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FEDERAL RESERVE BANK O F N EW YORK Fiscal A gent o f the United States C December1^ 1950 ] O fferin g o f $ 1 , 0 0 0 , 0 0 0 , 0 0 0 o f 9 1 -D a y T reasu ry B ills D a ted January 4 , 1951 M atu rin g April 5 , 1951 T o all Incorporated Banks and Trust Companies in the Second Federal R eserve D istrict and Others Concerned: F ollow ing is the text o f a notice published tod ay : 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 , Tuesday, Decem ber 26, 1950. TREASURY DEPARTM ENT W ashington T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for T reasury bills m aturing January 4, 1951, to be issued on a discount basis under competi tive and non-competitive bidding as hereinafter provided. T h e bills of this series w ill be dated January 4, 1951, and will mature A p ril 5, 1951, when the face am ount w ill be payable without interest. T hey 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 (maturity valu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Standard time, F riday, Decem ber 29, 1950. T enders w ill not be received at the Treasury Department, W ash in g ton . Each 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 o f 100, with not more than three decim als, e.g., 99.925. Fractions may 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 w ill 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 am ount of T reasury 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 w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Secretary o f the T reasu ry of the amount and price range of accepted bids. Those submitting tenders w ill be advised of the acceptance or rejection thereof. T he 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-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. Settlement fo r accepted tenders in accordance with the bids must be made or completed at the Federal R eserve Bank on January 4, 1951, in cash or other immediately avail able funds or in a like face amount o f Treasury bills m aturing January 4, 1951. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. T h e income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have an y 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 law s am endatory 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 imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. F or purposes of taxation the amount o f 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 ) of the Internal Revenue Code, as amended by Section 115 of the Revenue A c t of 1941, the amount of discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall b e 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 o r on subsequent purchase, and the amount actually received either upon sale or redemption at m aturity during the taxable year fo r which the return is made, as ordinary gain or loss. T reasury Department Circular N o . 418, as amended, and this notice, prescribe the terms of the T reasury bills and govern the conditions o f their issue. Copies o f the circular m a y be obtained from any Federal Reserve B ank or Branch. T his Bank will receive tenders up to 2 p.m., Eastern Standard time, Friday, December 29, 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 “ T ender for Treasury Bills.” Paym ent for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A llan S p r o u l , President. (CLOSIN G D A Y FO R R E C E IP T OF TE N D E R S IS FRI DA Y, DECEM BER 29, 1950) RESULTS OF B ID D IN G FO R T R E A S U R Y BILLS D A T E D D E C E M B E R 28, 1950 W E R E N O T A V A IL A B LE W H E N TH IS C IR C U L A R W A S PR IN TE D . ( over) IM P O R T A N T — Please note that tenders fo r this issue must be received not later than 2 p.m., Eastern Standard tim e, Friday, D ecem ber 29, 1950. IM P O R T A N T — I f you desire to b id on a com p etitive basis, fill in rate per 100 and maturity value in paragraph headed “ Com petitive B id .” I f you desire to b id on a non-com petitive basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive B id.” DO N O T fill in b oth paragraphs o n on e form . A separate ten d er must b e used fo r each bid. No. T E N D E R F O R 9 1 -D A Y Dated January 4, 1951 To F ed era l R eserve B an k o f N ew TREASURY B IL L S Maturing A p ril 5, 1951 Dated a t ........................ Y ork , Fiscal A gent of the United States. 1950 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 December 26, 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 December 26, 1950, as issued by the Secretary of the Treasury, the undersigned offers a non-competitive tender .............................................* for a total amount o f for a total amount o f $. N O N -C O M P E TIT IV E BID (R a te per 100) (N o t to exce e d $200,000) $ ..................................................... (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 b e lo w : □ By surrender o f the maturing issue of Treasury b i l l s ................... $---------------------------------- (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 (A m ou nt surrendered) □ B y cash or other immediately available funds of Treasury b i l l s ................... $_______________________ (A m ou n t surrendered) □ By cash or other immediately available funds * Price must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. T h e Treasury bills for which tender is hereby made are to be dated January 4, 1951, and are to mature on A pril 5, 1951. This tender will be inserted in special envelope marked “ Tender for Treasury B ills” N am e o f B id d er. (P lea se prin t) B y ... (O fficial signature required) (T itle ) Street A ddress ........................................ (C ity , T o w n or V illa g e , 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 o w 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 STR U C T IO N S: 1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple of $1,000 (m aturity va lu e). A separate tender must be executed for each bid. 2. I f the person m aking 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. I f the tender is made by a partnership, it should be signed by a m em ber o f the firm, w ho should sign in the form “ ........................................................................................................................ .... 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 accompanied by payment of 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. 4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary o f the Treasury, is m aterial, the tender m ay be disregarded. P aym ent b y cred it through Treasury T ax and Loan A ccou n t w ill n ot b e perm itted. TENT B — 1070-a ( over)