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FEDERAL RESERVE BANK O F NEW
Fiscal A gent o f the United States

YORK
{ C^ i?ch 3 19 0 }
°' 5 *2

Public Notice o f Offering o f $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills
D a ted M a r c h 9 , 1 9 5 0

M a tu rin g J u n e 8 , 1 9 5 0

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve 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 tinder 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, M arch 3, 1950.

TREASURY DEPARTM ENT
W a sh in g to n

T h e Secretary of the T reasury, by this public notice, invites tenders for $1,000,000,000, o r thereabouts, o f 9 1-d a y T reasury
bills, for cash and in exchange for T reasu ry bills m aturing M arch 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 o f this series will be dated M arch 9, 1950, and will
m ature June 8, 1950, when the face am ount will be payable without interest. T h e y w ill be issued in bearer form only, and
in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity va lu e).
T enders will be received at Federal R eserve B anks and Branches up to the closin g hour, tw o o ’clock p .m ., E astern Standard
tim e, M o n d a y , M arch 6, 1950. T en d ers will not be received at the T re asu ry D epartm ent, W a sh in g to n . E ach tender m ust
be for an even m ultiple of $1,000, and in the case o f com petitive tenders the price offered m u st be expressed on the basis of 100,
with not m ore than three decim als, e. g ., 99.925. F raction s 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 w hich will be supplied by Federal R eserve B anks or B ranches on application
therefor.
T e n d e rs 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 enders from others m ust be accom panied by paym ent o f 2 percent of the face am ount
o f T re asu ry bills applied for, unless the tenders are accom panied by an express guaranty o f p aym ent b y an incorporated bank
or trust com pany.
Im m ed iately after the closin g hour, tenders will be opened at the Federal R eserve B anks and Branches, follow in g which
public announcem ent will be m ade by the Secretary o f the T re asu ry o f the am ount and price range of accepted bids. T h o se
subm itting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry 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) o f accepted com petitive bids. Settlem ent for accepted tenders in accordance
with the bids m u st be m ade or com pleted at the Federal Reserve B ank on M arch 9, 1950, in cash or other im m ediately avail­
able funds or in a like face am ount of T reasu ry bills m aturing M arch 9, 1950. Cash and exchange tenders w ill receive equal
treatm ent. Cash adjustm ents will be m ade fo r differences between the par value o f m aturing bills accepted in exchange and
the issue price o f the new bills.
T h e incom e derived from T reasu ry bills, w hether interest or gain from the sale or other disposition of the bills, shall
not have any exem p tion , as such, and loss from the sale or other disposition of T reasu ry bills shall n ot have any special
treatm ent, as such, under the Internal R evenue Code, or law s am endatory or supplem entary thereto. T h e bills shall be
subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but shall be exem p t from all taxation
now or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions of the U n ited States,
or b y any local taxin g authority. F o r purposes of taxation the am ount of discount at w hich T re asu ry bills are originally
sold by the U nited States shall be considered to be interest. U n d e r Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue
C ode, as am ended by Section 115 of the R evenue A c t o f 1941, the am ount o f discount at w hich bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold, redeemed or otherw ise disposed of, and such bills are
excluded from consideration as capital assets. A cco rd in gly , the ow ner of T reasu ry bills (other than life insurance co m ­
panies) issued hereunder need include in his incom e tax return on ly the difference betw een the price paid for such bills,
w hether on original issue o r 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 re asu ry D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s o f the T re asu ry bills and govern
the conditions o f their issue. C opies o f 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) N ew 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, March 6, 1950. It is requested that tenders be submitted
on special form printed on reverse side and returned in special envelope enclosed herewith. Payment f o r the Treasury
bills cannot be made by credit through the Treasury T a x and Loan Account. Settlement must be made in cash o r 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 f o r publication February 28, 1950, announcing
results after tenders w ere opened f o r 91-day Treasury bills dated M arch 2, 1950 maturing June 1, 1950)
T o ta l applied f o r ............$1,664,590,000
T o ta l accepted ................ $1,000,248,000 (includes $87,794,000
entered on a n on -com petitive basis
and accepted in full at the average
price show n b elow )
A vera ge price . . .
99.713
E quivalent rate o f discount
approx. 1 .1 3 7 % per annum

Federal Reserve

R ange of accepted com petitive b id s:
H ig h ........................
99.720
E quivalent rate o f discount
approx. 1 .1 0 8 % per annum

____ Distnct____
Boston
.................................
N e w Y o r k .............................
Philadelphia
......................
Cleveland .............................
R ichm ond ............................
A tlan ta .................................
C h i c a g o .................................
St. L o u is .............................
M inneapolis ........................

p er^ annum
per an n u m

S
' o ••■■
^ S SF*r a^n d s c■ •...................

approx.
(aavo)

1.1437c

(59 percent of the am ount bid for at the low
price was accepted)




T o ta l

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

A To.tal,
____ Applied for
$
15,485,000
1,330,671,000
32,950,000

24,301,000
5,480,000
11,863,000
137,051,000
8,368,000
6,606,000
t B t S S
39,208,000
...
$1,664,590,000

ATotal .
--------Accepted
$
12,365,000
774,885,000
18,900,000
21,290,000
3,480,000
10,043,000
72,787,000
5
6,606,000
S
M
28,798,000
”
$1,000,248,000
(o v k b )

22 X
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 atu rity 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 atu rity value in paragraph headed "N on -com petitive
Bid” . D O N O T fill in both paragraphs on one form . A separate tender m ust be used fo r
each bid.
N o ...................................

T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS
D ated M arch 9, 1950.

M aturing June 8, 1950.
Dated at

T o F e d e ra l R eserve B a n k o f N ew Y o rk ,
Fiscal A gent o f the United States.

1950

C O M PE TITIV E BID

N O N -C O M P E T IT IV E BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on March
3,
1950, as issued by the Secretary o f the Treas­
ury, the undersigned o ffe rs .
(Rate per 100)

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on March
3,
1950, as issued by the Secretary o f the Treas­
ury, the undersigned offers a non-competitive
tender for a total amount o f $

fo r a total amount o f $ ...............................................
(maturity value) o f the Treasury bills therein
described, or fo r 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 :

(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 :

□ ....B y

□

surrender

of

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

□

the

maturing

issue o f

(N ot to exceed $200,000)

By

surrender

of

Treasury b ills

$
(A m ount surrendered)

B y cash or other immediately available funds

□

the

maturing

issue o f

$
(A m ount surrendered)

By cash or other immediately available funds

The Treasury bills for which tender is hereby made are to be dated March 9, 1950, and are to mature
on June 8, 1950.
This tender will be inserted in special envelope entitled “ Tender f o r Treasury bills” .
N a m e of Bidder
(P lease print)

By

...

(T itle )

(Official signature required)

Street A d d ress

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

(C ity, T ow n or Village, P .O . N o., and State)

I f this tender is subm itted for the account o f a custom er, indicate the custom er’s nam e on line b e lo w :

(N am e o f

Customer)

(C ity, T ow n o r V illage, P .O . N o., and State)

U s e a separate tender for each custom er’s bid.

IM P O R T A N T IN ST R U C T IO N S:
1. N o tender for less than $1,000 will be considered, and each tender m ust be for an even m ultiple o f $1,000
(m aturity va lu e). A separate tender m ust be executed for each bid.
2. I f the person m aking the tender is a corporation, the tender should be signed by an officer o f the corpora­
tion authorized to m ake the tender, and the sign ing o f the tender by an officer of the corporation will be construed as a
representation b y him that he has been so authorized. If the tender is m ade by a partnership, it should be signed by a
m em ber of the firm, w h o shou ld sign in the form “ ......................................................................................................

, a copartnership, by

...................................................................................................................... ... , a m em ber o f the firm” .
3. T en d ers will 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
o f the face am ount of T re asu 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.
4. I f the language of this tender is changed in any respect, w hich, in tlie opinion o f the Secretary o f the
T reasury, 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 be perm itted.

TENT
 B — 1027-a


* Price m ust be expressed on the basis o f 100, with not m ore than
three decimal places. Fractions m ay not be used.
(OVER)

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