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FEDERAL RESERVE BANK O F NEW YORK
Fiscal Agent of the United States

f Circular No. 3 7 7 9
1 November 15, 1951

\

J

Offering of $ 1 ,1 0 0 ,0 0 0 ,0 0 0 of 90-D ay Treasury Bills
Dated November 23,

1951

Maturing February 21, 1952

To all Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
F o l l o w i n g is th e t e x t o f

a

n o t ic e p u b lis h e d t o d a y :

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 15, 1951.

TREASURY DEPARTM ENT

Washington

T h e S ecreta ry o f the T reasu ry, b y this p u b lic n otice, in vites ten ders fo r $1,100,000,000, o r th ereabouts, o f 90 -d a y T rea su ry
bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g N o v e m b e r 23, 1951, in the a m ou n t o f $1,100,662,000, t o be issued on
a d iscou n t basis u nder com p etitiv e and n on -co m p e titiv e b id d in g as h ereinafter p ro v id e d . T h e bills o f this series w ill be dated
N o v e m b e r 23, 1951, and w ill m ature F eb ru a ry 21, 1952 w h en the fa ce 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 r m o n ly , a n d in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity v a lu e ).
T e n d e rs w ill be receiv ed at F ed eral R eserve B anks and B ra n ch es up t o th e clo s in g h our, tw o o ’ c lo c k p.m ., E astern
S tandard tim e, M o n d a y , N o v e m b e r 19, 1951. T e n d e rs w ill n ot be receiv ed at the T r e a s u ry D epa rtm en t, W a s h in g to n . E a ch
tender m u st b e fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitiv e ten ders th e p rice offered m u st be exp ressed on
the basis o f 100, w ith n ot m o re than th ree decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is u rged th at ten ders be
m ade o n th e printed fo rm s and fo rw a rd e d in th e special en velop es w h ich w ill be sup plied b y F ed era l R e s e rv e B anks o r
B ra n ch es o n a pp lica tion th erefor.
O th e rs than b ank in g institutions w ill n ot b e perm itted to subm it ten ders e x cep t fo r their o w n a ccou nt. T en d ers w ill be
receiv ed w ith ou t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers in in vest­
m en t securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f th e fa ce a m ou n t o f T r e a s u ry bills
applied for, unless th e ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted ba n k o r trust com p a n y .
Im m ed ia tely a fter the clo s in g h our, ten ders w ill be op en ed at th e F ed era l R e serv e B anks and B ran ches, fo llo w in g w hich
pu b lic a n n ou n cem en t w ill be m ade b y th e 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 bids. T h o s e
su b m ittin g tenders w ill be advised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry e x p ressly reserves
the righ t t o a cce p t o r re ject any o r all tenders, in w h ole or in part, and his a ction in a n y su ch resp ect shall be final. S u b ject
to these reservations, n o n -com p etitiv e tenders fo r $200,000 o r less w ith ou t stated price fr o m a n y on e b idd er w ill be a ccep ted
in fu ll at the a vera ge p rice (in three d ecim a ls) o f a ccep ted com p etitive bids. S ettlem en t fo r a ccep ted tenders in a ccord a n ce
w ith the bids m ust be m ade o r com p le te d at th e F ed eral R eserve B ank on N o v e m b e r 23, 1951, in cash o r oth er im m ediately
available funds o r in a like fa ce am ou nt o f T r e a s u ry bills m atu rin g N o v e m b e r 23, 1951. Cash and ex ch a n g e ten ders w ill receiv e
equal treatm ent. Cash adju stm en ts w ill be m ade f o r d ifferen ces betw een th e pa r valu e o f m a tu rin g bills a ccep ted in ex ch a n g e
and th e issue p rice o f the n ew bills.
T h e in co m e derived fr o m T rea su ry bills, w h eth er interest o r gain fr o m th e sale o r oth er d isp osition o f the bills, shall
n o t h av e a n y exem p tion , as such, and loss fr o m the sale o r oth er d isp osition o f T rea su ry bills shall n ot have a n y special
treatm ent, as such, u nder th e In tern al R even u e C od e, o r law s a m en d a tory or supplem entary thereto. T h e bills shall be
s u b je ct t o estate, inheritance, gift, or oth er excise taxes, w h eth er F ed era l or State, but shall be exem p t fr o m all taxation
n o w o r h ereafter im p o se d o n the principal o r interest th e re o f b y a n y State, o r a n y o f th e possession s o f the U n ited States,
o r b y a n y loca l ta x in g authority. F o r pu rp oses o f taxation the am ou nt o f d iscou n t at w h ich T rea su ry bills are origin a lly
so ld b y th e U n ited States shall be con sid ered t o b e interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f th e In tern a l R even u e
C o d e , as a m en ded b y S ection 115 o f the R even u e A c t o f 1941, the a m ou n t o f d iscou n t at w h ich bills issued hereun der are
so ld shall n o t be co n sid ered t o a ccru e until such bills shall be sold, red eem ed o r oth erw ise disp osed o f, and such bills are
exclu d e d fr o m con sid era tion as capital assets. A c c o r d in g ly , th e o w n e r o f T rea su ry bills (o th e r than life in su rance com p a n ie s)
issued h ereun der need in clude in his in co m e ta x return o n ly th e differen ce b etw een th e price pa id fo r such b ills, w h eth er
on origin a l issue o r o n subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u p on sale or red em p tion at m aturity
du rin g the taxable yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss.
T r e a s u ry D e p a rtm e n t C ircu la r N o . 418, as am en ded, and this n otice, p rescrib e th e term s o f the T r e a s u ry bills and g o v e rn
th e co n d itio n s o f th eir issue. C op ies o f th e circu la r m ay be obtain ed fr o m a n y F ed era l R e serv e B ank o r B ranch.
T h i s B a n k w i ll r e c e iv e te n d e r s u p t o 2 p .m ., E a s t e r n S t a n d a r d tim e , M o n d a y , N o v e m b e r 1 9 , 1 9 5 1 , a t th e S e c u r it ie s
D e p a r t m e n t o f its H e a d O f fic e a n d a t its B u f f a lo B r a n c h . P le a s e u s e th e f o r m o n th e r e v e r s e s id e o f th is c ir c u l a r t o
s u b m it a t e n d e r , a n d r e t u r n it in a n e n v e lo p e m a r k e d “ T e n d e r f o r T r e a s u r y B ills .” Paym ent f o r the Treasury bills

cannot be made by credit through the Treasury T ax and Loan Account.
immediately available funds or in maturing Treasury bills.

Settlement must be made in cash or other
A

R e s u l t s o f la s t o f f e r i n g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a t e d N o v e m b e r
T otal applied f o r .........$2,128,035,000
Total accepted ...............$1,302,809,000 (includes $162,638,000
entered on a non-com petitive basis
and accepted in full at the average
price shown b elow )
A verage price

99.591
..
Range o f accepted competitive
H igh .......................
99.618
L ow

llan

S proul,

President.

15, 1 9 5 1 , m a tu rin g F e b ru a ry

Federal Reserve Total
Total
------ District------Applied fo r
Boston ..................................... $ 49,802,000
N ew Y o r k ............................... 1,503,844,000
Philadelphia .......................... 33,624,000

14,

1952)

_A ccep ted
$ 43,102,000
872,459,000
16,624,000

Equivalent rate ° f discount
aPPr o x - ll6 1 9 % Per annum
b id s :
Equivalent rate o f discount
approx. 1.511% per annum

R i c h n S '! !!
Atlanta .....................................
Chicago ...................................
St. Louis .................................
Minneapolis .............................

M ^ 'O O O
34,124,000
144,863,000
32,469,000
14,445,000

^SH O OO
31,444,000
87,261,000
28,809,000
12,677,000

E quivaknt rate o f discount
approx. 1.626 % per annum
(6 6 percent o f the amount bid f o r at the low
price was accepted)

Clty ; ; ; ; ; ; ; ; ; ; ; ; ;
San Francisco ......................

s l ’. H y’OOO
.
117,416,000
---------------------$2,128,035,000

45487 000
39236,000
---------------------$1,302,809,000

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

99589


Please


T otal . .....................

note that the current offering is for 90-day Treasury bills
(

oveb)

IMPORTANT— Please note that this offering is for 90-day Treasury Bills which will be
dated Friday, November 23, 1951, owing to the fact that Thursday, November 22, will
be Thanksgiving Day.
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.
N o..................................

T E N D E R FOR 9 0 -D A Y T R E A SU R Y BILLS
Dated November 23, 1951

Maturing February 21, 1952

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

Dated at

COMPETITIVE BID
Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and to
the provisions o f the public notice on November
15, 1951, as issued by the Secretary o f the Treas­
ury, the undersigned o ffe rs .................................... *
(R a t e p e r 100)

1951
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
15, 1951, as issued by the Secretary o f the Treas­
ury, the undersigned offers a non-com petitive
tender for a total amount o f $ ..................................

fo r a total amount o f $ .............................................
(maturity value) o f the Treasury bills therein
described, o r fo r 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 :
□
By surrender o f maturing Treasury bills

(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

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

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

□

B y cash or other immediately available funds

( N o t t o ex c e e d $20 0 ,0 0 0 )

□

B y cash or 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 fo r which tender is hereby made are to be dated November 23, 1951, and are to
mature on February 21, 1952.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
N a m e o f B id d er
(P le a s e p r in t)

B y .........
(O fficia l sig n a tu re r e q u ire d )

Street A d d re s s

(T it le )

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

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

If 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 stom er) T o w n o r V illa g e , P .O . N o ., a n d S tate)
(C ity ,

IMPORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill be con sid ered , a n d each ten der m u st be f o r an even m u ltiple o f $1,000
(m a tu rity v a lu e ).
2. I f th e p erson m a k in g the ten d er is a corp ora tion , th e ten d er sh ou ld be sig n ed b y an officer o f th e c o r p o r a ­
tion a u th orized to m a ke th e tender, a n d the s ig n in g o f th e ten der b y an officer o f th e co rp o ra tio n w ill b e co n stru e d as a
rep resen ta tion b y h im that he has been s o au th orized . I f th e ten der is m ade b y a partnersh ip, it sh ou ld be sig n e d b y a
m e m b e r o f th e firm , w h o sh ou ld sig n in the fo r m “ ................................................................................................., a cop artn ersh ip, b y
........................................................................................................................ a m e m b e r o f the firm .”
3. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and from re s p o n ­
sib le a n d r e co g n iz e d d ea lers in in vestm ent securities. T e n d e rs fr o m oth ers m u st be a cco m p a n ie d b y p a ym en t o f 2 p ercen t
o f th e fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r , unless the ten ders are a ccom p a n ied b y an ex p re s s gu a ra n ty o f paym ent
b y an in co rp o ra ted ba n k o r trust com p a n y .
4. I f th e la n g u a g e o f this ten der is ch a n g e d in a n y respect, w h ich , in th e o p in io n o f th e S ecreta ry o f the
T re a s u ry , is m aterial, th e ten d er m a y be disreg arded.


"Payment b y credit through Treasury Tax and Loan Account will not be permitted.
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f B — 1116-a
Federal Reserve Bank of St. Louis

( ovek)

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