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FEDERAL RESERVE BANK OF NEW YORK
r C i r c u l a r N o . 30241
[.D e c e m b e r 1 4 ,1 9 3 0 J

Fiscal A gent o f the United States

O ffe r in g o f $ 1 , 0 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T reasury B ills

Dated December 21, 1950

Maturing March 22, 1951

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 published today:
TREASURY DEPARTM ENT
W ash in g ton

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 ,
T h u rsd ay, D ecem ber 14, 1950.

T h e Secretary of the T reasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day T re a s­
ury bills, for cash and in exchange for T reasu ry bills m aturing D ecem ber 21, 1950, to be issued on a discount basis under
com petitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series will be dated D ecem ber 21, 1950,
and w ill m ature M arch 22, 1951, when the face am ount will be payable without interest. T h e y will be issued in bearer form
o n ly , and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e).
T en d ers will be received at Federal R eserve Banks and Branches up to the closing hour, tw o o ’clock p .m ., Eastern
Standard tim e, M on d ay , Decem ber 18, 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 m ultiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on
the basis of 100, with not m ore than three decim als, e. g ., 99.925. F ractions m a y 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
B ranches on application therefor.
O th ers than banking institutions will not be permitted to subm it tenders except for their ow n account. T en d ers w ill be
received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in in­
vestm en t securities. T enders from others m ust be accom panied by 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 o f paym ent b y an incorporated bank or trust com pany.
Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve B anks and Branches, follow ing which
public announcem ent will be made by the Secretary of the T reasu ry of the am ount and price range of accepted bids. T h o se
subm itting tenders w ill 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 o r 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 will be accepted
in full at the average price (in three decim als) of accepted competitive bids. Settlem ent for accepted tenders in accordance
w ith the bids m ust be made or com pleted at the Federal Reserve B ank on D ecem ber 21, 1950, in cash or other im m ediately
available funds or in a like face am ount of T reasu ry bills m aturing D ecem ber 21, 1950. Cash and exchange tenders will re­
ceive 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, w hether 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 o f 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, 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 of the possessions of the U n ited States,
or by any local taxing authority. F or purposes of taxation the am ount of discount at which T reasury bills are originally
sold by the U nited States shall be considered to be interest. U nder Sections 42 and 117 ( a ) ( 1 ) o f 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, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. A ccord in gly, the ow ner o f T reasu ry bills (other than life insurance com ­
panies) issued hereunder need include in his income tax return only the difference betw een 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 which the return is made, as ordinary gain or loss.
T re asu ry D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s of the T reasury bills and govern
the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, December 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.” Payment fo r the Treasury bills cannot
be made by credit through the Treasury T ax and Loan A ccount. Settlement must be made in cash or other immediately
available funds or in maturing Treasury bills.
A

llan

S p r o u l , President.

Results o f last offering o f Treasury bills (9 1 -day bills dated Decem ber 14, 1950, m aturing March 15, 1951)
T o ta l applied for...........$1,774,310,000
T o ta l a c ce p te d ............... $1,001,581,000 (includes $140,409,000
entered on a non -com petitive basis
and accepted in full at the average
price show n below )
A ve ra ge price.........

99.659

Equivalent rate of discount
approx. 1 .3 5 1 % per annum
R ange of accepted competitive bids: (E x ce p tin g one tender
of $200,000)
H ig h ......................... 99.675
Equivalent rate of discount
approx. 1 .2 8 6 % per annum
L o w ............................

99.655

Equivalent rate of discount
approx. 1 .3 6 5 % per annum
(18 percent of the am ount bid for at the low
price w as accepted)




Federal R eserve
District
......
N e w Y o r k .................. ......
Philadelphia .............
Cleveland ..................
R ichm ond ..................
A tlanta .......................
C hicago .......................
St. Louis ....................
M inneapolis .............
K an sa s C ity .............
D allas .........................
San Francisco .........
T otal

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

Total
Applied for
$

16,473,000
1,250,320,000
32,792,000
36.345,000
16,418,000
18,270,000
190,505,000
22,744,000
9,670,000
28,541,000
34,968,000
117,264,000

$1,774,310,000

Total
Accepted
$

15,973,000
558,315,000
17,792,000
32,581,000
16,418,000
18,188,000
151,595,000
21,760,000
8,960,000
28,541,000
31,524,000
99,934,000

$1,001,581,000
( oveb)

24 M
IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity
value in paragraph headed "C om petitive Bid.” I f you desire to bid on a non-com petitive
basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.”
DO
N O T fill in both paragraphs on one form . A separate tender m ust be used f o r each bid.
No.

T E N D E R FO R 9 1 -D A Y

T R E A S U R Y B ILL S

D ated Decem ber 21, 1950

M aturing March 22, 1951
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

COM PETITIVE BID

N O N -C O M P E TIT IV E 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
December 14, 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 December 14,
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 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 b elow :

(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

issue

of

Treasury bills---------------- $_______________________

By

surrender

of

By cash or other immediately available funds

maturing

issue

of

Treasury bills__________ $_______________________

(A m ount surrendered)

□

the

(A m ount surrendered)

□

By cash or other immediately available funds

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

The Treasury bills for which tender is hereby made are to be dated December 21, 1950, and are to
mature on March 22, 1951.
This tender will be inserted in spccial envelope marked “ Tender f o r Treasury Bills.”
N a m e of Bidder.
(P lease print)
B y ..........

(Official signature required)

(Title)

Street A ddress

(C ity, T ow n o r ViUage, P.O. No., and State)
I f th is t e n d e r is s u b m it t e d b y a b a n k f o r th e a c c o u n t o f a c u s t o m e r , in d ic a te t h e c u s t o m e r ’ s n a m e o n lin e b e l o w :

(Name o f Custom er)

(C ity, T ow n or V illage, P.O. No., and State)

U s e a s e p a r a te t e n d e r f o r e a c h c u s t o m e r ’ s b id .

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 will be considered, and each tender m ust be for an even m ultiple o f $1,000
(m aturity va lu e). A separate tender m ust be executed for each bid.
2. I f the person m akin g 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 of the tender by an officer o f the corporation will be construed as a
representation by him that he has been so authorized. I f the tender is m ade by a partnership, it should be signed b y a
m em ber of the firm, w h o should sign in the form “ ......................................................................................................... , a copartnership, by
.................................................................................................................... a m em ber of the firm.”
3. T en d ers will be received w ithout 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 by 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 of paym ent
by an incorporated bank o r trust com pany.
4. I f the language of this tender is changed in any respect, which, in the opinion o f the Secretary of the
T reasury, is m aterial, the tender m a y be disregarded.

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


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