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FED ERAL RESER VE BANK O F NEW YO RK
[ C i r c u l a r N o . 36681
L M a r c h 8 ,1 9 5 1 J

Fiscal Agent o f the United States

Offering o f $1,000,000,000 of 91-Day Treasury Bills
Dated Match 15, 1951
Maturing June 14, 1951
T o all Incorporated Banks and Trust Companies in the
Second Federal R eserv e D istrict and O thers C on cern ed :

Following is the text o f a notice published today:
TREASU RY D EPARTM EN T
W a s h in g to n

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, M arch 8, 1951.

T h e S ecretary o f the T reasu ry, b y this pu blic notice, invites tenders fo r $1,000,000,000, or thereabouts, o f 91-day T r e a s ­
ury bills, fo r cash and in exch a n ge fo r T rea su ry biils m aturing M arch 15, 1951, to be issued on a discou n t basis under c o m ­
petitive and n on -com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a rch 15, 1951, and w ill
m ature June 14, 1951, w hen the face am ou nt 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 ation s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity valu e).
T e n d e rs w ill be received 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 on d a y, M arch 12, 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 u ltiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed on
the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F ra ction s m ay n ot be used. It is u rged that tenders be
m ade on the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y Federal R es e rv e B anks o r
B ran ch es o n application therefor.
O th ers than b ankin g institutions w ill n ot be perm itted to subm it tenders e x cep t fo r their ow 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 panies and fro m respon sible and recog n ized dealers in in­
vestm en t securities. T en d ers fro m oth ers m u st be 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 for, unless the tenders are a ccom p a n ied b y an express gu a ra n ty o f p a ym en t b y an in corporated bank o r trust com p a n y .
Im m ed ia tely after the closin g h our, tenders w ill be op en ed at the F ed eral R eserve B anks and B ran ches, fo llo w in g w hich
pu b lic a n n ou n cem en t will 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 ran ge o f a ccep ted bids. T h o s e
su b m ittin g tenders w ill be advised o f the a ccep ta n ce or rejection thereof. T h e S ecretary o f the T rea su ry ex p ressly reserves
the righ t to a ccep t or reject a n y or all tenders, in w h ole or in part, and his action in any such resp ect shall be final. S u b ject
to these reservations, n on -com p etitive tenders for $200,000 or less w ith ou t stated price from any 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 for a ccep ted tenders in a cco rd a n ce
w ith the bids m ust be m ade or com p leted at the Federal R es e rv e Bank on M arch 15, 1951, in cash o r 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 M arch 15, 1951. Cash and exch a n ge tenders w ill receive
equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value o f m aturing bills a ccep ted in exch an 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 h eth er interest or gain from the sale o r oth er disp osition o f the bills, shall
n ot have any exem ption , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills shall n ot have any special
treatm ent, as such, under the Internal R even u e C ode, o r law s a m en d a tory or supplem entary thereto. T h e bills shall be
su b ject to estate, inheritance, gift, or oth er ex cise taxes, w hether Federal o r State, but shall be exem p t fro m all taxation
n o w o r h ereafter im posed on the principal or interest th ereof b y any State, or any o f the possession s o f the U n ited States,
o r b y a n y loca l ta x in g authority. F o r pu rposes o f taxation the am ou nt o f discou n t at w h ich T rea su ry bills are originally
so ld b y the U n ited States shall be con sidered to be interest. U n d er S ection s 42 and 117 ( a ) ( 1 ) o f the In tern al R even ue
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 d iscou n t at w h ich bills issued hereun der are
so ld shall n o t be con sidered to a ccru e until such bills shall be sold, redeem ed or oth erw ise disp osed of, and such bills are
exclu d ed fro m con sidera tion 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 co m ­
pan ies) issued hereun der need include in his in com e tax return on ly the differen ce betw een the price paid fo r such bills,
w hether on origin al issue or on subsequent purchase, and the am ount actu ally receiv ed cither upon 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 gain o r loss.
T re a su ry D epartm en t Circular N o. 418, as am ended, and this n otice, prescribe the term s o f the T reasu ry bills and go v e rn
the con dition s o f their issue. C opies o f the circular m ay be obtain ed fro m a n y F ed eral R eserve B ank o r Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 12, 1951, 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.” Payment fo r 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 l l a n S p r o u l , President.
Results of last offering of Treasury bills (91-day bills dated March 8, 1951, maturing June 7, 1951)
T o ta l applied fo r ............ $1,685,866,000
T o ta l a cccp ted ...............$1,100,691,000 (in clu des .$94,402,000
entered on a n on -com p ctitive basis
and accepted in full at the average
price show n b elow )
A v e ra g e price........ 99.645
E quivalent rate o f discount
a pp rox. 1.406% per annum
R a n ge o f a ccep ted com p etitive b ids:
H igh

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

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

99.655
99.641

Equivalent rate
app rox. 1.365%
E quivalent rate
a p p rox. 1.420%

o f discou nt
per annum
o f discou n t
per annum

Total
Applied f o r

Federal R eserve
D istrict
B o s to n ....................... .....
N ew Y o r k ................. ......
Philadelphia ............
Cleveland .................
R ich m on d .................
C h ica go .....................
St. L ou is ...................
M in neapolis ............
K ansas City ............
D allas .......................
San F ra n cisco ........

$

15,195,000
1,262,525,000
19,421,000
47,746,000
8,513,000
13,213,000
192,503,000
9,122,000
2,995.000
24,352.000
23,735.000
66,546,000

Total
A ccep ted
$

14,770,000
734,125,000
15,171,000
46,896,000
8,513,000
13,213,000
149,753,000
9,122,000
2,995,000
24,352,000
23,735,000
58,046,000

(15 p ercen t o f the am ou nt bid for at the low
price w as a ccep ted )



T otal

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

$1,685,866,000

$1,100,691,000
( over)

24 Y
IMPORTANT— 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 for each bid.

T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS
Dated March 15, 1951

Maturing June 14, 1951
Dated at ...........................

T o F e d e r a l R eser v e B a n k o f N e w Y o r k ,
Fiscal Agent o f the United States.
COMPETITIVE BED

NON-COMPETITIVE BID

Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on
March 8, 1951, as issued by the Secretary
of
the
Treasury,
the
undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on March 8 ,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

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

for a total amount o f $_______ ___________________

(R ate per 100)

(N ot to exceed $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 below:

(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:

□

□

B y surrender o f

maturing Treasury bills

By surrender o f

maturing Treasury bills

amounting to--------------------- $------------------------------

amounting to._____________

□

□

By cash or other immediately available funds

$____________________

By cash or other immediately available funds

*P rice must be expressed, on the basis of 100, with not
m ore than three decimal places, f o r example, 99.925.

The Treasury bills for which tender is hereby made are to be dated March 15, 1951, and are to mature
on June 14, 1951.
This tender zvill be inserted in special envelope marked “ Tender fo r Treasury B ills”
N am e o f Bidder.

B y ..........

(P lease print)

(Official signature required)

(T itle)

Street A d d ress

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

If 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)

(City, T ow n or Village, P.O. No., and State)

Use a separate tender for each customer’s bid.
IMPORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill be con sidered, and each ten der m u st be fo r an even m u ltiple o f
(m a tu rity v a lu e ). A separate ten der m u st be execu ted fo r each bid.

$1,000

2. I f the person m a k in g the ten der is a corp ora tion , th e ten der sh ou ld be sign ed b y an officer o f the co rp o ra ­
tion a uthorized to m ake the tender, and the sign in g o f the ten der 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 s o authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a
m em b er o f the firm , w h o sh ou ld sign in the fo rm “ ................................................................................................... . a copartn ersh ip, b y
.............................................................................................................. a m em b er o f the firm .”
3. T e n d e rs w ill be received w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fro m resp o n ­
sible and re co g n ize d dealers in in vestm en t securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 p ercen t
o f the fa ce a m ou n t o f T rea su ry bills a pplied fo r, unless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent
b y an in co rp o ra te d bank o r trust com p a n y .
4. I f the language o f this ten der is ch anged in a n y respect, w h ich , in the opin ion o f the S ecreta ry o f the
T rea su ry, is m aterial, the ten der m ay be disregarded.

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


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