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FED ERAL RESER VE BANK O F N EW YO RK
r C ircular No. 3580

Fiscal A gent o f the United States

U A ugust 24, 1950

Offering o f $1 ,100,000,000 o f 91-Day Treasury Bills
D a t e d A u g u s t 3 1 , 195 0

M a t u r in g N o v e m b e r 3 0 , 1950

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve 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, August 24, 1950.

TREASU RY DEPARTM ENT
Washington

T he Secretary o f the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing August 31, 1950, to be issued on a discount basis under competi­
tive and non-competitive bidding as hereinafter provided. The bills o f this series w ill be dated August 31,1950, and w ill mature
November 30, 1950, when the face amount w ill be payable without interest. They w ill be issued in bearer form only, and
in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Daylight Saving time, Monday, August 28, 1950. Tenders w ill not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case o f competitive tenders the price offered must be expressed on
the basis o f 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 forwarded 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 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.
Immediately 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 o f the amount and price range o f accepted bids. Those
submitting tenders w ill be advised o f the acceptance or rejection thereof. The 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 decimals) o f accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on August 31, 1950, in cash or other immediately avail­
able funds or in a like face amount o f Treasury bills maturing August 31, 1950. Cash and exchange tenders w ill receive equal
treatment. Cash adjustments w ill be made for differences between the par value o f 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 o f the bills, shall
not have any exemption, as such, and loss from the sale or other disposition o f Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The 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 o f the possessions o f the United States,
or by any local taxing authority. F or purposes o f taxation the amount o f 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 ) o f the Internal Revenue
Code, as amended by Section 115 o f the Revenue A ct o f 1941, the amount o f 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. Accordingly, the owner o f Treasury 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
maturity during the taxable year for which the return is made, as ordinary gain o r loss.
Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and
govern the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders' up to 2 p.m., Eastern Daylight Saving time, Monday, August 28, 1950, at the
Securities Department o f its Head Office and 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.” P a ym en t fo r the T reas­
ury bills cannot be made by credit through the T rea su ry T a x and L oa n A ccou n t.
or oth er im m ediately available funds or in maturing T rea su ry bills.

S ettlem en t m ust be made in cash

A l l a n S p ro u l, P resident.

Results of last offering o f Treasury bills (92-day bills dated August 24, 1950, maturing November 24, 1950)
Total applied fo r ........$1,690,509,000

Federal Reserve

Total a c c e p te d ............ $1,103,567,000 (includes $93,119,000
entered on a non-competitive basis
and accepted in full at the average price shown below)
.
.
nn,-01 . tr • i *
(.
(A *
■
Average p r ic e .... 99.681+ Equivalent rate o f discount
approx. 1.247% per annum

District
B o s t o n ............................
New y 0rk .....................
Philadelphia .................
Cleveland ......................
Richmond ....................
Atlanta ..........................

Range o f accepted competitive b id s:

Chicago

H iSh .....................

99707

L o w .......................

" m

Equivalent rate
approx. 1.147%
Equivatent rate
approx. 1.280%

o f discount
per annum
o f discount
per annum

(32 percent o f the amount bid for at the low
price was accepted)

Total
Applied for
$ 11,295,000
1,264,885,000
26,508,000
36,100,000
5 362,000
S^.OOO

Total
Accepted
$ 10,295,000
755,043,000
16,508,000
36,100,000
5,362,000
8,756,000

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

232,811,000

167,051,000

Mi nneapol i s' '
!
i X r 1 —,
Kansas Ci y . . . . . . . . .
^
| ran dsco ............

^O O ^
oi 'M.cnnn
31;250;0()0
40;i78!000

^OOO
?i 74i;nnn
31&0JM0
40,178,000

T o t a l ......................

_____TT„
$1,690,509,000

...
$1,103,567,000

 note that the results shown above are for 92-day Treasury bills.
Please


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23W

IM PORTANT— If you desire to bid on a com p etitive basis, fill in rate per 100 and maturity
value in paragraph headed “ Competitive Bid.” If you desire to bid on a n on-com petitive
basis, fill in only the maturity value in paragraph headed “ Non-competitive Bid.” DO
N O T fill in both, paragraphs on on e form .

A separate tender must b e used fo r each bid.
N o.

TEN DER FOR 91-DAY TREASURY BILLS
Dated August 31, 1950

Maturing November 30, 1950
Dated a t ......................

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 A gent 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
A ugust 24, 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 24,
1950, as issued by the Secretary of the Treasury,
the undersigned offers a non-com petitive 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 below:

(m aturity 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

of

the

maturing issue

of

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

By

surrender

o f the

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

(A m ou nt surrendered)

□

By cash or other immediately available funds

maturing issue o f

□

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 31, 1950, and are to
mature on November 30, 1950.
This tender will be inserted in special envelope m arked “ T en d er fo r T reasury Bills.”
Name o f Bidder.
(P lea se print)

B y ...
(Official signature required)

(T itle )

Street Address .................................

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

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

(N am e o f Custom er)

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

U se a separate tender for each customer’s bid.

IM PORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple o f
$1,000 (maturity value). A separate tender must be executed for each bid.
2. I f the person making 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 o f 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. If the tender is made by a partnership, it should be signed by a mem­
ber o f the firm, who should sign in the form “ ....................................................................................................... . a copartnership, by
................................................................................................................ a member o f 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 o f
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. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the
Treasury, is material, the tender may be disregarded.

Paym ent b y credit through Treasury Tax and Loan A ccoun t w ill n ot b e perm itted.
T E N T B —1052-a




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