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FEDERAL

RESERVE BANK OF NEW
Fiscal A gen t o f the United States

YORK
[ januiry^'iiso 3

P u b li c N o t ic e o f O ffe r in g o f $ 1 ,0 0 0 ,0 0 0 ,0 0 0 , o r th 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 ills
D a t e d F e b r u a r y 2 , 1 95 0

M a t u r in g M a y 4 , 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 ,
F rid ay, January 27, 1950.

TREASURY DEPARTM ENT
W ashington

T h e Secretary of the T reasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange tor Treasury bills maturing February 2, 1950, to be issued on a discount basis under competi­
tive and non-competitive bidding as hereinafter provided. T h e bills of this series w ill be dated February 2, 1950, and will
mature M ay 4, 19a0, when the face amount w ill be payable without interest. They w ill be issued in bearer form only, and
in denominations of $1,000, $5,000, $10,000, $100,U00, $5lRJ,UUU, and $1,000,000 (maturity valu e).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern
Standard time, M onday, January 30, 1950. Tenders w ill not be received at the Treasury Department, W ash in gton .
Each
tender must be for an even multiple of $1,000, and in the case ot competitive tenders the price offered must be expressed on
the basis of 10U, with not more than three decimals, e. g., 9y.y25. 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 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 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.
Im m ediately 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 Secretary of the Treasury of the amount and price range of accepted bids. Those
submitting tenders w ill be advised of the acceptance or rejection thereof. T he 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 w ill be accepted
in full at the average price (in three decim als) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal R eserve Bank on February 2, 1950, in cash or other immediately
available funds or in a like face amount of T reasury bills m aturing February 2, 1950. Cash and exchange tenders w ill receive
equal treatment. Cash adjustments will be made for ditierences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
T he 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 of Treasury bills shall not have any spccial
treatment, as such, under the Internal Revenue Code, or laws am endatory or supplementary thereto. The bills shall be
subject to estate, inheritance, g ift 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. F or 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 A ct 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 o f, and such bills are
excluded from consideration as capital assets.
A ccordingly, 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
m aturity 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 of the Treasury bills
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch.

and

In accordance with the above announcement tenders will be received at the Securities Department o f this bank
(9th floor, 33 Liberty Street) New Y o rk 45, N. Y ., or at the Buffalo Branch o f this bank (270 Main Street) Buffalo 5,
N. Y ., up to two o ’clock p.m., Eastern Standard time, on Monday, January 30, 1950. It is requested that tenders be
submitted on special form printed on reverse side and returned in special envelope enclosed herewith. P a ym en t fo r the
T rea su ry bills cannot be made by credit through the T reasury T a x and L oa n A cco u n t.
or oth er im m ediately available funds or in maturing T rea su ry bills.

S ettlem en t must be made in cash

A llan S proul, P resident.
(E x tr a c t from T rea su ry D ep a rtm en t statem ent released fo r publication January 24, 1950, announcing results
a fter tenders w ere open ed fo r 91-day T reasury bills dated January 26, 1950 maturing A p ril 27, 1 9 50)
T otal applied f o r ......... $1,614,132,000
T otal acce p ted .............. $ 902,846,000 (includes $106,247,000
entered on a non-com petitive basis
and accepted in fu ll at the average price shown below )
A verage p r i c e ... . 99.7214- Equivalent rate of discount
approx. 1.103 percent per
annum
R ange of accepted competitive b id s :
H i g h ......................... 99.735
Equivalent rate of discount
approx. 1.048 percent per
annum
L o w ........................... 99.720
Equivalent rate of discount
approx. 1.108 percent per
annum
(51 percent o f the amount bid for at the low

price was accepted)



Federal Reserve
District
--------------------------Boston .................................
N ew Y o r k ........................
Philadelphia ...................
Cleveland ..........................
R ic h m o n d ..........................
A tlanta ..............................
C h i c a g o ..............................
St. L o u i s .............................
M in n e a p o lis .....................
K ansas C i t y .....................
D allas .................................
San F r a n c is c o .................
T o t a l .........................

Total
Applied for

Total
Accepted

-------------------18,745,000
1,230,43 d,000
24,980,000
28,776,000
9,289,000
16,985,000
132,100,000
12,561,000
5,670,000
18,720,000
28,250,000
87,621,000
-----------------------$1,614,132,000

--------------- $ 16,785,000
606,950,000
12,530,000
25,097,000
9,289,000
16,495,000
92,296,000
12,412,000
5,670,000
17,679,000
21,682,000
65,961,000
-------------------$902,846,000

$

( oveh)

22 S
IM P O R T A N T — I f it is desired to bid on a com petitive basis, fill in rate per 100 and
maturity value in paragraph headed “ Com petitive B id ” . I f it is desired to bid on a non­
com petitive basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive
B id ” . DO N O T fill in b oth paragraphs on o n e form . A separate ten d er must b e used for
each bid.
N o.

T E N D E R FOR 91-D A Y T R E A S U R Y BILLS
Dated February 2, 1950.
To

F ed eral R eserve B a n k

of

N ew

Maturing M ay 4, 1950.
Dated a t .......................

Y ork,

Fiscal A gent o f the United States.

1950

C O M P E T IT IV E BID

N O N -CO M PETITIVE BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
January 27, 1950, as issued by the Secretary
o f the Treasury, the undersigned offers

Pursuant to the provisions o f Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on January 27,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

. . .* for a total amount of

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

(R a te per 100)

(N ot 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 :

(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 your bank, on the date
stated in the public notice, as indicated b e lo w :

□

□

By

surrender

of

the maturing issue o f

Treasury b ills ...............

$ ....................................

By

surrender

of

the maturing issue o f

Treasury bills ...............

$ ....................................

(A m ount surrendered)

□

B y cash or other immediately available funds

(A m ount surrendered)

□

B y cash or other immediately available funds

The Treasury bills for which tender is hereby made are to be dated February 2, 1950, and are to
mature on May 4, 1950.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
N am e of Bidder.
(P lea se print)

B y ...
(Official signature required)

Street A ddress

(Title)

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

(C ity , T o w n or V illa g e , 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 o f Custom er)

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

Use a separate tender for each customer’s bid.

IM P O R T A N T IN STR U C T IO N S:
1. N o tender for less than $1,000 will be considered, and each tender must be
$1,000 (maturity va lu e). A separate tender must be executed for each bid.

for an even multiple of

2. I f the person m aking 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 of the corporation will 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 m em ­
ber of the firm, who should sign in the form “ .......................................................................................................................

a copartnership, by

.......................................................................................................................... . a member of the firm” .
3. T enders 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 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.
4. I f the language o f this tender is changed in any respect, which, in the opinion of the Secretary of the
T reasury, is material, the tender m ay be disregarded.

Paym ent b y cred it through Treasury T ax and Loan A ccou n t w ill n ot b e perm itted.

T E N T B —1022-a


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

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