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FEDERAL RESERVE BANK O F NEW

YORK

Fiscal A gent o f the United States

c

C ircular N o. 3598 "1
O ctober 5, 1950 J

O ffe r in g o f $ 1 ,0 0 0 ,0 0 0 ,0 0 0 o f 9 0 -D a y T r e a s u ry B ills
D a t e d O c t o b e r 13, 1950

M a t u r in g J a n u a r y 1 1 , 1951

T o all Incorporated Banks and Trust Companies in the
Second Federal R eserve District and Others Concerned:

F ollow in g is the text o f a notice published to d a y :
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 ,
Thursday, October 5, 1950.

TREASURY DEPARTM ENT
W ash in g ton

The Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 90-day Treasury
bills, for cash and in exchange for Treasury bills maturing October 13, 1950, to be issued on a discount basis under competi­
tive and non-competitive bidding as hereinafter provided. T h e bills o f this series w ill be dated October 13', 1950, and will
mature January 11, 1951, when the face amount w ill be payable without interest. T h ey w ill be issued in bearer form only, and
in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity value).
T enders w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern
Standard time, M onday, October 9, 1950.
Tenders w ill not be received at the Treasury Department, W ash in gton . E ach
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis of 100, with not more than three decim als, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be
made on the printed form s and forw arded in the special envelopes which w ill be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders w ill be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in­
vestment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills
applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Im m ediately after the closing hour, tenders will be opened at tlie Federal Reserve Banks and Branches, follow ing which
public announcement w ill be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those
submitting tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, non-competitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted
in full at the average price (in three decim als) of accepted competitive bids. Settlem ent for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on October 13, 1950, in cash or other immediately avail­
able funds or in a like face amount of Treasury bills maturing October 13, 1950. Cash and exchange tenders will receive equal
treatment. Cash adjustments w ill be made for differences between the par value of maturing bills accepted in exchange and the
issue price o f the new bills.
T he income derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, shall
not have any exemption, as such, and loss from the sale or other disposition of T reasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws am endatory or supplementary thereto. T h e bills shall be
subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation
now or hereafter imposed on the principal or interest thereof by any State, or any o f the possessions of the United States,
or by any local taxing authority. F or purposes of taxation the amount of discount at which T reasury bills are originally
sold by the United States shall be considered to be interest. U nder Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue
Code, as amended by Section 115 of the Revenue A ct of 1941, the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
A ccordingly, the owner of Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at
m aturity during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular N o . 418, as amended, and this notice, prescribe the terms o f the Treasury bills
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch.

and

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, O ctober 9, 1950, at the Securities
Department o f its H ead Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to
submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Payment for the Treasury bills

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 ro u l, President.
Results o f last offering o f Treasury bills (91-day bills dated O ctober 5, 1950, maturing January 4, 1951)
T otal applied f o r ......... $1,662,119,000
T otal accepted................ $1,003,156,000 (includes $106,743,000

Federal R eserve
District

Total
Applied for

entered on a non-competitive basis
and accepted in full at the average price shown below )
A verage price------ 9 9 .6 6 5 +
Equivalent rate of discount
approx. 1.324% per annum
Range of accepted competitive b id s : (excepting one tender
of $200,000)

B o s t o n ................................ $
N
Y ork .......................
Philadelphia ...................
Cleveland ..........................
R ic h m o n d .........................
A tlanta ..............................
C h ic a g o ..............................

H ig h .........................

99.680

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

onrra
99-664

St. L ou is . ..........................
M in n e a p o lis .....................
K ansas C i t y .....................
D a l l a s . . . . ........................
San F r a n c is c o ................

2J’J n o K
, . J
23,470,000
43,813,000
114,095,000

3,044,000
22,039,000
28,213,000
92,435,000

T o t a l .........................

-----------------------$1,662,119,000

-----------------------$1,003,156,000

Equivalent rate
approx. 1.266%
r? • i t
*
Equivalent rate
approx. 1.329%

o f discount
per annum
c a±
of discount
per annum

(47 percent of the amount bid for at the low
price was accepted)

27,265,000
1,105.796,000
32,942,000
32,171,000
15,281,000
11,096,000
229,711,000

Total
Accepted
$

23,873,000
574,644,000
17,730,000
29,368,000
15,281,000
10,036,000
172,151,000

’ P le a s e n o te th a t th e c u r r e n t o ffe r in g is f o r 90-day T r e a s u r y B ills




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24C
IM P O R T A N T — Please note that this offerin g is for 90-D A Y T R E A S U R Y BILLS w hich
w ill be dated October 13, 1950, instead o f Thursday, October 12, 1950, Columbus Day.
IM P O R T A N T — I f you desire to b id on a competitive basis, fill in rate per 100 and maturity
value in paragraph headed “ Com petitive B id ." If you desire to bid on a non-competitive
basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive B id.” DO

NOT fill in both paragraphs on one form.

A separate tender must be used for each bid.
N o ..............................

T E N D E R F O R 9 0 -D A Y
Dated O ctober 13, 1950
To

F ed eral R eserve B a n k

of

N ew

T R E A S U R Y B IL L S
Maturing January 11, 1951
Dated at

Y ork,

Fiscal A gent o f the United States.

1950
N O N -CO M PETITIVE BID

C O M P E T IT IV E BID
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
O ctober 5, 1950, as issued by the Secretary
of
the Treasury, the undersigned offers

Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on O ctober 5,
1950, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

............................................ * for a total amount of

for a total amount o f $.
(N *t to exceed $200,000)

(R a te per 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 your Bank, on the date
stated in the public notice, as indicated below :
□

By

surrender o f

the

maturing issue o f

Treasury b i l l s ................... $ ........................................

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) of accepted competitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below:
□

By

surrender o f

the maturing issue of

Treasury b i l l s ................... $ ........................................
(A m ount surrendered)

(A m ount surrendered)

□

By cash or other immediately available funds

□

By cash or other immediately available funds

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

The Treasury bills for which tender is hereby made are to be dated O ctober 13, 1950, and are to
mature on January 11, 1951.

This tender will be inserted in special envelope marked “ Tender for Treasury Bills”
Nam e of Bidder.
(Please print)
By...
(Official signature required)

Street A ddress

(T itle )

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

(C ity , T ow n or V illa ge, P. O. N o., and State)

I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below :

(N am e o f Custom er)

(C ity , T ow n or V illa g e , P. O. N o., and State)

Use a separate tender for each customer’s bid.

IM P O R T A N T IN STRU CTIO N S:
1. N o tender for less than $1,000 w ill be considered, and each tender must be
$1,000 (maturity valu e). A separate tender must be executed for each bid.

for an even multiple of

2. I f the person making the tender is a corporation, the tender should be signed by an officer o f the corporation
authorized to make the tender, and the signing of the tender by an officer of the corporation w ill be construed as a rep­
resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a m em ­
ber of the firm, who should sign in the form “ ..................................................................................................................... . a copartnership, by
................................................................................................................................ a member of the firm.”
3. T enders w ill be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of
2 percent o f the face amount o f T reasu ry bills applied for, unless the tenders are accompanied by an express guaranty
of payment by an incorporated bank or trust company.
4. I f the language of this tender is changed in any respect, which, in the opinion of the Secretary of the
T reasury, is material, the tender m ay be disregarded.

Payment by credit through Treasury Tax and Loan Account will not be permitted.


T E N T B —1058-a


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