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FEDERAL RESERVE BANK O F N EW YORK
r C ir cu la r N o. 36811
L M a rch 29,1951 J

Fiscal Agent of the United States

Offering o f $1,000,000,000 of 91-Day Treasury Bills
Dated April 5, 1951
Maturing July 5, 1951
To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:

Following is the text o f a notice published today:
TREASU RY DEPARTM EN T
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 , M a rch 29, 1951.

T h e S ecreta ry o f the T rea su ry, b y this pu blic n otice, invites tenders fo r $1,000,000,000, o r th ereabouts, o f 91-day T re a s ­
u ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing A p ril 5, 1951, t o be issued on a discou n t basis under co m p e ti­
tive and n o n -co m p e titiv e bid d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated A p ril 5, 1951, and w ill mature
J u ly 5, 1951, w hen the face a m ou n t 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 d e n o m i­
nations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity v a lu e).
T e n d e rs w ill be received at F ed eral R es e rv e B anks and B ran ch es 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, A p ril 2, 1951. T e n d e rs w ill n ot be received at the T rea su ry D epa rtm 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 p rice offered m u st b e exp ressed on
the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F ra ction s m a y n ot be used. I t is u rg ed 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 eral R es e rv e B an k s o r
B ra n ch es o n application th erefor.
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 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 pa n ies and fr o m respon sib le and recog n ized 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 paym ent o f 2 percen t o f the face a m ou n t o f T rea su ry bills
applied for, unless the tenders are a ccom p a n ied b y an express gu a ra n ty o f pa ym en t b y an in corporated bank or trust com pan 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 ran ches, fo llo w in g w hich
p u b lic 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
su b m ittin g tenders 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 ex p ressly reserves
the righ t t o a cce p t or reject a n y or all tenders, in w h o le o r 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 any on e b idder w ill b e a ccep ted
in full at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. S ettlem ent f o r a ccep ted tenders in a cco rd a n ce
w ith the bids m u st be m ade o r com p leted at the Federal R eserve Bank on A p ril 5, 1951, in cash or oth er im m ediately avail­
able funds o r in a like face a m ou n t o f T rea su ry bills m aturing A p ril 5, 1951. Cash and exch a n ge tenders w ill receive equal
treatm ent. Cash adjustm ents w ill be m ade for d ifferen ces betw een the par value o f m aturing bills a ccep ted in ex ch a n g e and
the issue price o f the n ew bills.
T h e in co m e derived fro m T rea su ry bills, w h eth er interest o r gain fro m the sale o r oth er d isp osition o f th e bills, shall
n ot have a n y exem ption , as such, and lo s s fr o m the sale o r oth er disp osition o f T rea su ry bills shall n ot have any special
treatm ent, as such, u nder the Internal R even u e C ode, o r law s a m en d a tory or supplem entary thereto. T h e bills shall be
su b ject t o estate, inheritance, gift, o r oth er e x cis e taxes, w hether Federal o r State, but shall be e x e m p t fr o m all taxation
n o w o r h ereafter im p osed on the principal o r interest th ereof b y a n y State, or a n y o f the p ossession s o f the U n ited States,
o r b y any loca l ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly
so ld b y the U n ited States shall be con sid ered t o be interest. U n d er S ection s 42 and 117 ( a ) ( 1 ) o f the In tern al R even u e
C ode, as a m en ded b y S ection 115 o f the R e v en 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
so ld shall n o t be con sidered to a ccru e until such bills shall be sold, red eem ed o r oth erw ise disp osed of, and such bills are
exclu d e d fr o m con sidera tion as capital assets. A c co r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance co m ­
p a n ies) issued hereun der need include in his in com e ta x return on ly the differen ce betw een the price pa id fo r such bills,
w h eth er o n origin a l issue or on subsequen t purchase, and the am ou nt actu ally receiv ed either u pon sale or red em ption at
m aturity d u rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss.
T re a su ry D epa rtm en t Circular N o . 418, as am en ded, and this n otice, prescribe the 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 their issue. C opies o f the circu la r m ay b e obtain ed fr o m a n y F ed eral R eserve B ank o r B ran ch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, April 2, 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 fo r Treasury Bills.” Payment fo r the Treasury bills
cannot be made by credit through the Treasury T ax and Loan A ccount. 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.
Results of last offering of Treasury bills (91-day bills dated March 29, 1951, maturing June 28, 1951)
T o ta l applied f o r ............ $1,682,245,000
T o ta l a ccep ted ...............$1,000,875,000 (in clu des $88,940,000
entered on a n o n -com p etitive basis
and a ccep ted in full at the average
price show n b e lo w )
A v e ra g e price ........ 99.619
E quivalent rate o f discou n t
a p p rox. 1.507% per annum
R a n g e o f a ccep ted com p etitive b ids:
H ig h

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

99.650

L o w ..........................

99.613

E quivalent rate
a pp rox. 1.385%
E quivalent rate
a pp rox. 1.531%

o f discou nt
per annum
o f discount
per annum

(14 percent o f the am ount bid fo r at the low
price w as accepted)




Federal Reserve
District
B o sto n ....................... ......
N ew Y o r k ................. ......
Philadelphia ............
C leveland .................
R ich m o n d .................
A tla n ta .....................
C h ica g o .....................
St. L ou is ...................
M in neapolis .............
K ansas C ity ............
San F ra n cisco ........
T

otal

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

Total
Accepted

Total
Applied for
$

11,808,000
1,202,331,000
27,253,000
35,955,000
14,340,000
8,991,000
258,735,000
9,369,000
3,117,000
29,987,000
21,401,000
58,958,000

$1,682,245,000

$

11,808,000
565,831,000
12,253,000
35,955,000
14,340,000
8,991,000
242,015,000
9,369,000
3,117,000
29,987,000
21,401,000
45,808,000

$1,000,875,000

(o v e r )

25B
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 N O T
fill tn 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 1 - D A Y T R E A S U R Y BILLS
Dated April 5, 1951

Maturing July 5, 1951
Dated at ---------- ---------

T o F ed eral R eserve B a n k of 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
March 29, 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 29,
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, 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 :
□

B y 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 below :
□

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 r ice must be expressed on the basis o f 100, w ith 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 April 5, 1951, and are to mature
on July 5, 1951,
This tender will be inserted in special envelope marked “ Tender f o r Treasury B ills”
N a m e o f B idder.

By

(P lease print)

(Official signature required)

(Title)

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., 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 b e con sidered, and each tender m u st be 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 f o 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 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 sign in g o f the ten der b y an officer o f the co rp o ra tio n w ill be con stru ed as a
representation b y him that he has been 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 from in corp ora ted banks and trust com pa n ies and fr o 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 be a ccom p a n ied b y pa ym en t o f 2 p ercen t
o f the face a m ou n t 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
by an in co rp o ra te d bank or trust com pan y.
4. I f the lan gu age o f this ten der is ch a n ged in a n y respect, w hich, in the opin ion o f th e S ecreta ry o f the
T reasu 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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