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FEDERAL RESERVE BANK O F N EW YORK
C ir cu la r N o. 3 55 8 1
A p r il 28,1950 I

Fiscal Agent o f the United States

Public Notice o f Offering o f $1,100,000,000, or thereabouts, o f 91-Day Treasury Bills
Dated May 4, 1950

Maturing August 3, 1950

T o all Incorporated Banks and Trust Companies in the
Second Federal R eserve 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.of 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 28, 1950.

TREASURY DEPARTM ENT
W ash in g ton

T h e Secretary o f the T reasu ry, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day T re a s­
ury bills, for cash and in exchange for T reasu ry bills m aturing M a y 4, 1950, to be issued on a discount basis under com peti­
tive and non-com petitive bidding as hereinafter provided. T h e bills of this series will be dated M a y 4, 1950, and will mature
A u g u s t 3, 1950, w hen 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 of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e).
T en d ers will be received at Federal R eserve B anks and Branches up to the
Standard tim e, M on d ay , M a y 1, 1950. T en d ers will not be received at the T reasu ry
m u st be for an even m ultiple of $1,000, and in the case of competitive tenders the
basis o f 100, w ith not m ore than three decim als, e. g ., 99.925. Fractions m a y not be
on the printed form s and forw arded in the special envelopes which will be supplied
on application therefor.

closing hour, tw o o ’clock p .m ., Eastern
D epartm ent, W a sh in g to n . E ach tender
price offered m ust be expressed on the
used. It is urged that tenders be m ade
by Federal Reserve B anks or Branches

T en d ers will be received w ithout deposit from incorporated banks and trust companies 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
of T reasu 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.
Im m ediately after the closing hour, tenders will be opened at the Federal Reserve B anks and Branches, follow in g which
public announcem ent will be m ade by the Secretary of the T reasury of 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 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 without stated price from any one bidder w ill be accepted
in full at the average price (in three decim als) o f accepted competitive bids. S ettlem ent for accepted tenders in accordance
with the bids m ust be m ade or com pleted at the Federal R eserve Bank on M a y 4, 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 a y 4 , 1950. Cash 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 income derived from T reasu ry bills, whether 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 Revenue 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, o r any of the possessions of the U nited States,
or by any local taxing authority. F or purposes of taxation the am ount o f discount at which T reasury bills are originally
sold b y the U n ited States shall be considered to be interest. U n d e r Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue
Code, as amended by Section 115 o f the R evenue A c t of 1941, the am ount o f discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold, redeem ed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. A ccord in gly, the ow ner of T reasu ry bills (other than life insurance co m ­
panies) issued hereunder need include in his income tax return on ly the difference betw een the price paid for such bills,
whether 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 which the return is m ade, as ordinary gain o r 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 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) 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 (3 o ’clock p.m., “ Daylight Saving time” ) , on Monday, May 1, 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 ax and Loan Account. Settle­
ment must be made in cash or other immediately available funds or in maturing Treasury bills.
A lla n

S p r o u l,

President.

(E xtract from Treasury Department statement released f o r publication A pril 25, 1950, announcing results
after tenders were opened fo r 91-day Treasury bills dated April 2 7 ,1 9 5 0 maturing July 27, 1950)
T o ta l applied for...........$1,549,288,000
T o ta l a c c e p te d ................$1,000,032,000 (includes $105,566,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A vera ge price.........

9 9 .7 0 5 +

Equivalent rate of discount
approx. 1 .1 6 6 % per annum

R ange of accepted competitive bids:
H ig h

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

99.713

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

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

99.704

Equivalent rate of discount
approx. 1 .1 7 1 % per annum

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




Federal R eserve
District
....
N e w Y o r k .................... ....
Philadelphia ................
Cleveland .......................
R ichm ond ....................
A tlan ta .........................
C hicago .........................
St. L ou is .......................
M inneapolis ................
K ansas C ity ...............
San Francisco ...........
T

otal

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

Total
Applied for
$

10,917,000
1,174,134,000
26,675,000
23,688.000
6,435,000
15,313,000
171,947,000
12,154,000
3,799,000
32,590,000
17.931,000
53,705,000

$1,549,288,000

Total
Accepted
$

10,917,000
709,559,000
15,290,000
23,394,000
6,435,000
15,313,000
110,582,000
11,767,000
3,799,000
32,040,000
17,931,000
43,005,000

$1,000,032,000
(O V E * )

23F
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 only 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___________________

TENDER FOR 91 -D A Y TREASURY BILLS
D ated May 4, 1950.

M aturing A u gu st 3, 1950.
Dated a t ---------------------------------

To

F ed er al R eserve B a n k of N e w Y o r k ,

.1950

Fiscal A gent o f the United States.
COM PETITIVE BED

N O N -C O M P E TIT 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 28, 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 A pril 28,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

___________________________ * fo r a total amount o f

for a total amount o f $----------------------------------------( N o t t o e x c e e d $200,000)

(R a te p e r 100)

(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 :

$______________________________ (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 :
□

By

surrender o f

Treasury bills.........

□

the

$..

maturing

issue

□

of

By

surrender o f

the

maturing

issue o f

Treasury bills---------------- $_______________________
(A m o u n t s u rre n d e re d )

(A m o u n t s u rre n d e re d )

□

B y cash or other immediately available funds

By cash or other immediately available funds

The Treasury bills for which tender is hereby made are to be dated May 4, 1950, and are to mature on
August 3, 1950.
This tender will be inserted in special envelope entitled “ Tender f o r Treasury bills” .
N a m e o f Bidder..
(P le a s e p r in t )

By

(O fficia l s ig n a t u r e r e q u ire d )

(T it le )

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

(C it y , T o w n o r V illa g e , P .O . N o., a n d S ta te)

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

(C it y , T o w n o r V iiia g e , P.O. N o., a n d S ta te )

(N a m e o f C u s to m e r)

U se a separate tender fo r each custom er’s bid.

IM P O R T A N T IN STR U C T IO N S:
1. N o ten d er fo r less than $1,000 w ill be considered, and each tender m u st be for an even m ultiple o f $1,000
(m aturity va lu e). A separate tender m u st be executed for each bid.
2. I f the person m akin g 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 signin g 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 s o 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 of the firm” .
3. T en d ers 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 b y paym ent o f 2 percent
o f 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 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 a y be disregarded.

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

http://fraser.stlouisfed.org/
T E N T B — 1035-a
Federal Reserve Bank of St. Louis

* Price must 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