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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

$

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