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F E D E R AL R E SE R V E B AN K O F N E W YO R K
Circular No. 3 7 3 5
Ju ly 19,1051

Fiscal Agent of the United States

Offering o f $1,200,000,000 of 91-Day Treasury Bills
Dated July 26, 1951

Maturing October 25, 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 D EPARTM EN T
W a sh in g ton

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, J u ly 19, 1951.

T h e Secretary o f the T reasu ry, b y this pu blic notice, invites tenders for $1,200,000,000, or thereabouts, o f 91-day T re a su ry
bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing Ju ly 26, 1951, to be issued on a discou n t basis under com petitive
and n on -co m p e titiv e bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated July 26, 1951, and w ill m ature
O c to b e r 25, 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 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 v a lu e).
T en d ers w ill be received at F ed eral R eserve Banks and B ran ch es up to the clo s in g hour, tw o o ’ c lo ck p.m ., E astern
D a yligh t Savin g tim e, M on d a y , July 23, 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 tenders 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 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 en velopes w hich w ill be supplied b y Federal R eserve B anks o r
B ran ches on application therefor.
O th e rs than ban kin g institutions w ill n ot be perm itted t o subm it tenders e x ce p t for their ow n a ccou n t. T e n d e rs w ill be
receiv ed w ith ou t deposit fro m in corp ora ted banks and trust com pa n ies and fro 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 p ercen t o f the face a m ou n t o f T rea su ry bills
applied fo r, unless the ten ders are a ccom p a n ied b y an express gu aranty o f p a ym en t b y an in corpora ted bank or trust com pan y.
Im m edia tely after the clo s in g hour, 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 h ich
pu blic a nn oun cem ent w ill be m ade b y the S ecreta ry o f the T rea su ry o f the am ou nt and price range 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 thereof. T h e S ecreta ry o f the T rea su ry ex p ressly reserves
the right 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 resp ect shall be final. S u b je ct
to these reservations, n on -com p etitive tenders fo r $200,000 or less w ith ou t stated price fro m any on e b idder w ill b e a ccep ted
in full at the a vera ge price (in three d ecim a ls) o f a ccep ted com petitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce
w ith the bids m ust be m ade o r com p leted at the Federal R eserve Bank on July 26, 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 atu rin g July 26, 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 ex ch a n g e and
the issue price o f the new bills.
T h e in co m e derived fro m T rea su ry bills, w hether interest o r gain fro m the sale or oth er disp osition o f th e bills, shall
n ot have any exem p tion , as such, and loss from the sale or oth er d isp osition o f T rea su ry bills shall n ot have a n y special
treatm ent, as such, under the Internal R even u e C ode, o r laws am en da tory or supplem entary thereto. T h e bills shall be
su b je ct t o estate, inheritance, gift, o r oth er excise taxes, w hether Federal o r State, but shall be ex em p t fro m 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 p ossession s o f the U n ited States,
o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f taxation the am ou nt o f d iscou n t at w hich T rea su ry bills are origin a lly
s o ld b y the U n ited States shall be con sidered to be interest. U nder S ection s 42 and 1 1 7 (a )(1 ) o f the Internal 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 discou n t at w hich bills issued hereun der are
sold shall n o t be con sidered to a ccru e until such bills shall be sold , redeem ed o r oth erw ise disp osed o f, and such bills are
e xclu 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 (o th e r than life insurance c o m ­
pan ies) issued h ereunder need include in his in com e tax return on ly the difference betw een the price paid fo r such bills,
w hether o n origin a l issue or on subsequen t purchase, and the am ou nt actu ally received either u pon sale or red em ption at
m aturity du rin g the taxable year for w hich the return is m ade, as ord in a ry gain o r loss.
T re a su ry D epartm en t Circular N o . 418, as am en ded, and this n otice, prescribe 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 their issue. C opies o f the circu la r m ay be obtain ed fro m a n y F ed eral R eserve Bank o r B ran ch.

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time. Monday, July 23, 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 fa r the Treasury bills
cannot be made by crcdit 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.
R e s u l t s o f la s t o f f e r i n g o f T r e a s u r y b ills ( 9 1 - d a y b i l l s d a t e d J u l y
T o ta l applied fo r .......... $2,031,366,000
T o ta l a c c e p t e d .............. $1,201,681,000 (in clu d es $154,008,000
entered on a n on -com p etitiv e basis
and a ccep ted in full at the a verage
price sh ow n b e lo w )
A v e ra g e p rice........ 9 9 .6 0 5 + E quivalent rate o f discou nt
app rox. 1.562% p er annum
R a n g e o f a ccep ted com p etitive b id s: (e x c e p tin g tw o
tenders tota lin g $600,000)
H ig h ........................ 99.609
E quivalent rate o f discount
approx. 1.547% per annum
L o w .......................... 99.603
E quivalent rate o f discount
approx. 1.571% per annum
(48 percent o f the am ou nt bid fo r at the low
price w as a ccep ted)




19, 1 9 5 1 , m a tu rin g O c t o b e r

Federal Reserve
District
B oston ..............................
N ew Y o r k .....................
Philadelphia
C leveland .......
R ich m on d .......
A tlanta ...........
C h ica g o ...........
St. L ou is .........
M inneapolis ...
K ansas C ity ...
D allas ..............
San F ra n cisco
T o ta l

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

18, 1951)

Total
Applied for

Total
Accepted

23,538,000
1,507,045.000
33.509.000
66.418.000
22.704.000
22.857.000
148.439.000
18.069.000
9,420,000
46.244.000
38.352.000
94.771.000

21.838.000
837,470,000
14.749.000
58.605.000
20.148.000
17.367.000
99.738.000
15.409.000
8.920.000
26.144.000
28.168.000
53,125,000

$2,031,366,000

$1,201,681,000

$

( oveb)

25R
I M P O R T A N T — I f y o u desire t o b id on a com petitive basis, fill in r a te p e r 1 0 0 a n d m a t u r it y
v a lu e in p a r a g r a p h h ea d e d "C o m p e t it iv e B id .”
I f y o u desire to b id o n a n on -com petitive
basis, fill in o n ly th e m a t u r it y v a lu e in p a r a g ra p h h ead ed " N o n -c o m p e t i t i v e B id .”
DO
N O T fill in both paragraphs on one fo rm . A sep arate ten d er m u s t be u sed f o r ea ch b id ,
e x c e p t th a t b a n k s s u b m ittin g bids on a c o m p e titiv e basis f o r th eir o w n a n d th eir c u sto m e rs’
a cc o u n ts m a y s u b m it one ten d e r f o r th e t o t a l a m o u n t b id a t ea ch p ric e, p r o v id e d a list is
a tta c h e d sh o w in g th e n a m e o f ea ch b id d e r, th e a m o u n t b id f o r his a c c o u n t, a n d m eth o d o f
p a y m e n t. F o rm s f o r this pu rp o se w i l l be fu r n ish e d u p o n req u est.

N o . _______._________

TENDER FOR 91-DAY TREASURY BILLS
M a tu r in g O c to b e r 2 5 , 1 9 5 1

D a t e d J u ly 2 6 , 1 9 5 1

Dated a t ----------------------T o F e d e r a l R e ser v e B a n k o f N e w Y o r k ,
Fiscal Agent o f the United States.

.1951
N O N -C O M P E T I T I V E

C O M P E T I T I V E B ID

B ID

Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on
July 19, 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 July 19,
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
(Not to exceed $200,000)

(Rate per 100)

_______ (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:

(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

□

By cash or other immediately available funds

By surrender o f

maturing Treasury bills

maturing Treasury bills

amounting to--------------------- $-----------------------------□

By cash or other immediately available funds

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

The Treasury bills for which tender is hereby made are to be dated July 26, 1951, and are to mature
on October 25, 1951.
This tender zvill be inserted in special envelope marked “ Tender f o r Treasury B ills”
N a m e o f B idder
B y ...........

(Please print)

(Official signature required)

(Title)

Street A d d ress
(City, Town or Village, P.O. No., and State)
If 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 Village, P.O. No., and State)

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 w ill be considered, and each tender m ust be fo r an even m ultiple o f $1,000
(m a tu rity va lu e).
2. I f the person m a k in g the tender is a corp oration , the tender should be signed b y an officer o f the c o rp o ra ­
tion authorized to m ake the tender, and the sign in g o f the tender by an officer o f the corp ora tion will be con stru ed as a
representation by him that he has been s o authorized. If the tender is m ade b y a partnership, it should be signed b y a
m em ber o f the firm, w h o shou 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 ers w ill be receiv ed w ith ou t dep osit from in corp ora ted banks and trust com panies and fro m resp o n ­
sible and re co g n ize d dealers in in vestm en t securities. T en ders fr o m oth ers m u st be a ccom p a n ied b y paym ent 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 th e tenders are a ccom p a n ied b y an exp ress guaranty 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 any respect, w hich, in the opin ion o f the S ecretary o f the
T rea su ry, is m aterial, the ten der m ay be disregarded.

Paym ent b y cred it through Treasury T a x and Loan A cco u n t -will not be perm itted.


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