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FEDERAL RESERVE BANK O F NEW YORK
No. 3 6
April
(Circular26. 1951 9 4 IJ

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 w l rece e tenders up t 2 p.m., Eastern Daylight Saving time, Monday, April 30, 1951, a the S c r t e
il
iv
o
t
euiis
Department of is Head O f c and a i sBuffalo Branch. Please use the form on the reverse s d of t i c r u a t submit
t
fie
tt
ie
hs i c l r o
a t d r and return i i an envelope marked “Tender for Treasury B l s ” Payment for the Treasury bills cannot be made
en e ,
tn
il.
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 a
t

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

Fi c l Agent of the United S a e .
sa
tts

1951

COMPETITIVE BID

NON-COMPETITIVE

Pursuant t the provisions of Treasury
o
Department Circular No. 418, as amended, and
t the provisions of the public no i e on
o
tc
April 2 , 1 5 , as issued by the Secretary
6 91
of the Treasury, the undersigned o f r
fes
................ * for a t t l amount of
oa
(Rate per 100)

BID

Pursuant t the provisions of Treasury De­
o
partment Circular No. 418, as amended, and t t e
o h
provisions of the public n t c on April 2 ,
oie
6
1951, as issued by the Secretary of the Treasury,
the undersigned o f r a non-competitive tender
fes
for a t t l amount of $.................
oa
(Not to exceed $200,000)

$.................... (maturity value)
of the Treasury b l s therein described, or for
il
any l s amount t a may be awarded, settlement
es
ht
therefor t be made a your Bank, on the date
o
t
s a e in the public n t c , as indicated below:
ttd
oie
□ By surrender of maturing Treasury b ls
il

(maturity value) of the Treasury b l s ther i
il
en
d s r b d a the average price ( n three d c ­
ecie, t
i
ei
mals) of accepted competitive b d , s t
i s e tlement
therefor t be made a your Bank, on the date
o
t
s a e i the public n t c , as i d cated below:
ttd n
oie
ni
□ By surrender of maturing Treasury b l s
il

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

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

□

□

By cash or other immediately a a l b e funds
vial

By cash or other immediately a a l b e funds
vial

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

o
,
o
The Treasury b l s for which tender i hereby made are t be dated May 3 1951, and are t mature
il
s
on August 2 1 5 .
, 91
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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