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FEDERAL RESERVE BANK O F NEW YORK
Fiscal Agent o f the United States

J CiA
prnr uVlfo52 )

Public Notice o f Offering o f $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills
D a ted A p r il 2 0 , 1 9 5 0

M a tu rin g J u ly 2 0 , 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 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, A p ril 14, 1950.

TREASURY DEPARTM ENT
W ashington

T h e S ecretary of the T reasury, b y this public notice, invites tenders for $1,000,000,000, or thereabouts, of 9 1-d a y T reasury
bills, fo r cash and in exchange for T reasu ry bills m aturing A pril 20, 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 w ill be dated A p ril 20, 1950, and will
m ature July 20, 1950, w hen the face am oun t will be payable w ithout interest. T h e y w ill be issued in bearer fo rm on ly , 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 will be received at Federal R eserve B anks and B ranches up to the closin g hour, tw o o ’clock p .m ., Eastern
Standard tim e, M on d ay , A pril 17, 1950.
T enders will not be received at the T reasu ry D epartm ent, W a sh in g to n .
E ach
tender m u st be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
the basis o f 100, with not m ore than three decim als, e. g ., 99.925. F ractions 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 en ders from others m ust be accom panied by paym ent of 2 percent o f the face am ount
o f T re asu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by 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 made by the Secretary of the T reasu ry of the am ount and price range o f accepted bids. T h o se
subm ittin g tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary of the T re asu ry e xp ressly 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 w ill 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
w ith the bids m u st be m ade or com pleted at the Federal R eserve Bank on A p ril 20, 1950, in cash or other im m ediately avail­
able funds or in a like face am ou nt of T reasu ry bills m aturing A p ril 2 0, 1950. C ash and exchange tenders will receive equal
treatm ent. Cash adjustm ents will be m ade for differences betw een the par value o f 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, w hether interest or gain from the sale or other disposition o f the bills, shall
not have an y exem ption , as such, and loss from the sale or other disposition o f T re asu ry bills shall not 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, g ift 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 p ossessions o f the U n ited States,
or by any local taxin g authority.
F or purposes o f taxation the am ount o f discount at w hich T reasu ry bills are originally
sold by the U n ited States shall be considered to be interest. U nd er Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue
Code, as am ended b y 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, redeem ed or otherw ise disposed of, and such bills are
excluded from consideration as capital assets.
A cco rd in gly , the ow ner o f T re asu ry bills (other than life insurance co m ­
panies) issued hereunder need include in his incom e ta x return on ly the difference betw een the price paid for such bills,
w hether 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 of the T reasu ry bills and govern
the conditions of their issue. Copies of the circular m a y be obtained from any F ederal Reserve 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, April 17, 1950. It is requested that tenders be
submitted on special form printed on reverse side and returned in special envelope enclosed herewith. P a ym en t f o r the
T rea su ry bills cannot be made by cred it through the T rea su ry T a x and L oan A ccou n t. S ettlem en t m ust be m ade in cash
o r oth er im m ediately available fu n d s or in m aturing T rea su ry bills.

A l l a n S p ro u l, P resid en t.
(E x tr a c t fr o m T rea su ry D epartm en t statem ent released f o r publication A p ril 11, 1950, announcing
results a fte r tenders w ere opened f o r 91-day T reasury bills dated A p r il 13, 1950 m aturing July 1 3 ,1 9 5 0 )
T o ta l applied f o r ............ $1,367,892,000
T o ta l a c c e p t e d .................$1,001,149,000 (includes $105,949,000
entered on a non -com petitive basis
and accepted in full at the average
price show n b elow )
A ve ra ge price . . . 99.707
E quivalent rate of discount
approx. 1 .1 6 0 % per annum
Range of accepted com petitive b id s:
H ig h .......................
99.715
E quivalent rate of discount
approx. 1 .1 2 7 % per annum
L o w ..........................

99.705

E quivalent rate of discount
approx. 1 .1 6 7 % per annum

(67 percent of the am ount bid for at the low
price w as accepted)




Federal Reserve
District
B oston ................................. $
N e w Y o r k ........................
Philadelphia
...................
Cleveland ..........................
R ich m ond ..........................
A tlanta ...............................
C hicago ...............................
St. L ou is ..........................
M inneapolis
...................
S a„ sas C l t y .....................
*?alIa® •• \..........................
San Francisco .................
T otal

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

Total
Applied for
11,272,000
$
971,311,000
25,350,000
44,803,000
9,960,000
14,799,000
144,259,000
18,308,000
3,840,000

Total
Accepted
11,272,000
624,551,000
15,350,000
44,803,000
9,960,000
14,799,000
135,959,000
18,275,000
3,840,000

9 7 » 7 9 nnn
29,522,000
68,946,000
------------------------$1,367,892,000

27,872,000
68,946,000
------------------------$1,001,149,000
(o v e r )

23D
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 aturity value in paragraph headed "N on -com petitive
Bid” . DO N O T fill in both paragraphs on one form. A separate tender must be used for

each bid.
N o ..................................

T E N D E R FO R 9 1 -D A Y T R E A S U R Y BILLS
Dated A pril 20, 1950.

M aturing July 20, 1950.
Dated at

T o F ederal R eserve B a n k of N e w Y o rk ,
Fiscal Agent o f the United States.

1950

COM PETITIVE BID

N O N -C O M P E T IT 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 April
14, 1950, as issued by the Secretary o f the Treas­

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on A pril 14,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

ury, the undersigned offers
(R ate per 100)

fo r a total amount o f $ ...............................................

fo r a total amount o f $ ........................................... .
(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 below :

(maturity value) o f the Treasury bills therein
described, at the average price (in three decimals)
o f accepted competitive bids, settlement therefor
to be made at your bank, on the date stated in
the public notice, as indicated b elow :

□

□

By

surrender

of

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

the maturing

issue

of

$ -----------------------------------

(N ot to exceed $200,000)

By

surrender

of

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

the

maturing

$ _______________________
(A m ount surrendered)

(A m ount surrendered)

□

B y cash or other immediately available funds

issue o f

□

By cash or other immediately available funds

The Treasury bills fo r which tender is hereby made are to be dated April 20, 1950, and are to mature on
July 20, 1950.
This tender will be inserted in special envelope entitled “ Tender f o r Treasury bills” .
N a m e o f Bidder

By

(Please print)

..........

(T itle)

(Official signature required)

Street A dd 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 cu stom 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 w ill be considered, and each tender m u st be fo r an even m ultiple o f $1,000
(m atu rity valu e). A separate tender m u st 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 signing o f the tender by an officer o f the corporation w ill be construed as a
representation b y him that he has been so authorized. If the tender is m ade b y a partnership, it should be signed by a
m em ber o f the firm, w h o should sign in the form “ ............................................................................................................ a copartnership, by
........................................................................................................................... .. a m em ber of the firm” .
3 . T en d ers 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 en d ers from others m ust be accom panied by paym ent of 2 percent
o f the face am ount o f T re asu ry bills applied for, 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 o f this tender is changed in any respect, w hich, in the opinion o f the Secretary o f the
T reasu ry, is material, the tender m a y be disregarded.

Payment by credit through Treasury Tax and Loan A ccount will not be permitted.
B — 1033-a
TENT


* Price must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.
(o v e r )

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