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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)

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