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FEDERAL

RESERVE

BANK

OF

NEW

YORK

Fiscal A gent o f the United States

E

Circular No. 3676
March 22, 1951

Offering o f $ 1 ,0 0 0 ,0 0 0 ,0 0 0 o f 91-D a y Treasury Bills
Dated March 29, 1951

Maturing June 28, 1951

T o all In corporated B anks and Trust Com panies in the
Second Federal R eserv e D istrict and O thers C oncerned:

F ollow in g 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
T h ursd ay, M a rch 22, 1951.

N EW SPAPERS,

TREASURY DEPARTM ENT
W a sh in gton

T h e Secretary o f the T reasu ry, by this pu blic n otice, invites tenders for $1,000,000,000, o r thereabouts, o f 9 1-d ay T reasu ry
b ills, fo r cash and. in exch ange fo r T reasu ry bills m aturing M a rch 29, 1951, to be issued on a discou nt basis under com p eti­
tive and n on -com p etitive b idd ing as h ereinafter provided . T h e bills o f this series w ill be dated M a rch 29, 1951, and w ill
mature June 28, 1951, w hen the face am ount w ill be payable w ithout 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 atu rity va lu e).
T en ders w ill be received at F ed eral R eserve Banks and B ranches up to the clo s in g hour, tw o o ’ c lo ck p.m., E astern
Standard time, M onday, M arch 26, 1951. T en ders w ill not be received at the T reasu ry Department, 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 not m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is u rged that tenders be
m ade on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied b y F ed eral R eserve Banks o r
B ranches o n a pp lica tion therefor.
O thers than banking institutions w ill n ot be perm itted t o subm it tenders excep t fo r th eir ow n account. T en d ers w ill be
received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in­
vestm ent securities. T en ders from others must be accom pa n ied b y paym ent o f 2 percent o f the face am ount o f T reasu ry bills
a pplied for, unless the tenders are accom panied by an express guaranty o f paym ent b y 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 eral R eserve Banks and B ranches, fo llo w in g w hich
pu b lic announcem ent w ill be made by the S ecretary o f the T rea su ry o f the am ount and p rice range o f a ccep ted b ids. T h ose
subm itting tenders w ill be advised o f the acceptance o r rejection th ereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves
th e righ t to a ccep t o r reject any or a ll tenders, in w h ole o r in part, and his a ction in any such respect shall be final. S ubject
to these reservations, n on -com p etitive tenders fo r $200,000 or less w ith ou t stated p rice from any one b idd er w ill be a ccepted
in fu ll at the a vera ge p rice (in three decim a ls) o f a ccepted com petitive bids. Settlem ent f o 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 M arch 29, 1951, in cash or oth er im m ediately
available funds o r in a like face amount o f T reasu ry bills m aturing M a rch 29, 1951. Cash and exch ange 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 a ccep ted in exch a n ge
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 o r oth er disp osition o f the b ills, shall
not have any exem ption, as such, and loss fro m the sale or oth er d isp osition o f T reasu ry bills shall n ot have any special
treatment, as such, under the Internal Revenue C ode, o r law s am endatory o r supplem entary thereto. T h e bills shall be
su b ject to estate, inheritance, gift, or other e x cis e taxes, w hether Federal o r State, but shall be exem pt fro m a ll taxation
n o w o r hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U n ited States,
o r b y any lo ca l ta x in g authority. F o r purposes o f taxation the am ount o f discou n t at w hich T reasu ry bills a re o rigin a lly
sold by the U nited States shall be con sid ered to be interest. U n der S ections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue
Code, as am ended b y S ection 115 o f the R evenue A c t o f 1941, the am ount o f discou n t at w hich bills issued h ereunder are
so ld shall n ot be con sidered to a ccru e until such bills shall be sold, redeem ed or oth erw ise disposed o f , and such bills are
exclu ded fro m con sideration as capital assets. A cco rd in g ly , the ow n er o f T rea su ry bills (oth er than life insurance co m ­
pan ies) issued hereunder need include in his incom e ta x return on ly the difference betw een the price pa id f o r such bills,
w hether on origin a l issue o r on subsequent purchase, and the am ount actu a lly received either upon sale o r redem ption at
m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry gain o r loss.
T re a su ry D epartm ent C ircu la r N o. 418, as am ended, and this notice, prescribe the terms o f the T rea su ry bills and
govern the conditions o f th eir issue. Copies o f the circu la r m ay be obtain ed fro m any F ed era l R eserve B ank o r B ranch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March, 26,
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 A ccount. Settlement must be
immediately available funds or in maturing Treasury bills.
A llan

Results o f last offering o f Treasury bills
T o ta l applied f o r ........ $1,742,454,000

99.645

Equivalent rate o f discount
app rox. 1.405% per annum

R ange o f accepted com petitive bids :
H ig h ........................... 99.657 E quivalent rate o f discount
approx. 1.357% per annum
L o w .............................

99.643

S prou l,

President.

(91-day bills dated March 22, 1951, maturing June 21, 1951)

T o ta l a c c e p t e d ............. $1,001,564,000 (inclu des $108,080,000
entered on a n on-com petitive basis
and accepted in fu ll at the a ver­
age price show n b elow )
A vera ge p r ic e ...........

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

E quivalent rate o f discou nt
approx. 1.412% per annum

Total
A ccepted

Total
Applied for

Federal R eserve
D istrict
...

$

...

$1,742,454,000

N ew Y o r k ...............
Philadelphia ...........
Cleveland .................
R ich m on d .................
A tlanta .....................
St. L o u i s ...................
M inneapolis .............
K ansas City ...........
D allas .......................
San F r a n cis co -----

21,918,000
1,246,319,000
36,369,000
44,624,000
17,739,000
16,921,000
158,568,000
12,628,000
3,814,000
24,667,000
18,165,000
140,722,000

$

21,543,000
571,919,000
25,319,000
41,694,000
17,739,000
13,621,000
115,568,000
12,213,000
3,769,000
24,667,000
18,165,000
135,347,000

(85 percent o f the am ount bid fo r at the low

price w as accepted)



T otal

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

$1,001,564,000

(o v e r)

25A
IMPORTANT— 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
NOT fill in both paragraphs on one form. A separate tender must be used for each bid.
No.

T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S
Dated March 29, 1951
T o F ed eral R eserve B a n k o f N e w Y
Fiscal A gent of the United States.

Maturing June 28, 1951
Dated a t ........................

ork,

1951

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
March 22, 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 March 22,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-com petitive tender

................. ........................... * fo r a total amount of

fo r a total amount o f $.

NON-COMPETITIVE BID

(R a te per 100)

(N o t 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 you r 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) o f accepted com petitive bids, settlement
therefor to be made at you r Bank, on the date
stated in the public notice, as indicated b elow :

□

□

B y surrender o f maturing Treasury bills

B y surrender o f maturing Treasury bills

amounting t o ................... $_______________________

amounting t o ................... $_______________________

□

□

By cash or other immediately available funds

Bv cash or other immediately available funds

* Price must be expressed on the basis oj 100, with not
more than three decimal places, for example, 99.925.

The Treasury bills for which tender is hereby made are to be dated March 29, 1951, and are to
mature on June 28, 1951.
This tender w ill be inserted in special envelope marked “ Tender for Treasury Bills.”
Nam e o f B id d er.
(Please p rin t)

B y.
(Official signature required)

(T it le )

Street A d d ress ......................................
(C it y , T o w n or V illa g e , P . O . N o ., and State)

I f this tender is subm itted b y a bank fo r the accou n t o f a custom er, indicate the custom er’s nam e on line b e lo w :
(N am e of Custom er)

Use a

(C it y , T o w n or V illa g e , P . O . N o ., and State)

separate tender f o r each custom er’ s bid.

IMPORTANT INSTRUCTIONS:
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 aturity va 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 m ake the tender, and the sign ing 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 d er 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 en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon ­
sible and recogn ized dealers in investm ent securities. T en ders from others m ust be accom panied b y paym ent o f
2 percent o f the face am ount o f T rea su ry bills applied fo r, unless the tenders are accom panied by an express guaranty
o f paym ent by an in corporated bank o r trust com pany.
4. I f the language o f this tender is ch anged in any respect, w hich, in the op in ion o f the S ecreta ry o f the
T reasu ry, is m aterial, the tender m ay be disregarded.

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

TENTB—1062-a


(ovn )

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