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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)

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