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FEDERAL RESER VE BANK O F NEW YO RK
Fiscal Agent of the United States

No. 3 7 5 9
Septem
fCircularber 20,19511J

Offering o f $1,200,000,000 o f 91-Day Treasury Bills
Dated September 27, 1951

Maturing December 27, 1951

T o all Incorporated Banks and Trust Companies in the
Second Federal R eserve D istrict and O th ers C oncerned:

Following i the t xt of a n t c published today:
s
e
oie
TREASU RY DEPARTM ENT
W ashington

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 ,
Thursday, September 20, 1951.

T h e Secretary o f the Treasury, by this public notice, invites tenders fo r $1,200,000,000, o r thereabouts, o f 91-day Treasury bills,
fo r cash and in exchange for Treasury bills maturing September 27, 1951, in the amount o f $1,000,372,000, to be issued on a discount
basis under competitive and non-competitive bidding as hereinafter provided. The bills o f this series will be dated September 27, 1951,
and w ill mature December 27, 1951, when the face amount w ill be payable without interest. They will be issued in bearer form only,
and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity value).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Daylight
Saving time, M onday, September 24, 1951. Tenders will not be received at the Treasury Department, W ashington. Each tender must
be fo r an even multiple o f $ 1 ,000, and in the case o f competitive tenders the price offered must be expressed on the basis o f 100, with
not m ore than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed form s and f o r ­
warded in the special envelopes w hich w ill be supplied b y Federal Reserve Banks or Branches on application therefor.
Others than banking institutions w ill not be permitted to submit tenders except for their own account. Tenders w ill be received
without deposit fro m incorporated banks and trust companies and from responsible and recognized dealers in investment securities.
Tenders fro m others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied fo r, unless the
tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g which public
announcement will be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. T h ose submitting
tenders will be advised o f the acceptance o r rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept
o r reject any o r all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations,
non-competitive tenders fo r $200,000 or less without stated price fr o m any one bidder will be accepted in fu ll at the average price (in
three decim als) o f accepted competitive bids. Settlement f o r accepted tenders in accordance with the bids must be made or completed
at the Federal Reserve Bank on September 27, 1951, in cash or other immediately available funds or in a like face amount o f Treas­
ury bills maturing September 27, 1951. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made fo r
differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills.

*

T h e income derived from Treasury bills, whether interest o r gain from the sale or other disposition o f the bills, shall not have any
exemption, as such, and loss from the sale o r other disposition o f Treasury bills shall not have any special treatment, as such, under
the Internal Revenue Code, o r laws amendatory or supplementary thereto. T he bills shall be subject to estate, inheritance, g ift, or
other excise taxes, whether Federal or State, but shall be exem pt from all taxation now or hereafter imposed on the principal or
interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. F o r purposes o f taxa­
tion the amount o f discount at which Treasury bills are originally sold b y the United States shall be considered to be interest.
Under Sections 42 and 1 1 7(a) ( 1 ) o f the Internal Revenue Code, as amended by Section 115 o f the Revenue A ct o f 1941, the amount
o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or other­
wise disposed o f, and such bills are excluded fro m consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other
than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at
maturity during the taxable year f o r w hich the return is made, as ordinary gain or loss.
Treasury Department Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern the
conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch.

This Bank w l r c i e tenders up t 2 p m , Eastern Daylight Saving t e Monday, September 2 1951, a the Securi­
il e e v
o ..
im ,
4,
t
t e Department of is Head O f c and a is Buffalo Branch. Please use the form on the reverse s d of t i c r u a t
is
t
fie
t t
ie
hs i c l r o
submit a t n e , and return i i an envelope marked “Tender for Treasury B l s ” Payment for the Treasury bills cannot
edr
tn
il.
be made by credit through the Treasury Tax and Loan Accottnt. 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 September 20, 1951, maturing December 20, 1951)
Total applied f o r .... ........... $1,929,824,000
Total accepted .................... $1,202,399,000 (includes $162,726,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
A verage price................ 99.584-f- Equivalent rate o f discount
approx. 1.644% per annum
Range o f accepted competitive b id s :
H igh

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

99.610

Equivalent rate o f discount
approx. 1.543% per annum

L ow ...............................

99.583

Equivalent rate o f discount
approx. 1.650% per annum

(43 percent o f the amount bid fo r at the low
price was accepted)




Federal R eserve
District
......
New Y ork ..................... .......
Philadelphia ..................
Cleveland .......................
Richm ond ......................
Atlanta ............................
Chicago .........................
St. Louis ........................
Minneapolis ...................
Kansas City ..................
San Francisco ..............
T o ta l

.».....................

Total
Applied fo r
$

25,721,000
1,350,402,000
33.330,000
74.103,000
27,673.000
29,739.000
187,687,000
20,174.000
8,014.000
21,338,000
57,544.000
- 94.099,000

Total
A ccepted
$

24,866,000
722,552,000
17,760,000
67,846,000
24,845,000
27,374,000
148,487,000
18,347,000
7,748,000
21,224,000
47,231,000
74,119,000

$1,202,399,000
( over)

26 A
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 on 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 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 total amount bid at each price, provided a list is
attached showing the name of each bidder, the amount bid for his account, and method
of payment. Forms for this purpose will be furnished upon request.

No.
TENDER

F O R 91 - D A Y

Dated September 27, 1951

To

TREASURY

BILLS

Maturing December 27, 1951

Dated a -------t
F

ederal

R

eserve

B

ank

of

N

ew

Y

ork,

F s a Agent of the United S a e .
icl
tts
COMPETITIVE

1951

BID

NON-COMPETITIVE BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
t the provisions of the public n t e on
o
o ic
September 2 1951, as issued by the Secretary
0,
of the Treasury, the undersigned o f r
fes

Pursuant t the provisions of Treasury De­
o
partment Circular No. 418, as amended, and t t e
o h
provisions of the public n t c on September 2 ,
oie
0
1951, as issued by the Secretary of the Treasury,
t e undersigned o f r a non-competitive tender
h
fes

_________________ * for a t t l amount of
oa

for a t t l amount of $__________________
oa

(Bate per 100)

(Not to exceed $200,000)

$____________________ (maturity value)
.
of th Treasury b l s ther i des ri e , or f
e
il
en
c bd
or
any l s amount t a may be awarded, sett m nt
es
ht
le e
therefor to be made a your Bank, on the date
t
s a e i the public n t c , as i d c t d below:
ttd n
oie
niae
□ By surrender of maturing Treasury b l s
il
$--------------amounting to...

(maturity value) of the Treasury b l s ther i
il
en
d s r b d a t average p i e ( three d c ­
e c i e , t he
r c in
ei
mals) of accepted competitive b d , settlement
is
therefor to be made a your Bank, on the date
t
s a e i the public n t c , as i dicated below:
ttd n
oie
n
□ By surrender of maturing Treasury b l s
il
$___ ___________
amounting to...

□ By cash or other immediately a a l b e funds
vial

□ By cash or other immediately a a l b e funds
vial

*P rice must be expressed on the basis o f 100, w ith not
m ore than three decimal places, f o r exam ple, 99.925.

The Treasury b l s for which tender i hereby made are t be dated September 2 , 1951, and are t
il
s
o
7
o
mature on December 2 1951.
7,
This tender will be inserted in special envelope marked “Tender for Treasury Bills.”
Nam e o f Bidder ..............................................
Bv

(Please print)

(Official signature required)

(Title)

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)

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

IMPORTANT INSTRUCTIONS:
1. N o tender f o r
(m aturity valu e).
2. I f the person
authorized to make the tender,
tion by him that he has been so

less than $1,000 w ill be considered, and each tender must be fo r an even multiple o f $1,000
making the tender is a corporation, the tender should be signed by an officer o f the corporation
and the signing o f the tender b y an officer o f the corporation will be construed as a representa­
authorized. I f the tender is made by a partnership, it should be signed b y a member o f the firm,

w ho should sign in the form “ ...................................................................................................................................................... a copartnership, by
....................................................................................................................... a member o f the firm.”
3. Tenders w ill be received without deposit fro m incorporated banks and trust companies and fro m responsible
and recognized dealers in investment securities. Tenders fr o m others must be accompanied b y payment o f 2 percent o f the
face amount o f Treasury bills applied for, unless the tenders a re accompanied b y an express guaranty o f payment b y an incor­
porated bank o r trust company.
4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury,
is material, the tender m ay be disregarded.

Payment by credit through Treasury Tax and Loan Account will not be permitted.

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( over)


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