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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 is the text of 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, 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 will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, May 14, 1951, at the Securities
Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to
submit a tender, and return it in an envelope marked “Tender for Treasury Bills.” Payment for the Treasury bills
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 at ---------To

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

Fiscal Agent of the United States.

.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
May 10, 1951, as issued by the Secretary
of the Treasury, the undersigned offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on May 10,
1951, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

------------------ * for a total amount of

for a total amount of $__________________

(R ate per 100)

(N ot to exceed $200,000)

$....... ............. (maturity value)
of 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:
□ By surrender of maturing Treasury bills
amounting to_________ $______________

(maturity value) of the Treasury bills therein
described, at the average price (in three deci­
mals) of accepted competitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below:
□ By surrender of maturing Treasury bills
amounting to_________ $______________

Q

□

By cash or other immediately available funds

By cash or other immediately available funds

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

The Treasury bills for which tender is hereby made are to be dated May 17, 1951, and are to mature
on August 16, 1951.
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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T E X T S — 1089 a
Federal Reserve Bank of St. Louis

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