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FEDERAL RESERVE BANK O F N EW YORK
Fiscal A gent o f the United States

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Offering o f $1,000,000,000 o f 91-B$y Treasury Bills
Dated January 11, 1951

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Maturing April 12, 1951

T o all Incorporated B anks and Trust Companies in the
Second Federal R eserv e D istrict and O thers C on cern ed :

Follow ing is the text o f a notice published tod ay:
TREASU RY DEPARTM ENT
W a sh in g to n

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 a y, January 4, 1951.

T h e Secretary o f the T rea su ry, b y this pu blic n otice, invites tenders for $1,000,000,000, or thereabouts, o f 91-day T r e a s ­
u ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g January 11, 1951, to be issued on a d iscou n t basis under co m ­
petitive and n o n -co m p etitiv e b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated January 11, 1951, and w ill
m ature A p ril 12, 1951, w hen the fa ce a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in 'B earer fo r m on ly , and
in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity va lu e).
T e n d e rs w ill be receiv ed at F ed eral R eserve B anks and B ran ches up t o the clo s in g h our, tw o o ’c lo c k p.m ., E astern
S tandard tim e, M on d a y , January 8, 1951. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n , E ach
ten der m u st be fo r an even m u ltiple o f $1,000, and in the case o f com p etitive ten ders th e price o ffe re d m u st be exp ressed on
the ba sis o f 100, w ith n ot m o re than three decim als, e. g ., 99.925. F ra ction s m a y n ot be used. It is u rg ed that tenders be
m a d e o n the printed form s and forw a rd ed in the special en velopes w h ich w ill b e sup plied b y F ed eral R e serv e B ank s o r
B ran ch es o n a pp lication th erefor.
O th e rs than b ankin g institutions w ill n ot be perm itted t o subm it tenders e x ce p t fo r th eir o w n a ccou n t. T e n d e rs w ill be
re ce iv e d w ith ou t d ep osit fro m in corp ora ted banks and trust com p a n ies and fr o m respon sible and recog n ized dealers in in­
v e stm en t securities. T en d ers fr o m oth ers m u st be a cco m p a n ie d b y p a ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills
applied fo r, u nless the ten ders are a ccom p a n ied b y an express gu a ra n ty o f p a ym en t b y an in corp ora ted bank o r trust co m p a n y .
Im m ed ia tely after the clo s in g h our, ten ders w ill be op en ed at the F ed eral R e serv e B anks and B ra n ch es, fo llo w in g w h ich
p u b lic a n n ou n cem en t w ill be m ade b y th e S ecreta ry o f the T rea su ry o f the a m ou n t and p rice ra n ge o f a ccep ted bids. T h o s e
subm itting ten ders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T rea su ry e x p re s sly reserves
the righ t to a cce p t o r re je ct a n y o r all tenders, in w h o le o r in part, a n d his a ction in any such resp ect shall be final. S u b je ct
t o th ese reservations, n on -com p etitiv e tenders fo r $200,000 or less w ith ou t stated price fro m a n y on e b idd er w ill b e a ccep ted
in fu ll a t th e a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a cco rd a n ce
w ith the bids m u st be m ade or com p leted at the Federal R e s e rv e B ank on January 11, 1951, in cash o r oth er im m ediately
available fu n ds o r in a like fa ce am ou nt o f T rea su ry bills m atu rin g January 11, 1951. Cash and ex ch a n g e ten ders w ill re ­
ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m a tu rin g bills a cce p te d in
e x ch a n g e and the issue p rice o f the n ew bills.
T h e in co m e d erived fr o m T rea su ry b ills, w h eth er interest or gain fr o m th e sale or oth er d isp osition o f th e bills, shall
n o t have a n y e x e m p tion , as such, and loss fr o m th e sale o r oth er d isp osition o f T rea su ry bills shall n o t h av e a n y special
treatm ent, as such, under the In tern al R even u e C ode, o r laws a m en d a tory or supplem entary thereto. T h e bills shall be
su b je ct t o estate, inheritance, g ift, or oth er excise taxes, w hether F ed eral or State, but shall be exem p t fr o m a ll taxation
n o w o r hereafter im p osed on the principal or interest th e re o f b y a n y State, o r a n y o f th e p ossession s o f the U n ite d States,
o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w hich T rea su ry bills a re o rigin a lly
s o ld b y the U n ited States shall be con sid ered to b e interest. U n der S ection s 42 and 117 ( a ) ( 1 ) o f the In tern a l R even u e
C ode, as a m en ded b y S ection 115 o f the R even u e A c t o f 1941, the a m ou n t o f d iscou n t at w hich bills issued h ereu n der are
so ld shall n o t be co n sid ered t o a ccru e until such bills shall b e sold , red eem ed or oth erw ise disp osed of, and su ch bills are
exclu d e d fr o m con sidera tion as capital assets. A c co r d in g ly , the o w n e r o f T r e a s u ry bills (o th e r than life in su rance c o m ­
p a n ies) issued h ereun der need in clude in his in com e ta x return o n ly the differen ce betw een the price pa id fo r such bills,
w h eth er o n o rig in a l issue or o n subsequen t purchase, and the am ou nt actu a lly receiv ed either u pon sale o r red em p tion at
m atu rity d u rin g the ta xab le year fo r w h ich the return is m ade, as ord in a ry ga in o r loss.
T r e a s u ry D ep a rtm en t C ircular N o . 418, as am en ded, and this n otice, prescrib e th e term s o f the T rea su ry bills and g o v e rn
the co n d itio n s o f th eir issue. C op ies o f the circular m a y b e obtain ed fr o m a n y F ed era l R eserve B a n k o r B ranch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 8, 1951, 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 Account. Settlement must be made in cash or other immediately
available funds or in maturing Treasury bills.
A

llan

S proul,

President.

Results of last offering of Treasury bills (91-day bills dated January 4, 1951, maturing April 5, 1951)
T o ta l applied fo r .......... $1,865,410,000
T o t a l a cce p te d .............. $1,002,226,000
entered on a
and a ccep ted
p rice sh ow n
A v e ra g e price........

99.651

(in clu d es $110,100,000
n o n -com p etitiv e basis
in fu ll at the average
b e lo w )

E quivalent rate o f discou nt
a p p rox. 1.381% per annum

......
N ew Y o r k ............... ......
Philadelphia ............
C leveland .................
R ich m o n d .................

R a n g e o f a ccep ted com p etitive b ids:
H ig h

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

E quivalent rate o f discou nt
app rox. 1.313% per annum
L o w .......................... 99.650
E quivalent rate o f discount
app rox. 1.385% per annum
(86 percent o f the am ount bid fo r at the low
price w as a ccep ted)




99.668

T otal
Applied f o r

Federal R eserve
District

St. L ou is .................
M inneapolis ............
K a n sa s C ity ..........
San F ra n cisco ........
T o t a l ...................... ......

$

7,109,000
1,169,886,000
27,165,000
44,235,000
12,609,000
12,519,000
357,873,000
18,627,000
4,943,000
30,680,000
59,813,000
119,951,000

$1,865,410,000

Total
A ccepted

'
$

5,109,000
452,045,000
11,885,000
40,764,000
11,489,000
10,295,000
320,353,000
14,158,000
4,943,000
30,344,000
19,191,000
81,650,000

$1,002,226,000
( over)

> m or

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.

-

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IMPORT A N T — If you desire to bid on a competitive basis, fill in rate per 100 and maturity
value in paragraph headed "Competitive Bid.” If you desire to bid on a non-competitive
basis, fill in only the' maturity value in paragraph headed "Non-competitive Bid.”
DO
N O T fill in both paragraphs on one form. A separate tender must be used for each bid.

iCVi .P f t - '

T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS
Dated January 11, 1951

Maturing April 12, 1951
Dated at --------------------------------------------------

T o F e d e r a l R ese rv e B a n k o f N e w Y o r k ,
.... Fiscal A gent o f the United States.

___ 1951

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
January 4, 1951, 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 January 4,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

----------------------------------------- * for a total amount o f

for a total amount o f

(Rate per 100)

(Not 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

of

Treasury bills.__________ $________________________

(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

(Amount surrendered)

□

By cash or other immediately available funds

the

maturing

issue

of

Treasury bills----------------$________________________
(Amount surrendered)

□

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 decim al places, f o r exam ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated January 11, 1951, and are to
mature on April 12, 1951.
This tender mill be inserted in special envelope marked “ Tender f o r Treasury Bills.”
Name of Bidder.
(Please print)
By ..........

(Official signature required)

(Title)

Street Address

(City, Town or Village, P.O. No., 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:

(Name of Customer)

(City, Town or Village, P.O. No., and State)

Use a separate tender for each customer’ s bid.

IMPORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill be con sidered, and each ten der m u st b e fo r an even m u ltiple o f $1,000
(m a tu rity v a lu e ). A separate ten der m u st be execu ted for each bid.
2. I f the person m a k in g the ten der is a corp ora tion , the tender sh ou ld be sign ed b y an officer o f the c o rp o ra ­
tion a uthorized to m ake the tender, and the sig n in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a
representation b y him that he has been s o authorized. I f the tender is m ade b y a partnership, it sh ou ld b e sign ed b y a
member o f the firm, w h o sh ou ld sign in the fo rm “ ...................................................................................................., a cop artn ersh ip, b y
............................................................................................................. a m em b er o f the firm .”
3. T e n d e rs w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies and fro m resp on ­
sible and re co g n ize d dealers in in vestm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 percent
o f the face am ou nt o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent
b y an in corp ora ted bank o r trust com p a n y .
4. I f the language o f this ten der is ch a n ged in any respect, w h ich , in th e opin ion o f the S ecretary o f the
T reasu ry, is m aterial, the ten der m ay be disregarded.

Payment b y credit through Treasury Tax and Loan Account -will not be permitted.

TENTB— 1071a


( over)

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