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FE D ERAL R E SE R V E BANK O F N E W Y O R K
'Circular
rc

Fiscal Agent o f the United States

L

No. 3724'

J u n e 21, 1951

Offering o f $1,000,000,000 of 91-Day Treasury Bills
D ated June 28, 1951

M aturing September 27, 1951

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

F ollow in g 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 ,
Th ursday, June 21, 1951.

TREASU RY DEPARTM ENT
W ash in gton

T h e S ecretary o f the T reasu ry, b y this pu blic notice, invites tenders for $1,000,000,000, or thereabouts, o f 91-day T reasu ry
b ills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing June 28, 1951, to be issued on a discou nt basis under com p eti­
tive and n on-com petitive bid d in g as h ereinafter provided. T h e bills o f this series w ill be dated June 28, 1951, and w ill
m ature Septem ber 27, 1951, when the fa ce am ount w ill be p ayable w ith ou t interest. T h ey w ill be issued in bearer fo rm only,
and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity va lu e).
T en ders w ill be received at F ed era l R eserve Banks and Branches up to the clo s in g hour, tw o o ’c lo c k p.m., E astern
D ayligh t S a vin g tim e, M on day, June 25, 1951. T en ders w ill n ot be received at the T reasu ry Departm ent, W a sh in gton . E ach
ten der m ust be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed o n
the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is urged that tenders be
m ade o n the printed form s and forw a rd ed in the special envelopes w h ich w ill be sup plied by F ed eral R eserve Banks o r
B ran ches o n a pp lication therefor.
O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n account. T en d ers w ill be
receiv ed w ith ou t deposit fro m in corporated banks and trust com panies a n d fro m responsible and recogn ized dealers in in­
vestm ent securities. T en ders fro m others m ust be accom pa n ied b y paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills
a pplied for, unless the tenders are accom panied b y an express gu aranty o f paym ent b y an in corporated bank o r trust com pany.
Im m ediately after the closin g hour, tenders w ill be open ed at the F ed era l R eserve Banks and B ranches, fo llo w in g w hich
pu blic announcem ent w ill be m ade b y the S ecretary o f the T rea su ry o f the am ount and p rice range o f a ccepted bids. T h ose
subm itting tenders w ill be advised o f the accep tance o r rejection th ereof. T h e S ecretary o f the T reasu ry exp ressly reserves
the righ t to accep t o r re ject any o r a ll tenders, in w h ole o r in part, and his a ction in any such respect shall be final. S u bject
to these reservations, n on -com p etitive tenders fo r $200,000 o r less w ithout stated p rice fro m any one b idd er w ill be accepted
in fu ll at the a vera ge price (in three decim als) o f accepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce
w ith the bids m ust be made o r com pleted at the F ed eral R eserve Bank on June 28, 1951, in ca sh o r oth er im m ediately
available funds o r in a like face am ount o f T rea su ry bills m atu rin g June 28, 1951. Cash and exch ange tenders w ill receive
equal treatment. Cash adjustm ents w ill be m ade fo r differences betw een the pa r valu e o f m aturing bills a ccepted in exch an ge
and the issue price o f the n ew bills.
T h e incom e derived from T rea su ry b ills, w hether interest or gain from the sale o r oth er d isp osition o f the bills, shall
n ot have any exem ption, as such, and loss fro m the sale o r oth er disp osition o f T rea su ry bills shall n ot have any special
treatment, as such, under the Internal Revenue C ode, o r law s am endatory or supplem entary thereto. T h e bills shall be
subject to estate, inheritance, g ift, o r oth er excise taxes, w hether F ed era l o r State, but shall be exem pt fro m a ll taxation
n o w o r hereafter im posed on the prin cip a l o r interest th ereof b y any State, or any o f the possessions o f the U n ited States,
o r by any lo ca l ta x in g authority. F o r purposes o f ta x ation the am ount o f discou nt at w hich T rea su ry bills are o rigin a lly
s o ld b y the U nited States shall be con sidered to be interest. U n der S ections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue
C ode, as am ended b y S ection 115 o f the Revenue A c t o f 1941, the am ount o f discou n t at w hich bills issued h ereunder are
so ld shall n ot be con sidered to accru e until such bills shall b e sold, redeem ed o r otherw ise disp osed o f, and such bills are
exclu d ed from con sideration as capital assets. A cco rd in g ly , the ow n er o f T rea su ry bills (oth er than life insurance co m ­
pan ies) issued hereunder need include in his in com e ta x return on ly the differen ce between the p rice pa id f o r such bills,
w hether on o rig in a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption at
m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry gain o r loss.
T re a su ry D epartm ent C ircu la r N o. 418, as am ended, and this n otice, prescribe the terms o f th e T rea su ry bills and
govern the con ditions o f their issue. C opies o f the circu la r m a y be obtain ed fro m any Federal R eserve B ank o r Branch.

This Bank will receive tenders up to 2 p.m., Eastern D aylight Saving time, Monday, June 25, 1951, at the Securities
Department o f its H ead 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.” Paym ent for the Treasury bills
cannot be made by credit through the Treasury T a x and Loan Account. Settlement must be made in cash or other
immediately available funds or in maturing Treasury bills.
A

llan

S proul,

President.

Results o f last offering o f Treasury bills (91-day bills dated June 21, 1951, maturing September 20, 1951)
T o ta l applied f o r .........$1,908,659,000
T o ta l a c c e p t e d .............$1,000,852,000 (in clu des $113,125,000
entered on a n on -com p etitive basis
and accepted in fu ll at the a ver­
age price show n b elow )
A v e ra g e p r ic e ...........

99.635

E quivalent rate o f discou nt
app rox. 1.445% per annum

R ange o f a ccepted com petitive b id s :
H ig h ............................

99.659

Equivalent rate o f discou nt
approx. 1.349% per annum

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

99.632

E quivalent rate o f discount
approx. 1.456% per annum

(29 percent o f the am ount b id fo r at the low
p rice w as accep ted)




Federal Reserve
District

Total
Applied for

..
N ew Y o r k ................. . .
P h iladelphia .............
C leveland ...................
R ic h m o n d ...................
A tlanta .......................
C h ica go .....................
St. L o u i s .....................
M in neapolis .............
K ansas C i t y .................
San F ra n cisco ..........
T o t a l ........................

$

18,503,000
1,345,153,000
33,897,000
44,971,000
18,550,000
11,087,000
194,001,000
31,258,000
3,359,000
25,981,000
35,705,000
146,194,000

. . . $1,908,659,000

Total
Accepted
$

12,393,000
598,223,000
18,826,000
37,263,000
18,000,000
10,412,000
133,121,000
28,254,000
3,109,000
20,474,000
24,481,000
96,296,000

$1,000,852,000
( over)

25N
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 both paragraphs on on e form . A separate tender must be used fo r each bid,
except that banks submitting bids on a com petitive basis fo r their own and their customers’
accounts m ay submit one tender fo r the tota l amount bid at each price, provided a list is
attached showing the name o f each bidder, th e amount bid fo r his account, and m ethod
o f payment. Forms fo r this purpose w ill be furnished upon request.
No.

T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S
Dated June 28, 1951
T o F e d eral R eserve B a n k o f N e w Y
Fiscal A gent of the United States.

Maturing Septem ber 27, 1951
Dated a t .........................

ork,

1951

COMPETITIVE BID

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
June 21, 1951, as issued by the Secretary
of
the Treasury, the undersigned offers

Pursuant to the provisions o f Treasury D e­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on June 21,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-com petitive tender

.............................................* for a total amount o f

fo r a total amount o f $ ...............................................

(Rate per 100)

(Not 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 b elow :

(maturity value) o f the Treasury bills therein
described, at the average price (in three deci­
mals) o f accepted com petitive bids, settlement
therefor to be made at you r Bank, on the date
stated in the public notice, as indicated b e lo w :

□

□

B y surrender o f m aturing Treasury bills

B y surrender o f maturing Treasury bills

amounting t o ................... $-----------------------------------

amounting t o ................... $_______________________

□

□

B y cash o r other immediately available funds

B y cash o r other immediately available funds

* Price must be expressed on the basis of 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 June 28, 1951, and are to mature
on September 27, 1951.
This tender will be inserted in special envelope marked “ Tender for Treasury Bills."
N am e o f B id d er.
B y ...

(Please print)

(Official signature required)

(Title)

Street A d d ress ......................................
(City, Town or Village, P. O. No., 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:
(Name of Customer)

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

IM PORTANT INSTRUCTIONS:
1. N o tender fo r less than $1,000 w ill be con sidered, and each tender must be f o r an even m ultiple o f
$1,000 (m aturity valu e).
2. I f the person m aking the tender is a corp ora tion , the tender should be signed by an officer o f the corporation
authorized to m ake the tender, and the sign in g o f the ten der by an officer o f the corp ora tion w ill be construed as a rep­
resentation by him that he has been so authorized. I f the ten d er is m ade by a partnership, it should be signed by a m em ­
ber o f the firm, w ho shou ld sign in the fo rm “ ................................................................................................................. a copartnership, by
......................................................................................................................... a m em ber o f the firm.”
3. T en ders w ill be
sible and recogn ized dealers
2 percent o f the fa ce am ount
o f paym ent b y an in corpora ted

received w ith ou t deposit fro m in corporated banks and trust com panies and from respon ­
in investm ent securities. T en d ers from others m ust be accom pa n ied b y paym ent o f
o f T reasu ry bills applied for, unless the tenders are accom pa n ied b y an express guaranty
bank o r trust com pany.

4. I f the language o f this tender is ch anged in any respect, w hich, in the op in ion o f the S ecreta ry o f the
T reasu ry, is m aterial, the ten der m ay be disregarded.

P aym ent b y cred it through Treasury Tax and Loan A ccou n t w ill n ot b e perm itted.

fTB—1095-a


(O V E * )

TB-1

S U P P L E M E N T TO T E N D E R F O R T R E A S U R Y B I L L S
(For u se by banks o n ly)

T re a su ry B i l l s d a t e d ________________________________

due

L i s t o f b id d e r s a t p r i c e o f _______________
(Rate per 100)

S u bm itted b y __________________________________________

_____________________

(Name o f bank)

(A ddress)

Amount o f b id and method o f payment
Name and a d d re ss o f b id d e r




Cash

Exchange

'4


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102