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FEDERAL

RESERVE

BANK

OF

NEW

YORK

Fiscal A gent of the U nited States

[

Circular No. 3 7 8 5 "I
November 22, 1951 J

Offering of $ 1 ,1 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills
Dated November 29, 1951

Maturing February 28, 1952

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

F ollow ing is the text o f a notice published tod ay :
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 ursday, N ovem ber 22, 1951.

TREASU RY DEPARTM ENT
W a sh in gton

T h e Secretary o f the T reasu ry, by this pu blic notice, invites tenders for $1,100,000,000, or thereabouts, o f 91-day T reasu ry
b ills, fo r cash and in exch a n ge for T reasu ry bills m aturing N ovem b er 29, 1951, in the am ount o f $1,100,636,000, to be issued on a
discou n t basis under com petitive and n on -com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated
N ovem ber 29, 1951, and w ill m ature F eb ru a ry 28, 1952, w hen the face am ount w ill be payable w ithout interest. T h ey w ill
be issued in bearer fo rm on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity va lu e).
T en ders w ill be received at F ed era l R eserve Banks and B ranches up to the clo s in g hour, tw o o ’c lo ck p.m., Eastern
Standard time, M on day, N ovem ber 26, 1951. T en ders w ill n ot be received at the T reasu ry Departm ent, W a sh in gton . E ach
tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the p rice offered must 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 o n the printed form s and forw a rd ed in the sp ecia l envelopes w h ich w ill be supplied by F ed eral R eserve Banks or
Branches on application therefor.
O th ers than banking 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
receiv ed w ithout deposit from in corpora ted banks and trust com panies and from respon sible and recogn ized dealers in in­
vestm ent securities. T en ders from others m ust be accom panied b y paym ent o f 2 percent o f the face am ount o f T rea su ry bills
applied for, unless the tenders are accom pa n ied by 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 F ed eral R eserve Banks and B ranches, fo llo w in g w hich
p u b lic announcem ent w ill be made b y the Secretary o f the T reasu ry o f the am ou nt and price range o f a ccepted bids. T h ose
subm itting tenders w ill be advised o f the acceptance o r rejection th ereof. T h e S ecretary o f the T rea su ry exp ressly reserves
the righ t to accept o r reject any or all tenders, in w h ole o r in part, and his action in any such respect shall be final. Su bject
to these reservations, n on -com p etitive tenders fo r $200,000 o r less w ith ou t stated price from any one b idder w ill be accepted
in fu ll at the average price (in three decim a ls) o f a ccepted com petitive bids. Settlem ent for a ccepted tenders in a ccord a n ce
w ith the bids must be made or com pleted at the F ed eral R eserve Bank on N ovem ber 29, 1951, in cash o r oth er im m ediately
available funds o r in a like fa ce am ount o f T rea su ry bills m atu rin g N ovem ber 29, 1951. Cash and exch ange tenders w ill receive
equal treatment. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m aturing bills accepted in exch a n ge
and the issue price o f the new bills.
T h e incom e derived from T reasu ry bills, w hether interest or gain fro m the sale o r oth er disp osition o f the b ills, shall
n o t have any exem ption, as such, and loss from the sale or oth er d isp osition o f T rea su ry bills shall n ot have any special
treatm ent, as such, under the Internal Revenue Code, o r law s am endatory o r supplem entary thereto. T h e bills shall be
subject to estate, inheritance, gift, o r oth er e x cis e taxes, w hether F ed eral or State, but shall be exem pt from all taxation
n ow o r hereafter im posed on the principal o r interest th ereof by any State, or any o f the possessions o f the U nited States,
o r b y any lo ca l ta x in g authority. F o r purposes o f taxation th e am ount o f discou n t at w h ich T reasu ry bills are origin a lly
so ld b y the U nited States shall be con sid ered to be interest. U n der 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 c t o f 1941, the am ount o f discou n t at w h ich bills issued hereunder are
so ld shall not be con sidered to a ccru e until such bills shall be sold , redeem ed or otherw ise disp osed o f, and such bills are
exclu d e d from con sidera tion 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 ­
pan ies) issued hereunder need include in his incom e ta x return on ly the difference betw een the price paid fo r such bills,
w hether o n 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 h ich the return is made, as ord in a ry g a in or loss.
T reasu ry D epartm ent C ircu la r N o. 418, as am ended, and this n otice, prescribe the terms o f the T reasu ry bills and
g o v e rn the con ditions o f their issue. C opies o f the circu la r m ay be obtain ed fro m any F ed eral R eserve Bank o r Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, N ovem ber 26,
Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse
submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Paym ent
cannot be made by credit through the Treasury T ax and Loan Account. Settlement must be
immediately available funds or in maturing Treasury bills.
A lla n

1951, at the Secruities
side o f this circular to
for the Treasury bills
made in cash or other

S p r o u l,

President.

Results o f last offering o f Treasury bills (90-day bills dated N ovem ber 23, 1951,m aturing February 21, 1952)
T o ta l applied f o r .........$2,187,450,000
T o ta l a c c e p t e d ............. $1,100,712,000 (in clu des $203,727,000
entered on a n on -com p etitive basis
and accepted in fu ll at the aver­
age price show n below )
A v era ge p r ic e ...........

99.604

E quivalent rate o f discount
a pp rox. 1.585% per annum

R ange o f a ccepted com petitive bids :
H ig h ............................

99.610

E quivalent rate o f discount
1.560% per annum

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

99.602

E quivalent rate o f discount
1.592% per annum

(26 percent o f the amount b id fo r at the low
price w as accep ted)

Federal Reserve
District

Total
Applied for

B oston ..............................
$ 38,060,000
N ew Y o r k .......................
1,533,098,000
P h iladelp hia .................
44,327,000
C leveland .......................
63,146,000
R ich m on d .....................
27,196,000
A tlanta ............................
26,666,000
C h ica go .........................
200,475,000
St. L ou is ........................
38,587,000
M in neapolis ...................
13,609,000
K ansas C ity .................
40,504,000
D allas ..............................
57,314,000
San F ra n cisco .............
104,468,000
T o ta l

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

$2,187,450,000


K "
Please note that the results shown above are fo r 90-day Treasury bills.
http://fraser.stlouisfed.org/ ’
Federal Reserve Bank of St. Louis

Total
Accepted
$

16,498,000
646,696,000
12,262,000
48,352,000
20,196,000
16,734,000
155,137,000
17,970,000
12,559,000
35,532,000
39,274,000
79,502,000

$1,100,712,000
(ov u t)

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
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 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.

TEN DER FOR 91-DAY TREASURY BILLS
Maturing February 28, 1952

Dated November 29, 1951

Dated at .......................

T o 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 A gent 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
N ovem ber 22, 1951, as issued by the Secretary
o f 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 N ovem ber 22,
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 er 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 you r 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 com petitive bids, settlement
therefor to be made at you r Bank, on the date
stated in the public notice, as indicated b elow :

□

□

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

B y 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 for which tender is hereby made are to be dated N ovem ber 29, 1951, and are to
mature on February 28, 1952.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills.”
N am e o f B id der
( 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 L ty, T o w n o r V i l l a g e , P . O . N o ., a n d S t a t e )

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 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 )

IMPORTANT INSTRUCTIONS:
1. N o tender fo 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 ten der is a corp ora tion , the ten der should be sign ed b y an officer o f the corp oration
authorized to m ake the tender, and the sign ing 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 should 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 from others must be accom pa n ied b y paym ent o f
2 percent o f the fa ce am ount o f T rea su 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 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.


Payment b y credit through Treasury Tax and Loan Account will not be permitted.
http://fraser.stlouisfed.org/
— 1117-a
Federal Reserve Bank of St. Louis

(O V B * )

aJ>t 3

F E D E R A L R E SER VE BANK
O F NEW YORK

November 21, 1951.

To all Banking Institutions in the
Second Federal Reserve District:
+

W e are pleased to announce that The Matawan Bank,
Matawan, New Jersey, has become a member o f the Federal
Reserve System effective November 21, 1951.




A lla n

S p r o u l,

President.

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