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FEDERAL RESERVE BANK O F N EW YORK I Cirjun*r9 95 ?i C^] Fiscal Agent o f the United States Public Notice o f Offering o f $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills Dated June 15, 1950 Maturing September 14, 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 o f Treas ury bills payable at maturity without interest to be sold on a discount basis under competitive and non-competitive bidding. TREASURY DEPARTM ENT W ash in g ton 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, June 9, 1950. T h e Secretary o f the T reasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day T r e a s ury bills, for cash and in exchange for T reasury bills m aturing June 15, 1950, to be issued on a discount basis under co m petitive and non-com petitive bidding as hereinafter provided. T h e bills of this series w ill be dated June 15, 1950, and will m ature Septem ber 14, 1950, when the face am ount will be payable without interest. T h e y 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 valu e). T en ders will be received at Federal R eserve B anks and Branches up to the closing hour, tw o o’ clock p .m ., Eastern D a yligh t Saving time, M ond ay, June 12, 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 ust be for an even m ultiple o f $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis o f 100, w ith not m ore than three decim als, e. g., 99.925. Fractions m a y not be used. It is urged that tenders be m ade on the printed form s and forwarded in the special envelopes which will be supplied by Federal R eserve B anks or Branches on application therefor. T en ders will be received without deposit from incorporated banks and trust companies and from responsible and reco g nized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of 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 closin g hour, tenders will be opened at the Federal Reserve B anks and Branches, follow ing which public announcem ent will be m ade by the Secretary o f the T reasury of the am ount and price range of accepted bids. T h o se subm itting tenders will be advised of 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 will be accepted in full at the average price (in three decim als) o f accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal Reserve Bank on June 15, 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 June 15, 1950. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents w ill be m ade for differences between 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 reasury bills shall not have any special treatm ent, as such, under the Internal Revenue Code, or laws am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount at which Treasury bills are originally sold by the U n ited S tates shall be considered to be interest. U nd er 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 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, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccord in gly, the ow ner o f T reasu ry bills (other than life insurance co m panies) issued hereunder need include in his incom e tax return only the difference between 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 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 o f their issue. Copies of the circular m ay be obtained from any Federal R eserve 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 Daylight Saving time, on Monday, June 12, 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. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l l a n S proul, President. (E xtract from Treasury Department statement released fo r publication June 6, 1950, announcing rcsidts a fter tenders w ere opened f o r 91-day Treasury bills dated June 8, 1950 maturing September 7, 1950) T o ta l applied fo r............. $1,603,724,000 T o ta l accepted ................$1,102,296,000 (includes $85,845,000 entered on a non-com petitive basis and accepted in full at the average price show n below ) A vera ge price........ 99.702 Equivalent rate of discount approx. 1 .1 7 9 % per annum R ange of accepted com petitive bid s: H ig h ......................... 99.709 Equivalent rate of discount approx. 1 .1 5 1 % per annum L o w ........................... 99.700 E quivalent rate of discount approx. 1 .1 8 7 % per annum (32 percent of the amount bid for at the low price w as accepted) FRASER Digitized for Federal R eserve District ...... N e w Y o r k ............... ...... Philadelphia ............. C leveland .................... R ichm ond .................. C hicago ...................... St. L o u is .................... M inneapolis ............. K an sa s C ity ....... ..... San Francisco ........ T otal ................... ...... Total A pplied for $ 11,680,000 1,196,337,000 22,865,000 48,241,000 3,755,000 7,872,000 159,888,000 11,911,000 4.900,000 19,920,000 34,585,000 81,770,000 $1,603,724,000 Total Accepted $ 11,340,000 755,677,000 14,705,000 44,841,000 3,755,000 7,872,000 114,688,000 11,643,000 4,900,000 19,920,000 34,585,000 78,370,000 $1,102,296,000 ( over) 23L IMPORTANT— 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 Bid” . D O N O T fill in both paragraphs on one form . A separate tender must be used for each bid. No-........................... TENDER FOR 91-D A Y TREASURY BILLS Dated June 15, 1950. To Maturing September 14, 1950. Dated at F e d er al R eser ve B a n k of N e w Y o r k , Fiscal Agent o f the United States. .1950 COMPETITIVE BID NON-COMPETITIVE 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 June 9, 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 June 9, 1950, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender ___________________________* for a total amount o f for a total amount of (R a t e p e r 100) (N o t t o e x c e e d $200,000) _____________________________ (maturity value) o f the Treasury bills therein described, o r 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 elow : □ By surrender Treasury bills □ of the maturing $- issue o f (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 elow : f~j By surrender of Treasury bills_____ the maturing $- (A m o u n t s u rre n d e re d ) B y cash o r other immediately available funds issue o f (A m o u n t s u rre n d e re d ) □ By cash o r other immediately available funds The Treasury bills for which tender is hereby made are to be dated June 15, 1950, and are to mature on September 14, 1950. This tender will be inserted in special envelope entitled “ Tender f o r Treasury bills” . N am 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 ity , 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 fo r 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 C u stom er) (C ity , T o w n o r V illa g e , P .O . N o ., a n d S ta te) U s e a separate tender fo r each custom er’s bid. IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 w ill be considered, and each tender m u st be for an even m ultiple of $1,000 (m aturity v a lu 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 signin g of the tender by an officer of the corporation w ill be construed as a representation b y him that he has been so authorized. I f the tender is m ade b y a partnership, it should be signed by a m em ber o f the firm, w ho should sign in the form “ ................... ......................................................................................... a copartnership, by .................................................................................................................... a m em ber o f 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 enders from others m u st be accom panied by paym ent of 2 percent o f the face am ount of T re asu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an incorporated bank or trust com pany. 4. I f the language o f this tender is changed in any respect, which, in the opinion of the Secretary o f the T reasury, is material, the tender m ay be disregarded. Payment b y credit through Treasury Tax and Loan Account will not be permitted. T E N T H — 1041-a * 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)