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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.