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F E D E R AL R E S E R V E B AN K OF NEW YORK Fiscal Agent of the United States r C ircular No. 3 75 6 "1 L Septem ber 13, 1951 J O ffe rin g o f $ 1 ,2 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T rea su ry B ills Dated September 20, 1951 Maturing December 20, 1951 T o all Incorporated B anks and Tru st Companies in the Second Federal R eserv e D istrict and O thers C oncerned: Following i the t of a notice published today: s ext 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 ay, Septem ber 13, 1951. TREASU RY DEPARTM ENT W ash in gton T he Secretary o f the T reasu ry, by this public notice, invites tenders fo r $1,200,000,000, or thereabouts, o f 91-day T reasu ry b ills, fo r cash and in exch ange fo r T reasu ry bills m aturing Septem ber 20, 1951, in the amount o f $1,000,902,000, to be issued on a discou n t basis under com petitive and non-com p etitive bid d in g as h ereinafter provided. T h e bills o f this series w ill be dated Septem ber 20, 1951, and w ill mature D ecem ber 20, 1951, w hen the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity valu e). T en ders w ill be received at F ed era l R eserve Banks and Branches up to the clo s in g hour, tw o o ’c lo ck p.m., Eastern D a yligh t Savin g time, M on day, Septem ber 17, 1951. T en ders wi l l not be received at the T reasu ry D epartm ent, W a sh in gton . E ach tender must be f o r an even m ultiple o f $ 1 ,000, and in the case o f com petitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith not 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 sp ecia l envelopes w hich w ill be supplied b y F ed era l R eserve Banks or B ranches o n a pp lication th erefor. O thers than ban k in g institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and fro m responsible and recogn ized dealers in in vestm ent securities. T en ders fro m others must be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an in corporated bank o r trust com pany. Im m ediately after the clo s in g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made by the S ecretary o f the T reasu ry o f the am ount and price range o f accepted bids. T h ose subm itting tenders w ill be advised o f the acceptance o r rejection thereof. T h e S ecretary o f the T rea su ry exp ressly reserves the righ t to accept o r reject any o r all tenders, in w hole or in part, and his action in any such respect shall be final. S ubject to these reservations, n on-com petitive tenders fo r $200,000 o r less w ithout stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be made o r com pleted at the F ed eral R eserve Bank on Septem ber 20, 1951, in cash or other im m ediately available funds o r in a like face amount o f T reasu ry bills m aturing Septem ber 20, 1951. Cash and exch an ge tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade fo r differences between the par value o f m aturing bills a ccepted in exch ange and the issue price o f the new bills. T h e incom e derived from T rea su ry bills, w hether interest or gain from the sale or other disp osition o f the bills, shall not have any exem ption, as such, and loss from the sale or oth er d isp osition o f T reasu ry bills shall n ot have any special treatm ent, as such, under the Internal Revenue Code, or law s am endatory o r supplem entary thereto. T h e bills shall be su b ject to estate, inheritance, gift, or oth er excise taxes, w hether F ed eral or State, but shall be exem pt from all taxation now o r hereafter im posed on the principal or interest th ereof by any State, or any o f the possessions o f the U nited States, o r by any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discou n t at w hich T reasu ry bills are origin a lly so ld by the U nited States shall be con sidered to be interest. U nder S ections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue C ode, as am ended by S ection 115 o f the Revenue A ct o f 1941, the am ount o f discou n t at w hich bills issued hereunder are sold shall n ot be con sid ered to a ccru e until such b ill shall b e sold, redeem ed o r otherw ise disp osed of, and such bills are exclu d e d from con sideration as capital assets. A cco rd in g ly , the ow n er o f T reasu ry bills (oth er than life insurance co m panies) issued hereunder need include in his incom e ta x return on ly the difference between the price paid fo r such bills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption at m aturity du rin g the taxable yea r fo r w hich the return is m ade, as ord in a ry gain or loss. T re a su ry D epartm ent C ircu la r N o. 418, as amended, and this notice, prescribe the terms o f the T reasu ry bills and govern the con ditions o f their issue. C opies o f the circu la r m a y be obtain ed from any F ed eral R eserve Bank or Branch. This Bank w l r e v tenders up t 2 p m . Eastern Daylight Saving t me Monday, September 1 . 1951, a the Securi i l ec i e o .. i , 7 t t e Department of i s Head O f e and a i s Buffalo Branch. Please use the form on the reverse s de of t i ci cular t is t f ic t t i hs r o submit a t n e , and return i i an envelope marked “Tender f r Treasury B l s ” Payment for the Treasury bills edr t n o il. cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A llan S proul, President. Results of l s offering of Treasury b l s (91-day b l s dated September 1 , 1951, maturing December 1 , 1951) at il il 3 3 T o ta l applied f o r ......... $1,913,013,000 T ota l a c c e p t e d .............$1,202,609,000 (in clu des $164,138,000 entered on a n on -com p etitive basis and accepted in fu ll at the aver age price show n b elow ) A v era ge p r ic e ........... 99.584 E quivalent rate o f discount approx. 1.646% per annum R ange o f accepted com petitive b id s : H ig h ............................ 99.610 Equivalent rate o f discount approx. 1.543% per annum L o w ............................. 99.583 E quivalent rate o f discount app rox. 1.650% per annum (71 percent o f the am ount bid for at the low price w as accep ted) F ederal R eserv e D istrict B oston ........................... .. N ew Y o r k ................... Philadelphia .............. Cleveland ..................... R ic h m o n d ..................... Atlanta ....................... C h i c a g o ......................... St. L o u i s ....................... M inneapolis ............... K ansas C ity ............... D allas ........................... San F ra n cisco ........... T o t a l ...................... . T otal A pplied for $ 23,866,000 1,397,280,000 26,728,000 70,656,000 36,535,000 20,746,000 189,374,000 19,421,000 9,050,000 47,920,000 50,893,000 20,544,000 $1,913,013,000 T otal A ccepted $ 21,336,000 816,937,000 10,848,000 39,565,000 31,763,000 20,152,000 150,772,000 16,599,000 9,050,000 28,672,000 37,996,000 18,919,000 $1,202,609,000 ( over) 25 Z IMPORTANT— I you desire to bid on a competitive b s s fl in rate per 100 and maturity f a i , il value in paragraph headed “Competitive Bid.” I you desire to bid on a non-competitive f b s s fl in only the maturity value in paragraph headed “Non-competitive Bid.” DO a i , il NOT fill in both paragraphs on one form. A separate tender must be used for each bid, except that banks submitting bids on a competitive basis for their own and their customers’ accounts may submit one tender for the t t l amount bid a each p i e provided a l s i oa t rc, it s attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for t i purpose will be furnished upon request. hs No........... T E N D E R FO R 91-D A Y T R E A S U R Y BILLS Dated September 2 , 1951 0 Maturing December 20 1951 , Dated at......... To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United S a e . tts COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and t the provisions of the public notice on o September 1 , 1951, as issued by the Secretary 3 of the Treasury, the undersigned o f r fes ................ * for a t t l amount o oa f 1951 NON-COMPETITIVE BID Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and t the o provisions of the public notice on September 1 , 3 1 5 , as issued by the Secretary of the Treasury, 91 the undersigned o f r a non-competitive tender fes for a t t l amount of $ oa . (Not to exceed $200,000) (Rate per 100) $................... (maturity value) of the Treasury b l s therein described, or f r il o any l s amount that may be awarded, settlement es therefor to be made a your Bank, on the date t stated i the public n t c , as indicated below: n oie (maturity value) of the Treasury b l s therein il described, at the average price ( n three deci i mals) of accepted competitive b d , settlement is therefor t be made a your Bank, on the date o t stated i the public n t c , as indicated below: n oie □ amounting to....... $_______________ □ By surrender of maturing Treasury b l s il amounting to....... $________________ □ □ By surrender of maturing Treasury b l s il By cash or other immediately a a l b e funds vial By cash or other immediately available funds * P r ic e must be expressed on the basis o f 100, w ith not m ore than three decimal places, fo r exam ple, 99.925. The Treasury b l s for which tender i hereby made are t be dated September 2 , 1 5 , and are t il s o 0 91 o mature on December 2 , 1 5 0 9 1. This tender will be inserted in special envelope marked “Tender for Treasury Bills.” N am e o f B id der (Please print) By .... (Official signature required) (T itle) Street A d d ress ............................................ (C ity, Town or V illage, P. O. No., and State) I f this tender is subm itted b y a bank fo r the a ccou n t o f a custom er, in dicate the custom er’ s nam e on line b e lo w : (Name of Customer) (City, Town or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o tender f o r less than $1,000 w ill be con sidered, and each tender m ust be fo r an even m ultiple o f $ 1,000 (m atu rity v a lu e). 2. I f the person m akin g the tender is a corp ora tion , the tender should be signed b y an officer o f the corp ora tion authorized to m ake the tender, and the sign ing o f the tender by an officer o f the corp ora tion w ill be construed as a rep resentation b y him that he has been so authorized. I f the ten der is made by a partnership, it should be sign ed by a m em ber o f the firm, w h o should sign in the form “ ................................................................................................................... a copartnership, by a m em ber o f the firm.’ ; 3. T en ders w ill be sible and recogn ized dealers 2 percent o f the fa ce am ount o f paym ent b y an in corporated received w ith ou t deposit from in corporated banks and trust com panies and from respon in investm ent securities. T en ders from others m ust be accom panied b y paym ent o f o f T rea su ry bills applied fo r, unless the tenders are accom pa n ied b y an express guaranty bank or trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the op in ion o f the Secretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B —1107-a ( oveb)