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FEDERAL RESERVE BANK O F NEW YORK
No. 3 6 9 4 I
April 26. 1951
J
(Circular

Fiscal Agent o f the United States

Offering o f $1,100,000,000 of 91-Day Treasury Bills
Dated May 3, 1951

Maturing August 2, 1951

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

Following is the text of a notice published today:
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, A p ril 26, 1951.

TREASURY DEPARTM ENT
W a sh in g to n

T h e S e cre ta ry o f the T rea su ry, b y this p u b lic n otice, invites ten ders fo r $1,100,000,000, or th ereabouts, o f 9 1-d ay T re a su ry
bills, fo r cash and in ex ch a n g e fo r T rea su ry bills m atu rin g M a y 3, 1951, to be issued o n a d iscou n t basis u nder co m p e ti­
tive and n on -co m p e titiv e bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a y 3, 1951, and w ill
m ature A u g u s t 2, 1951, w h en the fa ce a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly,
and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity v a lu e).
T e n d e rs w ill be receiv ed at F ed era l R e s e rv e B anks and B ran ch es up to th e clo s in g h our, tw o o ’ c lo c k p.m ., E astern
D a y lig h t S a vin g tim e, M on d a y , A p ril 30, 1951. T en d ers w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E ach
te n d e r m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitiv e ten ders the p rice o ffe re d m u st be exp ressed
on the basis o f 100, w ith n ot m o re than th ree decim als, e.g., 99.925. F ra ction s m a y n o t be used. It is u rg ed that ten ders be
m a d e o n the printed fo rm s and fo rw a rd e d in the special en velop es w h ich w ill be supplied b y F ed eral R e serv e B anks o r
B ran ch es o n a pp lica tion th erefor.
O th e rs th an ban k in g institutions w ill n ot be perm itted t o subm it ten ders e x ce p t fo r their o w n a ccou n t. T e n d e rs w ill be
re ce iv e d w ith o u t d ep o sit fr o m in corp ora ted banks a n d trust com p a n ies and fr o m respon sib le a n d r e co g n iz e d dealers in
in vestm en t securities. T e n d e rs fr o 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 re a su ry
bills a pp lied fo r, unless the tenders are a ccom p a n ied b y an ex p ress gu a ra n ty o f p a y m en t b y an in co rp o ra te d b a n k o r
trust co m p a n y .
Im m ed ia tely a fter th e clo s in g h ou r, ten ders w ill b e o p en ed at th e F ed era l R e s e rv e B anks a n d B ra n ch es, fo llo w in g w h ich
p u b lic a n n ou n cem en t w ill b e m a d e b y th e S ecreta ry o f th e T rea su ry o f th e a m ou n t and p rice ra n ge o f a cce p te d b ids. T h o s e
su b m ittin g ten ders w ill be advised o f the a cce p ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T r e a s u ry ex p ressly reserves
th e rig h t to a cce p t o r re je c t a n y o r all tenders, in w h o le or in part, and his a ction in a n y such resp ect shall be final. S u b ject
to th ese reservations, n on -co m p e titiv e ten ders f o r $200,000 o r less w ith ou t stated p rice fr o m a n y on e b idd er w ill be a ccep ted
in fu ll at the a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitiv e bids. S ettlem en t fo r a ccep ted ten ders in a cco rd a n ce
w ith th e bids m u st be m ade o r com p leted at the F ed era l R eserve B ank on M a y 3, 1951, in cash o r o th e r im m ediately
available fu n ds o r in a like fa ce a m ou n t o f T rea su ry bills m aturing M a y 3, 1951. C ash and ex ch a n g e ten ders w ill receiv e
equal treatm ent. Cash adjustm ents w ill b e m ade fo r d ifferen ces betw een th e pa r valu e o f m aturing bills a ccep ted in exch a n ge
and the issue p rice o f the n ew bills.
T h e in co m e d erived fr o m T rea su ry bills, w h eth er interest o r gain fr o m th e sale or oth er d isp osition o f th e bills, shall
n o t have any exem p tion , 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 a n y special
treatm ent, as such, under the Internal R even u e C od e, o r law s a m en d a tory o r su p plem en ta ry th ereto. T h e bills shall be
s u b je ct to estate, inheritance, g ift, o r oth er excise taxes, w h eth er F ed eral o r State, but shall be ex em p t fr o m all taxation
n o w o r hereafter im p osed on the principal o r in terest th ereof b y a n y State, o r a n y o f the p ossession s o f the U n ited States,
o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly
sold b y the U n ited States shall b e con sid ered to be interest. U n d er S ection s 42 and 117 ( a ) ( 1 ) o f the In tern al R even u e
C o d e , as a m en ded b y S ection 115 o f the R ev en u e A c t o f 1941, the a m ou n t o f d is co u n t at w h ich bills issued hereun der are
so ld shall n o t be co n sid ered to a ccru e until such bills shall b e sold , red eem ed o r oth erw ise disp osed o f, and such bills are
ex clu d e d fr o m con sidera tion as capital assets. A c c o r d in g ly , th e o w n e r o f T rea su ry bills (o th e r than life in su rance co m ­
pa n ies) issued h ereun der n eed in clu d e in his in co m e ta x return on ly the differen ce b etw een th e price paid fo r su ch bills,
w h eth er o n origin a l issue o r on subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at
m atu rity d u rin g the ta x a b le yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss.
T r e a s u ry D e p a rtm en t C ircu lar N o . 418, as am en ded , and this n otice, p rescrib e th e term s o f th e T r e a s u ry bills and g o v e rn
the co n d itio n s o f th eir issue. C op ies o f th e circu la r m ay b e ob ta in ed fr o m a n y F ed era l R e serv e B a n k o r B ran ch.

This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, April 30, 1951, atthe Securities
Department of its Head Office and at itsBuffalo Branch. Please use the form on the reverse side of this circular to submit
a tender, and return itin 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 r o u l , President.
Results of last offering of Treasury bills (91-day bills dated April 26, 1951, maturing July 26, 1951)
T o ta l applied fo r

$2,158,970,000

T o ta l a cce p te d . .

$1,002,033,000 (in clu d es $115,621,000
en tered on a n on -co m p e titiv e basis
and a ccep ted in fu ll at the average
p r ice s h o w n b e lo w )

A v e ra g e p r i c e ......... 9 9 .6 1 9 + E q u iva len t rate o f discou n t
a p p rox. 1.506% p er annum
R a n ge o f a ccep ted co m p etitiv e b id s:
H igh ........................... 99.630
E quivalent rate
a p p rox. 1.464%
L o w ............................. 99.618
E q u iva len t rate
a p p rox . 1.511%

o f discou n t
p er annum
o f discou n t
p er annum

(31 p ercen t o f the a m ou n t b id fo r at th e low
p rice w as a ccep ted )




Federal Reserve
District
B o s to n ..............
N ew Y o r k ____
Ph iladelphia
C l e v e l a n d .........
R ich m o n d
A tla n ta ..............
C h ica g o ...........
St. L ou is .........
M in n ea p olis . . .
K ansas C ity . .
D allas ................
San F r a n cis co .
T o t a l ....................

Total
Applied for

Total
Accepted

33,048,000
1,613,775,000
28.405.000
69.214.000
6.468.000
16.319.000
216.448.000
19.560.000
2.905.000
25.229.000
22.281.000
105.318.000

24.725.000
710.031.000
10.090.000
37.231.000
5.777.000
15.519.000
107.562.000
8.421.000
2.730.000
18.972.000
16.169.000
44.806.000

$2,158,970,000

$1,002,033,000

j

(over)

BV

25 F

Tenders w ill be received up to 2 p .m ., Eastern D ayligh t Saving time,
M onday, A p ril 3 0 , 1 9 5 1 .

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.

No..........................

T E N D E R F O R 91 - D A Y T R E A S U R Y BILLS
Maturing August 2, 1951

Dated May 3, 1951

To

Dated at

F e d e ra l R eserve B a n k o f N ew Y ork ,

Fiscal Agent of the United States.

1951

COMPETITIVE BID

NON-COMPETITIVE

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
April 26, 1951, as issued by the Secretary
of the Treasury, the undersigned offers
................ * for a total amount of
(Rate per 100)

BID

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on April 26,
1951, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender
for a total amount of $.................
(Not to exceed $200,000)

$.................... (maturity value)
of 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 of maturing Treasury bills

(maturity value) of 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 of maturing Treasury bills

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

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

□

□

By cash or other immediately available funds

By cash or other immediately available funds

* Price must be expressed on the basis o f 100, with not
more than three decimal places, for example, 99.925.

The Treasury bills for which tender is hereby made are to be dated May 3, 1951, and are to mature
on August 2, 1951.
This tender will be inserted in special envelope marked “Tender for Treasury Bills.”
N a m e o f B idder
By

(Please print)

..

(T ide)

(Official signature required)

Street A d d re ss

(City, Town or Village, P.O. No., and State)

I f this ten der is subm itted b y a bank fo r the a cco u n t o f a cu stom er, indicate the cu stom er’ s nam e o n line b e lo w :

(Name of Customer)

(City, Town 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 sid ered , and each ten der m ust b e fo r an even m ultiple o f $1,000
(m a tu rity v a lu e ). A separate tender m ust be ex ecu ted fo r each bid.
2. I f the person m a k in g the ten der is a corp ora tion , the ten der shou ld b e sig n ed b y an officer o f the c o rp o ra ­
tion authorized to m ak e the tender, and the s ig n in g o f the tender b y an officer o f th e corp o ra tio n w ill be con stru ed as a
represen tation b y him that he has been s o authorized. If the tender is m ade b y a partnership, it sh ou ld b e signed b y a
m e m b e r o f the firm , w h o sh ou ld sig n in the fo r m “ .............................................................................................. . a cop artn ersh ip, b y
............................................................................................................. a m em b er o f th e firm .”
3. T e n d e rs w ill be receiv ed w ith ou t d ep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp o n ­
sible and re co g n iz e d dealers in in vestm en t securities. T e n d e rs fr o m oth ers m ust b e a ccom p a n ied b y pa ym en t o f 2 percen t
o f th e fa ce a m o u n t o f T r e a s u ry bills a pp lied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t
b y an in co rp o ra te d b a n k o r trust com p a n y .
4. I f th e language o f this ten der is ch a n ged in a n y respect, w h ich , in th e op in ion o f th e S ecreta ry o f the
T re a su ry , is m aterial, the ten der m a y be disregarded.

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


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