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F E D E R A L R E S E R V E B A N K O F N E W YO R K f C ir cu la r N o. 3 7 1 7 1 J u n e 7, 1951 Fiscal Agent of the United States L J Offering o f $1,000,000,000 of 91-Day Treasury Bills Dated June 14, 1951 Maturing September 13, 1951 T o all Incorporated Banks and Trust Companies in the Second Federal R eserve D istrict and O thers C on cern ed : Following is the text o f a notice published today: TREASU RY DEPARTM ENT 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, June 7, 1951. , T h e Secretary o f the T reasu 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 ury bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g June 14, 1951, to be issued on a discou n t basis u nder co m p e ti tive and n on -com p etitive b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated June 14, 1951, and w ill m ature S ep tem ber 13, 1951, w h en 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 fo rm o n 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 a tu rity va lu e). T e n d e rs w ill be received at F ed eral R eserve B anks and B ra n ch es up t o the clo s in g hour, 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 , June 11, 1951. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a sh in g ton . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in th e ca se o f com p etitiv e ten ders the price offered m u st b e exp ressed on the basis o f 100, w ith n ot m o re than th ree decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be m ade o n the printed form s and forw a rd ed in the special en velopes w hich w ill b e supplied b y Federal R e serv e B anks o r B ran ch es o n application th erefor. O th e rs than b ankin g institutions w ill n ot b e perm itted t o 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 d ep 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 e n d e rs fr o 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 a pplied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted bank or trust com p a n y . Im m ed ia tely a fter the clo s in g h ou r, tenders w ill be op en ed at the F ed eral R e serv e B anks and B ra n ch es, fo llo w in g w h ich 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 subm itting tenders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e Secretary o f the T rea su ry ex p ressly reserves the right t o a ccep t o r re je ct a n y o r a ll tenders, in w h ole o r in part, and his a ction in any such resp ect shall be final. S u b je ct to these reservations, n dh -com petitive tenders fo r $200,000 or less w ith ou t stated p rice fr o m a n y on e b idd er w ill b e a ccep ted in full at the average price (in th ree d ecim a ls) o f a ccep ted com p etitive b ids. S ettlem ent fo r a ccep ted ten ders in a cco rd a n ce w ith the bids m ust be m ade o r com p leted at the Federal R eserve Bank on June 14, 1951, in cash o r oth er im m ediately avail able fun ds o r in a like face am ou nt o f T rea su ry bills m aturing June 14, 1951. Cash and exch a n ge tenders w ill receiv e equal treatm ent. 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 n ew bills. T h e in co m e derived fr o m T rea su ry b ills, w h eth er interest or gain fro m th e sale or oth er disp osition o f the bills, shall n o t have a n y e x e m p tion , as such, and loss fr o m the sale o r oth er d isp 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 laws a m en d a tory o r supplem entary thereto. T h e bills shall be su b je ct to estate, inheritance, gift, o r oth er excise taxes, w h eth er Federal or State, but shall be ex em 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, 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 rp oses o f ta xation the am ou nt o f d iscou n t at w h ich T rea su ry bills are origin a lly so ld b y th e U n ited States shall be con sid ered to b e interest. U n der S ection s 42 and 117 ( a ) ( 1 ) o f the Internal R even u e C o d e , as a m en ded b y S ection 115 o f the R even 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 d isp osed o f, and such bills are e xclu d e d fro m 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 (o th e r than life insurance co m pan ies) issued hereun der need include in his in com e ta x return on ly th e differen ce betw een the price paid fo r such bills, w h eth er on o rig in a l issue or on subsequent pu rch ase, a n d the a m ou n t actu a lly receiv ed either u pon sale or red em p tion at m aturity du rin g the taxable year fo r w h ich th e 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, prescrib e th e term s o f the T rea su ry bills and go v e rn the con d ition s o f th eir issue. C opies o f the circu la r m a y b e obtain ed fro m a n y F ed era l R eserve B ank o r B ran ch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, June 11, 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 for Treasury Bills.” Payment fo r the Treasury bills cannot be made by credit through the Treasury T ax 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 last offering of Treasury bills (91-day bills dated June 7, 1951, maturing September 6, 1951) T o ta l applied fo r .............$1,836,136,000 T o ta l a ccep ted ...............$1,100,992,000 (in clu d es $81,496,000 entered on a n o n -com p etitiv e basis and accepted in full at the average price show n b e lo w ) A v e ra g e price........ 9 9 .6 0 7 + E quivalent rate o f discou nt app rox. 1.555% p er annum R a n g e o f a ccep ted com petitive b id s: H ig h ........................ 99.610 E quivalent rate o f discou nt a p p rox. 1.543% per annum L o w .......................... 99.605 E quivalent rate o f discount a pp rox. 1.563% per annum (22 percent o f the am ou nt bid fo r at the low price w as a ccep ted) Federal Reserve District B o sto n .............................. N ew Y o r k ........................ Philadelphia C leveland ........ R ich m o n d ....... . A tlanta ............ C h ica g o ........... St. L ou is .......... M in n ea p olis ... K an sas C ity .... D allas ................ San F ra n cisco T ota l ....................... Total Total Applied for A ccepted 22,357,000 1,451,387.000 19,133,0.00 39,827,000 4.823.000 9.814.000 182,341,000 16.506.000 1,865,000 19.972.000 21.310.000 46.801.000 22.045.000 850,471,000 4.955.000 29.367.000 4.573.000 6.264.000 126.179.000 8.806.000 1,615,000 13.298.000 10.430.000 22.989.000 $1,836,136,000 $1,100,992,000 $ ( over) 25L , - !• 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 pn a non-competitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” DO N O T fill in both paragraphs on mu form. A separate tender must be used for each bid. N o................. ... ........... TENDER FOR 91-D AY TREASURY BILLS Maturing September 13, 1951 Dated June 14, 1951 To Dated at --------------------F ed era l R eserve B a n k o f N ew Y ork , .1951 Fiscal Agent o f the United States. COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on Pursuant to the provisions o f Treasury De partment Circular No. 418, as amended, and to the June 1951, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender of 7, the 1951, as Treasury, issued the by the Secretary undereigned offers _________________________ * for a total amount of provisions of the public on June 7, for a total amount o f $- (Bate per 100) (Not 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 tiie date stated in the public notice, as indicated below: □ notice By 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: amounting to-------------------- $------------------------------ □ By surrender o f maturing Treasury bills amounting to--------------------$---------------------------- □ □ 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 June 14, 1951, and are to mature on September 13, 1951. This tender w ill be inserted in special envelope marked “ Tender f o r Treasury B ills.” Name of Bidder. By (l'leaae print) (Official signature required) (Title) Street A d d r e ss.................................................. (City, Town or Village, 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: (Name of Customer) (City, Town or VUlage, P.O. No., and State) Use a separate tender for each customer’s bid. IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). A separate tender must be executed for each bid. 2. If the person making the tender is a corporation, the tender should be signed by an officer o f the corpora tion authorized to make the tender, and the signing of the tender by an officer o f the corporation will be construed as a representation by him that he has heen so authorized. I f the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form u.......................................................................................... — . ,, a copartnership, by a member of the firm.’ 3. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 4. I f the language o f this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Payment b y cred it through T reasury T a x and Loan A cco u n t w ill n ot b e perm itted. XENTB— 10»3-a (o v e r )