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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States

C ir c u la r N o. 3 7 8 7

Novem ber 29,1951

Offering o f $1,100,000,000 o f 91-Day Treasury Bills
Dated D ecem ber 6, 1951

Maturing M arch 6, 1952

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

%

Following i the t of a n ti e published today:
s
ext
o c
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 29, 1951.

TREASU RY DEPARTM EN T
W a sh in g to n

T h e S ecretary o f the T reasu ry, b y this public n otice, in vites tenders fo r $1,100,000,000, o r thereabouts, o f 91 -d a y T r e a s ­
u ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g D ecem b er 6, 1951, in the am ount o f $1,102,785,000, to be issued
on a discou n t basis under com p etitive and n on -com p etitiv e b id d in g as h ereinafter provided . T h e bills o f this series w ill be
dated D e ce m b e r 6, 1951, and w ill m ature M arch 6, 1952, w hen 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 a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity
va lu e).
T e n d e rs w ill b e receiv ed at F ed eral R eserve Banks and B ran ches up to the clo s in g h our, tw o o ’ c lo ck p.m ., E astern
Standard tim e, M o n d a y , D ecem b er 3, 1951. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . E ach
ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive ten ders th e price offered m ust 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 o t be used. It is u rg ed that ten ders be
m a d e o n the printed fo rm s and forw a rd ed in the special en velop es w hich w ill be supplied b y Federal R eserve B anks o r
B ran ch es o n a pp lication th erefor.
O th ers than ban kin g in stitu tions w ill n ot be perm itted t o subm it tenders e x ce p t fo r their o w n a ccou n t. T en d ers w ill be
receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies and fr o m respon sible and recog n ized dealers in in vest­
m en t securities. T en d ers fro m oth ers m u st b e a ccom p a n ied b y paym ent o f 2 p ercen t o f the 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 p a ym en t b y an in corpora ted bank or trust com p a n y .
Im m ed ia tely a fter the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve Banks and B ran ches, 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 range o f a ccep ted bids. T h o s e
subm itting tenders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T rea su ry ex p ressly reserves
the righ t to a ccep t o r reject a n y o r all tenders, in w h ole or in part, and his a ction in any such resp ect shall be final. S u b ject
to these reservations, n on -com p etitive tenders fo r $200,000 or less w ith ou t stated price fro m a n y on e b idder w ill be a ccep ted
in full at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a cco rd a n ce
w ith the bids m u st be m ade o r com p leted at the Federal R e serv e Bank on D e ce m b e r 6, 1951, in cash or oth er im m ediately
available funds o r in a like face a m ou n t o f T rea su ry bills m atu rin g D ecem b er 6, 1951. Cash and exch a n ge tenders w ill re ­
ceive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences 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 new 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 or oth er disp osition o f the bills, shall not
have any exem ption , as such, and loss fr o 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 da tory o r sup plem entary th ereto. T h e bills shall be su b ject
to estate, inheritance, gift, or oth er excise taxes, w hether F ed eral or State, but shall be exem p t from all taxation n ow o r h ere­
a fter im posed on the principal or interest th ereof b y a n y 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 rp oses o f taxation the am ou nt o f discou n t at w h ich T rea su ry bills are origin a lly sold b y the U n ited
States shall be con sid ered to 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 hich bills issued hereunder 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 from con sideration 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 h ereun der need in ­
clu de in his in co m e ta x return on ly the difference betw een the price paid fo r such bills, w hether on origin a l issue or o n sub­
sequent purchase, and the a m ou n t actu ally received either u pon sale or red em ption at m aturity du rin g the taxable year for
w h ich the return is m ade, as ord in a ry ga in or loss.
T re a su ry D epa rtm en t Circular N o . 418, as am en ded, and this n otice, prescrib e the term s o f the T rea su ry bills and go v e rn
the con d ition s o f their issue. C op ies o f the circular m a y be ob ta in ed fro m a n y F ed eral R eserve B ank or B ranch.

This Bank w l r e v tenders up to 2 p m , Eastern Standard ti e, Monday, December 3 1
i l ec i e
..
m
, 951, a the Securi­
t
t e Department of i s Head O f c and at i s Buffalo Branch. Please use the form on the reverse s d of t i c r u a t
is
t
fie
t
ie
hs i c l r o
submit a t n e , and return i i an envelope marked “Tender for Treasury B l s ” Payment for the Treasury bills cannot
edr
tn
il.
be nwde by credit through the Treasury Tax 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.
Resuits o f last offering o f Treasury bills (91-day bills dated November 29, 1951, maturing February 28, 1952)
T o ta l applied fo r .......... $1,954,319,000
T o ta l a c c e p t e d ...............$1,100,013,000 (in clu d es $154,705,000
entered on a n on -com p etitiv e basis
and a ccep ted in full at the a verage
price sh ow n b e lo w )
A v e ra g e price........

99.593-f-

E quivalent rate o f discou nt
a p p rox. 1.609% per annum

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

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

99.611

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

99.591

E quivalent rate o f discount
a p p rox. 1.539% per annum

E quivalent rate o f discou nt
a p p rox. 1.618% per annum
(22 p ercen t o f the a m ou n t bid fo r at the low
price w as a ccep ted )




Federal R eserve
D istrict
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 ..............
D allas ..........................
San F ra n cisco ..........
T

otal

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

Total
A pplied f o r
$

38.228,000
1,368,505,000
46.211.000
42,491,000
13.322,000
16,867,000
205.830,000
37.305,000
7,140,000
49,488,000
39,532,000
89,400,000

$1,954,319,000

Total
A ccep ted
$

33,278,000
668,305,000
28,211,000
35.371,000
12.322,000
15,867,000
149,890,000
27,189,000
7,140,000
46,928,000
27,972,000
47,540,000

$1,100,013,000
( over)

26K
IM PORTANT— 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 fo r each bid,
except that banks submitting bids on a competitive basis for their own and their customers’
accounts may submit one tender fo r the total amount bid at each price, provided a list is
attached showing the name o f each bidder, the amount bid fo r his account, and method
o f payment. Forms fo r this purpose will be furnished upon request.

No.............

TENDER FOR 91 -DAY TREASURY BILLS
Dated December 6, 1951

M a tu r in g M a r c h 6 , 1 9 5 2

Dated at........
To

F ed era l R eserve B a n k o f N ew Y ork ,

.91
15

F sc l Agent of the United S a e .
i a
tts
COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant t the provisions of Treasury
o
Department Circular No. 418, as amended, and
t the provisions of the public no i
o
t ce on
November 2 , 1951, as issued by the Secretary
9
of the Treasury, the undersigned o f r
fes

Pursuant t the provisions of Treasury De­
o
partment Circular No. 418, as amended, and t t e
o h
provisions of the public n t c on November 2 ,
oie
9
1951, as issued by the Secretary of the Treasury,
the undersigned o f r a non-competitive tender
fes

...................* for a t t l amount of
oa

for a t t l amount of
oa
(Not to exceed §200,000)

(Rate per 100)

$... ... ........ ..... (maturity value)
of the Treasury b l s therein d s r e , or f r
il
e c ib d
o
any l s amount t may be awarded, s
es
hat
ettlement
therefor t be made a your Bank, on the date
o
t
s a e i the p b c n t c , as i d a ed below:
ttd n
u li o i e
n ic t
□ By surrender of maturing Treasury b ls
il
amounting to........$ --------------

(maturity value) of the Treasury b l s the i
il
re n
d s r b d a the average p i e ( n t
ecie, t
r c i hree deci­
mals) of accepted competitive b d , settlement
is
therefor t be made a your Bank, on the date
o
t
s a e i the p l c n t c , as i i at d below:
ttd n
ub i o i e
nd c e
□ By surrender of maturing Treasury b ls
il
amounting to........$---------------

□

□

By cash or other immediately a a l b e funds
vial

By cash or other immediately a a l b e funds
vial

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

The Treasury b l s f r which tender i hereby made are t be dated December 6 1 5 , and are t mature
il o
s
o
, 91
o
on March 6 1 5 .
, 92
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.”
N am e o f B id der .............................................
By

(Please print)

(Official signature required)

(Title)

Street A d d re ss ................................................
(City, Town or Village, P.O. No., and State)

I t i t n e i s b i t d by a bank f r t e acc u t o a c s o e , i d c t t e customer’ nam e on l n b l w
f hs e d r s u m t e
o h
o n f u t m r niae h
s
ie e o :
(Name of Customer)

(City, Town or Village, P.O. No., and State)

IMPORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 w ill be con sidered, and each tender m ust be for an even m ultiple o f $1,000
(m atu rity valu e).
2. I f the person m a k in g the tender is a corp ora tion , the tender should be signed b y an officer o f the c o rp o ra ­
tion authorized to m ak e the tender, and the sign in g o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a
representation 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 em ber o f the firm , w h o shou ld sign in the fo rm “ ......................................................................................................... a copartnership, by
..................................................................................................................... . a m em b er o f the firm .”
3. T e n d e rs w ill be received w ith ou t deposit fro m in corpora ted banks and trust com panies and fro m resp o n ­
sible and re co g n iz e d dealers in in vestm ent securities. T en d ers fro m others m u st be accom pa n ied b y p a ym en t o f 2 percen t
o f the face am ou nt o f T rea su ry bills a pplied for, unless the tenders are a ccom p a n ied b y an express gu aranty o f paym ent
b y an in corp ora ted bank or trust com pan y.
4. I f the la n g u a ge o f this ten der is ch a n ged in any respect, w hich, in the op in ion o f the S ecreta ry o f the
T re a su ry , is m aterial, the ten der m a y be disregarded.

Payment

http://fraser.stlouisfed.org/
T E N T B —1118-a
Federal Reserve Bank of St. Louis

by credit through Treasury Tax and Loan Account will not be permitted.
( over)

6. Y

S E C O N D D I S T R I C T S A V IN G S A N D L O A N
V O L U N T A R Y C R E D IT R E S T R A IN T C O M M IT T E E
Created pursuant t t e Program f r Voluntary C e t R s r i t
o h
o
r di e t a n
a t o z d by t e Defense Production Act of 1950
u h ri e
h
33

LIB E R TY

STREET

N E W Y O R K 4 5 . N. Y.

N ovem ber 28, 1951.

To the C h ief E xecu tive Officer o f each Savings and Loan A ssociation
in the Second Federal R eserve D istrict:

On N ovem ber 9, 1951, the N ational V olu n tary Credit R estraint Committee released a
digest o f a sam pling o f opinions which had been expressed through Septem ber 1951 by
the regional com mittees on typical cases referred to them b y individual lending institu­
tions. The N ational Committee believes that the release o f inform ation on typical cases
w ill assist cooperating financing institutions in conducting their operations in accord­
ance with the principles o f the P rogram , and that the publication o f these digests should
also be o f interest to b orrow ers in planning their operations and to the public at large.
F o r you r inform ation, a cop y o f the digest o f opinions is printed on the follow in g
pages.
A lthough the digest o f the cases is necessarily brief, we hope that it w ill be helpful
to you in indicating the general approach o f the regional com m ittees to problem s arising
under the P rogram . It is still necessary, o f course, fo r lenders to consider each proposed
loan or investment on the basis o f the facts o f the particular case. W e believe that you will
want you r lending and investment officers to be fu lly fam iliar with this material, and we
shall be glad to furnish you with additional copies fo r this purpose upon request.
I f you have any question as to whether a prop osed loan or investment conform s with
the principles o f the P rogra m as amplified b y the various bulletins which have been sent
you and b y the digest o f opinions, we shall be glad to review the case and let you know our
views prom ptly. Please submit your request fo r consideration o f a specific loan or invest­
ment on the special form devised fo r that pu rp ose (F orm C R -S L 1 ). T his fo rm should be
prepared in triplicate and sent to G. M o r g a n B r o w n e , S ecretary o f the Committee,
33 L iberty Street, New Y ork 45, N. Y ., to w hom requests fo r additional copies o f the form
should be addressed.
Y ou r continued cooperation in the P rog ra m w ill be greatly appreciated.




E

rnest

A . M

in ie r

,

Chairman.

VOLUNTARY CREDIT RESTRAINT PROGRAM
Digest o f Opinions Through September 1951

SEASONAL A N D INVENTORY LOANS
Borrower and Purpose
Wholesale s e s — To buy and clean seeds for r s e t r t i e s of seed for use
ed.
e al o e a l r
by farmers in necessary reseeding operations.
Retail dry goods.— For normal seasonal inventory a q i i i n
custo.
Retail hardware, lumber and building supplies.— For normal inventory acquisi­
tion t care for summer and early f l t a e
o
al r d .
Retail fuel o l — To purchase 1 million gallons of fuel o l (one-tenth of annual
i.
i
volume) for storage and s l during the 1951-2 s s n
ae
ea o .
Public accountant.— Seasonal loan for operating funds.
Retail hardware.— To enable borrower to carry inventory disproportionate t
o
h s normal business operations.
i
Retail sewing machine.— To increase inventory of imported machines in anticipa­
tion of future curtailment in domestic manufacture of sewing machines.

Opinion

Favorable
Favorable
Favorable
Favorable
Favorable
Unfavorable
Unfavorable

BUILDING PROGRAMS
Machine t company.— To build new plant t take care of present needs. Pres­
ool
o
ent rental property too small and unsuitable for increased volume and
employment.
Delicatessen.— To build a new s
tore building t serve a newly developed r s ­
o
ei
dential a e .
ra
Retail farm tractor and implement deale . To erect s l s and servi e building
r—
ae
c
in order t retain f
o
ranchise.
Grain elevator and feed mill— Sale of feeds and seeds to farmers.— To erect a
new building t replace present f c l t e which are not very convenient
o
aiiis
from standpoint of s rvices to customers.
e
Municipality.— To erect a r c t ra - v stock exhibition b
g i ul u l li e
uilding.
Nursing home for aged.— To buy existing building which i s table for needed
s ui
additional space for operations.
Mortuary.— To build a new mortuary in replacement of present quarters which
are inadequate for needs of community. This i the only mortuary serving
s
the a e .
ra
Tourists’ h t l — To construct 25-room motel in vacation and recreational a e .
oe.
ra
Educational i s i u i n — To finance partially construction of a l b a y
nttto.
irr.
Municipality.— For construction of needed school buildings. Committee deferred
i s opinion on financing for that part of program which extended beyond
t
current f s a year.
icl
Church.— To build a new church in replacement of present structure which i in
s
unsafe and hazardous condition.
Church.— To build a parish h l and an addition t Sunday School building.
al
o

Favorable
Favorable
Unfavorable
Unfavorable
Unfavorable
Favorable
Favorable
Unfavorable
Unfavorable
Favorable
Favorable
Unfavorable

N E W PLANT O R EQUIPMENT
Publisher of daily newspaper.— To purchase a printing press in replacement of
outmoded press which does not take care of present requirements.
Tankship owners.— To purchase o l tanker for charter t an o l company.
i
o
i



Favorable
Favorable

N EW PLAN T OR EQUIPMENT (Continued)
Borrower and Purpose

Excavating contractor.— To purchase d e e tractor shovel t replace worn and
isl
o
o so
b lete equipment now in u e
s.
Wholesale petroleum.— To buy tractor-tanker units necessary in operations— one
replacement and one additional u i .
nt
Public u i i y — For improvements t i s gas distribution system.
tlt.
o t
Municipality.— For needed f r - i h i g equipment in rapidly expanding
iefgtn
community.
Laundry.— To purchase new machinery and equipment for expansion of p a t
ln.
Deferrable unless program had been started and commitments made prior t
o
inauguration of V C R Program.
Social club and recreation cen er — To purchase bar and equipment together
t .
with furnishings for s c a room. Present f c l t e not adequate to demand.
oil
aiiis

Opinion

Favorable
Favorable
Favorable
Favorable
Unfavorable
Unfavorable

MODERNIZATION
Farmer.— To repair and remodel farm buildings on 176-acre producing farm.
Retail variety s o e — For modernization and enlargement of s or building.
tr.
t e
Approval based on fac s that architect’ plans drawn and materials con­
t
s
tracted for prior t inception of V C R Program.
o
Retail l di s ready-to-wear.— To modernize s o e add new front and increase
a e
tr,
f o r capacity t maintain competitive p s t o .
lo
o
oiin
Gasoline service s a i n — For purchase and modernization of equipment and
tto.
f c l t e of two existing gas s a i n .
aiiis
ttos

Favorable
Favorable
Unfavorable
Unfavorable

W O R K I N G CAPITAL LOANS
Woodworking— Manufacturer of business f x u e and equipment.— For neces­
itrs
sary and normal working capital in connection with contract work in p o e .
r c ss
Metal stamping plant.— For necessary and normal working c p t l S x y f v
aia. it-ie
per cent of present volume i under defense co t a t
s
nrc.
Shoe manufacturer.— For necessary and normal working c p t l
aia.

Favorable
Favorable
Favorable

DE B T RETIREMENT A N D REFINANCING
Retail automobile deal . To repay existing bank l a s
er —
on.
Manufacturer of e e t i a appliances.— For reduction of bank d b .
lcrcl
et
Retail milk dea er — To refinance existing indebtedness held by former owner o
l .
f
b si e .
u n ss
Chain variety s o e . To r t r outstanding preferred s o k
trs—
eie
tc.

Favorable
Favorable
Unfavorable
Unfavorable

ACQUISITION OF EXISTING BUSINESSES
Hotel operator.— To purchase building and equipment of hotel from owner who
i retiring because of ilhealt . Failure t e f c transfer might create hard­
s
l
h
o fet
ship for community in having hotel c o e . Approval based on assumption
lsd
self-f na c g purchaser cannot be found or that s l e i unable to accept
i n in
elr s
a purchase-money mortgage.
Trucking.— To purchase motor trucking company and equipment for expansion
of present operations. Trucking business t be acquired i currently hauling
o
s
f
oodstuffs but continued operation by present owner i assured until a s l
s
ae
can be made.



Favorable

Unfavorable
(over)

ACQUISITION OF E X IST IN G BUSINESSES (Continued)
Borrower and Purpose

Opinion

Pharmacist.— To purchase b
usiness, inventory and f x u e of an existing drug
itrs
soe
tr.
Accountant.— To purchase an established accounting b i e s
us n s .

Unfavorable
Unfavorable

ACQUISITION OF S TOCKH OLDE RS’ OR PART N E R S ’ INTERESTS
Individual ( f i e and principal stockholder— machine to manufacturer).—
ofcr
ol
To acquire one-third stock i t r s in company from widow of borrower’
neet
s
former partner. Proceeds of t i l a , used t purchase the minority i t r s
hs on
o
neet
in the company, would preserve continuity of management and avoid the
minority stock interest’ getting i to possibly unfriendly hands.
s
n
Retail novelty s o e — To buy other partner’ i t r t in business to become
tr.
s n e es
s l owner.
oe
Wholesale iron and s e l — To purchase minority shareholders’i t r s .
te.
neet
Trucking company.— Family group operating company wishes t buy back 51 per
o
cent of stock now held by outside i t r s s
neet.

Favorable
Unfavorable
Unfavorable
Unfavorable

N E W VENTURES
Retail grocer.— To stock a new s o e t be opened in a new and expanding com­
tr o
munity now lacking a grocery.
Retail grocer.— To stock a new grocery store which f c l t appears not t be
aiiy
o
necessary in the community.
Dentist.— To purchase furnishings and equipment necessary t operate a dental
o
o f c . Borrower recently graduated from dental s h o .
fie
col
Retail men’ clothing.— To open new men’ clothing s o e City has s f i i n
s
s
tr.
ufcet
r t i e s t s i f the demand.
e a l r o at s y
Retail gasoline d s r b t r — To equip a new s l - e v c s a i n Present f c l t e
itiuo.
efsrie tto.
aiiis
in community are adequate.
Amusement park.— For erection of plant and purchase of equipment necessary
for operations. Other amusement and recreational f c l t e are available
aiiis
in a e .
ra

Favorable
Unfavorable
Favorable
Unfavorable
Unfavorable
Unfavorable

LOANS TO FARMERS, ETC.
Rancher.— To purchase and carry c t l .
ate
Farmer.— To clear 50 additional acres of land for pasturage.
Farmer.— To purchase 260-acre farm for purpose of putting i i production.
t nto
Farmer.— To purchase farm land for l s a an investment. Considered specu­
ea e s
l t v i character where the land i already in production and borrower
aie n
s
desi es simply t increase h holdings of r a e t t .
r
o
is
e l sae

Favorable
Favorable
Favorable
Unfavorable

D E V E L O P M E N T OF LAN D
Individual.— To purchase acreage for housing developments in a defense a e .
ra
Individual.— To purchase and develop land for s l as building l t .
ae
os
Municipality.— To acquire unimproved land for erection of parking f c l t e .
aiiis

Favorable
Unfavorable
Unfavorable

O T H E R LOANS
Housewife.— To buy s n le premium l f insurance c ntract. To provide for
ig
ie
o
purchase of discounted premium l f insurance co t a t
ie
nrc.
Individual.— To purchase r a e t t for investment. Property i already financed
el sae
s
on a long-term b s s
ai.
State Government.— For payment of bonus t veterans of World War I .
o
I




Unfavorable
Unfavorable
Unfavorable

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