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FEDERAL RESERVE BANK O F NEW

YORK
r C ircular No. 3606 1
U O ctober 26, 1950 J

Fiscal A gent o f the United States
O ffe r in g o f $ 1 ,1 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T r e a s u ry B ills
D a t e d N o v e m b e r 2 , 1950

M a tu r in g F e b r u a r y 1, 1951

T o all In corporated B anks and Trust Companies in the
Second Federal R eserve D istrict and O th ers C oncerned:

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, October 26, 1950.

TREASU RY DEPARTM ENT
Washington

The 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 November 2, 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 November 2, 1950, and w ill
mature February 1, 1951, 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, tw o o’clock p.m., Eastern
Standard time, Monday, October 30, 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 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 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 November 2, 1950, in cash or other immediately avail­
able funds or in a like face amount o f Treasury bills maturing November 2, 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 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 Standard time, M onday, O ctober 30, 1950, at the Securities
Department o f its H ead 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 jor 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 (91-day bills dated O ctober 26, 1950, maturing January 25, 1951)
Total applied fo r ........ $1,736,423,000
Total accepted..............$1,000,833,000 (includes $118,371,000
entered on a non-competitive basis
and accepted in full at the average price shown below)
Average p rice----- 99.667- f Equivalent rate o f discount
aoorox 1 316% ner annum
approx.
per annum
Range o f accepted competitive bids:
H igh ...................... 99.672
Equivalent rate o f discount
approx. 1.298% per annum
L o w ....................... 99.664
Equivalent rate o f discount
approx. 1.329% per annum

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




Federal R eserv e

______ District___
B o s t o n ........................... $
New Y ork ....................
Philadelphia ................
Cleveland ......................
R ich m o n d .....................
Atlanta ..........................
Chicago ........................
St. Louis .......................
M in n eap olis..................
Kansas C i t y ..................
^ F r a n c is c o ' ^

^

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

T otal

Total

A pplied fo r

A ccep ted ^

27,725,000
1,305,227,000
28,305,000
54,461,000
11,262,000
12,480,000
146,793,000
12,873,000
5,575,000
20,,784,000
K

'

--------------------$1,736,423,000

$

25,925,000
674,182,000
17,605,000
51,021,000
8,112,000
12,480,000
94,993,000
9,733,000
4,435,000
^,934,000
S

qO

--------------------$1,000,833,000
( o v e r)

24F

IMPORTANT— 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 non-com petitive
basis, fill in only the maturity value in paragraph headed “Non-competitive Bid.” DO
N O T fill in b oth paragraphs on on e form . A separate ten d er must b e used fo r each bid.
N o ............................

TEN DER FOR 91-DAY TREASURY BILLS
Dated N ovem ber 2, 1950
To

M aturing February 1, 1951
Dated a t .......................................................

F ed er al R eserve B a n k o f N e w Y o r k ,

Fiscal A gen t 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
O ctober 26, 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 O ctober 26,
1950, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

............................................ * fo r a total amount of

for a total amount o f $ ...............................................

(Rate per 1 0
0)

(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 b elow :
□

By

surrender o f

N O N -CO M PE TITIVE BID

the maturing issue

of

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

(maturity 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

o f the maturing issue o f

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

(Amount surrendered)

□

(A m ount surrendered)

By cash or other immediately available funds

□

By cash or other immediately available funds

* P r ice must be expressed on the basis o f 100, w ith not
m ore than three decimal places, fo r exam ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated N ovem ber 2, 1950, and are to
mature on February 1, 1951.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
Name o f B idder..................................................................................................................................
(P lea se p rint)

By......................................... .........................
(O fficial signature required)

Street Address

..........................................
(T itle )

...................................................................................................................................
(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 for the account o f a customer, indicate the customer’s name on line below:
(N am e o f C ustom er)

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

Use a separate tender for each customer’s bid.

IM P O R T A N T IN STR U C T IO 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 w ill be construed as a rep­
resentation by him that he has been so authorized. I f 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
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 T ax and Loan A ccou n t w ill n ot b e perm itted.


TENTB—
http://fraser.stlouisfed.org/1061-a
Federal Reserve Bank of St. Louis

( over)

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