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FEDERAL RESERVE BANK O F N EW YORK C ir cu la r N o. 3508] J u n e 30,1950 J Fiscal A gent o f the United States P ublic Notice o f Offering o f $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills Dated July 6, 1950 Maturing October 5, 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. 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 , Friday, June 30, 1950. TREASURY DEPARTM ENT W ash in g ton T h e Secretary of the T reasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for T reasu ry bills m aturing July 6, 1950, to be issued on a discount basis and under com peti tive and non-com petitive bidding as hereinafter provided. T h e bills of this series will be dated July 6, 1950, and will mature O ctob er 5, 1950, w hen the face am ount will be payable without interest. T h e y will 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 value). T en ders w ill be received at Federal R eserve Banks and Branches up to the closing hour, tw o o’ clock p .m ., E astern D a yligh t Saving tim e, M on d ay , July 3, 1950. T en ders will not be received at the T reasury D epartm ent, W a sh in g to n . Each tender m u st be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis o f 100, with not m ore than three decimals, e. g ., 99.925. Fractions m ay not be used. It is urged that tenders be m ade on the printed form s and forw arded in the special envelopes which will be supplied by Federal R eserve B anks or Branches on application therefor. T en d ers w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recog nized dealers in investm ent securities. T en ders from others m ust be accom panied b y 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 closing hour, tenders will be opened at the Federal R eserve B anks and Branches, follow ing which public announcem ent w ill 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 ittin g tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the T reasury expressly 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 fu ll a t the average price (in three decim als) of accepted competitive bids. Settlem ent for accepted tenders in accordance w ith the bids m u st be m ade or com pleted at the Federal Reserve B ank on July 6, 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 July 6, 1950. Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents will be m ade for differences between the par value of 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, 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 R evenue Code, or laws am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, g ift or other excise taxes, whether Federal or State, but shall be exem pt from all taxation now or hereafter im posed On the principal or interest thereof by any State, or any of the possessions of the U n ited States, o r b y an y local taxin g authority. F or purposes of taxation the am ount o f discount at which Treasury bills are originally sold b y 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 by Section 115 of the Revenue A c t of 1941, the am ount of 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 com panies) issued hereunder need include in his incom e tax return only the difference between 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 o f their issue. Copies of the circular m ay be obtained from any Federal 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 tw o o ’clock p.m., Eastern Daylight Saving time, on Monday, July 3, 1950. It is requested that tenders be sub mitted on special form printed on reverse side and returned in special envelope enclosed herewith. P a ym en t f o r the Treasury bills cannot be made by credit through the T rea su ry T a x and L oan A cco u n t. S ettlem en t must be made in cash or other immediately available ftm d s or in m aturing T rea su ry bills. A llan S p r o u l , President. (E x tr a c t fro m T reasury D epartm ent statem ent released f o r publication June 27, 1950, announcing results a fte r tenders w er e opened f o r 91-day T reasury bills dated June 29, 1950 maturing S ep tem b er 28, 1 9 50) T o ta l applied for............. $1,730,736,000 T o ta l accepted ............... $1,003,453,000 entered on a and accepted price show n A vera ge price........ 99.704 (includes $81,647,000 non-com petitive basis in full at the average below ) Equivalent rate of discount approx. 1 .1 7 2 % per annum R ange of accepted competitive bids: H ig h ......................... 99.707 Equivalent rate of discount approx. 1 .1 5 9 % per annum L o w ............... ........... 99.703 Equivalent rate of discount approx. 1 .1 7 5 % per annum (88 percent of the am ount bid for at the low price was accepted) Federal Reserve District .... N e w Y o r k .................... .... Philadelphia ................ Cleveland ...................... A tlanta ........................... C hicago ......................... St. L ou is ...................... M inneapolis .................. K ansas City ............... San F r a n c is c o ............. T otal ...................... ..... Total Applied for $ 14,895,000 1,274,355,000 83,711,000 12,795,000 Total Accepted $ 5,003,000 203,418,000 12,691,000 3,235,000 14,659,000 24,500,000 71,233,000 14,383,000 680,541,000 72,511,000 11,931,000 10,001,000 4,835,000 123,881,000 9,331,000 3,096,000 14,206,000 16,728,000 42,009,000 $1,730,736,000 $1,003,453,000 (o v e r ) 230 IMPORTANT— If it i desired to bid on a competitive basis, fill in rate per 100 and s 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 fo r each bid. N o___________________ TENDER FOR 9 1-D A Y TREASURY BILLS Dated July 6, 1950. Maturing October 5, 1950. Dated at T o F ederal R eserve 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 30, 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 30, 1950, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender -----------------------------------------* for a total amount o f fo r a total amount o f (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, 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 : □ By surrender of Treasury bills-------- the maturing issue of $ __ (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 below : □ By surrender of the maturing of Treasury bills__________ $________________________ (A m o u n t s u rre n d e re d ) □ issue By cash or other immediately available funds (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 July 6, 1950, and are to mature on October 5, 1950. This tender will be inserted in special envelope entitled “ Tender f o r Treasury bills” . Name of Bidder., (P le a s e p r in t ) By (Official signature required) (Title) Street Address ......................................... (C ity , T o w n o r V iU a ge, P.O . N o., a n d S ta te ) If this tender is submitted for the account of a customer, indicate the customer’s name on line below: (N a m e o f C u s to m e r) (C it y , T o w n o r V illa g e , P .O . N o ., a n d S ta te) Use a separate tender for each customer’s bid. IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 w ill be considered, and each tender m ust be for an even m ultiple of (maturity, v a lu e ). A separate tender m ust be executed fo r each bid. $1,000 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 sign ing o f the tender b y an officer of the corporation will be construed as a representation b y him that he has been so authorized. I f the tender is m ade 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 m em ber o f the firm” . 3. T en d ers will be received without deposit from incorporated banks and trust com panies 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 of the face am ount o f T reasu 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 th e language of this tender is changed in an y respect, which, in the opinion o f the Secretary o f the T reasury, is material, the tender m a y be disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. T E N T B — 1044-a * P rice must be expressed on the basis o f 100, with not more three decimal places. Fractions m ay not be used. than (o m )