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FEDERAL RESERVE BANK O F NEW YORK

F s a Agent o t e United S a e
icl
f h
tts

(Swmber^I? )

Offering of S I ,3 0 0 ,0 0 0 ,0 0 0 of 91-D ay Treasury Bills

Dated November 1 , 1951
5

Maturing February 1 , 1952
4

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

Following is the text o f 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 ,
M o n d a y , N o v e m b e r 5, 1951.

TREASU RY DEPARTM ENT
W a s h in g to n

T h e S ecreta ry o f the T reasu ry, b y this pu blic n otice, in vites tenders f o r $1,300,000,000, o r th ereabouts, o f 9 1-d ay T rea su ry
bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g N o v e m b e r 15, 1951, in the a m ou n t o f $1,300,403,000, to be issued on
a d iscou n t basis u nder co m p etitiv e and n o n -com p etitiv e bid d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated
N o v e m b e r 15, 1951, and w ill m ature F eb ru a ry 14, 1952, w hen the face 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 o n 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 eral R eserve B anks and B ra n ch es up t o the clo s in g h our, tw o o ’ c lo ck p.m ., E astern
S tandard tim e, F rida y, N o v e m b e r 9, 1951. T e n d e rs w ill n ot be receiv ed at the T r e a s u ry D ep a rtm 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 ca se o f com p etitive ten ders the price offered m u st be exp ressed on
the basis o f 100, w ith n o t m ore than three decim a ls, e.g., 99.925. F ra ction s m a y n ot b e used. It is u rged that ten ders be
m ade o n the printed fo rm s and forw a rd ed in th e special en velopes w h ich w ill b e sup plied b y F ed eral R e s e rv e B ank s o r
B ra n ch es o n a pp lica tion th erefor.
O th e rs than b ank in g institutions w ill n ot be perm itted to subm it ten ders e x cep t fo r their o w n a ccou nt. T e n d e rs w ill be
re ce iv e d w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies and fr o m respon sib le and recog n ized dealers in in vest­
m en t securities. T e n d e rs fr o m oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T r e a s u ry bills
a pplied for, unless th e tenders are a ccom p a n ied b y an exp ress gu aranty o f pa ym en t b y an in corp ora ted ba n k o r trust com p a n y .
Im m ed ia tely a fter the clo s in g h our, tenders w ill be op en ed at th e F ed era l R e serv e B anks and B ran ches, fo llo w in g w hich
p u b lic a n n ou n cem en t w ill 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 p rice 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 o r re je ctio n th ereof. T h e S ecreta ry o f th e T rea su ry ex p ressly reserves
th e righ t t o a cce p t o r re ject any o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b ject
to these reservations, n o n -com p etitiv e tenders for $200,000 o r less w ith ou t stated price fr o m a n y o n e b idd er w ill be a ccep ted
in full at the a vera ge price (in three d ecim a ls) o f a ccep ted com p etitive bids. S ettlem ent fo r a ccep ted tenders in a ccord a n ce
w ith the bids m u st be m ade o r com p leted at the F ed era l R eserve B ank on N o v e m b e r 15, 1951, in cash or oth er im m ediately
available funds o r in a like face a m ou n t o f T r e a s u ry bills m a tu rin g N o v e m b e r 15, 1951. Cash and ex ch a n g e ten ders w ill receive
equal treatm ent. Cash adju stm en ts w ill be m ade fo r d ifferen ces betw een th e par valu e o f m a tu rin g bills a ccep ted in exch a n ge
and th e issue p rice o f the n ew bills.
T h e in co m e derived fr o m T rea su ry bills, w h eth er interest o r gain fr o m the sale o r oth er d isp osition o f th e bills, shall
n o t have any exem p tion , as such, and loss fr o m th e sale o r oth er d isp osition o f T rea su ry bills shall n ot have any special
treatm en t, 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 thereto. T h e bills shall be
su b je ct to estate, inheritance, gift, o r oth er excise taxes, w h eth er F ed eral o r State, but shall be exem p t fr o m all taxation
n o w o r h ereafter im p osed o n th e principal o r in terest th ereof b y any State, o r any o f the possession 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 rposes 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 originally
so ld b y th e U n ited States shall be con sid ered to b e interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f th e In tern a l R even u e
C o d e , as a m en ded b y S e ction 115 o f the R even u e A c t o f 1941, th e a m ou n t o f d iscou n t at w h ich bills issued hereunder are
s o ld shall n o t b e co n sid e red t o a ccru e until such bills shall be sold , red eem ed o r oth erw ise d isp osed o f , and such b ills! are
exclu d e d fro m con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T r e a s u ry bills (o th e r than life insurance com p a n ies)
issued hereun der need in clude in his in co m e tax return o n ly the differen ce b etw een the p rice pa id fo r such bills, w hether
on o rigin a l issue o r o n 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 aturity
d u rin g th e taxable yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss.
T re a su ry D e p a rtm e n t C ircu lar N o . 418, as am en ded, and this n otice, p rescrib e th e term s o f the T r e a s u ry bills and g o v e rn
th e co n d itio n s o f their issue. C opies o f th e circu la r m ay be obtain 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 Standard time, Friday, November 9, 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 fo r Treasury Bills.” Paym ent f o 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.
(CLOSING D A Y FOR RECEIPT OF TENDERS IS FRID AY, NOVEMBER 9, 1951)




RESULTS OF BIDDING FOR TREASURY BILLS
DATED NOVEMBER 8, 1951 WERE N O T A V A IL ­
ABLE W H EN THIS CIRCULAR W AS PRINTED.

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26H
IMPORTANT— Please note that tenders for this issue must be received not later than 2
p.m., Eastern Standard time, Friday, November 9, 1951.
IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity
value in paragraph headed "Competitive Bid.” If you desire to bid on a n on -com p etitive
basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O
N O T fill in both paragraphs on one fo rm . A separate tender must be used for each bid,
except that banks submitting bids on a competitive basis for their own and their customers’
accounts may submit one tender for the total amount bid at each price, provided a list is
attached showing the name of each bidder, the amount bid for his account, and method
of payment. Forms for this purpose will be furnished upon request.
N o .................................

T E N D E R FOR 9 1 -D A Y T R E A SU R Y BILLS
Dated November 15, 1951
To

F ed eral R eserve

B a n k

o f

N e w

Maturing February 14, 1952
Dated a t ..................................

Y o r k ,

Fiscal Agent o f the United States.
COMPETITIVE BID
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on November
5, 1951, as issued by the Secretary o f the Treas­
ury, the undersigned o ffe rs .................................... *
(R a t e per 100)

1951
NON-COMPETITIVE BID
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on November
5, 1951, as issued by the Secretary o f the Treas­
ury, the undersigned offers a non-com petitive
tender fo r a total amount o f $ ..................................

for a total amount o f $ .............................................
(maturity value) o f the Treasury bills therein
described, or fo r 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 :
□
By surrender o f maturing Treasury bills

(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 b e lo w :
□
By surrender o f maturing Treasury bills

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

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

□

□

By cash or other immediately available funds

( N o t to e x c e e d $20 0 ,0 0 0 )

By cash or other immediately available funds

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

The Treasury bills fo r which tender is hereby made are to be dated November 15, 1951, and are to
mature on February 14, 1952.
This tender zvill be inserted in special envelope marked “ Tender f o r Treasury Bills.’ '
Name o f Bidder

(P le a s e p rin t)

By ........

(T it le )

(O fficia l sig n atu re re q u ire d )

Street Address ...................................
(C ity , T o w n o r V illa g e , P .O . N o ., and S tate)

I f this te n d e r is su b m itted b y a b a n k fo r the a cco u n t o f a cu stom er, in dicate th e cu sto m e r’ s n am e o n line b e lo w :

(N a m e o f C u sto m e r)

(C ity , T o w n o r V illa g e , P .O . N o ., a n d S tate)

IMPORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000
(maturity value).
2. If the person making the tender is a corporation, the tender should be signed by an officer of the corpora­
tion authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a
representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
member of the firm, who should sign in the form “ ................................................................................... . a copartnership, by
...................................................................................................... . a member of the firm.”
3. Tenders will 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
of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of 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 of the
Treasury, is material, the tender may be disregarded.

Paym ent b y cred it through T reasury T a x and Loan A cco u n t w ill n ot be perm itted.


T E N T B — 1115-a


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