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FED ER AL RESERVE BANK O F N E W YORK
{ C octobe?7!fw s?1 )

F is ca l A g e n t o f th e U n ite d S ta tes
P u b lic N o tic e

o f O ffe r iu 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 ills

D a te d O c to b e r 1 3 , 1 9 4 9

M a tu r in g J a n u a ry 1 2 , 1 9 5 0

T o all Incorporated, Banks and Trust Companies in the
Second Federal R eserve District and Others Concerned:
F o ll o w i n g is th e te x t o f a n o tice to d a y m a d e p u b lic b y th e T r e a s u r y D e p a rtm e n t w ith resp ect to a n e w o ffe r in g o f T r e a s ­
u ry b ills p a y a b le at m a tu rity w ith o u t in terest to be s o ld o n a d is co u n t basis u n d e r co m p e titiv e a n d n o n -co m p e titiv e b id d in g .
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, O cto b e r 7, 1949.

s

TREASURY DEPARTM ENT
W ashington

T h e Secretary o f the Treasury, b y this public notice, invites tenders for $900,000,000, or thereabouts, o f 91-day Treasury
bills, fo r cash and in exchange for Treasury bills maturing O ctober 13, 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 will be dated O ctober 13, 1949, and will
mature January 12, 1950, when the face amount will 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 (m aturity value).
T en ders w ill be received at Federal Reserve Banks and Branches up to the closin g hour, tw o o ’ clock p.m., Eastern
Standard time, M onday, O ctob er 10, 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 o f com petitive tenders the price offered must be expressed
on the basis o f 100, w ith not m ore than three decimals, e. g., 99.925. Fractions m ay 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 by Federal Reserve Banks or
Branches on application therefor.
T en ders w ill be received without 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 of the face amount of
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 Reserve Banks and Branches, follow in g which
public announcem ent w ill be made b y the Secretary o f the Treasury o f the am ount and price range of 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, n on-com petitive tenders fo r $200,000 or less w ithout stated price from any one bidder w ill be accepted
in full at the average price (in three decim als) o f accepted com petitive bids. Settlem ent for accepted tenders in accordance
w ith the bids must be made or com pleted at the Federal R eserve Bank on O ctob er 13, 1949, in cash or other immediately
available funds or in a like face am ount o f Treasury bills maturing O ctob er 13, 1949. Cash and exchange tenders will receive
equal treatment. Cash adjustm ents w ill be made for differences between 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, whether 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 o r hereafter im posed on the principal or interest thereof b y any State, or any o f the possessions o f the United States,
or b y any local taxing authority. F or purposes o f taxation the am ount o f discount at which Treasury bills are originally
sold b y 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 o f 1941, the am ount o f discount at w hich bills issued hereunder are sold
shall n o t 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 ccordin gly, the ow ner o f Treasu ry 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 o r on subsequent purchase, and the am ount actually received either upon sale or redem ption at maturity
durin g 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 of the circular m ay be obtained from any Federal R eserve Bank or Branch.

I n a c c o r d a n c e w ith th e a b o v e a n n o u n ce m e n t te n d e rs w ill be r e c e iv e d at th e S e cu ritie s D e p a rtm e n t o f this b a n k (9 t h
flo o r , 3 3 L ib e r t y S t r e e t ) N e w Y o r k 4 5 , N . Y ., o r at th e B u ffa lo B ra n ch o f this b a n k ( 2 7 0 M a in S t r e e t) B u ffa lo 5, N . Y .,
u p t o t w o o ’c lo c k p .m ., E a s te rn S ta n d a rd tim e, o n M o n d a y , O c t o b e r 10, 1949. It is req u ested that ten d ers b e su b m itted
o n sp e cia l f o r m p r in te d o n re v e rs e sid e a n d retu rn ed in special e n v e lo p e e n clo s e d h erew ith . Payment fo r 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 lla n

S p rou l

President

(Extract from Treasury Department statement released for publication October 4, 1949, announcing results
after tenders were opened for 91-day Treasury bills dated October 6, 1949 maturing January 5, 1950)
T otal applied f o r .......... $1,699,185,000
Total accepted ................ $ 900,328,000 (includes $71,173,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
A ve ra g e price . . 99.732+ Equivalent rate o f discount
approx. 1.059% per annum
Range o f accepted competitive b id s:
H igh ...................... 99.745
Equivalent rate o f discount
approx. 1.009% per annum
L ow
...................... 99.731
Equivalent rate o f discount
approx. 1.064% per annum
(75 percent o f the am ount bid for at the low
price was a ccep ted)




Federal R eserve
D istrict
B oston ................................
N ew
..........................
Philadelphia .....................
Cleveland ..........................
R ich m on d ..........................
C hicago !
”
St. L ou is .............................
M inneapolis .......................
Kansas City ................ ....
D allas ...................................
San F ran cisco .................
T ota l

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

Total
Applied f o r
$
19 7 3 8>m
1,288,342,000
27^004^00
33,050,000
12,829,000

Total
A ccepted
$ 9 288)000
685,893,000
11,904 0 0 0 '
9 600 000
11,379,000

168,939!000
12,885,000
4,329,000
13,671,000
24,479,000
91,334,000
----------------------$1,699,185,000

89^993,000
7,348,000
4,329,000
10,421,000
10,329,000
47,709,000
-------------------$900,328,000
(o v z k )

22 C
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 Bid” . If 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 FOR 91-D A Y TREASURY BILLS
Dated October 13, 1949.

Maturing January 12, 1950.
Dated at

T o F e d e r a l R eser ve B a n k o f 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 BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on October 7,
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 October 7,
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 surrender of the maturing issue of
Treasury bills ..............

By cash or other immediately available
funds

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

$ _____________________

$ _____________________

By cash or other immediately available
funds

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

$ _____________________

The Treasury bills for which tender is hereby made are to be dated October 13, 1949, and are to mature
on January 12, 1950.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name of Bidder
(Please print)

By

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

(Official signature required)

(Title)

Street Address

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

I f this tender is subm itted for the accou nt 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 cu stom 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 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. If the person making the tender is a corporation, the tender should be signed b y 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 w ill 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 h o should sign in the form “ ................................................................................. , a copartnership, by
............................................................................................................................., a m em ber o f the firm” .
3. Tenders will be received without deposit from incorporated banks and trust com panies and from respon­
sible and recogn ized dealers in investm ent 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 of
paym ent b y an incorporated bank o r trust com pany.
4. If the language o f this tender is changed in any respect, w hich, in the opinion o f the Secretary o f the
Treasury, is material, the tender m ay be disregarded.

Paym ent b y credit through War Loan Deposit Account will not be permitted.

TENTB—
 1006-a


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

(onra)

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