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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