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F E D E R A L R E S E R V E B AN K O F N E W Y O R K f C ir cu la r N o . 353G1 I F e b r u a r y 3,1950 J Fiscal A gent o f the United States Public Notice o f Offering o f $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills Dated February 9, 1950 Maturing May 11, 1950 T o all Incorporated Banks and Trust Companies in the Second Federal R eserve District and Others Concerned: Following is the text o f a notice today made public by the Treasury Department with respect to a new offering o f 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, February 3 , 1950. TREASURY DEPARTM ENT W ash in g to n T h e Secretary o f the T reasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, o f 9 1-d a y T reasury bills, for cash and in exchange for T reasu ry bills m aturing February 9, 1950, to be issued on a discount basis under com peti tive and non-com petitive bidding as hereinafter provided. T h e bills of this series will be dated February 9, 1950, and will m ature M a y 11, 1950, when the face am ount w ill be payable w ithout interest. T h e y w ill be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e). T en d ers will be received at Federal R eserve B anks and Branches up to the closing hour, tw o o ’clock p .m ., E astern Standard tim e, M ond ay, February 6, 1950. T enders w ill not be received at the T reasury D epartm ent, W a sh in g to n . Each tender m ust be for an even m ultiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three decim als, e. g ., 99.925. Fractions m a y not be used. It is urged that tenders be m ade on the printed form s and forw arded in the special envelopes which w ill be supplied by Federal R eserve B anks or Branches on application therefor. T en d ers will be received w ithout deposit from incorporated banks and trust com panies and from responsible and reco g nized dealers in investm ent securities. T en d ers from others m u st be accom panied by paym ent of 2 percent of the face am ount o f T reasu ry 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 R eserve Banks and Branches, follow ing which public announcem ent will be made by the Secretary of the T reasury of the am ount and price range of accepted bids. T h ose subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary o f the T reasury expressly reserves the right to accept or reject any or all tenders, in w hole 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 w ithout stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids. Settlem ent for accepted tenders in accordance with the bids m u st be made or com pleted at the Federal Reserve B ank on February 9, 1950, in cash or other im m ediately available funds or in a like face am ount of T reasu ry bills m aturing February 9, 1950. Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. T h e incom e derived from T reasu ry 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 of T reasury bills shall not have any special treatm ent, as such, under the Internal R evenue Code, or laws am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exem p t 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 U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount at which T reasury bills are originally sold by the United States shall be considered to be interest. U nd er Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue Code, as am ended by Section 115 of the R evenue A c t of 1941, the am ount 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 ccord in gly, the ow ner of T re asu ry 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, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for w hich the return is m ade, as ordinary gain or loss. T reasu ry D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s o f the T reasu ry bills and govern the conditions of their issue. Copies of the circular m a y be obtained from any Federal R eserve B ank or Branch. 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 ork 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, February 6, 1950. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Paym ent f o r the Treasury bills cannot be made by credit through the Treasury T ax and Loan A ccount. 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. (E xtract from Treasury Department statement released fo r publication January 31, 1950, announcing results after tenders w ere opened fo r 91-day Treasury bills dated February 2, 1950 maturing M ay 4, 1950) T o ta l applied for............. $1,685,534,000 T o ta l accepted ................$1,001,645,000 (includes $93,651,000 entered on a non-com petitive basis and accepted in full at the average price show n below ) A v e r a g e p r ic e ......... 9 9 .7 1 7 + E q u iv a le n t ra te o f d is c o u n t approx. 1 .1 1 8 % per annum R ange of accepted competitive bids: H ig h ......................... 99.735 Equivalent rate of discount approx. 1 .0 4 8 % per annum L o w ........................... 99.716 E qu ivalent rate of discount approx. 1 .1 2 4 % per annum Federal Reserve District .... N e w Y o r k .................... .... Philadelphia ................ Cleveland .................... R ichm ond .................... C hicago ......................... St. L ou is ....................... M inneapolis ................ K ansas City ............... D allas ........................... San Francisco ........... Total Applied for $ 23,240,000 1,281,644,000 38,290,000 31,501,000 7,190.000 10,396,000 173,651,000 13,875,000 6,280,000 19,657,000 24,649,000 55,161,000 Total Accepted $ 21,460,000 685,884,000 19,340,000 28,576,000 7,190,000 10,396,000 122,411,000 13,636,000 6,280,000 19,657,000 24,649,000 42,166,000 (61 percent of the am ount bid for at the low price was accepted) T otal ........................... $1,685,534,000 $1,001,645,000 ( over) 22 T 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 m aturity value in paragraph headed "C om petitive Bid” . I f it is desired to bid on a non com petitive basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid” . D O N O T fill in both paragraphs on one form. A separate tender must be used for each bid. N o__________________ TENDER FOR 91 -D A Y TREASURY BILLS 531 J. Tbi ibe D ated February 9, 1950. M aturing M ay 11, 1950. Dated at.. T o F e d e ra l R eserve B a n k o f N ew Y ork , Fiscal Agent o f the United States. .1950 CO M PE TITIV E BID N O N -C O M P E TIT IV E BID Pursuant to the provisions o f Treasury Department Circular N o. 418, as amended, and to the provisions o f the public notice on February 3, 1950, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions o f Treasury D e partment Circular N o. 418, as amended, and to the provisions o f the public notice on February 3, 1950, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender --------------------------------------fo r a total amount of fo r a total amount o f $.. (R ate per 100) (N ot to exceed $200,000) $......................................................... (maturity value) o f the Treasury bills therein described, o r for any less amount that may be awarded, settlement therefor to be made at your bank, on the date stated in the public notice, as indicated below : □ By surrender of the maturing issue of Treasury bills. (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your bank, on the date stated in the public notice, as indicated below: 0 By surrender of the maturing of Treasury bills-------- ----------$ (Am ount surrendered) □ issue By cash or other immediately available funds (Am ount surrendered) 0 By cash or other immediately available funds The Treasury bills for which tender is hereby made are to be dated February 9, 1950, and are to mature on M ay 11, 1950. This tender will be inserted in special envelope entitled “ Tender fo r Treasury bills” . Name o f Bidder.. (Please p rin t) B y ....... (Official signatu re required) (T itle) Street Address ........................................... (C ity, T ow n o r V illage, P.O . No., and State) I f this tender is submitted for the account o f a customer, indicate the custom er’s name on line below : (N am e o f C ustom er) (C ity, T ow n o r Village, P.O . No., and State) Use a separate tender fo r each custom er’s bid. IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 w ill be considered, and each tender m ust be for an even m ultiple o f $1,000 (m aturity v a lu e ). A separate tender m ust be executed for each bid. 2. I f the person m akin g the tender is a corporation, the tender should be signed b y an officer o f the corpora tion authorized to m ake the tender, and the signing of the tender by an officer o f the corporation w ill be construed as a representation by him that he has been s o authorized. If the tender is m ade by a partnership, it should be signed by a m em b er of the firm, w h o should sign in the form “ ................................. ........................ .................................................... a copartnership, by ....................................................................................................................... . a m em ber of the firm” . 3. T en ders w ill be received w ithout deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent o f 2 percent of the face am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied b y an express guaranty of paym ent by an incorporated bank or trust com pany. 4. I f the language of this tender is changed in any respect, which, in the opinion of the S«cretary of the T reasu ry, is material, the tender m a y be disregarded. Paym ent b y cred it through T reasury T a x and Loan A cco u n t w ill n ot b e perm itted. http://fraser.stlouisfed.org/ T E N T H — 1023-a Federal Reserve Bank of St. Louis * Price must be expressed on the basis o f 100, with not m ore than three decimal places. Fractions m ay not be used. (oV E Jt)