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FEDERAL RESERVE BANK OF NEW YORK • Fiscal Agent of the United States C ircular No. 3 79 3 "1 J [ D ecem ber 13, 1951 Offering o f $1,200,000,000 of 91-Day Treasury Bills D ated D ecem ber 20, 1951 M aturing M arch 20, 1952 T o all Incorporated B anks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following i the t xt of a notice published today: s e 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 ay, D ecem ber 13, 1951. TREASURY DEPARTM ENT W ash in gton T h e Secretary o f the T reasu ry, by this pu blic notice, invites tenders fo r $1,200,000,000, or thereabouts, o f 91-d a y T reasu ry b ills, fo r cash ana in exch ange fo r lre a s u r y bills m aturing D ecem ber 20, 1951, in the am ount o f $1,202,700,000, to be issued on a discou n t basis under com petitive and n on -com p etitive bidding as h ereinafter provided . T h e bills o f this series w ill be dated D ecem ber 20, 1951, and w ill mature M arch 20, 1952, when the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity va lu e). T en ders w ill be received at Federal Reserve Banks and Branches up to the clo s in g hour, tw o o ’c lo ck p.m., Eastern S tandard time, M onday, D ecem ber 17, 1951. Tenders w ill n ot be received at the T reasu ry Department, W a sh in gton . E ach tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. F raction s m ay not be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied by Federal R eserve Banks or B ranches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t f o r their ow n account. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. Tenders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied fo r, unless the tenders are accom pa n ied by an express guaranty o f paym ent b y an in corporated bank or trust com pany. Im m ediately a fter the closin g hour, tenders w ill be opened at the Federal Reserve Banks and B ranches, fo llo w in g which public announcem ent w ill be made by the Secretary o f the T reasu ry o f the amount and price range o f accepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry exp ressly reserves the righ t to accept o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. S ubject to these reservations, n on-com petitive tenders fo r $200,000 or less w ithout stated price from any one b idd er w ill be accepted in fu ll at the average price (in three decim a ls) o f accepted com petitive bids. Settlem ent f o r a ccepted tenders in a ccord a n ce w ith the bids m ust be m ade o r com pleted at the Federal R eserve Bank on D ecem ber 20, 1951, in cash or oth er im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing D ecem ber 20, 1951. Cash and exch ange tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade fo r differences between the par value o f m aturing bills accepted in exch an ge and the issue price o f the new bills. T h e incom e derived from T reasu ry bills, whether interest or gain from the sale or oth er disp osition o f the b ills, shall n ot have any exem ption, as such, and loss from the sale or oth er disp osition o f T reasu ry bills shall not have any special treatment, as such, under the Internal Revenue Code, or law s am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, g ift, or oth er excise taxes, w hether Federal or State, but shall be exem pt from all taxation n ow o r hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the U nited States, o r by any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are origin a lly so ld b y the U nited States shall be con sidered 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 b y Section 115 o f the Revenue A ct o f 1941, the amount o f discou nt at w hich bills issued hereunder are so ld shall n ot be con sid ered to accru e until such bills shall be sold, redeem ed or otherw ise disposed of, and such bills are e xclu d e d from con sideration as capital assets. A ccord 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 in com e ta x return on ly the difference between the price paid fo r such bills, w hether on o rigin a l issue or 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 year f o r w hich the return is m ade, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu la r N o. 418, as amended, and this notice, prescribe the terms o f the T rea su ry bills and govern the con ditions o f their issue. Copies o f the circu la r m ay be obtained from any Federal R eserve Bank o r Branch. This Bank w l receive tenders up t 2 p m , Eastern Standard time, Monday, December 1 , 1951, a the S c r i s il o .. 7 t e u it e Department of i s Head O f c and a i s Buffalo Branch. Please use the form on the reverse s d of t i c r t fie t t ie h s i cular t o submit a tend r and return i i an envelope marked “Tender f r Treasury B l s ” Payment for the Treasury bills e, t n o il. cannot be made 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. Results of last offering of Treasury hills (91-day bills dated December 13, 1951, maturing March 13, 1952) T o ta l applied f o r .........$1,883,143,000 T o ta l a c c e p t e d ............. $1,200,354,000 (in clu des $177,571,000 entered on a n on -com p etitive basis and accepted in fu ll at the a ver age price show n b elow ) A v e ra g e p r ic e ........... 9 9 .57 0 + E quivalent rate o f discount approx. 1.700% per annum Federal R eserve D istrict Total A pplied for . N ew Y o rk ................... Philadelphia ............... C leveland ..................... R ich m on d ..................... R a n ge o f accepted com petitive b id s : H i g h ....................... 99.600 Equivalent rate o f discount approx. 1.582% per annum L o w ......................... 99.565 E quivalent rate o f discount app rox. 1.721% per annum (7 percent o f the amount bid fo r at the low price was accep ted) St. L o u i s ....................... M in neapolis ................. K ansas C i t y ................. San F r a n c i s c o ............. T otal ........................ . $ 18.057,000 1,309.769.000 28.573.000 49.069.000 19.745.000 37.357.000 209.468.000 28.293.000 12.980.000 34.824,000 54,797,000 80,211,000 $1,883,143,000 Total A ccep ted $ 15,267,000 684,349.000 12,643.000 49.069.000 19,745.000 35,427.000 181.678.000 22.340.000 12.794.000 34,824.000 54,797,000 77,421,000 $1,200,354,000 ( over) 26M IM PORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph headed “ Competitive B id.” 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 o f each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. No............................ T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S Dated December 20, 1951 To F e d e ra l R eserve B a n k o f N ew Maturing March 20, 1952 Dated at......... Y ork , Fiscal Agent of the United S a e . tts 1951 COM PETITIVE BID NON-COMPETITIVE BID Pursuant t the provisions of Treasury o Department Circular No. 418, as amended, and to the provisions of the public notice on December 1 , 1 3 951, as issued by the Secretary of the Treasury, the undersigned o f r fes Pursuant to the provisions of Treasury De partment CircularNo. 418, as amended, and to the provisions of the public notice on December 1 , 3 1 5 , as issued by the Secretary of the Treasury, 91 the undersigned o f r a non-competitive tender fes for a t t l amount of $ . oa . . ................ * for a t t l amount o oa f (Not to exceed $200,000) (Rate per 100) $................... (maturity value) of the Treasury b l s therein described, or f r il o any l s amount that may be awarded, settlement es therefor to be made a your Bank, on the date t stated i the public n t c , as indicated below: n oie (maturity value) of the Treasury b l s therein il described, a the average price ( n three deci t i mals) of accepted competitive b d , settlement is therefor t be made a your Bank, on the date o t s at d i the public n t c , as indicated below: t e n oie □ □ By surrender of maturing Treasury b l s il By surrender of maturing Treasury b l s il amounting to....... $---------------- amounting to....... $________________ □ □ By cash or other immediately a a l b e funds vial By cash or other immediately available funds * P r ic e must be exp ressed on the basis of 100, with not m ore than three decimal places, fo r exam ple, 99.925. The Treasury b l s for which tender i hereby made are t be dated December 2 , 1 il s o 0 951, and are t o mature on March 2 , 1 5 . 0 92 This tender will be inserted in special envelope marked “Tender for Treasury Bills.” Nam e o f B idder (Please print) By .... (Official signature required) (T itle) Street A d d ress ............................................ (C ity, Town or Village, P. O. No., and State) I f this tender is subm itted b y a bank fo r the accou n t o f a custom er, indicate the cu stom er’ s name on line b elow : (Name o f Customer) (C ity, Town or V illage, P. O. No., and State) IM PORTANT INSTRUCTIONS: 1. N o tender f o r less than $1,000 w ill be con sid ered , and each tender must be fo r an even m ultiple o f $1,000 (m atu rity va lu e). 2. I f the person m akin g the tender is a corp ora tion , the tender should be sign ed by an officer o f the corp ora tion authorized to make the tender, and the sign in g o f the ten der by an officer o f the corp ora tion w ill be construed as a rep resentation b y him that he has been so authorized. I f the ten d er is made by a partnership, it should be signed by a m em ber o f the firm, w h o should sign in the form “ ................................................................................................................. a copartn ersh ip, 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 d ers from others must be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by 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 S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B —1120-a Federal Reserve Bank of St. Louis ( over) FEDERAL RESERVE BANK O F NEW Y O R K Decem ber 14,1951. To all Banking Institutions in the Second Federal Reserve District: F irst National Bank in W estport, a newly organized bank in W estport, Con necticut, was granted a charter by the C om ptroller o f the Currency on Decem ber 12, 1951, and on that same day became a member o f the F ederal R eserve System. This new bank is opening fo r business on D ecem ber 15, 1951. The A .B .A . transit number and check routing sym bol o f the F irst National Bank in W estp ort is • A llan S proul, President.