View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL

RESERVE

BANK

OF

NEW

YORK

Fiscal Agent of the United States

[

C i r c u l a r N o . 3689
A p r i l 12, 1951

Offering o f $1,000,000,000 of 91-Day Treasury Bills
Dated April 19, 1951

Maturing July 19, 1951

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:

Following i the t xt of a notice published today:
s
e
F O R R E L E A S E , M O R N IN G
T h u rsd ay, A p ril 12, 1951.

N EW SPAPERS,

TREASU RY DEPARTM ENT
W a sh in gton

T h e Secretary o f the T reasu ry, by this public notice, invites tenders f o r $1,000,000,000, or thereabouts, o f 91-day Treasu ry
bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing A p ril 19, 1951, to be issued on a discou nt basis under com peti­
tive and non-com petitive bid d in g as h ereinafter provided. T h e bills o f this series w ill be dated A p ril 19, 1951, and w ill
m ature July 19, 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 aturity v a lu e).
T en ders w ill be received at Federal R eserve Banks and Branches up to the clo s in g hour, tw o o ’ c lo ck p.m., E astern
Standard time, M on day, A p ril 16, 1951. T en ders w ill not be received at the T reasu ry D epartm ent, W a sh in gton . E ach
ten der must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust 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 envelopes w hich w ill be supplied b y F ed era l R eserve Banks o r
B ran ches o n a pp lica tion th erefor.
O thers than banking institutions w ili n ot be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be
receiv ed w ith ou t deposit from in corporated banks and trust com panies and fro m responsible and recogn ized dealers in in ­
vestm ent securities. T en ders from others m ust be accom panied b y paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills
applied fo r, unless the tenders are accom pa n ied by an express guaranty o f paym ent b y an in corpora ted bank o r trust com pany.
Im m ediately a fter the clo s in g hour, tenders w ill be opened at the F ed eral R eserve Banks a n d B ranches, fo llo w in g w hich
p u b lic announcem ent w ill be m ade by the Secretary o f the T reasu ry o f the am ount and p rice ra n ge o f a ccepted bids. T h ose
subm itting tenders w ill be advised o f the accep tance o r rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves
the righ t to a ccep t o r reject any or all tenders, in w hole or in part, and his a ction in any such respect 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 p rice from any one b idd er w ill be accepted
in fu ll at the average price (in three decim a ls) o f a ccepted com petitive bids. Settlem ent fo r a ccepted tenders in a ccord a n ce
w ith the bids must be made or com pleted at the Federal R eserve Bank on A p ril 19, 1951, in cash o r oth er im m ediately
available funds o r in a like fa ce am ount o f T reasu ry bills m aturing A p ril 19, 1951. Cash and exch an ge tenders w ill receive
equal treatment. Cash adjustm ents w ill be m ade fo r differences betw een the par valu e o f m aturing bills a ccepted in exch a n ge
and the issue price o f the new bills.
T h e incom e derived fro m T reasu ry bills, w hether interest o r g a in from the sale or other d isp osition o f the bills, shall
n o t have any exem ption, as such, and loss fro m the sa le o r 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 laws am endatory o r supplem entary thereto. T h e bills shall be
su b ject to estate, inheritance, gift, or oth er e x cis e taxes, whether F ed eral o r State, but shall be exem pt from all 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 nited States,
o r by 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 rea su ry bills a re origin a lly
sold b y the U nited 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 b y S ection 115 o f the Revenue A c t o f 1941, the am ount o f discou n t at w h ich bills issued hereunder are
so ld shall n o t 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 d e d fro m con sideration as capita l assets. A ccord in g ly , the ow ner o f T rea su ry bills (oth er than life insurance co m ­
pa n ies) issued hereunder need include in his incom e ta x return on ly the difference betw een the p rice pa id fo r such bills,
w hether o n o rig in 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 d u rin g the taxable year f o r w h ich the return is m ade, as ord in a ry ga in o r loss.
T re a su ry D epartm ent C ircu lar N o. 418, as am ended, and this notice, prescrib e the terms o f the T rea su ry bills and
govern the con ditions o f th eir issue. Copies o f the circu la r m ay be obtain ed fro m any F ed eral R eserve B ank o r Branch.

This Bank w l receive tenders up t 2 p m , Eastern Standard t m Monday, April 1 , 1951, a the S c r t s
il
o
..
i e,
6
t
e u i ie
Department of i s Head O f c and at i s Buffalo Branch. Please use the form on the reverse s de of t i c c
t
fie
t
i
h s ir ular t
o
submit a tend r and return i i an envelope marked “Tender f r Treasury B l s ” Payment for the Treasury bills
e,
t n
o
il.
cannot be made by credit through the Treasury Tax 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.
Results of l s offering of Treasury b l s (91-day b l s dated April 1 , 1951, maturing July 1 , 1951)
at
il
il
2
2
T o ta l applied f o r .........$1,743,013,000
T o ta l a c c e p t e d .............$1,000,603,000 (in clu des $117,618,000
entered on a n on -com p etitive basis
and a ccepted in fu ll at the a ver­
age price show n b elow )
A v e ra g e p r ic e ...........

99.614

E quivalent rate o f discount
a pp rox. 1.528% per annum

R a n g e o f accepted com petitive b id s :
H ig h ........................... 99.630 Equivalent rate o f discount
a pp rox. 1.464% per annum
L o w .............................

99.612

Equivalent rate o f discount
approx. 1.535% per annum

(90 percent o f the am ount b id fo r at the low
p rice w as accepted)




Federal Reserve
District
B oston ....................... . . .
N ew Y o r k ...............
P h iladelphia ...........
C leveland .................
R ic h m o n d .................

St. L o u i s ...................
M in n e a p o lis .............
K ansas City ...........
D allas .......................
San F ra n cisco
T

o ta l

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

Total
Accepted

Total
Applied for
$

17,594,000
1,285,441.000
25,725,000
50,240,000
5,367,000
16,639.000
198,777.000
18,951.000
4,197,000
30,261,000
32,682,000
57,139,000

$1,743,013,000

$

15,494,000
677,291,000
14,725,000
38,940,000
5,367,000
16,639,000
132,577,000
17,791,000
4,197,000
30,261,000
22,482,000
24,839,000

$1,000,603,000
( over)

25D
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 FO R 91-D A Y T R E A S U R Y BILLS
Dated April 19, 1951

Maturing July 19, 1951

Dated at

To F e d e r a l R e s e r v e B a n k o f N e w Y o r k ,

F sc l Agent o the United S a e .
i a
f
tts

1951

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
April 1 , 1951, as issued by the Secretary
2
of the Treasury, the undersigned o f r
fes

Pursuant t the provisions of Treasury De­
o
partment Circular No. 418, as amended, and to the
provisions of the public notice on April 12,
1951, as issued by the Secretary of the Treasury,
the undersigned o f r a non-competitive tender
fes
f r a t t l amount of $.................
o
oa

................ * for a t t l amount of
oa

(N o t to exceed (200,000)

(R ate per 100)

$................... (maturity value)
of the Treasury b l s therein described, or f r
il
o
any l s amount t may be awarded, settlement
es
hat
therefor to be made a your Bank, on the date
t
st te i the public n t c , as indicated below:
a d n
oie

(maturity value) of the Treasury b l s therein
il
described, a the average price ( n three deci­
t
i
mals) of accepted competitive b d , settlement
is
therefor to be made a your Bank, on the date
t
stated i the public n t c , as indicated below:
n
oie

□

□

By surrender of maturing Treasury b l s
il

By surrender of maturing Treasury b l s
il

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

amounting to....... $_____________

□

□

By cash or other immediately available funds

By cash or other immediately a a l b e funds
vial

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

The Treasury b l s for which tender i hereby made are t be dated April 1 , 1951, and are t mature
il
s
o
9
o
on July 1 , 1 5 .
9 91
This tender will be inserted in special envelope marked “ Tender for Treasury Bills”
N am e o f B id d er.
(Please p rin t)

B y.

(Official signature required)

( T it l e )

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 submitted by a bank for the account of a customer, indicate the customer’s name on line below:
(N am e of Custom er)

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

Use a separate tender for each customer’s bid.

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 w ill be con sidered, and each tender m ust be fo r an even m ultiple o f
$1,000 (m aturity valu e). A separate tender must be execu ted 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 corp ora tion
authorized to make the tender, and the sign ing o f the ten der 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 by a partnership, it should be signed b y 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 incorporated banks and trust com panies and fro m respon­
sible and recogn ized dealers in investm ent securities. T enders from others must be accom panied b y paym ent o f
2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied by an express guaranty
o f paym ent by an incorporated 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 opin ion o f the S ecretary o f the
T reasu ry, is m aterial, the tender m ay be disregarded.

Payment by credit through Treasury Tax and Loan Account will not be permitted.
Digitized T B — 1085-a
T E N for FRASER


( over)

A*

SECOND

D IS T R IC T

C O M M E R C IA L

BANKING

V O L U N T A R Y C R E D IT R E S T R A IN T CO M M ITTEE

Cr a e p r u t t t e Program f r
e t d u s an o h
o
Voluntary C e i R s r i t a t o i e
rdt etan uhrzd
by t eDefense P o u t n Act o 1950
h
r d c io
f
33

LIBERTY STREET

N E W Y O R K 4 5 . N. Y.

April 11, 1951.
To the Chief Executive Officer of each Commercial Bank
in the Second Federal Reserve District;

The Voluntary Credit Restraint Committee, created pursuant to the Program for Voluntary
Credit Restraint authorized by the Defense Production Act of 1950, has appointed twenty regional
committees to which inquiries by lenders may be addressed regarding lending activities under the
Program. Twelve regional committees have been organized to deal with commercial banking prob­
lems; one committee is located in each Federal Reserve District. Four regional committees for
insurance companies and four regional committees for investment banking houses have also been
organized; one o f each is located in New York.
The Second District Commercial Banking Voluntary Credit Restraint Committee is the regional
committee to deal with commercial banking problems arising in the Second Federal Reserve Dis­
trict. The members of the Committee are as follows:

Chairman
Chairman of t e Board, J P. Morgan & Co. Incorporated, New York, N. Y.
h
.
D a v id C. B a r r y , Senior Vice President, Lincoln Rochester Trust Company, Rochester, N. Y.
G e o r g e C h a m p io n , Senior Vice P
resident, The Chase National Bank of the City of New York, New York, N. Y.
H o r a c e K. C o r b i n , President, Fidelity Union Trust Company, Newark, N. J
.
C h a r l e s H. D i e p e n d o r f , President, The Marine Trust Company of B f a o B f a o N. Y.
ufl, ufl,
R. E. M c N e i l l , J . President, Central Hanover Bank and Trust Company, New York, N. Y.
r,
A r t h u r P h e l a n , Vice President, Federal Reserve Bank o New York, New York, N. Y.
f
G eorge W h itn e y ,

The Program for Voluntary Credit Restraint was sent to you under date of March 9, 1951, by
the Chairman o f the Board of Governors of the Federal Reserve System. We expect to furnish you
with additional material from time to time.
As the Program is entirely voluntary, the primary function of this Committee will be to serve
the banks in the Second Federal Reserve District in an advisory capacity to aid them in their efforts
to observe the principles set forth in the Program governing the extension of credit. The Committee
will be glad to help individual banks to resolve questions which they may have as to the appropri­
ateness under the Program of any loan under consideration. To facilitate the work of the Com­
mittee, please submit your request for consideration of a specific loan in accordance with the form
which is enclosed. Forms should be prepared in triplicate and sent to G. M o r g a n B r o w n e , Secre­
tary o f the Committee, 33 Liberty Street, New York 45, N. Y. Additional copies of the form and of
the Program will be furnished by the Secretary upon request.
The Committee has every confidence that all banks in this district will cooperate to the fullest
extent to make a success o f this Program which is designed to provide credit necessary for the
essentials as defined by the Program, both in defense production and in private business, and at
the same time to restrain loans outside the scope of the Program which will add to the danger of
inflation.




G eorge W

h it n e y

,

Chairman.

C R -C B I

(Please Submit in Triplicate)

To

S e c o n d D i s t r i c t C o m m e r c ia l B a n k in g
V

oluntary

C r e d it R

e s t r a in t

C

o m m it t e e ,

(Date)

33 Liberty Street, New York 45, N. Y.
G

entlem en

:

The following information, transmitted to you in confidence, refers to an application for a loan which
we have received. In your opinion, would the approval of this loan be contrary to the principles of the
Voluntary Credit Restraint Program?
Very truly yours,

By................................ , ..............
(Title)

INFORMATION REGARDING BORROWER
(D o n ot give nam e)

In du stry.................................................................................................................
Nature of business: (Check) Retail.........Wholesale.............Manufacturer............ Service............ Other.
Importance of this borrower and of industry to the Defense Program: ....................................................

INFORMATION REGARDING LOAN REQUESTED
Amount of loan $..........................................

Maturity.

Purpose of loan: (Check and amplify if necessary)
To increase inventory............... To retire debt...............
For normal working capital requirements............... To retire net worth...............
To purchase fixed assets............... Other (Explain) ..................................................

Plan of loan repayment:

Source of funds for loan repayment: (Be as specific as possible)




( over)

The borrower states that the postponement of borrowing for the foregoing purpose would have the following
result: ............................................................................................................................................

The Defense Program in our opinion would be affected as follows if the loan is not made:

Other pertinent comments:

(The spaces below for Committee use only)

The loan does not appear to violate the principles of the Voluntary Credit Restraint P rog ra m .............. [
The loan appears to violate the principles of the Voluntary Credit Restraint P r o g ra m ........................... [
Additional committee comments: ....................................................................................................................................




S
V

econd

D

is t r ic t

oluntary

C o m m e r c ia l B

C r e d it R

e s t r a in t

a n k in g

C o m m it t e e

B y .........................................................................
Secretary

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