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FED ERAL RESER VE BANK O F NEW YORK
[C ir c u la r N o. 3 7 0 1 '
L
M ay 10, 1951

Fiscal Agent of the United States

Offering o f $1,100,000,000 of 91-Day Treasury Bills
Dated May 17, 1951

Maturing August 16, 1951

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

Following i the t x of a n t c published today:
s
et
oie
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 y 10, 1951.

TREASU RY DEPARTM EN T
W a s h in g to n

T h e S ecretary o f the T reasu ry, b y this pu blic notice, invites tenders fo r $1,100,000,000, o r thereabouts, o f 9 1-d ay I r e a s u ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g M ay 17, 1951, to be issued on a discou n t basis u nder co m p e ti­
tive and n on -com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a y 17, 1951, and will
m ature A u gu st 16, 1951, w hen the fa ce a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form 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 atu rity va lu e).
T e n d e rs w ill be received at F ed eral R eserve B anks and B ran ches up t o the clo s in g h our, tw o o ’ c lo ck p.m ., E astern
D a y lig h t S a vin g tim e, M on d a y, M a y 14, 1951. T en d ers w ill n ot be received at the T reasu ry D epartm en t, W a sh in g ton . E ach
ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive ten ders the price offered m u st be 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. It is u rg ed that tenders be
m ade on the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y Federal R eserve B anks o r
B ran ch es o n a pp lication th erefor.
O th e rs 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
receiv ed w ith ou t deposit fro m in corp ora ted banks and .trust com pa n ies and fr o m respon sible and recog n ized dealers in in­
vestm en t 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 fo r, unless the tenders are a ccom p a n ied b y an express gu aranty o f paym ent b y an in corporated 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 ran ches, fo llo w in g w hich
pu blic a nn oun cem ent will be m ade b y the S ecretary 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 ccep t o r reject a n y o r all tenders, in w h ole o r in part, and his a ction in any such respect shall be final. S u b ject
to these reservations, n on -com p etitiv e tenders fo r $200,000 o r less w ith ou t stated price fr o m a n y on e b idd er w ill be 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 for a ccep ted tenders in a cco rd a n ce
with the bids must be made or com p leted at the Federal R eserve Bank on M ay 17, 1951, in cash or oth er im m ediately avail­
able funds o r in a like face am ount o f T rea su ry bills m aturing M a y 17, 1951. Cash and exch a n ge ten ders 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 from T rea su ry bills, w hether interest or gain fro m th e sale or oth er disp osition o f the bills, shall
n ot have any exem ption , as such, and loss fro 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, under the Internal R even u e C ode, o r law s a m en da tory o r supplem entary th ereto. T h e bills shall be
su b je ct t o estate, inheritance, gift, o r oth er excise taxes, w hether F ed eral or State, but shall be ex em p t fr o m all taxation
n o w o r hereafter im posed on the principal o r interest th e re o f b y a n y State, o r a n y o f the possession s o f the U n ited States,
o r b y a n y loca l taxing 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 originally
so ld b y the U n ited States shall be con sid ered t o 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 am ou nt o f d iscou n t at w hich bills issued hereun der are
s o ld shall n o t be con sidered t o accru e until such bills shall be sold, red eem ed o r oth erw ise disp osed o f, and such bills are
exclu d e d 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 (oth er than life insurance c o m ­
pan ies) issued hereunder need in clude in his in com e ta x return o n ly the differen ce betw een the price paid fo r such bills,
w h eth er on origin al issue or on subsequen t purchase, and the am ou nt actu ally receiv ed either upon sale o r red em ption at
m aturity d u 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 epa rtm en t C ircular N o . 418, as am en ded, and this n otice, prescrib e th e term s o f the T rea su ry bills and g o v e rn
the con d ition s o f th eir issue. C opies o f the circular m a y be obtain ed fro m a n y F ed eral R eserve B a n k o r B ranch.

This Bank w l r c i e tenders up to 2 p m , Eastern Daylight Saving t e Monday, May 1 , 1951, a t e S c r t e
il e e v
..
im ,
4
t h euiis
Department of i s Head O f c and a i s Buffalo Branch. Please use t form on the reverse s d of t i c r u a t
t
fie
t t
he
ie
hs iclr o
submit a t n e , and return i i an envelope marked “Tender fo Treasury B l s ” Payment for the Treasury bills
edr
t n
r
il.
cannot be made by credit through the Treasury Tax and Loan Accoimt. 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 ( 9 1 -day bills dated May 1 0 , 1 9 5 1 , maturing August 9 , 1 9 5 1 )
T o ta l applied fo r .......... $1,866,295,000
T o ta l a c c e p te d ...............$1,100,004,000 (in clu des $113,253,000
entered on a n on -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........

99.604-(-

E quivalent rate o f discou n t
a p p rox. 1.566% per annum

R a n ge o f a ccep ted com p etitive b ids:
H ig h

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

99.624

E quivalent rate o f discou nt
approx. 1.487% per annum

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

99.600

E quivalent rate o f discount
approx. 1.582% per annum

#

(16 percent o f the am ount bid fo r at the low
price w as a ccep ted)




B oston ....................... ......
N ew Y o r k ................. ......
Philadelphia .............
C leveland .................
R ich m on d .................
C h ica go .....................
St. L ou is ...................
M inneapolis ............
K ansas C ity ............
San F ra n cisco ........
T

otal

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

Total
Accepted

Total
Applied for

Federal Reserve
District
$

6,890,000
1,448,339,000
21,880,000
23,185,000
12,370,000
13,142,000
168,700,000
19,212,000
4,535,000
33.512,000
38,223,000
76,307,000

$1,866,295,000

$

6,890,000
757,052,000
6,880,000
23,185,000
12,370,000
13,142,000
126,100,000
18,608,000
4,535,000
33,512,000
29,823,000
67,907,000

$1,100,004,000
( over)

25H
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.” D O NOT
fill in both paragraphs on one form. A separate tender must be used for each bid.

T E N D E R FO R 9 1 -D A Y T R E A S U R Y BILLS
Dated May 17, 1951

Maturing August 16, 1951

Dated a ---------t
To

F ed era l R eserve B a n k o f N ew Y ork ,

F s a Agent of the United S a e .
icl
tts

.91
15

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant t the provisions of Treasury
o
Department Circular No. 418, as amended, and
t the provisions of the public no i on
o
t ce
May 1 , 1951, as is u
0
s ed by the Secretary
of the Treasury, the undersigned o f r
fes

Pursuant t the provisions of Treasury De­
o
partment Circular No. 418, a amended, and t t
s
o he
p
rovisions of t public no i on May 1 ,
he
t ce
0
1951, as issued by the Secretary of the Treasury,
the undersigned o f r a non-competitive tender
fes

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

f a t t l amount of $__________________
or o a

(R ate per 100)

(N ot to exceed $200,000)

$....... ............. (maturity value)
of the Treasury b l s there n d s r b , or for
il
i e c i ed
any l s amount t a may be awarded, settlement
es
ht
therefor t be made a your Bank, on the date
o
t
s a e i t public n t c , as i d a e below:
t t d n he
oie
n ic t d
□ By surrender of maturing Treasury b l s
il
amounting t _________ $______________
o

(maturity value) of the Treasury b l s t e e n
il h r i
d s r b d a the average p i e ( n three d c ­
ecie, t
rc i
ei
mals) of accepted competitive b d , s t l m n
is e t e e t
therefor to be made a your Bank, on the date
t
s a e i the pu l c n t c , as in icated below:
ttd n
b i oie
d
□ By surrender of maturing Treasury b l s
il
amounting t _________ $______________
o

Q

□

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

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, fo r example, 99.925.

The Treasury b l s f r which tender i hereby made are t be dated May 17, 1951, and are t mature
il o
s
o
o
on August 1 , 1
6 951.
This tender will be inserted in special envelope marked “Tender for Treasury Bills”
N a m e o f Bidder..

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

(Please p rin t)

(Official signature required)

(Title)

Street A d d ress

(C ity, T ow n o r V illage, P.O. N o., and State)

If 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 C ustom er)

(C ity, T ow n or Village, P.O. N o., 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 be 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 fo r each bid.
2. I f the person m a k in g the ten der is a corp ora tion , th e ten der sh ou ld be sign ed b y an officer o f the c o rp o ra ­
tion authorized t o m ake the tender, and the sign in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a
represen tation 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 em b er o f the firm , w h o sh ou ld sign in the fo r m “ .................................................................................................... a cop artn ersh ip, b y
.............................................................................................................. a m em b er o f the firm .”
3. T e n d e rs w ill be received w ith ou t dep osit fro m in corp ora 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 fr o m oth ers m ust be 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 rea su ry bills applied 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 co rp o ra te d bank 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 th e op in ion o f th e S ecreta ry o f the
T rea su ry, is m aterial, the ten der m ay be disregarded.

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

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