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FEDERAL RESERVE BANK O F NEW YORK
r C ir c u la r N o. 3546]
L M a rch 17,1950 J

Fiscal Agent o f the United States

Public Notice o f Offering o f $900,000,000, or thereabouts, o f 91-Day Treasury Bills
D a te d M a rc h 2 3 , 1 9 5 0

M a tu rin g J u n e 2 2 ,

1950

T o all Incorporated Banks and Trust Companies in the
Second Federal R eserve District and Others C oncerned:

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 ,
F riday, M arch 17, 1950.

TREASURY

DEPARTM ENT

W ash in g to n

T h e Secretary o f the T reasu ry, by this public notice, invites tenders for $900,000,000, or thereabouts, of 9 1-d a y Treasury
bills, for cash and in exchange for T reasu ry bills m aturing M arch 2 3, 1950, to be issued on a discount basis under competi­
tive and non-com petitive bidding as hereinafter provided. T h e bills of this series will be dated M arch 23, 1950, and will
m ature June 22, 1950, w hen the face am ount w ill be payable w ithout interest. T h e y will 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 enders w ill be received at Federal R eserve B anks and Branches up to the closing hour, tw o o'clock p .m ., Eastern
Standard tim e, M on d ay , M arch 20, 1950. T enders will not be received at the T reasury D epartm ent, W a sh in g to n . Each
tender must 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, with not more than three decimals, e. g., 99.925. Fractions m a y not be used. It is urged that tenders be
made on the printed form s and forwarded in the special envelopes which will be supplied by Federal Reserve B anks or
Branches on application therefor.
T en ders will be received without deposit from incorporated banks and trust com panies and from responsible and recog­
nized dealers in investm ent securities. T en ders from others m ust be accom panied by paym ent of 2 percent o f the face am ount
o f T reasury 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 Reserve Banks and Branches, follow ing which
public announcem ent will be m ade by the Secretary of the T reasu ry o f 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 of the T reasury expressly reserves
the right to accept o r 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 w ill be accepted
in full at the average price (in three decim als) of accepted competitive bids. Settlem ent for accepted tenders in accordance
w ith the bids m u st be m ade or com pleted at the Federal Reserve Bank on M arch 23, 1950, in cash or other im m ediately
available funds or in a like face am ount of T reasu ry bills m aturing M arch 23, 1950. Cash and exchange tenders will 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 o f the new bills.
T h e income 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 ption, as such, and loss from the sale or other disposition of T reasu ry 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
now 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 b y the U n ited States shall be considered to be interest. U nd er Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue
C ode, as am ended by Section 115 o f the R evenue A c t of 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 otherwise disposed o f, and such bills are
excluded from consideration as capital assets. A ccord in gly, the ow ner of T reasury bills (other than life insurance com ­
panies) issued hereunder need include in his income ta x 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 redemption at
m aturity during the taxable year fo r w hich the return is made, as ordinary gain or loss.
T reasury D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s of the T reasury bills and govern
the conditions of their issue. Copies of the circular m a y be obtained from any Federal R eserve Bank 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, March 20, 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 Mils cannot be wade by credit through the Treasury Tax and Loan Account. Settlement must be made in cash
or other immediately available funds or in maturing Treasury bills.
A l l a n S prou l . President.

( Extract ^from Treasury Departnu'nt statement released f o r publication March 14, 1950, announcing
results after tenders were opened fo r 91-day Treasury bills dated March 16, 1950 maturing June 15, 1950)
T o ta l applied for............. $1,641,347,000
T o ta l accepted ....... ........$ 902,416,000 (includes $99,570,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A vera ge price........

99.714-)-

Equivalent rate of discount
approx. 1 .1 3 1 % per annum

Federal Reserve
District
B oston ......................... ......
N e w Y o r k .................. ......
Philadelphia .............
Cleveland ..................
R ichm ond ..................

Range of accepted com petitive bid s:
H ig h

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

99.717

Equivalent rate o f discount
approx. 1 .1 2 0 % per annum

L o w ...........................

99.713

Equivalent rate of discount
approx. 1 .1 3 5 % per annum

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

Digitized for


St. L ou is ....................
M inneapolis .............
K a n sa s City .............
San Francisco ........
T

otal

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

Total
Applied for
$

Total
Accepted

19,412.000
1,181.004.000
102.680.000
35,363,000
5,752,000
15,604,000
116,947.000
15,827,000
4,675,000
27,335,000
28,010,000
88.738,000

$ 19,262,000
605,123,000
80.715,000
29,223,000
5,430,000
14,779,000
53,794,000
9.227.000
4.310,000
16.060,000
12,485,000
52.008,000

$1,641,347,000

$902,416,000
( over)

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 on ly the m aturity value in paragraph headed "N on -com petitive
Bid” . DO NOT fill in both paragraphs on one form. A separate tender must be used for

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
Dated March 23, 1950.
To

M aturing June 22,

1950.

Dated at
F e d e r a l R eserve B a n k of N e w Y o r k ,

Fiscal Agent o f the United States.

.1950

COM PETITIVE BID

N O N -C O M P E TIT 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 17, 1950, as issued by the Secretary
of
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 March 17,
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 of

(R ate per 100)

(Not. 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 competitive 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 bills™................ $_________

By

surrender

of

the

issue o f

Treasury bills__________ $___ ___________________

(Am ount surrendered)

□

maturing

By cash or other immediately available funds

(Am ount surrendered)

□

By cash or other immediately available funds

The Treasury bills fo r which tender is hereby made are to be dated March 23, 1950, and are to mature
on June 22, 1950.
This tender will be inserted in special envelope entitled “ Tender fo r Treasury bills".
N a m e of Bidder.
(P lease print)
B y .........

(Official signature required)

(T itle )

Street A d d ress ..................................................

(C ity, T ow n or Village, P.O. No., and State)
I f this tender is subm itted for the account o f a customer, indicate the custom er’s name on line below :

(Name o f Custom er)

(C ity, Tow n o r Village,’ P . O! No!! and State)'

U se a separate tender for each custom er’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 m ust be for an even m ultiple of $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 of the corpora­
tion authorized to m ake the tender, and the signing o f the tender b y an officer o f the corporation w ill be construed as a
representation by him that he has been so authorized. I f the tender is m ade by a partnership, it should be signed by a
m em ber of the firm, w h o should sign in the form “ ............................................................................................................. a copartnership, by
.................................................................................................................... a m em ber o f the firm ” .
3. T en ders w ill be received w ithout deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent
o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f 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 o f the Secretary of the
T reasury, is material, the tender m ay be disregarded.

Vayment by credit through Treasury Tax and Loan Account will not be permitted.



* Price must be expressed on the basis o f 100, with not m ore than
three decimal places. Fractions may not be used.

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