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F E D E R A L R E S E R V E BANK O F N E W Y O R K
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Fiscal A gent o f the United States

Offering o f $1,100,000,000 o f 91-Day Treasury Bills
Dated August 10, 1950

Maturing November 9, 1950

T o all Incorporated Banks and Trust Companies in the
Second Federal R eserve District and Others Concerned:

F ollow in g is the text o f a notice published to d a y :
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 ,
Thursday, A u gust 3, 1950.

TREASURY DEPARTM ENT
W ash in g ton

T h e Secretary of the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, o f 91-day Treasury
bills, fo r cash and in exchange for T reasu ry bills m aturing A u g u st 10, 1950, to be issued on a discount basis under competi­
tive and non-competitive bidding as hereinafter provided. T h e bills o f this series w ill be dated A ugust 10, 1950, and will mature
N ovem ber 9, 1950, when the face am ount w ill be payable w ithout interest. T h ey 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
D aylight Saving time, M onday, A ugu st 7, 1950. Tenders will not be received at the Treasury Department, W ash in gton . Each
tender m ust be fo r an even multiple o f $1,000, and in the case of competitive tenders the price offered m ust 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.
Others than banking institutions w ill not be permitted to submit tenders except for their own account. Tenders w ill be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in­
vestment securities. Tenders from others must be accompanied by payment o f 2 percent of the face amount of Treasury 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 amount and price range of accepted bids. Those
submitting tenders w ill be advised of the acceptance or rejection thereof. T he Secretary o f 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 full at the average price (in three decim als) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on A ugust 10, 1950, in cash or other immediately avail­
able funds or in a like face amount of Treasury bills m aturing A ugust 10, 1950. Cash and exchange tenders w ill receive equal
treatment. Cash adjustments will be made for differences between the par value of maturing 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 of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws am endatory or supplementary thereto. T he 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 of the possessions of the United 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 United States shall be considered to be interest.
Under Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue
Code, as amended by Section 115 of the Revenue A ct 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 T reasury bills (other than life insurance com ­
panies) issued hereunder need include in his income tax 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 fo r which the return is made, as ordinary gain or loss.
T reasury Department Circular N o . 418, as amended, and this notice, prescribe the terms of the Treasury bills
govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal Reserve Bank or Branch.

and

This Bank will receive tenders up to 2 p.m., Eastern D aylight Saving time, Monday, August 7, 1950, at the
Securities Department of its Head Office or at its Buffalo Branch. Please use the form on the reverse side of this
circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Payment for the Treas­
ury bills cannot be made by credit through the Treasury Tax 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 p r o u l , President.

Results o f last offering o f Treasury bills (dated August 3, 1950, maturing November 2, 1950)

T otal applied f o r ......... $1,852,691,000
T otal a c c e p t e d ............. $1,102,653,000 (includes $98,038,000
entered on a non-competitive basis
and accepted in fu ll at the av erage price shown below)
.
.
D
t
t
„
Average p r i c e ... . 9 9 ./0 3 +
Equivalent rate of discount
approx. 1-174/0 per annum
Range of accepted competitive b id s:
H i g h ........................
99.707
Equivalent rate of discount
approx. 1.159% per annum
L o w ........................... 99.702
Equivalent rate of discount
approx. 1.179% per annum
(52 percent of the amount bid for at the low
price was accepted)




Federal R eserve
Total
District
Applied fo r
-------------------------------------------------Boston ................................
$
13,210,000
New Y o rk ......................
1,412,632,000
35,369,000
Philadelphia ..................
Cleveland .......................
41,317,000
R ic h m o n d .........................
4,880,000
A t , anta .............................
11,618,000
Chicago ...........................
185,414,000
St. Louis .........................
12,397,000
M inneapolis ..................
3,895,000
K ansas City ..................
36,661,000
D allas ................................
31,985,000
San Francisco ..............
63,313,000
----------------------T otal ......................
$1,852,691,000

Total
Accepted
$

13,210,000
760,192,000
22,489,000
33,221,000
4,880,000
11,138,000
152,046,000
10,477,000
3,881,000
34,701,000
20,785,000
35,633,000

$1,102,653,000
( over)

23T
IM P O R T A N T — I f you desire to bid on a com p etitive basis, fill in rate per 100 and maturity
value in paragraph headed “ Com petitive B id .” I f you desire to bid on a non-com petitive
basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive B id.” DO
N O T fill in b oth paragraphs on on e form . A separate tender must b e used fo r each bid.
N o ............................

T E N D E R FOR 91-D A Y T R E A S U R Y BILLS
Dated August 10, 1950.

Maturing N ovem ber 9, 1950
Dated a t .......................................................

T o F ederal R eserve B a n k o f N e w Y o r k ,
Fiscal A gent o f the United States.

................. ................................................ 1950

C O M P E T IT IV E B ID

N O N -CO M PE TITIVE 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
August 3, 1950, as issued by the Secretary
o f 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 August 3,
1950, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

.............................................* for a total amount of

for a total amount o f $ ...............................................

(R a te 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 elow :
□

By

surrender

of

the

maturing

issue of

Treasury b i l l s ................... $ ........................................

(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

o f the maturing issue o f

Treasury b i l l s ................... $ ........................................
(A m ount surrendered)

(A m ount surrendered)

□

By cash or other immediately available funds

□

By cash or other immediately available funds

* Price must be expressed on the basis of 100, with not
more than three decimal places, for example, 99.925.

The Treasury bills for which tender is hereby made are to be dated August 10, 1950, and are to
mature on N ovem ber 9, 1950.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
N am e of B id d er....................................................................................................................................................
(P lea se print)

By............................................... ............................
(O fficial signature required)

Street A ddress

...............................................
(T itle )

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

(C ity , T ow n or V illa g e , P . O. N o., and State)

I f this tender is submitted by a bank for the account of a custom er, indicate the customer’s name on line below :

(N am e o f C ustom 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 P O R T A N T IN STR U C T IO N S:
1. N o tender for less than $1,000 w ill be considered, and each tender must be
$1,000 (maturity va lu e). A separate tender must be executed for each bid.

for an even multiple of

2. I f the person m aking the tender is a corporation, the tender should be signed by an officer o f the corporation
authorized to make the tender, and the signing of the tender by an officer o f the corporation w ill be construed as a rep­
resentation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a m em ­
ber of the firm, w ho should sign in the form “ ..................................................................................................................... . a copartnership, by
................................................................................................................................ a member of 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 o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty
o f payment by an incorporated bank or trust company.
4. I f the language of this tender is changed
Treasury, is material, the tender m ay be disregarded.

in any respect, which, in the opinion of the Secretary of the

Paym ent b y cred it through Treasury Tax and Loan A ccou n t will n ot b e perm itted.
T E N T B —1049-a




(

over)

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