*)

FEDERAL RESERVE BANK
OF N EW YORK
December 19, 1949.
To all Banking Institutions in the
Second Federal Reserve District:

W e are pleased to announce that University Bank, A lfred, New
York, has become a member o f the Federal Reserve System effective
December 19, 1949.
The bank’s officers are:




President
Vice President
Cashier
Assistant Cashier

D.

S h e r m a n B u r d ic k

J . N e l s o n N orwood
C. K ic h a r d F e n n e r
C . C h a r l e s P ost

A

llan

S proul,

President.

cc-v j

FEDERAL RESERVE BANK
OF N EW YORK
Fiscal Agent of the United States
December 21, 1949

PAYM EN T AT MATURITY OF UNITED STATES SA VIN G S BONDS OF SERIES D-1940
Exchange for United States Savings Bonds of Series E
To Incorporated Banks and Trust Companies and Other Financial Institutions
in the Second Federal Beserve District Qualified to Make Payments in
Connection with the Bcdemption of United States Savings Bonds:

W e have been requested by the Secretary o f the Treasury to bring to your attention his
public statement concerning the payment at maturity o f United States Savings Bonds of Series
D-1940, beginning on January 1, 1950. A copy o f the statement is printed on the reverse side
o f this letter.
A ny individual (natural person), named as owner or coowner of maturing bonds in his
own right, has the option o f receiving payment o f the maturity value in cash, or o f exchanging
his bonds fo r United States Savings Bonds of Series E, registered in his own name in any
authorized form of registration. Any Series E bonds issued in exchange for bonds o f Series
D-1940 will not be subject to the limitation on holdings prescribed fo r Series E bonds on
original issue. The exchange may be made at any time after the maturity o f the Series D
bonds, but an owner who desires to preserve the continuity of his investment should present
his maturing bonds in the month in which they mature and make the exchange at that time.
The Secretary wishes each institution, which is qualified both to pay and to issue savings
bonds, to receive maturing Series D bonds and to issue Series E bonds in exchange therefor,
when so requested by the individual owner or coowner. Series E bonds may be issued in any
authorized denominations, the issue price of which is fully covered by the proceeds of the
maturing bonds presented, or such lesser amount as the owner or coowner may direct. Any
remaining balance should, of course, be paid to such owner or coowner.
The original registration stubs o f Series E bonds issued in exchange for Series D bonds
should be marked in the lower left corner, as follow s:
EXCH
Rubber stamps to be used in imprinting this notation on the stubs were sent to all qualified
paying agents in this District in January, 1948. Additional stamps will be furnished by us
upon request. Stubs bearing this notation may be included in the same transmittal letter
with stubs o f bonds issued against regular cash payments. The maturing bonds received in
exchange should be stamped with your payment stamp and handled in the same manner as
any other paid bonds.
Registered owners of Series D bonds, other than individuals, are not eligible to purchase
Series E bonds, and therefore may not exchange their maturing bonds as provided above. Quali­
fied paying agents are authorized to pay only those savings bonds registered in the names of
individuals; any bonds bearing other forms o f registration should be sent to us fo r redemption.
Additional copies o f this letter will be furnished upon request.




A

llan

S proul,

President.
(o v e r )

c
.

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, December 21, 1949.
Secretary of the Treasury Snyder today reminded bond holders and bond buyers generally
of the fact that the Treasury is continuing its program of urging individuals to buy more savings
bonds.
In furtherance of this policy, the Secretary called attention to the fact that individual
holders of the Series D-1940 savings bonds, which start maturing January 1,1950, are permitted
to reinvest the proceeds, as they mature, in the Series E savings bonds which are currently on
sale, without regard to the annual limitation. This can be accomplished through the established
payment and issue procedure, and the Series E bonds so acquired will be exempt from the $10,000
(maturity value) annual limitation on holdings of Series E bonds. Holders will be permitted to
reinvest any part of the proceeds of their maturing bonds up to such denominational amount as
the proceeds will fully cover. Since Series E bonds may be purchased only in the names of
individuals, only those Series D-1940 savings bonds held by individuals will be eligible for this
privilege.
Any agent qualified to pay savings bonds, which is also an issuing agent, can accomplish
this exchange through the simple procedure of redeeming matured bonds registered in the
name of an individual owner or coowner, and applying the proceeds to the purchase of new
Series E bonds. The bonds may also be exchanged, of course, at any Federal Reserve Bank or
Branch, or at the Treasury Department.
The new bonds will be dated as of the first day of the month in which the matured Series
D-1940 savings bonds are presented for payment. In order to preserve the continuity of the
investment, individual holders of the maturing bonds should present them for exchange dur­
ing the month in which they mature.
The Secretary took occasion to express appreciation for the splendid response of the people
of the country to the Treasury’s savings bond program.




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