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FEDERAL RESER VE BANK O F N EW

YORK
f" Circular No. 3645
1. January 18, 1951

Fiscal A gent o f the United States

Offering of $1,000,000,000 of 91-Day Treasury Bills
Dated January 25, 1951

Maturing April 26, 1951

To all In corporated B anks and Trust Companies in the
Second Federal R eserv e D istrict and O thers C on cern ed:

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 ,
T h ursday, January 18, 1951.

TREASURY DEPARTM ENT
W a sh in gton

T h e Secretary o f the T reasu ry, by this pu blic notice, invites tenders fo r $1,000,000,000, o r thereabouts, o f 91-day T reasu ry
bills, fo r cash and in exch an ge for T reasu ry bills m aturing January 25, 1951, to be issued on a discou n t basis under com peti­
tive and n on -com p etitive bid d in g as h ereinafter provided. T h e bills o f this series w ill be dated January 25, 1951, and w ill
mature A p r il 26, 1951, w hen the face am ount w ill be payable w ith ou t interest. T h ey w ill be issued in bearer fo rm only,
and in denom inations o f $1,000, $o,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity va lu e).
T en ders w ill be received at F ed eral R eserve Banks and Branches up to the clo s in g hour, tw o o ’ clo ck p.m., Eastern
Standard time, M on day, January 22, 1951. T en ders w ill n ot be received at the T reasu ry Departm ent, W a sh in gton . E ach
tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on
the oasis o f 1U0, w ith not m ore than three decim als, e.g., 99.925. F raction s m ay not be used. It is urged that tenders be
made on the printed form s and forw a rd ed in the special en velopes w hich w ill be supplied b y F ed era l R eserve Banks or
Branches on a pp lication therefor.
O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t for th eir ow n a ccou nt. T en ders w ill be
received w ith ou t dep osit fro m in corporated banks and trust com panies and fro m responsible and recog n ized dealers in in­
vestm ent securities. Tenders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f T rea su ry bills
applied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an in corporated bank or trust com pany.
Im m ediately a fter the closin g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich
public announcem ent w ill be made by the Secretary o f the T rea su ry o f the am ount and price range o f a ccep ted bids. T h ose
subm itting tenders w ill be advised o f the acceptance or re je ctio n th ereof. T h e S ecretary o f the T reasu ry exp ressly reserves
the right to accept o r reject any o r all tenders, in w h ole o r in p a rt, and his action in any such respect shall be final. S ubject
to these reservations, non-com p etitive tenders for $200,000 or less w ithout stated price from any on e b idd er w ill be accepted
in full at the average price (in three decim als) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce
w ith the bids must be made or com pleted at the Federal R eserve Bank on January 25, 1951, in cash or oth er im m ediately
available funds o r in a like face am ount o f T reasu ry bills m aturing January 25, 1951. Cash and exch ange tenders w ill receive
equal treatment. Cash adjustm ents w ill be m ade fo r differences between the par value o f m aturing bills a ccepted in exch ange
and the issue price o f the new bills.
T h e incom e derived from T reasu ry bills, w hether interest or gain fro m the sale or other disposition o f the b ills, shall
not have any exem ption, as such, and loss from the sale or o th e r disposition o f T reasu ry bills shall n ot have any special
treatment, as such, under the Internal Revenue Code, o r law s am endatory o r supplem entary thereto. T h e bills shall be
subject to estate, inheritance, gift, or oth er e x cis e taxes, w hether F ed eral or State, but shall be exem pt from a ll taxation
now o r hereafter im posed on the principal or interest th ereof b y any State, or any o f the possessions o f the U n ited States,
or by any loca l ta x in g authority. F o r purposes o f taxation th e am ount o f discou n t at w h ich T reasu ry bills are origin a lly
sold by the United States shall be con sidered to be interest. U n der S ections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue
Code, as am ended by Section 115 o f the Revenue A ct o f 1941, the am ount o f discou nt at w hich bills issued hereunder are
sold shall not be con sidered to accru e until such bills shall b e sold, redeem ed or oth erw ise disposed of, and such bills are
e xclu ded from con sideration as capital assets. A cco rd in g ly , the ow n er o f T reasu ry bills (oth er than life insurance co m ­
panies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid fo r such bills,
whether on origin al issue or on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption at
m aturity during the taxable year fo r w hich the return is m ade, as ord in a ry gain o r loss.
T reasu ry Departm ent C ircu la r N o. 418, as amended, and this n otice, prescribe the terms o f the T rea su ry bills and
govern the conditions o f their issue. Copies o f the circu la r m a y be obtained from any F ed eral R eserve B ank or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 22,
Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse
submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Payment
cannot be made by credit through the Treasury T a x and Loan A ccount. Settlement must be
immediately available funds or in maturing Treasury bills.
A lla n

1951, at the Securities
side o f this circular to
for the Treasury bills
made in cash or other

S p r o u l,

President.

Results o f last offering o f Treasury bills (91-day bills dated January 18, 1951, maturing A p ril 19, 1951)
T o ta l applied f o r .........$1,937,512,000
T ota l a c c e p t e d .............$1,002,707,000 (inclu des $133,660,000
entered on a n on -com p etitive basis
and accepted in fu ll at the aver­
age price show n b elow )
A ve ra g e p r ic e ----- 99.648+ Equivalent rate o f discou nt
app rox. 1.391% per annum
R ange o f accepted com petitive b id s : (E x ce p tin g tw o
tenders tota lin g $900,000)
H ig h ....................... 99.659
Equivalent rate o f discount
approx. 1.349% per annum
L o w ......................... 99.647
E quivalent rate o f discount
approx. 1.396% per annum
(27 percent o f the am ount b id fo r at the low
price was accep ted)




Federal R eserv e
D istrict

T otal
A pplied fo r

Total
A ccep ted

B o s t o n .............................
N ew Y o r k .....................
Ph iladelphia .................
C leveland .......................
R ic h m o n d .......................
A tlanta ...........................
C h i c a g o ...........................
St. L ou is .......................
M in neapolis .................
K ansas C ity .................
D allas .............................
San F r a n c i s c o ...............

$ 21,633,000
1,320,494,000
29,080,000
75,293,000
18,328,000
14,600,000
234,332,000
27,979,000
6,496,000
25,967,000
54,499,000
108,811,000

$

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

$1,937,512,000

$1,002,707,000

T otal

20,903,000
539,144,000
14,080,000
64,343,000
18,328,000
14,600,000
165,352,000
19,209,000
6,204,000
25,237,000
37,126,000
78,181,000

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over)

24R
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 bid 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 b oth paragraphs on on e form . A separate ten d er must b e used fo r each bid.
No.

T E N D E R FOR 91-D AY T R E A S U R Y BILLS
Maturing A p ril 26, 1951

Dated January 25, 1951
To

F ederal R eserve B a n k

of

N ew

Dated a t .......................

Y ork,

Fiscal Agent of the United States.

1951
N O N -C O M P E TIT IV E B ID

C O M P E T IT 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
January 18, 1951, as issued by the Secretary
of
the Treasury, the undersigned offers

Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on January 18,
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 $ ..............................................
(Not to exceed $200,000)

(Rate per 100)

$ ..................................................... (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 e lo w :
□

By

surrender

Treasury bills

o f the maturing issue

of

...............$----------------------------------

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) of accepted com petitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated b e lo w :
□

By

surrender

of

Treasury bills

the maturing

B y cash or other immediately available funds

of

(Amount surrendered)

(Amount surrendered)

□

issue

$______________________

□

By cash or other immediately available funds

* P r ic e must be exp ressed on the basis o f 100, zvith not
m ore than three decimal places, f o r exam ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated January 25, 1951, and are to
mature on A pril 26, 1951.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
N am e o f B id d er.
B y ...

(Please print)

(Official signature required)

(Title)

Street A d d ress ......................................
(City, Town or Village, P. O. No., and State)

I f this tender is subm itted by a bank fo r the account o f a custom er, indicate the custom er’ s name on line below :
(City, Town or Village, P. O. No., and State)

(Name of Customer)

U se a separate tender fo r each custom er’ s bid.

IM P O R T A N T IN STRU CTIO N S:
1. N o tender fo r less than $1,000 w ill be con sidered, and each tender must be fo r an even m ultiple o f
$1,000 (m aturity v a lu e). A separate tender must be executed fo r each bid.
2. I f the person m aking the tender is a corp ora tion , the tender should be signed by an officer o f the corporation
authorized to make the tender, and the sign ing o f the ten der by an officer o f the corporation w ill 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 m em ­
ber o f the firm, w ho should sign in the form “ ................................................................................................................ , a copartnership, by
a m em ber o f the firm.”
3.

T enders w ill be received w ithout deposit from incorporated banks and trust com panies and from respon­
sible and recogn ized dealers in investm ent securities. T enders from others must be accom panied by paym ent o f
2 percent o f the face amount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty
o f paym ent by an incorporated bank or trust com pany.
4. If the language o f this tender is changed in any respect, w hich, in the opin ion o f the Secretary o f the
T reasury, is material, the tender m ay be disregarded.

P aym ent b y credit through Treasury T ax and Loan A ccoun t w ill n ot b e perm itted.


T E N T B —1073-a

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