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FEDERAL RESERVE BANK O F NEW YORK
Circular No. 3 6 1 0 1
Novem ber 9, 1950 J

Fiscal A g en t o f the U nited States

Offering o f $1,100,000,000 o f 91-Day Treasury Bills
Dated November 16, 1950

Maturing February 15, 1951

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

Following is the text o f a notice published tod ay:
FO 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, N ovem ber 9, 1950.

TREASURY DEPARTM ENT
W ashington

T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing N ovem ber 16, 1950, to be issued on a discount basis under com peti­
tive and non-com petitive bidding as hereinafter provided. T h e bills o f this series will be dated N ovem ber 16, 1950, and will
mature February 15, 1951, when the face amount will be payable without interest. T h ey will be issued in bearer form only,
and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern
Standard time, M onday, Novem ber 13, 1950. Tenders will not be received at the Treasury Department, W ashington. Each
tender must be for an even multiple o f $1,000, and in the case o f competitive tenders the price offered must be expressed
on the basis o f 100, with not m ore than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed form s and forwarded in the special envelopes which will 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 ow n account. Tenders w ill be
received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in
investment securities. Tenders from others must be accom panied b y payment o f 2 percent o f the face amount o f Treasury
bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or
trust company.
Imm ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g which
public announcement will be made by the Secretary o f the Treasury o f the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary o f 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-com petitive 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 decimals) o f accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or com pleted at the Federal Reserve Bank on Novem ber 16, 1950, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing Novem ber 16, 1950. Cash and exchange tenders will receive
equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange
and the issue price o f the new bills.
T h e incom e 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 o f Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T he 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 im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States,
or by any local taxing authority. For purposes o f taxation the amount o f discount at which Treasury bills are originally
sold by the United States shall be considered to be interest. Under Sections 42 and 117 (a )(1 ) o f the Internal Revenue
Code, as amended by Section 115 o f the Revenue A ct o f 1941, the amount o f 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 ccordin gly, the owner o f Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his incom e 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
maturity 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 and govern
the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, November 13, 1950, at the Securities
Department o f its Head 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.” P a ym en t f o r the T reasury bills
cannot be made b y credit through the T reasury T a x and Loan A cco u n t. S ettlem en t m ust be made in cash or oth er
im m ediately available fu n d s or in m aturing T rea su ry bills.
A l l a n S p r o u l , P resident.

Results o f last offering o f Treasury bills (9 1 -d a y bills dated N ovem ber 9, 1950, m aturing February 8, 1951)
T otal applied f o r .......... $1,610,594,000
T otal accepted .............. $1,101,297,000 (includes $122,390,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
Average price . . . .

99.659

Equivalent rate of discount
approx. 1.350% per annum

Range o f accepted competitive bids:
Equivalent rate
H igh ....................... 99.680
approx. 1.266%
Equivalent rate
L ow
....................... 99.656
approx. 1.361%

of discount
per annum
o f discount
per annum

(33 percent o f the amount bid for at the low
price was accepted)




Federal Reserve
District
Boston .......................
New Y ork ................
Philadelphia ............
Cleveland ..................
Richm ond ................
Atlanta .......................
Chicago .......................
St. Louis ..................
Minneapolis ..............
Kansas City ..............
Dallas .........................
San Francisco ..........
T otal

..........

Total
Applied fo r
$

17,038,000
1,175,446,000
26,487,000
38,242,000
10,135,000
7,607,000
166,631,000
15,823,000
6,426,000
22,879,000
44,740,000
79,140,000

$1,610,594,000

Total
Accepted
$

15,698,000
722,606,000
18,137,000
38,242,000
10,135,000
7,607,000
119,931,000
15,756,000
6,426,000
22,879,000
44,740,000
79,140,000

$1,101,297,000

( vm)
o

24H
IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity
value in paragraph headed "C om petitive Bid.” I f you desire to bid on a non-com petitive
basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.” D O
N O T fill in both paragraphs on one form . A separate tender m ust be used fo r each bid.
N o ...........................

TENDER FOR 91-D A Y TREASURY BILLS
Dated November 16, 1950
To

M aturing February 15, 1951
Dated a t ...........................................

F ed era l R eserve B an k

o f

N ew

Y ork ,

Fiscal Agent o f the United States.

1950

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
November 9, 1950, as issued by the Secretary
of
the Treasury,
the undersigned
offers
.............................................* fo r a total amount of

N O N -C O M P E TIT IV E BID
Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on November 9,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender
for a total amount o f $ .............................................
(N o t to exceed $200,000)

(R ate 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

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) o f 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 o f

Treasury bills................... $_______________________

Treasury bills................... $________________________
(Am ount surrendered)

(A m ount surrendered)

□

B y cash or other immediately available funds

□

By cash or other immediately available funds

* P r ic e must be exp ressed on the basis o f 100, with not
m ore than three decimal places, f o r exam ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated November 16, 1950, and are to
mature on February 15, 1951.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.”
Name o f Bidder ........
(Please print)

By
(Official signature required)

(T itle)

Street Address

(C ity, Town o r V illage, P .O . N o., and State)

If this tender is submitted by a bank for the account o f a customer, indicate the custom er’ s name on line below :
(N am e o f Customer)

(C ity , Town or V illage, P .O . N o., and State)

Use a separate tender fo r each custom er’s bid.

IMPORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple o f $1,000
(maturity value). A separate tender must be executed for each bid.
2. If the person making the tender is a corporation, the tender should be signed b y an officer o f the corpora­
tion authorized to make the tender, and the signing o f the tender by an officer o f the corporation w ill be construed as a
representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
mem ber o f the firm, w ho should sign in the form “ ........................................................................................ a copartnership, by
................................................................................................... . a member o f the firm.”
3. Tenders 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 accom panied by payment o f 2 percent
o f the face am ount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment
by an incorporated bank or trust company.
4. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the
Treasury, is material, the tender may be disregarded.

Paym ent b y credit through T reasury T a x and Loan A cco u n t w ill n ot be perm itted.

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