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FED ER AL RESERVE BANK O F N EW YORK
r circular No. 3 7 7 5

Fiscal Agent o f the United States

L November 1,1951

Offering of $ 1 ,3 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills
Dated November 8, 1951

Maturing February 7, 1952

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 DEPARTM EN T
W a sh 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, N o v e m b e r 1, 1951.

T h e S ecretary o f the T reasu ry, b y this pu blic n otice, invites tenders fo r $1,300,000,000, or thereabouts, o f 91-day T re a s ­
u ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing N ovem b er 8, 1951, in the am ou nt o f $1,300,416,000, to be issued
o n a discou n t basis under com petitive and n on -com p etitive bid d in g as h ereinafter provid ed . T h e bills o f this series w ill be
dated N o v e m b e r 8, 1951, and w ill m ature F ebru ary 7, 1952, w h en the face a m ou n t w ill be payable w ith ou t interest. T h e y
w ill be issued in bearer fo rm on ly, and in den om in ation s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity
v a lu e ).
T e n d e rs w ill be received at F ed eral R eserve Banks and B ran ches up to the closin g hour, tw o o ’ c lo ck p.m ., E astern
S tandard tim e, M on d a y, N ov em b er 5, 1951. T en d ers w ill n ot be received at the T reasu ry D epartm ent, W a sh in g ton . E ach
ten der m ust be fo r an even m ultiple o f $1,000, and in th e case o f com petitive ten ders th e price offered m u st be expressed on
the basis o f 100, w ith n ot m ore than th ree decim als, e.g., 99.925. F raction s m ay n ot be used. It is u rg ed that tenders be
m ade o n the printed form s and forw a rd ed in the special en velop es w h ich w ill be supplied b y F ed eral R eserve Banks o r
B ran ches o n application th erefor.
O th ers than b ank in g institutions w ill n ot be perm itted to subm it tenders e x ce p t fo r their o w n a ccou n t. T e n d e rs w ill be
received w ith ou t dep osit fro m in corpora ted banks and trust com pa n ies and fro m respon sible and recog n ized dealers in in vest­
m en t securities. T en d ers from others m ust be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face am ou nt o f T rea su ry bills
applied fo r, unless the tenders are a ccom p a n ied b y an express guaranty o f pa ym en t b y an in corpora ted bank or trust com p a n y .
Im m edia tely a fter the closin g hour, tenders w ill be op en ed at the Federal R eserve Banks and B ranches, fo llo w in g w hich
p u blic a n 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 the a m ou n t and price ran ge o f a ccep ted b ids. T h o se
subm itting ten ders w ill be advised o f the accep tance o r rejection thereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves
the righ t to a ccep t o r reject any or all tenders, in w h ole o r in part, and his action in a n y such resp ect shall be final. S u b ject
t o these reservations, n on -com p etitive tenders fo r $200,000 o r less w ith ou t stated price fro m any on e b idd er w ill be a ccep ted
in full at the average price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted ten ders in a ccord a n ce
w ith the bids m u st be m ade or com p leted at the F ed eral R eserve Bank on N o v e m b e r 8, 1951, in cash o r oth er im m ediately
available funds o r in a like face am ou nt o f T rea su ry bills m aturing N ov em b er 8, 1951. Cash and exch a n ge ten ders w ill re­
ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par value o f m atu rin g bills a ccep te d in
exch a n ge and the issue price o f the n ew bills.
T h e in com e derived fro m T rea su ry bills, w hether interest or gain fr o m the sale o r oth er disp osition o f the bills, shall not
have any exem ption , as such, and loss fro m the sale o r oth er disp osition o f T rea su ry bills shall n ot have a n y special treat­
m en t, as such, under the Internal R even u e C ode, or law s am en datory o r supplem entary th ereto. T h e bills shall be subject
to estate, inheritance, g ift, o r oth er excise taxes, w hether Federal o r State, but shall be exem pt from all taxation n o w or h ere­
after im p osed o n the principal or interest th ereof b y any State, or any o f the possession s o f the U n ited States, o r b y a n y local
ta x in g authority. F o r pu rposes o f taxation the am ou nt o f discou n t at w hich T rea su ry bills are o rigin a lly sold b y the U n ited
States shall be con sidered t o be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the Internal R even u e C ode, as a m en ded b y
S ection 115 o f the R even u e A c t o f 1941, the am ou nt o f discou n t at w h ich bills issued hereun der are sold shall n ot be con sidered
to accru e until such bills shall be sold, red eem ed or oth erw ise disp osed of, and such bills are exclu d ed fr o m con sidera tion as
capital assets. A c co r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance com p a n ies) issued hereun der need in­
clu de in his in com e ta x return o n ly the difference betw een the price paid fo r such bills, w hether on origin a l issue o r on sub­
sequent purchase, and the am ou nt actu ally receiv ed either u pon sale or red em ption at m aturity du rin g the taxable year fo r
w h ich the return is made, as ord in a ry gain o r loss.
T re a su ry D epartm en t Circular N o . 418, as am en ded, and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn
th e con dition s o f their issue. C opies o f the circular m a y be ob ta in ed fr o m a n y F ed eral R e serv e B ank o r Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, November 5, 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 fo r Treasury Bills.” Payment fo 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 r o u l , President.
Results of last offering of Treasury bills (91-day bills dated November 1, 1951, maturing January 31, 1952)
T o ta l a pplied fo r .......... $2,217,004,000
T o t a l a c c e p t e d ...............$1,301,730,000 (in clu des $172,381,000
entered o n a n on-com p etitive basis
and a ccep ted in full at the average
price show n b e lo w )
A v e ra g e price ........

99.591- f

E quivalent rate o f discou nt
app rox. 1.617% p er annum

R a n g e o f a ccep ted co m p etitive b ids:
H ig h

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

99.620

L o w ..........................

99.589

Equivalent rate o f discou nt
app rox. 1.503% p er annum

E quivalent rate o f discou nt
approx. 1.626% per annum
(63 percent o f the am ou nt bid fo r at the lo w
price w as a ccep ted)




Federal Reserve
District
B oston .......................... ....
N ew Y o r k ................. ....
Philadelphia ...............
C leveland ...................
R ich m on d ...................
C h ica g o .......................
St. L ou is .....................
M in neapolis ..............
K ansas C ity ...............
San F ra n cisco ..........
T otal ................... ....

Total
Applied for
$

49,916,000
1,523,853,000
44,674,000
37,257,000
21,423,000
28,786,000
237,190,000
33,191,000
8,437,000
67,679,000
47,311,000
117,287,000

$2,217,004,000

Total
Accepted
$

37,546,000
759,288,000
28,804,000
27,120,000
19,683,000
28,416,000
179,380,000
21,857,000
8,437,000
63,409,000
36,312,000
91,478,000

$1,301,730,000
( over)

26G
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 FOR 91-D A Y TREASURY BILLS
Dated November 8, 1951

Maturing February 7, 1952
Dated at______________

To F e d e ra l R eserv e B a n k o f N ew Y ork ,
Fiscal Agent o f the United States.

.1951

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
November 1, 1951, as issued by the Secretary
of
the Treasury,
the
undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on November 1,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

— * for a total amount o f

for a total amount o f $..

(R a t e p e r 100)

(N o t t o e x c e e d $200,000)

...................................................... (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:

(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:

□

□

B y surrender o f

maturing Treasury bills

By surrender o f

maturing Treasury bills

amounting t o ..................... $ ________________ I_____

amounting t o ..................... $---------------------------------

□

□

B y cash or other immediately available funds

By cash o r other immediately available funds

*Price must be expressed on the basis o f 100, with not
more than three decimal places, fo r example, 99.925.

The Treasury bills for which tender is hereby made are to be dated November 8, 1951, and are to
mature on February 7, 1952.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.”
Name o f B id d er ........
By

(P le a s e p r in t)

(O fficia l s ig n a tu re re q u ire d )

(T itle )

Street A d d ress ................................................
(C ity , T o w n o r V illa g e , P .O . N o ., a n d S tate)

I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below:

(N a m e o f C u s to m e r)

(C ity , T o w n o r V illa g e , P .O . N o ., a n d S ta te)

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 w ill be con sidered, and each ten der m ust be fo r an even m ultiple o f $1,000
(m a tu rity va lu e).
2. I f the person m a k in g the ten der is a corp ora tion , the ten der should be sign ed b y an officer o f the co rp o ra ­
tion a u th orized to m ake 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 con stru ed as a
rep resen tation b y him that he has been so authorized. I f the tender is m ade b y a partnership, it should be signed b y a
m e m b e r o f the firm, w h o sh ou ld sign in the fo rm “ ......................................................................................................... a copartn ersh ip, b y
....................................................................................................................... a m em b er o f the firm .”
3. T e n d ers w ill be received w ith ou t dep osit fro m in corporated banks and trust com pa n ies and from resp o n ­
sible and re co g n ize d dealers in in vestm ent securities. T en d ers fro m oth ers m ust be a ccom p a n ied b y paym ent o f 2 p ercen t
o f th e face a m ou n t o f T rea su ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent
b y an in co rp o ra te d bank o r trust com p a n y .
4. I f the language o f this ten der is ch a n ged in any respect, w hich, in the op in ion o f the S ecretary o f the
T rea su ry, is m aterial, th e ten der m ay be disregarded.


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