View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FED ERAL RESER VE BANK O F N EW YO RK
r C ircular N o. 3587 '
L Septem ber 14, 1950.

Fiscal A gen t o f the United States

O fferin g o f $ 1 ,0 0 0 ,0 0 0 ,0 0 0 o f 91-D ay T reasury B ills
Dated September 21, 1950

Maturing December 21, 1950

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:

F ollow ing is the text o f a notice published today:
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, September 14, 1950.

TREASURY DEPARTM ENT
W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing September 21, 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 September 21, 1950, and will
mature December 21, 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, September 18,1950. Tenders w ill not be received at the Treasury Department, Washington. Each
tender must be for an even multiple o f $1,000, and in the case of 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 forms 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 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.
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 o f 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 September 21,1950, in cash or other immediately avail­
able funds or in a like face amount o f Treasury bills maturing September 21, 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. For 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. A ccordingly, 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 or loss.
Treasury Department Circular N o. 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, September 18, 1950, at the
Securities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f 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
u ry 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

llan

S p r o u l , President.

Results o f last offering o f Treasury bills (91-day bills dated September 14, 1950, maturing D ecem ber 14, 1950)
Total applied fo r ----- $1,716,499,000

Federal Reserve

Total accep ted ............$1,005,179,000 (includes $134,476,000
entered on a non-competitive basis
and accepted in full at the average price shown below)

District
Boston ..........................
New Y ork ....................
Philadelphia ................

Average p rice. . . .

Richmond ! ’. ’. ’. ! ! ’. ! ! 1 !
Atlanta .........................

99.669

Equivalent rate o f discount
approx. 1.311 /o per annum

Range of accepted competitive b id s :

H lSh .....................

99-685

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

99.667

Total
Accepted
$ 23,791,000
641,228,000
20,747,000

llS o O O
17,353,000

11,8^000
14,353,000
8,525,000
23,161,000
34,753,000
38,566,000

s ^ u E is'

o f discount
per annum
o f discount
per annum

M in n ea p olis..................
Kansas City .................
Dallas ............................
San Francisco .............

8,725,000
24,761,000
48,153,000
41,566,000

(The entire amount bid for at the low price was accepted)

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

$1,716,499,000




Equivalent rate
approx. 1.246%
Equivalent rate
approx. 1.317%

Total
Applied for
$ 28,091,000
1,266,798,000
26,097,000

$1,005,179,000
( over)

23Z
IM P O R T A N T — I f you desire to b id 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 b id 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 both paragraphs on o n e form . A separate ten d er must b e used fo r each bid.
N o ..............................

T E N D E R FO R 91-D A Y T R E A S U R Y BILLS
Dated September 21, 1950

Maturing D ecem ber 21, 1950
D ated a t ...........................................................

T o F ed eral R eserve B a n k o f N e w Y o r k ,
F isca l A g e n t o f the U n ited States.

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

C O M P E T IT IV E BID

N O N -C O M P E TIT IV E B ID

P ursuant to the p rov ision s o f T rea su ry
D epartm ent C ircular N o . 418, as am ended, and
to the p rov isio n s o f the p u b lic n otice on
S eptem ber 14, 1950, as issued b y the Secretary
of
the
T rea su ry, th e
undersigned
offers

P ursuant to the p rov ision s o f T rea su ry D e­
partment Circular N o. 418, as amended, and to the
p rov ision s o f the p u b lic n otice on Septem ber 14,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a n on -com p etitive tender

............................................... * fo r a total am ount o f

fo r a total am ount o f $ ...............................................

(R ate per 100)

(N ot to exce e d $200,000)

$ ...........................................................(m atu rity valu e)
o f the T rea su ry bills therein described, or fo r
any less am ount that m ay be aw arded, settlem ent
therefor to be made at you r Bank, on the date
stated in the public notice, as indicated b e lo w :
□

By

surrender

of

the

m aturing

issue

of

T reasu ry b i l l s .................... $ ...........................................

(m a tu rity v a lu e ) o f the T reasu ry b ills therein
d escribed, at the average p rice (in three d eci­
m als) o f accepted com p etitiv e bids, settlement
therefor to be made at you r Bank, on the date
stated in the public notice, as indicated b elow :
□

By

surrender

of

the

B y cash or other immediately available funds

issue

of

(A m ou nt surrendered)

(A m ou nt surrendered)

□

m aturing

T reasu ry b i l l s .................... $ ...........................................
□

B y cash or other im mediately available funds

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

T h e T rea su ry bills fo r w hich tender is hereby m ade are to be dated S eptem ber 21, 1950, and are to
m ature on D ecem ber 21, 1950.
T his tender w ill be inserted in special envelope m arked “ T en d er fo r T reasury Bills.”
N am e of B id d er.....................................................................................................................................................
(P lea se print)

B y ............................................................................................
(Official signature required)
Street A ddress

..........................................................
(Title)

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

(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 fo r the account of a custom er, indicate the customer’s name on line below :

(N am e o f Custom er)

(C ity , T ow n o r V illa g e , 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 CTIO N S:
1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple of
$1,000 (maturity value). A separate tender must be executed for each bid.
2. If 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 will 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 will 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
of 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.

P aym ent b y credit through Treasury Tax and Loan A ccou n t w ill n ot b e perm itted.
TE
N T B — 1055-a


( over)

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