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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 )

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