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FEDERAL RESERVE BANK OF NEW YORK
[ Circular No. 3492]
^September 9,1949J

Fiscal Agent of the United States

Public Notice of Offering of $900,000,000, or thereabouts, of 91-Day Treasury Bills
Dated September 15, 1949

Maturing December 15, 1949

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

Following is the text of a notice today made public by the Treasury Department with respect to a new offering of Treas­
ury bills payable at maturity without interest to be sold on a discount basis under competitive and non-competitive bidding.
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 ,
Friday, Septem ber 9, 1949.

TREASU RY DEPARTM EN T
W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, o f 91-day Treasury
bi'ls, for cash and in exchange for Treasury bills maturing September 15, 1949, to be issued on a discount basis under com ­
petitive and non-com petitive bidding as hereinafter provided. T he bills of this series will be dated September 15, 1949, and
will mature D ecem ber 15, 1949, when the face amount will be payable without interest. T h ey will be issued in bearer form
only, and in denominations of $1,000, $5,000, $10,000, $100,000,, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’clock p.m „ Eastern D ay­
light Saving time, M onday, September 12, 1949. Tenders will not be received at the Treasury Department, W ashington.
Each tender must be for an even multiple of $1,000, and in the case of com petitive tenders the price offered must be expressed
on the basis o f 100, with not m ore than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders
be made on the printed form s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recog­
nized dealers in investment securities. Tenders from others must be accom panied by payment of 2 percent of the face amount
o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty of payment by an incorporated bank
or trust com pany.
Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which
public announcem ent will be made by the Secretary o f the Treasury o f the amount and price range of accepted bids. Those
subm itting tenders will be advised o f the acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject
to these reservations, non-com petitive tenders for $200,000 or less w ithout stated price from any one bidder will be accepted
in full at the average price (in three decim als) of accepted com petitive bids. Settlement for accepted tenders in accordance
with the bids must be made or com pleted at the Federal Reserve Bank on Septem ber 15, 1949, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing Septem ber 15, 1949. Cash and exchange tenders will receive
equal treatment. Cash adjustments will be made for differences between the par value of m aturing bills accepted in exchange
and the issue price o f the new bills.
T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not have any exem ption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T he bills shall be
subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exem pt from all taxation
now or hereafter im posed on the principal or interest thereof by any State, or any of the possessions o f the United States,
or by any local taxing authority. For purposes of taxation the amount o f discount at which Treasury bills are originally
sold by the U nited States shall be considered to be interest. Under Sections 42 and 117 (a ) ( 1 ) of the Internal Revenue
Code, as am ended by Section 115 of the Revenue A ct o f 1941, the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. A ccordin gly, the ow ner of Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his incom e tax return on ly the difference between the price paid for such bills,
w hether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and
govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th
floor, 33 Liberty Street) New York 45, N . Y ., or at the Buffalo Branch of this bank (270 Main Street) Buffalo 5, N . Y .,
up to tw o o ’clock p .m ., E a ste rn D a y lig h t S a v in g tim e, on M onday, September 12, 1949. It is requested that tenders
be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Payment for
the Treasury bills cannot be ma-de by credit through the W ar Loan Deposit Account. Settlement must be made in cash or
other immediately available funds or in nuituring Treasury bills.
A l l a n S p r o u l , President.

(Extract from Treasury Department statement released fo r publication September 3, 1949, announcing
results after tenders were opened for Treasury bills dated September 8 ,1 9 4 9 maturing December 8 ,1 9 4 9 )
T ota l applied fo r ............$1,580,140,000
T ota l accepted .............. $1,000,438,000 (includes $75,863,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A vera ge price........

99.733

Equivalent rate of discount
approx. 1.055% per annum

R ange o f accepted com petitive bids:
H igh ....................... 99.746
Equivalent rate o f discount
approx. 1.005% per annum
L o w ......................... 99.732
Equivalent rate of discount
approx. 1.060% per annum
(51 percent o f the am ount bid for at the low
price was accepted)




Federal Reserve
District
B oston .............................
N ew Y o rk ....................
Philadelphia
Cleveland .........
Richm ond .......
Atlanta ...........
Chicago ...........
St. Louis .........
Minneapolis ...
Kansas City ...
Dallas .............
San Francisco
T

o tal

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

Total
Applied for
$

14,935,000
1,211,817,000
38.689.000
16.668.000
4.423.000
5.102.000
175,396,000

Total
Accepted

6.300.000
17.859.000
7.805.000
75.125.000

14.935.000
743.407.000
31.339.000
16.419.000
4.423.000
5.078.000
103.859.000
5.972.000
6.300.000
17.859.000
7.707.000
43.140.000

$1,580,140,000

$1,000,438,000

.

6 021.000

( o ver )

21Y
IMPORTANT— If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed "Competitive Bid” . If it is desired to bid on a non­
competitive basis, fill in only the maturity value in paragraph headed "Non-competitive
Bid”. DO NOT fill in both paragraphs on one form. A separate tender must be used for
each bid.

No_______________

TENDER FOR 91 -D AY TREASURY BILLS
Dated September 15, 1949.

Maturing December 15, 1949.
Dated a t ----------

T o F ed er al R eserve B a n k of N e w Y o r k ,
Fiscal Agent of the United States.

.1949

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant to the provisions of Treasury
Department Circular N o. 418, as amended, and
to the provisions of the public notice on
September 9, 1949, as issued by the Secretary
of
the
Treasury,
the
undersigned
offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on September 9,
1949, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

--------------------------------------- ----- * for a total amount of

for a total amount of $......... ......................................
(Not to exceed $200,000)

(Kate per 100)

$_________________________________ (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 follows:

(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 follows:

By surrender of the maturing issue of

By surrender o f the maturing issue of

Treasury bills----------------- $.__________________________

Treasury bills___________ $._________________________

By

cash or other immediately available

fu n d s____________________ $ . __________________________

By cash or other immediately available
fu n d s____________________ $._________________________

The Treasury bills for which tender is hereby made are to be dated September 15, 1949, and are to
mature on December 15, 1949.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name of Bidder..
(Please print)

By

(Official signature required)

(Title)

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

If this tender is submitted 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)

Use a separate tender for each customer’s bid.

IMPORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple o f $1,000
(m aturity valu e). A separate tender must be executed for each bid.
2. I f the person m aking the tender is a corporation, the tender should be signed by an officer o f the corpora­
tion authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed as a
representation b y him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
m em ber o f the firm, w h o should sign in the form “ ................................................................................................. , a copartnership, by
,.p

....— ....................................... .................................................................. a m em ber o f the firm” .

3. Ten ders w ill be received w ithout deposit from incorporated banks and trust com panies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accom panied by paym ent o f 2 percent
o f the face am ount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment
by an incorporated bank or trust com pany.
4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the
Treasury, is material, the tender m ay be disregarded.

OOO.Cv

Payment by credit through War Loan Deposit Account will not be permitted.
*

000,8^ , 000, 1$


pjEJSTp-1002-a


Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.

(ora)

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