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FEDERAL RESERVE BANK O F NEW YORK
F iscal A g e n t o f the U nited States

ircu la rM o . 6 0 5 1
( COctober 19, 31950 J

Offering o f $1,000,000,000 of 91-Day Treasury Bills
Dated October 26, 1950

Maturing January 25, 1951

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

Following is the text o f a notice published tod ay:
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, O ctober 19, 1950.

TREASU RY DEPARTM ENT
W ashington

T h e 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 O ctober 26, 1950, to be issued on a discount basis under com peti­
tive and non-com petitive bidding as hereinafter provided. The bills o f this series will be dated O ctober 26, 1950, and will
mature January 25, 1951, when the face amount will be payable without interest. T h ey 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 closin g hour, tw o o ’ clock p.m., Eastern
Standard time, M onday, O ctober 23, 1950. Tenders w ill not be received at the Treasury Department, W ashington. Each
tender must be for an even multiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed
on the basis o f 100, with not m ore 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 R eserve Banks or
Branches on application therefor.
Others than banking institutions w ill not be permitted to submit tenders except for their ow n account. Tenders w ill be
received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in
investment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face amount o f Treasury
bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or
trust company.
Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow in g w hich
public announcement w ill be made by the Secretary o f the Treasury o f the am ount and price range o f accepted bids. Th ose
submitting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury 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 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 com pleted at the Federal Reserve Bank on O ctober 26, 1950, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing O ctober 26, 1950. Cash and exchange tenders will 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.
T h e incom e derived from Treasury bills, whether interest o r gain from the sale or other disposition o f the bills, shall
n ot 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. T he bills shall be
subject to estate, inheritance, gift, 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 o f the possessions o f the United States,
or b y 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. U nder 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 ccordin gly, the ow ner o f Treasury bills (oth er 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,
whether on original issue or on subsequent purchase, and the am ount actually received either upon sale o r redemption at
maturity during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Departm ent 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 Standard time, Monday, October 23, 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.” Paym ent f o r the Treasury bills
cannot be made by credit through the Treasury T a x 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 (9 1 -d a y bills dated O ctober 19, 1950, m aturing January 18, 1951)
Total applied f o r .......... $1,685,127,000
Total accepted .............. $1,000,007,000 (includes $121,066,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A verage price. . . .

99.662+

Equivalent rate o f discount
approx. 1.337% per annum

Range o f accepted competitive bids:
H igh ....................
99.670
Equivalent rate
approx. 1.305%
L ow ..................... 99.660
Equivalent rate
approx. 1.345%

o f discount
per annum
o f discount
per annum

(20 percent o f the am ount bid for at the low
price was accepted)




Federal Reserve
District
Boston .......................
New Y ork ................
Philadelphia ............
Cleveland ..................
Richm ond ..................
Atlanta .......................
Chicago ......................
St. Louis ....................
Minneapolis ................
Kansas City ..............
Dallas ...........................
San F r a n c is c o ............
Total

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

Total
A pplied fo r
$

10,698,000
1,198,966,000
29,549,000
57,437,000
18,795,000
12,778,000
164,959,000
16,831,000
7,915,000
20,573,000
22,391,000
124,235,000

$1,685,127,000

Total
Accepted
$

8,698,000
604,366,000
14,749,000
50,717,000
18,795,000
12,778,000
120,159,000
14,731,000
7,915,000
20,473,000
19,991,000
106,635,000

$1,000,007,000
(oveb)

24E
IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity
value in paragraph headed "Competitive Bid.” If you desire to bid on a non-com petitive
basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O
N O T fill in both paragraphs on one fo rm . A separate tender m ust be used fo r each bid.
N o. ........................

T E N D E R F O R 9 1 -D A Y T R E A SU R Y BILLS
Dated October 26, 1950
To

Maturing January 25, 1951
Dated a t .........................................

F

ederal

R

eserve

B

a n k

of

N

e w

Y

o rk

,

Fiscal Agent o f the United States.

1950

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
October 19, 1950, as issued by the Secretary
of
the Treasury,
the undersigned
offers
.............................................* fo r a total amount o f

NON-COMPETITIVE BID
Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on October 19,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender
for a total amount o f $ .............................................

(R ate 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:
□
By surrender o f the maturing issue o f

(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 o f the maturing issue o f

Treasury bills................... $-

Treasury bills................... $_
(A m ount surrendered)

□

B y cash or other immediately available funds

(A m ount surrendered)

□

B y cash or other immediately available funds

* Price must be expressed on the basis o f 100, with not
more than three decimal places, fo r example, 99.925.

The Treasury bills for which tender is hereby made are to be dated October 26, 1950, and are to
mature on January 25, 1951.
This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills”
Name o f Bidder
(Please print)

By .
(Official signature required)

(T itle)

Street Address

(C ity, Town or Village, P .O . N o., and State)

I f this tender is submitted by a bank for the account o f a customer, indicate the custom er’s name on line below :
(N am e o f Customer)

(C ity, Town or Village, P .O . N o., and State)

Use a separate tender for each customer’s bid.

IMPORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 will 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. If the person making the tender is a corporation, the tender should be signed by an officer o f the corpora­
tion 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
representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed b y a
mem ber o f the firm, w ho should sign in the form “ ....................................................................................... , a copartnership, by
..................................................................................................... a mem ber 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 accom panied by payment o f 2 percent
o f the face amount o f Treasury bills applied for, unless the tenders are accom panied 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 m ay be disregarded.

Paym ent b y cred it through T reasury T a x and Loan A cc o u n t w ill n ot be perm itted.

T E N T B — 1060-a


(o v z s)

Federal reserve bank
of

NEW YORK
N ew Y ork 4 5 , N. Y.

October 20, 1950*

To Member Banks and Nonmember Clearing Banks
in the Second Federal Reserve District:
The Federal Reserve Bank of Atlanta has today advised
us that, owing to the recent hurricane in Florida, cash letters of
its Jacksonville Branch, dated October 17 and l8, to banks in the
affected area, were delayed in dispatch.

As a result, there will

be some delay in notice of nonpayment and return of unpaid items
pending the restoration of normal communications.
We will continue to give credit in accordance with our
time schedules for cash items payable in the affected area, but
advice of nonpayment and return of unpaid items may be delayed.
We, of course, reserve the right to charge back any unpaid item at
any time.




ALLAN SPROUL,
President.

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