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FEDERAL RE SER VE BANK O F NEW YORK Fiscal A gent o f the United States f 0 Circular No. 3650 t L February 6, 1951 J Offering o f $1,100,000,000 of 91-Day Treasury Bills Dated February 15, 1951 Maturing M ay 17, 1951 T o all In corporated B anks and T rust Companies in the S econd F edera l 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 u esday, February 6, 1951. TREASU RY DEPARTM ENT W a sh in gton T he Secretary o f the T reasu ry, by this public notice, invites tenders fo r $1,100,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch ange fo r T reasu ry bills m aturing F ebru ary 15, 1951, to be issued on a discou nt basis under com p eti tive and non-com p etitive b idding as h ereinafter provided . T h e bills o f this series w ill be dated February 15, 1951, and w ill mature M a y 17, 1951, w hen the fa ce am ount w ill be payable w ith ou t interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $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 era l R eserve Banks and B ranches up to the clo s in g hour, tw o o ’ c lo ck p.m., Eastern Standard time, F rida y, F ebru ary 9, 1951. T en ders w ill not be received at the T reasu ry D epartm ent, W a sh in gton . E ach tender must 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 basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the special en velopes w hich w ill be supplied by Federal R eserve Banks o r Branches on a pp lication therefor. O thers than banking institutions w ill not be perm itted to subm it tenders excep t fo r th eir ow n account. T en d ers w ill be received w ithout deposit fro m in corporated banks and trust com panies and fro m responsible and recogn 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 by an in corporated bank o r trust com pany. Im m ediately after the clo s in g hour, tenders w ill be opened at the F ed era l R eserve Banks and B ranches, fo llo w in g w hich p u blic 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 o r re je ctio n thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the righ t to accept o r reject any or all tenders, in w hole o r in p a rt, and his action in any such respect shall be final. Su bject to these reservations, non-com p etitive tenders for $200,000 or less w ithout stated price fro m any one bidder w ill be accepted in full at the average price (in three decim a ls) 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 F ed eral R eserve Bank on F ebru ary 15, 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 F ebru ary 15, 1951. Cash and exch a n ge tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m aturing bills accepted 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 o r gain from the sale or oth er disp osition o f the b ills, shall not have a n y exem ption, as such, and loss from the sale o r oth er d isp osition o f T rea su ry bills shall not have any special treatment, as such, under the Internal Revenue Code, or law s am endatory o r supplem entary thereto. T h e bills shall be subject to estate, inheritance, g ift, o r oth er excise taxes, w hether F ed eral o r State, but shall be exem pt from a ll taxation n ow o r hereafter im posed on the principal or interest th ereof by any State, or any o f the possessions o f the U n ited States, o r by any loca l ta x in g authority. F o r purposes o f taxation th e am ount o f discou nt at w hich T reasu ry bills are origin a lly sold by the United States shall be con sidered to be interest. U nder S ections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue C ode, as am ended b y S ection 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 sid ered to a ccru e until such bills shall b e sold, redeem ed or otherw ise disposed of, and such bills are e xclu ded from con sideration as capital assets. A ccord in g ly , the ow ner o f T reasu ry bills (oth er than life insurance co m panies) issued h ereunder need include in his incom e ta x return on ly the difference betw een the price paid fo r such bills, w hether on o rigin a l 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 made, 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 notice, prescribe the terms o f the T rea su ry bills and govern the con ditions 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 o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Friday, February 9, 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 ax and Loan Account. Settlement must be immediately available funds or in maturing Treasury bills. A llan 1951, at the Securities side o f this circular to for the Treasury bills made in cash or other S proul, President. (CLOSIN G D A Y FO R R E C E IP T OF TE N D E RS IS F R I D A Y , F E B R U A R Y 9, 1951) RESULTS OF B ID D IN G FO R T R E A S U R Y BILLS D A T E D F E B R U A R Y 8, 1951 W E R E N O T A V A IL AB LE W H E N TH IS C IR C U LA R W A S PR IN TE D . ( over) 24U IM P O R T A N T — Please note that tenders fo r this issue must be received not later than 2 p.m ., Eastern Standard time, Friday, February 9, 1951. 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 b id on a non-com petitive basis, fill in on ly the m aturity 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 tender must b e used fo r each bid. N o ............................ T E N D E R FOR 91-D A Y T R E A S U R Y BILLS Dated February 15, 1951 T o F e d eral R eserve B a n k o f N e w Y Fiscal Agent of the United States. Maturing May 17, 1951 Dated a t ....................................................... ork, ..................................................................1951 C O M P E T IT IV E B ID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on February 6, 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 February 6, 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 $ ............................................... N O N -CO M PETITIVE BID (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 b e lo w : (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 o f the maturing issue of Treasury b i l l s ................... $---------------------------------- By surrender of the maturing B y cash or other immediately available funds of Treasury b i l l s ................... $______________________ (Amount surrendered) (Amount surrendered) □ issue □ B y cash or other immediately available funds * P r ic e must be exp ressed on the basis o f 100, w ith not m ore than three decimal places, fo r exam ple, 99.925. T h e Treasury bills for which tender is hereby made are to be dated February 15, 1951, and are to mature on M ay 17, 1951. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B id d e r............................................................................................................................................. (Please print) B y ....................... .............................. ............................... . .................................. (Official signature required) (T itle) Street A d d ress .......................................................................................................................... (City, Town or Village, P. O. No., and State) I f this tender is subm itted b y a bank f o r the a ccou n t o f a cu stom er, indicate the cu stom er’s nam e on line b e lo w : (Name o f Customer) (City, Town or Village, P. O. No., and State) U se a separate tender fo r each custom er’ s bid. IM P O R T A N T IN STR U C T IO N S: 1. N o tender fo r less than $1,000 w ill be con sid ered , and each tender must be fo r an even m ultiple o f $1,000 (m atu rity v a lu e ). A separate tender must be execu ted fo r each bid. 2. I f the person m akin g the ten der is a corp ora tion , the tender should be signed by an officer o f the corp oration authorized to m ake the tender, and the sign in g o f the ten d er by an officer o f the corp ora tion w ill be construed as a rep resentation by him that he has been so authorized. I f the ten der is made b y a partnership, it should be signed b y a m em b er o f the firm, w ho sh ou ld sign in the form “ ................................................................................................................. a copartnership, by ......................................................................................................................... a m em ber o f the firm.” 3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and fro m resp on sible and recogn ized dealers in investm ent securities. T en ders from others must be accom panied b y paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom pa n ied by an express guaranty o f paym ent by an in corporated bank or trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the S ecreta ry o f the T reasu ry, is m aterial, the tender m ay be disregarded. P aym ent b y cred it through Treasury T ax and Loan A ccou n t will n ot b e perm itted. http://fraser.stlouisfed.org/ T E N T B —1076-a Federal Reserve Bank of St. Louis ( oveb)
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