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FEDERAL RESERVE BANK O F NEW YORK
[C ircu la r No. 3Booi
LF ebruary 15,1951J

Fiscal Agent o f the United States

Offering o f $1,100,000,000 of 90-Day Treasury Bills
Dated February 23, 1951

Maturing May 24, 1951

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

Following 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 u rsd a y, F eb ru a ry 15, 1951.

TREASU RY DEPARTM ENT
W a sh in g ton

T h e S ecreta ry o f the T rea su ry , b y this p u b lic n otice, invites tenders fo r $1,100,000,000, or th ereabouts, o f 9 0-d ay 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 aturing F ebru ary 23, 1951, to be issued on a d iscou n t basis u nder c o m ­
petitive and n on -co m p etitiv e bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated F eb ru a ry 23, 1951, and w ill
m ature M a y 24, 1951, w hen the face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer 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 received at F ed eral R eserve B anks and B ra n ch es up to the clo s in g h our, tw o o ’ c lo ck p.m ., E astern
S tandard tim e, M o n d a y , F eb ru a ry 19, 1951. T en d ers w ill n ot be receiv ed at the T reasu 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 the price o ffe re d m u st be exp ressed on
the basis 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 rged that tenders be
m ade o n the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed era l R e serv e B anks or
B ra n ch es o n application therefor.
O th ers than b ankin g institutions w ill n ot be perm itted to subm it tenders e x ce p t fo r their ow n a ccou n t. T en d ers w ill be
re ce iv e d w ith ou t dep osit from in corp ora ted banks and trust com panies and fr o m respon sible and recog n ized dealers in in ­
v e stm en t securities. T en d ers fro m oth ers m ust be a ccom p a n ied b y paym ent o f 2 percent o f the face a m ou n t o f T rea su ry bills
a pplied fo r, unless the tenders 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 corpora ted bank or trust com pan y.
Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve B anks and B ra n ch es, fo llo w in g w hich
pu blic an n ou n cem en t w ill be m ade b y the S ecreta ry o f the T rea su ry o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e
subm itting tenders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecretary o f the T rea su ry ex p ressly reserves
the righ t to a cce p t o r reject any o r all tenders, in w h o le or in part, and his a ction in any such resp ect shall be final. S u b ject
to these reservations, n on -com p etitive tenders fo r $200,000 or less w ith ou t stated price fr o m a n y on e bidder w ill be a ccep ted
in full at the average 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 eserve B ank on F eb ru a ry 23, 1951, in cash o r oth er im m ediately
available funds o r in a like face a m ou n t o f T rea su ry bills m aturing F eb ru a ry 23, 1951. Cash and ex ch a n g e tenders w ill re ­
ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m aturing bills a ccep ted in
e x ch a n g e and the issue price o f the n ew bills.
T h e in co m e derived from T rea su ry bills, w hether interest or gain fro m the sale or oth er d isp osition o f the b ills, shall
n ot have a n y exem ption , as such, and loss fr o m the sale or oth er disp osition o f T rea su ry bills shall n o t have a n y special
treatm ent, as such, under the Internal R even u e C ode, o r law s a m en d a tory or supplem entary th ereto. T h e bills shall be
su b ject to estate, inheritance, g ift o r oth er excise taxes, w h eth er Federal or State, but shall be exem pt fro m all taxation
n o w o r hereafter im posed on the principal or interest th ereof b y a n y State, o r any o f the p ossession s o f the U n ited States,
o r b y a n y loca 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 are originally
sold b y the U n ited States shall be con sid ered to be interest. U n der S ection s 42 and 117 ( a ) ( 1 ) o f the In tern al R even ue
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 h ich bills issued hereun der are
sold shall n o t be con sidered to accru e until such bills shall be sold, red eem ed o r oth erw ise d isp osed of, and such bills are
exclu d ed from con sideration as capital assets. A c co r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance c o m ­
pa n ies) issued hereun der need in clude in his in com e tax return o n ly the differen ce betw een the price paid fo r such bills,
w h eth er on o rig in a l issue or on subsequent pu rch ase, and the am ou nt actu a lly receiv ed either u p on sale or redem ption at
m aturity d u rin g the taxable yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss.
T re a su ry D epa rtm en t C ircular N o . 418, as am ended, and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn
the con d ition s o f their issue. C opies o f the circular m a y be obtain ed fro m a n y Federal R eserve B a n k o r B ranch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, February 19, 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 l l a n S p r o u l , President.
R esu lts o f la st o ffe rin g o f T r e a s u r y bills ( 9 1 - d a y b ills d a ted F e b r u a r y 1 5 , 1 9 5 1 , m a tu r in g M a y 1 7 , 1 9 5 1 )
T o t a l applied fo r ............ $1,904,536,000
T o ta l a ccep ted ...............$1,101,541,000 (in clu des $99,399,000
entered on a n on -com p etitive basis
and accepted in full at the average
price show n b e lo w )
A v e ra g e p rice ........ 99.648
E q u iva len t rate o f discount
app rox. 1.391% per annum
R a n g e o f a ccep ted com p etitive b id s: (e x ce p tin g on e tender
o f $310,000)
H ig h ........................ 99.651
E quivalent rate o f discount
a pp rox. 1.381% per annum
L o w .......................... 99.647
E quivalent rate o f discount
a pp rox. 1.396% per annum
(19 percent o f the am ount bid fo r at the low
price w as a ccep ted)

Federal R eserv e
D istrict
B oston ..............................
N ew Y o r k ......................
Philadelphia
C leveland .......
R ich m on d .......
A tlanta ...........
C h ica g o ...........
St. L ou is .........
M in n eap olis ...
K ansas C ity ...
D allas ..............
San F ra n cisco
T o t a l .......................

Total
A pplied f o r
$

T otal
A ccepted

6,855,000
1,473,113,000
23.419.000
49.433.000
7.730.000
7.908.000
169.548.000
26.050.000
4.244.000
32.862.000
38.090.000
65.284.000

6.403.000
821.053.000
7.609.000
40.442.000
7.730.000
7.908.000
109.968.000
13.158.000
4.244.000
28.812.000
25.940.000
28.274.000

$1,904,536,000

$1,101,541,000

£B~Please note that the current offering is fo r 9 0-day Treasury Bills




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24V
I M P O R T A N T — -Please n ote th a t this o ffe rin g is f o r 9 0 - D A Y T R E A S U R Y B IL L S w h ic h w ill
be d a te d February 2 3 , 1951 , in stead o f Thursday, February 2 2 , 1951, Washington's Birthday.
I M P O R T A N T — I f y o u desire t o b id on a competitive basis, fill in r a te p er 1 0 0 an d m a t u r it y
v a lu e in p a r a g ra p h h ea d e d "C o m p e t it iv e B id .”
I f y o u desire t o b id on a non-competitive
b asis, fill in o n ly th e m a t u r it y v a lu e in p a r a g r a p h h ead ed "N o n -c o m p e t i t i v e B id .” DO N O T

fill in both paragraphs on one form.

A separate tender must be used for each bid.
N o__________________

T E N D E R F O R 9 0 -D A Y T R E A S U R Y BILLS
M a tu r in g M a y 2 4 , 1 9 5 1

D a ted F eb ru ary 2 3 , 19 51

Dated at -----------------------To F e d e ra l R eserve B a n k o f N ew Y o rk ,
Fiscal Agent o f the United States.

.1951

C O M P E T I T I V E B ID

N O N - C O M P E T I T I V E B ID

Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on
February 15, 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 February 15,
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 $..

(R ate per 100)

(N ot to exceed $200,000)

(maturity value)
$..
o f the Treasury bills therein described, o r 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

maturing 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 b elow :
□

By surrender o f

maturing Treasury bills

amounting to......................... $....................................

amounting to......................... $....................................

□

□

By cash or other immediately available funds

By cash or other immediately available funds

* P ricc must be expressed on the basis o f 100, w ith 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 February 23, 1951, and are to
mature on M ay 24, 1951.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
N a m e o f B idder.

B y ..........

(P lease p rin t)

(T itle)

(Official signature required)

Street A d d ress
(C ity, T ow n or V illage, 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:

(N am e o f Custom er)

(C ity, T ow n or V illage, P.O. No., aud Slate)

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 be f o 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 b e execu ted fo r each bid.
2. I f the person m a k in g the ten der is a corp ora tion , the ten der sh ou ld b e 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 th e corp ora tion w ill be con stru ed as a
represen tation b y h im that he has b een s o authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a
m e m b e r o f the firm , w h o sh ou ld sign in the fo r m “ ..................................................................................................... a copartn 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 corpora ted banks and trust com pa n ies and fro m resp o n ­
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 b e a ccom p a n ied b y p a ym en t o f 2 p ercen t
o f the face a m ou n t o f T r e a s u ry bills a pplied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent
b y an in corp ora ted ba n k o r trust com pan y.
4. I f the language o f this ten der is ch a n ged in a n y respect, w hich, in the opin ion o f the S ecreta ry o f the
T re a su ry , is m aterial, the ten der m a y be disregarded.

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


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