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FEDERAL
RESERVE BANK O F N E W
Fiscal Agent of the United States
YORK
{ s£tob2* ®f w }
P u b li c N o t ic e o f O ffe r in g o f $ 9 0 0 , 0 0 0 , 0 0 0 , o r th e r e a b o u ts , o f 9 1 -D a y T r e a s u r y B i lls
D ated Septem ber 2 2 , 1 9 4 9
M aturing D ecem ber 2 2 , 1 9 4 9
T o 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 16, 1949.
TREASU RY D EPARTM ENT
W ash ington
T h e Secretary of the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills m aturing Septem ber 22, 1949, to be issued on a discount basis under com peti
tive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated Septem ber 22, 1949, and will
mature D ecem ber 22, 1949, when the face amount w ill be payable w ithout interest. T h ey will be issued in bearer form only,
and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
T en ders w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern
D ayligh t Saving time, M onday, Septem ber 19, 1949. T enders will not be received at the Treasury Department, W ashington.
E ach tender must be for an even multiple of $1,000, and in the case o f 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 forw arded in the special envelopes w hich w ill be supplied b y Federal Reserve Banks or
Branches on application therefor.
Tenders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be accom panied b y paym ent o f 2 percent o f the face amount o f
T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty of paym ent by an incorporated bank
or trust com pany.
Im m ediately after the closin g hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow in g which
public announcem ent will be made by the Secretary of the Treasury o f the am ount and price range o f accepted bids. T h ose
subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f 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) o f accepted com petitive bids. Settlement for accepted tenders in accordance
w ith the bids m ust be made or com pleted at the Federal Reserve Bank on Septem ber 22, 1949, in cash or other im mediately
available funds or in a like face amount o f Treasury bills m aturing Septem ber 22, 1949. Cash and exchange tenders will receive
equal treatment. Cash adjustm ents w ill be made for differences betw een the par value o f m aturing bills accepted in exchange
and the issue price o f the new bills.
T h e in com e derived from Treasury bills, w hether interest or gain from the sale or other disposition o f the bills, shall
n ot have any exem ption, as such, and loss from the sale or other disposition o f Treasury bills shall not have any special
treatm ent, as such, under the Internal Revenue Code, or laws am endatory or supplem entary thereto. T h e bills shall be
su b ject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but shall be exem pt from all taxation
n ow or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States,
o r b y any loca l taxing authority. F or purposes o f taxation the am ount o f discount at which Treasury bills are originally
sold by the U nited States shall be considered to be interest. U nder Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue Code,
as am ended b y Section 115 o f the Revenue A ct of 1941, the am ount o f discount at w hich bills issued hereunder are sold
shall n ot be considered to accrue until such bills shall be sold, redeem ed or otherw ise disposed of, and such bills are excluded
from consideration as capital assets. A ccord in gly, the ow ner o f Treasury bills (other than life insurance com panies)
issued hereunder need include in his incom e tax return on ly the difference betw een the price paid for such bills, w hether on
original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at maturity
during the taxable year for w hich the return is made, as ordinary gain or loss.
T reasu ry D epartm ent Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and
govern the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal R eserve 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 two o’clock p.m., Eastern Daylight Saving time, on Monday, September 19, 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 made by credit through the W ar Loan Deposit Account. Settlement must be made in cash or
other immediately available funds or in maturing Treasury bills.
A llan S proul, President.
(Extract from Treasury Department statement released fo r publication September 13. 1949, announcing
results after tenders were opened fo r Treasury bills dated September 1 5 ,1 9 4 9 maturing December 1 5 ,1 9 4 9 )
Total applied fo r
$1,472,193,000
T otal accepted ................ $ 904,707,000 (includes $103,961,000
A
•
Average price
S d ^ rte d
or ice shown b d o w )
oo
£
i f
99.732+ Equivalent rate
approx. 1.058%
average
r
,
o f discount
per annum
Range o f accepted competitive bids:
F
99.746
Equivalent rate o f discount
approx. 1.005% per annum
Low ........................
99.732
Equivalent rate o f discount
approx. 1.060% per annum
.. ,
(77 percent o f the amount bid fo r at the low
price was accepted)
H igh
Federal R eserve
D istrict
B o a o n ......................................
N ew Y o r k ...............................
Philadelphia ...........................
C lev ela n d .................
Richmond ...............................
Atlanta .....................................
Chicago ..................................
St. Louis ................................
M in n ea p olis............................
Kansas City ...........................
Dallas ....................................
San Francisco ..............
Total .................................
Total
Applied f o r
$
Total
A ccepted
22,524,000
1,110,166,000
24,713,000
13 677 000
1277L000
$ 22,396,000
633,170,000
9,713,000
13 443 000
12'69ll()00
9,083,000
115,735,000
6,124,000
10,757,000
39,536,000
14,010,000
93,097,000
______________
$1,472,193,000
60,882,000
6,101,000
10!504000
35,666,000
13,941,000
77,117,000
____________
$904,707,000
(o v e k )
21 Z
IM P O R T A N T — If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed “ Competitive B id” . I f it is desired to bid on a non
competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive
B id” . DO N O T fill in both paragraphs on one form . A separate tender must be used for
each bid.
N o .....................................
TENDER FO R 9 1 -D A Y
TREASU RY
Dated September 2 2 ,1 9 4 9 .
BILLS
Maturing December 22,1 9 4 9 .
Dated at
T o F e d er a l R eser ve B a n k of N e w Y o r k ,
Fiscal Agent of the United States.
1949
C O M P E T IT IV E B ID
N O N -C O M P E T IT IV E B ID
Pursuant to the provisions of Treasury
Department Circular N o. 418, as amended, and to
the provisions of the public notice on September 16,
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 16,
1949, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender
(Rate per 100)
for a total amount of $ .................................................
(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
follow s:
for a total amount of $ .................................................
(Not to exceed $200,000)
(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
Treasury bills .....................
By cash
funds
$ _____________________
By surrender of the maturing issue of
Treasury bills .....................
or other immediately available
......................................
$ --------------------------------
By cash
funds
$ _____________________
or other immediately available
.....................................
$ _____________________
The Treasury bills for which tender is hereby made are to be dated September 22, 1949, and are to
mature on December 22, 1949.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name of Bidder ...........................................
By
(Please print)
(Official signature required)
(Title)
Street Address
(City, Town or Village, P. O. No., and State)
If this tender is submitted for the account o f a custom er, indicate the custom er’s name on line b elow :
(Name of Customer)
(City, Town or Village, P. O. No., and State)
U se a separate tender for each custom er’s bid.
IM P O R T A N T IN S T R U C T IO N S :
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple o f
$1,000 (m aturity value). A separate tender must be executed for each bid.
2. I f the person making the tender is a corporation, the tender should be signed by an officer o f the c o r
poration 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 by him that he has been so authorized. If the tender is made by a partnership, it should be signed
b y a m em ber o f the firm, w ho should sign in the form “ ................................................................................. , a copartnership, by
............................................................................................................................., a m em ber o f the firm” .
3. T enders will be received without deposit from incorporated banks and trust com panies and from respon
sible and recogn ized dealers in investment securities. Tenders from others must be accom panied by paym ent o f 2
percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty of
paym ent b y 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 may be disregarded.
Paym ent b y credit through War Loan D eposit Account will not be permitted.
* P rice must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.
TENTB— 1003-a
(ovm)
F e d e ra l R eserve Bank
of
New York
N e w Yo r k 4 5 .N .Y .
September 15, 1949.
DANGEROUS COUNTERFEIT FEDERAL RESERVE NOTES
To a l l Banks in the
Second Federal Reserve D istrict:
This is to inform you that counterfeit Federal Reserve notes on the
Federal Reserve Bank o f New York in the $10 and $20 denominations are being widely
circulated in the Second Federal Reserve D is trict,
These notes are deceptive and
your t e lle r s and customers should be warned to scrutinize a l l New York notes in
these denominations.
The United States Secret Service describes these counterfeits as follow s:
$10 FEDERAL RESERVE NOTE
Series o f 1934-Cj check le tte r ltKft; face plate No. 513 in
lower right hand corner; back plate No. 1207 in lower right
hand corner (also No. 12-others may appear).
$20 FEDERAL RESERVE NOTE
Series of 1934-C; check le tte r nKn; face plate No. 51 in
lower right hand corner; back plate No. 92 in lower right
hand corner.
These counterfeits, o f both denominations, are said to be o f common origin.
They are o f good workmanship and are printed on fa ir quality paper but no attempt
has been made to imitate the colored fibres that are found in genuine notes.
The
Treasury seal on both the $10 and $20 notes is so heavily printed that the fine
d eta ils are lacking.
The type used in the se ria l numbers, and especially in the
s u ffix le t t e r , is thicker than, and unlike, the genuine.
The portraits on both
denominations lack expression and are unnaturally white due to a lack o f shading in
(over)
the hair -which gives a whitish e ffe c t .
The Federal Reserve seal is very poorly
reproduced on both the $10 and $20 notes and should be readily detected; its
printing is heavier and blacker than other portions o f the note and the individ
ual letters are poorly formed.
These counterfeits are stated by the United States Secret Service to
be a llied with several other issues on various Federal Reserve Banks, the dis
tinguishing features being a change in the Federal Reserve Bank's seal and in
the Federal Reserve D istrict numeral which appears in a ll four corners of the
notes.
Counterfeit $10 and $20 notes on the Federal Reserve Bank o f Chicago,
which were described in our le tte r dated November 30, 194-8, are s t i l l appearing
frequently and a ll banks should continue to scrutinize Chicago notes in these
denominations carefu lly.
A ll counterfeit money received by banks from any source should be fo r
warded to the nearest o ffic e of the United States Secret Service rather than to
Washington.
The Secret Service has o ffic e s in Room 917, Federal O ffice Building
90 Church Street, New York 7, N. Y . ; in the United States Court House, Buffalo 1
N. Y .j in the Post O ffice Building at Utica 1, N. Y .j and at 1060 Broad Street,
Newark 1, N. J.
Additional copies of this le tte r and o f our le tte r dated November 30>
1948, w ill be furnished upon request.
ALLAN SPROUL,
President.
@FedFRASER