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FEDERAL RESER VE BANK O F NEW YORK Fiscal A gent o f the United States £ ^arlh^V so50 1 P u b li c N o t ic e o f O ffe r in g o f $ 9 0 0 ,0 0 0 ,0 0 0 , o r t h 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 A p r il 6, 1950 M a t u r in g J u ly 6 , 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 d iscount basis under competitive and non-competitive bidding. F O R R E L E A S E , M O R N IN G F riday, M arch 31, 1950. NEW SPAPERS, TREASURY DEPARTM ENT W ashington T h e Secretary of the Treasury, by this public notice, in v ites tenders for $900,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for T reasury bills m aturing A pril 6, 1950, to be issued on a discount basis under competi tive and non-competitive bidding as hereinafter provided. T he bills of this series w ill be dated A p ril 6, 1950, and will mature July 6, 1950, when the face am ount 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, $100,000, $500,000, and $1,000,000 (m aturity value). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern Standard tim e, M ond ay, A p ril 3, 1950. T enders w ill not be received at the Treasury Department, W ash in gton . Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. 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 m ust be accompanied by payment of 2 percent of the face am ount of T reasu ry bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Im mediately after the closing hour, tenders w ill 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 am ount and price range of accepted bids. Those submitting tenders w ill be advised of the acceptance or rejection thereof. T h e 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 fu ll at the average price (in three decim als) of accepted competitive bids. Settlement fo r accepted tenders in accordance with the bids m ust be made or completed at the Federal R eserve Bank on A p ril 6, 1950, in cash or other immediately available funds or in a like face amount of T reasu ry bills maturing A p ril 6, 1950. Cash and exchange tenders w ill receive equal treat ment. Cash adjustments w ill be made for differences between the par value of m aturing bills accepted in exchange and the issue price o f the new bills. The 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 o f T reasury bills shall not have any special treatment, as such, under the Internal Revenue Code, or laws am endatory or supplementary thereto. T h e bills shall be subject to estate, inheritance, gift 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 o f the possessions of the United 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 nder Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue Code, as amended by Section 115 of the Revenue A c t 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 of, 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 ta x 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 a y be obtained from any Federal Reserve Bank 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 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 M onday, A pril 3, 1950. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Paym ent for 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 T reasury bills. A l l a n S p ro u l, President. (E x tra ct from Treasury Department statement released fo r publication March 28, 1950, announcing results after tenders were opened for 91-day Treasury bills dated March 30, 1950 maturing June 29, 1950) Federal Reserve District T otal applied f o r ......... $1,423,742,000 T o ta l acce p ted ..............$ 901,893,000 (includes $81,157,000 entered on a non-competitive basis and accepted in full at the average price shown below ) A verage p rice____ 99.711 Equivalent rate of discount approx. 1.145% per annum Range of accepted competitive b id s : H i g h ........................ 99.716 Equivalent rate of discount approx. 1.124% per annum L o w ........................... 99.709 Equivalent rate o f discount approx. 1.151% per annum (49 percent of the amount bid for at the low price was accepted) --------------------------- Boston .................................. New Y ork ....................... Philadelphia .................. Cleveland ......................... Richmond ....................... 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 City .................. D allas ............................... San Francisco .............. T o t a l ......................... Total Applied for Total Accepted — ------------10,975,000 1,109,126,000 25,152,000 26,199,000 4,300,000 3,297,000 145,973,000 11,322,000 4,510,000 17,714,000 12,722,000 52,452,000 -----------------------$1,423,742,000 ---------------$ 10,720,000 635,276,000 10,152,000 25,897,000 4,300,000 3,297,000 135,973,000 10,610,000 4,510,000 17,204,000 11,702,000 32,252,000 -------------------$901,893,000 $ ( over) 23 B IM PORTANT— If it is desired to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed “ Competitive Bid” . If it is desired to bid on a non competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive B id” . DO NOT fill in b oth paragraphs on one form . A separate tender must b e used for each bid. No. T E N D E R FOR 91-D A Y T R E A S U R Y BILLS Dated A pril 6, 1950. Maturing July 6, 1950. Dated a t ....................... T o F ederal R eserve B a n k of N e w Y o r k , Fiscal A gent o f the United States. 1950 COMPETITIVE BID NON-COMPETITIVE 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 31, 1950, as issued by the Secretary o f the Treasury, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular No. 418, as amended, and to the provisions o f the public notice on March 31, 1950, as issued by the Secretary o f the Treasury, the undersigned offers a non-com petitive tender .............................................* fo r a total amount of for a total amount o f $ .............................................. (R ate 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 below : □ □ By surrender of Treasury b ills ............... the maturing issue o f $ .................................... By surrender of the maturing issue Treasury bills ............... $ .................................... (A m ount surrendered) □ By cash or other immediately available funds of (A m ount surrendered) □ By cash or other immediately available funds The Treasury bills for which tender is hereby made are to be dated April 6, 1950, and are to mature on July 6, 1950. T his tender w ill be inserted in special envelope entitled “ T en d er fo r T reasury bills” . Nam e of Bidder. (P lea se print) B y ... (Official signature required) (T itle ) Street A d d r e s s ........................................ (C ity , T ow n or V illa ge, P. O. N o., and State) I f 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 o r V illa ge, P. O. N o., and State) U se a separate tender for each customer’s bid. IM PORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 w ill be considered, and each tender must be $1,000 (m aturity va lu e). A separate tender must be executed for each bid. for an even multiple of 2. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation w ill be construed as a rep resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem ber of the firm, who should sign in the form “ ........................................................................................................................ a copartnership, by .......................................................................................................................... . a member o f the firm” . 3. Tenders 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 accompanied by payment of 2 percent of the face amount of T reasury 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 Treasury, is material, the tender m ay be disregarded. Paym ent b y credit through Treasury Tax and Loan A ccoun t will not b e perm itted. T E N T B — 1031-a * Price must be expressed on the basis of 100, with not m ore than three decimal places. Fractions may not be used. ( over)