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FED ER AL R E SE R V E B A N K O F N E W

YO R K

Fiscal A gent o f the United States

[

C ircular N o. 3 77 3 "I
O ctober 25, 1951 J

Offering of $ 1 ,3 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills
Dated November 1, 1951

Maturing January 31, 1952

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:

F ollow ing is the text o f a notice published today:
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, October 25, 1951.

TREASU RY DEPARTM ENT
Washington
The Secretary of the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing November 1, 1951, in the amount of $1,300,619,000, to be issued on a
discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated
November 1, 1951, and will mature January 31, 1952, when the face amount will be payable without interest. They will
be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Standard time, Monday, October 29, 1951. Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in­
vestment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, non-competitive tenders for $200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on November 1, 1951, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing November 1, 1951. Cash and exchange tenders will receive
equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The bills shall be
subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation
now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States,
or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally
sold by the United States shall be considered to be interest. Under Sections 42 and 117(a)(1) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, the owner of 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 for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

T h is Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, O ctober 29, 1951, at the Securi­
ties 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 for 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 lla n

S p r o u l,

President.

Results o f last offering o f 91-day Treasury bills, dated O ctober 25, 1951, maturing January 24, 1952
Total applied for....... $2,129,556,000
Total accepted ........... $1,200,782,000 (includes $179,001,000
entered on a non-competitive basis
and accepted in full at the aver­
age price shown below)
Average price......... 99.597+Equivalent rate of discount
approx. 1.593% per annum
Range of accepted competitive bids:
High ........................

99.611

Equivalent rate of discount
approx. 1.539% per annum
L o w .......................... 99.595 Equivalent rate of discount
approx. 1.602% per annum
(18 percent of the amount bid for at the low
price was accepted)



Federal Reserve
District

Boston ....................... ,.
New York ................
Philadelphia ............
Cleveland ..................
Richmond ................
St. L o u is ....................
Minneapolis ..............
Kansas C ity ...............
Dallas ........................
San F rancisco...........
T o t a l .............................

Total
Applied for

$

74,221,000
1,460,724,000
48,970,000
80,613,000
25,591,000
21,257,000
175,394,000
36,271,000
8,056,000
39,478,000
38,353,000
120,628,000

$2,129,556,000

Total
Accepted

$

50,591,000
737,343,000
17,658,000
75,452,000
20,605,000
' 20,957,000
98,399,000
27,559,000
7,974,000
33,022,000
23,540,000
87,682,000

$1,200,782,000
( ovek)

26F

IM P O R T A N T — I f you desire to b id on a com p etitive basis, fill in rate per 100 and maturity
value in paragraph headed “ Com petitive B id .” I f you desire to b id on a n on-com petitive
basis, fill in only the maturity value in paragraph headed “ N on-com petitive B id.” DO
N O T fill in b oth paragraphs on on e form . A separate tender must be used fo r each bid ,
except that banks submitting bids on a com petitive basis fo r their own and their customers’
accounts may subm it one tender fo r the total amount b id at each price, provided a list is
attached showing the name o f each bidder, the amount b id fo r his account, and m ethod
o f payment. Form s fo r this purpose w ill be furnished u pon request.
N o ...............................

TENDER FOR 91-DAY TREASURY BILLS
Dated N ovem ber 1, 1951
To

F e d e ra l R eserve

B a n k

o f

N e w

Maturing January 31, 1952
Dated a t .........................

Y ork,

Fiscal A gent o f the United States.

1951
N O N -C O M P E TIT IV E BID

C O M P E T IT IV E 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
O ctober 25, 1951, as issued by the Secretary
o f the Treasury, the undersigned offers

Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on O ctober 25,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-com petitive tender

............................................ * for a total amount of

fo r a total amount o f $.
( N o t t o e x c e e d $200,000)

( R a t e p e r 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 b elow :

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) o f accepted com petitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated b e lo w :

□

□

B y surrender o f maturing Treasury bills

B y surrender o f maturing Treasury bills

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

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

□

□

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 fo r which tender is hereby made are to be dated N ovem ber 1, 1951, and are to
mature on January 31, 1952.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills ”
N am e o f B idder
( P l e a s e p r in t )

By

....
(O ffic ia l s ig n a t u r e r e q u ir e d )

(T itle )

Street A d d ress ............................................
( C i t y , T o w n o r V i l l a g e , P . O . N o ., a n d S ta te )

I f this tender is subm itted b y a bank fo r the accou n t o f a cu stom er, in dicate the cu stom er’s nam e on line b e lo w :
(N a m e o f C u s to m e r)

( C i t y , T o w n o r V i l la g e , P . O . N o ., a n d S t a t e )

IM P O R T A N T IN STR U C T IO N S:
1. N o tender fo r
$1,000 (m atu rity va lu e).

less than $1,000 w ill be con sidered, and each tender m ust be fo r an even m ultiple o f

2. I f the person m akin g the tender is a corp ora tion , the tender should be sign ed b y an officer o f the corp ora tion
authorized to make the tender, and the sign in g o f the ten der b y an officer o f the corp ora tion w ill be construed as a rep­
resentation b y him that he has been s o authorized. I f the ten der is m ade b y a partnership, it should be sign ed b y a m em ­
ber o f the firm, w h o sh ou ld sign in the fo rm “ ................................................................................................................... a copartnership, by
..................... ................................................................................................. a m em ber o f the firm.”
3. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and from respon­
sible and recogn ized dealers in investm ent securities. T en ders fro m others m ust be accom pa n ied b y paym ent of
2 pcrcent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom pa n ied by an express guaranty
o f paym ent b y an in corporated bank or trust com pany.
4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the Secretary o f the
T reasu ry, is m aterial, the tender m ay be disregarded.


P aym ent b y cred it through Treasury T ax and Loan A ccou n t w ill n ot b e perm itted.
http://fraser.stlouisfed.org/
T E N T B —1113-a
Federal Reserve Bank of St. Louis

( oveh)

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