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FEDERAL RESERVE BANK O F N E W YORK
r Circular No. 3 7 3 7
I
July 26. 1951

Fiscal Agent of the United States

Offering o f $1,300,000,000 of 91-Day Treasury Bills
Dated August 2, 1951

Maturing N ovem ber 1, 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 s h 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 , J u ly 26, 1951.

T h e S ecreta ry o f the T re a s u ry , b y this p u b lic n otice, invites ten ders for $1,300,000,000, o r th ereabouts, o f 9 1-d ay T rea su ry
bills, fo r cash and in exch a n ge fo r T rea su ry bills m a tu rin g A u g u st 2, 1951, to be issued on a discou n t basis under com p etitive
and n on -co m p e titiv e bid d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated A u gu st 2, 1951, and w ill m ature
N o v e m b e r 1, 1951, w h en the fa ce a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill b e issued in b ea rer fo r m 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 a tu rity v a lu e ).
T e n d e rs w ill be receiv ed at F ed eral R e s e rv e Banks and B ra n ch es up to the clo s in g h ou r, tw o o ’ c lo c k p.m ., E astern
D a y lig h t S a vin g tim e, M on day, Ju ly 30, 1951. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E ach
ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitiv e ten ders the p rice offered m u st be ex p ressed on
the basis o f 100, w ith n o t m ore than th ree decim a ls, e.g., 99.925. F r a c tio n s m a y n ot be used. It is u rged that ten ders be
m a d e o n the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be sup plied b y F ed era l R eserve B an ks o r
B ra n ch e s o n a pp lication th erefor.
O th e rs than b a n k in g in stitu tions w ill n ot b e perm itted to subm it ten ders e x ce p t f o r their o w n a ccou n t. T e n d e rs w ill be
receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers in in vest­
m en t securities. T e n d e rs fr o m oth ers m u st b e a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills
a pp lied fo r, unless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a y m en t b y an in corp ora ted bank o r tru st com p a n y .
Im m e d ia te ly after th e clo s in g h ou r, ten ders w ill b e o p en ed at the F ed era l R e serv e B anks and B ra n ch es, fo llo w in g w hich
pu 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 th e a m ou n t and price ran ge o f a cce p te d bids. T h o s e
su b m ittin g ten ders w ill b e advised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry ex p re s sly reserves
the righ t t o a ccep t o r re je ct any o r all ten ders, in w h o le o r in part, and his a ction in a n y such resp ect shall b e final. S u b je ct
to these reserva tion s, n o n -co m p e titiv e ten ders for $200,000 o r less w ith ou t stated p rice fro m a n y on e b idd er w ill be a ccep ted
in full at the average price (in th ree d ecim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce
with the bids m ust be m ade or com p le te d at th e F ed era l R e serv e B a n k on A u g u s t 2, 1951, in cash o r oth er im m ed iately available
funds o r in a like face a m ou n t o f T r e a s u ry bills m atu rin g A u gu st. 2, 1951. Cash and ex ch a n g e tenders w ill receiv e equal
treatm ent. Cash adju stm en ts w ill be m ade fo r d ifferen ces b etw een th e p a r valu e o f m a tu rin g bills a ccep ted in ex ch a n g e and
the issue p r ice o f th e n e w bills.
T h e in co m e derived fr o m T rea su ry b ills, w h eth er in terest o r gain fr o m th e sale o r oth er d isp osition o f th e b ills, shall
n o t have any exem p tion , as such, and lo s s fr o m the sale o r oth er d isp osition o f T r e a s u ry bills shall n ot have a n y special
treatm ent, as such, u nder the In tern al R even u e C od e, o r law s a m en d a tory o r sup plem en ta ry th ereto. T h e bills shall be
su b je ct to estate, inheritance, g ift, o r o th e r e x cis e taxes, w h eth er F ed eral o r State, but shall be exem p t fr o m all taxation
n o w o r h ereafter im p osed on the principal o r interest th e re o f b y any State, o r a n y o f the p ossession s o f the U n ited States,
o r b y any lo ca l ta x in g authority. F o r pu rp oses o f ta xation th e a m ou n t o f d iscou n t at w h ich T rea su ry bills are o rigin a lly
s o ld b y the U n ited States shall be co n sid e re d to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the In tern al R even u e
C ode, as a m en ded b y S e ction 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 h ereun der are
so ld shall n o t be co n sid ered to a ccru e until such bills shall b e so ld , red eem ed o r oth erw ise disp osed o f , and such bills are
ex clu d ed fr o m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T r e a s u ry bills (o th e r than life in su rance com p a n ie s)
issued hereun der need in clu d e in his in co m e ta x return o n ly the differen ce b etw een the price paid fo r such bills, w hether
o n origin al issue o r o n subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m aturity
d u rin g the taxable yea r fo r w h ich th e return is m ade, as ord in a ry ga in o r loss.
T re a su ry D ep a rtm en t C ircu lar N o . 418, as am en ded, and this n otice, p rescrib e the term s o f the T rea su ry b ills and g o v e rn
the co n d itio n s o f their issue. C op ies o f the circu la r m a y be ob ta in ed fr o m a n y F ed era l R e serv e Bank o r B ra n ch .

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, July 30, 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.” Paym ent f o 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 ro u l, President.
R e su lts o f la s t o ffe rin g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a te d J u ly 2 6 , 1 9 5 1 , m a tu r in g O c t o b e r 2 5 , 1 9 5 1 )
T otal applied f o r .........$1,991,901,000
Total accepted .............$1,200,294,000 (includes $148,852,000
entered on a non-com petitive basis
and accepted in full at the average
price shown b elow )
A verage price . . . .
99.598
Equivalent rate o f discount
approx. 1.591% per annum
Range o f accepted com petitive bids :
C h iS g o
H igh .......................
99.637
Equivalent rate o f discount
approx. 1.436% per annum
L o w ........................ 99.595
Equivalent rate o f discount
a o o ro x 1 6 0 2 % ner annum
r
PPL j f L0° “ % *** annUm
(3 4 percent o f the amount bid fo r at the low
price w as accepted)




Federal Reserve Total
District
Applied fo r
Boston .................................... $ 33,720,000
N ew Y o r k ............................
1,436,309,000
Philadelphia
........................31,030,000
Cleveland ..............................
65,260,000
Richm ond .............................. 20,116,000
.'.'.'.'.'!.'!.'.'.'.'.'.'.'
187,’ l 12,000
St. L ou is ................................
Minneapolis .........................
S 3?}535
........................
D a l l a s ......................................
San Francisco .....................
T otal

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

25,764,000
4,195,000
26,598,000
106,492,000
_______________
$1,991,901,000

Total
Accepted
$
25,800,000
755,989,000
17,730,000
61,960,000
14,116,000
131,092,000
23,523,000
4,195,000
33,045,000
23,298,000
89,992,000
_______________
$1,200,294,000
( ovkk)

I M P O R T A N T — I f y o u desire to b id on a com petitive b asis, fill in ra te p er 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 i t iv e B id .”
I f y o u desire t o b id o n a n on -com petitive
b asis, fill in o n ly th e m a t u r it y v a lu e in p a r a g r a 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 b oth paragraphs on one fo rm . A sep arate te n d e r m u s t be u sed f o r ea ch b id ,
e x c e p t t h a t b a n k s s u b m ittin g b ids 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 r s’
a c c o u n ts m a y s u b m it one te n 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 r ic 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 e th o d
o f p a y m e n t.
F o rm s f o r th is p u rp o se w i l l be fu r n ish e d u p o n re q u e st.

N o .................................

TENDER FOR 91-DAY TREASURY BILLS
D a ted A u g u s t 2 ,

M a tu r in g N o v e m b e r 1 , 1 9 5 1

1951

Dated a t .....................................

T o F e d e r a l R ese rv e B a n k o f N e w Y o r k ,
Fiscal A gent o f the United States.

1951

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

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

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on July 26,
1951, as issued by the Secretary o f the Treas­
ury, the undersigned o ffe rs .................................... *
(Rate per 100)

fo r a total amount o f $ ...............................................
(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 :
□
By surrender o f maturing Treasury bills

B ID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on July 26,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender
fo r a total amount o f $ ...............................................
(Not to exceed $200,000)

(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 maturing Treasury bills

amounting t o ................... $_______________________

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, for example, 99.925.

The Treasury bills for which tender is hereby made are to be dated August 2, 1951, and are to mature
on November 1, 1951.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
N a m e o f B idder
By

(Please print)

...

(Title)

(Official signature required)

Street Address

(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)

IM P O R T A N T

(City, Town or Village, P.O. No., and State)

IN S T R U C T IO N S :

1. N o ten der fo r less than $1,000 w ill b e con sidered, and each ten der m u st be fo r an even m ultiple o f $1,000
(m a tu rity v a lu e ).
,
2. I f the person m ak in g the ten der is a corp ora tion , the tender sh ou ld b e 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 b y an officer o f the corp o ra tio n w ill b e con stru ed as a
representation b y him that he has been so authorized. I f the tender is m ade b y a partnership, it sh ou ld be sign ed b y a
m em ber o f the firm , w h o sh ou ld sign in th e fo r m “ .................................................................................................. . a cop artn 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 d ep osit fr o m in corp ora ted banks and trust com p a n ies and fro m re sp o n ­
sible and re co g n ized dealers in in vestm en t securities. T e n d e rs 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 r e a s u ry bills a pplied fo r, u nless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent
b y an in co rp o ra ted b a n k o r trust com p a n y .
4. I f th e la n g u a g e o f this ten der is ch a n ged in a n y respect, w hich, in the op in ion o f th e S ecreta ry o f the
T re a s u ry , is m aterial, the ten der m a y be disregarded.

Paym ent b y cred it through Treasury T a x and Loan A cco u n t w ill n ot be perm itted.
B— 1 1
0 0 -a


( o v ik )

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