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FEDERAL RESERVE BANK O F NEW YORK
{ CirMi^26°i 95o62 }
F iscal A g e n t o f the U nited States
Public Notice o f Offering o f $1,100,000,000, or thereabouts, o f 91-Day Treasury Bills
Dated June 1 , 1 9 5 0
Maturing August 3 1 , 1 9 5 0
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 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 rid ay, M a y 26, 1950.
TREASURY DEPARTM ENT
W a sh in g to n
T h e Secretary of the T reasu ry, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 9 1-d a y
bills, for cash and in exchange for T reasu ry bills m aturing June 1, 1950, to be issued on a discount basis under
tive and non -com petitive bidding as hereinafter provided.
T h e bills o f this series w ill be dated June 1, 1950,
m ature A u g u s t 31, 1950, w hen the face am ount will be payable w ithout interest. T h e y w ill be issued in bearer fo rm
in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity va lu e).
T reasury
com peti
and will
on ly , and
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 ., E astern
D a yligh t Saving tim e, M o n d a y , M a y 29, 1950. T en d ers 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 o f $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 o re than three decim als, e. g ., 99.925. F ractions m a y n ot 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 en d ers 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 u st 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 of p aym ent b y an incorporated bank
or trust com pany.
Im m ed iately after the closin g hour, tenders w ill be opened at the Federal R eserve B anks and Branches, follow in g which
public announcem ent w ill be m ade b y the Secretary o f the T reasury 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 reasu ry exp 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) of accepted com petitive bids. Settlem ent fo r accepted tenders in accordance
with the bids m u st be m ade or com pleted at the Federal R eserve B ank on June 1, 1950, in cash or other im m ediately avail
able funds or in a like face am ount of T re asu ry bills m aturing June 1, 1950. Cash and exchange tenders w ill receive equal
treatm ent. C ash adjustm ents w ill be m ade for differences betw een the par value o f m aturing bills accepted in exchange and
the issue price o f 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 any exem ption , as such, and loss from the sale or other disposition o f T reasu ry bills shall n ot 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 o r other excise taxes, w hether Federal or State, but shall be exem p t from all taxation
n ow 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 b y an y local taxin g authority. F or purposes o f taxation the am ount o f discount at which T reasu ry bills are originally
sold by 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 am ended by Section 115 o f the R evenue A c t o f 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 o r 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 o r loss.
T reasu ry D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s o f the T reasury bills and govern
the condition s of their issue. C opies of the circular m a y be obtained fro m any Federal R eserve B ank o r 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 Daylight Saving time, on Monday, May 29, 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 or
o th 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 ep a rtm en t statem ent released f o r publication M a y 23, 1950, announcing results
a fte r tenders w ere opened f o r 91-day T rea su ry bills dated M a y 25, 1950 m aturing A u g u st 24, 1950)
T o ta l applied f o r ............ $1,538,046,000
T o ta l a c c e p t e d .................$1,102,992,000 (includes $95,308,000
entered on a non-com petitive basis
and accepted m full at the average
price show n below )
A vera ge price . 9 9 .7 0 5 +
E quivalent rate o f discount
approx. 1 .16 7 % per annum
R ange o f accepted com petitive b id s:
H ig h .......................
99.709
E quivalent rate of discount
approx. 1 .1 5 1 % per annum
Federal R eserve
District
B o s t o n .................................... $
N ew Y o rk ...........................
Philadelphia .........................
Cleveland .............................
Richmond .............................
Atlanta .................................
Chicago ..................................
St. Louis .............................
Minneapolis ........................
L o w ..........................
^ a nSaS Clty .........................
99.704
E qu ivalent rate o f discount
a p p r o x 1 .1 7 1 % per annum
(84 percent o f the am ount bid for a t the low
price w as accepted)
T otal
...........................
Total
Applied for
16,896,000
$
1,138,769,000
32,294,000
40,975,000
5,130,000
7,710,000
158,088,000
16,364,000
4,100,000
Total
Accepted
16,396,000
771,169,000
21,174,000
40,459,000
5,082,000
7,710,000
109,408,000
16,088,000
4,084,000
nnn
™ n on ’nnn
fW g g g
-----------------------$1,538,046,000
-----------------------$1,102,992,000
(o v e r )
23J
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 valu e 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 atu rity valu e in paragraph headed "N on -com petitive
Bid” . D O N O T fill in b oth paragraphs on one fo rm . A separate tender m ust b e used f o r
each bid.
N o..................................
T E N D E R F O R 91 -D A Y T R E A S U R Y BILLS
D ated June 1, 1950.
M aturing A u gu st 31, 1950.
Dated at
T o F e d e r a l R e se r v e B a n k o f N e w Y o r k ,
Fiscal Agent^of the United States.
1950
C O M PE TITIV E 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 M ay 26,
1950, as issued by the Secretary o f the Treas
Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and to
the provisions o f the public notice on M ay 26,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender
ury, the undersigned o ffe rs .......................................*
(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 fo r 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 b ills...............
□
the maturing
issue o f
(N ot to exceed $200,000)
By
surrender o f
Treasury b ills...............
$
the maturing
of
$ ----------------------------------(A m ount surrendered)
(A m ount surrendered)
B y cash or other immediately available funds
issue
□
B y cash or other immediately available funds
The Treasury bills fo r which tender is hereby made are to be dated June 1, 1950, and are to mature on
August 31, 1950.
T h is ten d er w ill be in serted in special en v elop e entitled “ T en d er f o r T rea su ry bills’’ .
N a m e o f Bidder ................................................
(Please print)
By
(T itle )
(Official signature required)
Street A d d 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 or V illage, P .O . N o., and State)
U se a separate tender for each custom er’s bid.
IM P O R T A N T IN ST R U C T IO N S:
1. N o tender 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 p erson m aking the tender is a corporation, the tender should be signed b y an officer o f the corpora
tion authorized to m ake the tender, and the sign ing o f the tender by an officer o f the corporation will be construed as a
representation by him that he has been so authorized. I f the tender is m ade b y a partnership, it shou ld be signed b y 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 e n d e rs w ill be received w ithout deposit fro m 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 b y paym ent o f 2 percent
o f the face am ou n t o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f p aym ent
b y an incorporated bank or trust com pany.
4. I f the lan gu age o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the
T reasury, is m aterial, th e tender m a y be disregarded.
Paym ent b y cred it th rou gh Treasury T a x and Loan A cc o u n t w ill n ot be perm itted.
T E N T B — 1039-a
* Price must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.
(o v M >
@FedFRASER