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FED ERAL R ESERVE BANK O F N E W YORK
{C
octotLN m °7 }
28,

Fiscal Agent of the United States

Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills
D a te d N o v e m b e r 3 , 1 9 4 9

M a tu r in g F eb ru a ry 2 , 1 9 5 0

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve 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, O ctob er 28, 1949.

TREASU RY D EPARTM EN T
W ashington

T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day Treasury
bills, fo r cash and in exchange for Treasury bills m aturing N ovem ber 3, 1949, to be issued on a discount basis under com peti­
tive and n on-com petitive bidding as hereinafter provided. T he bills o f this series will be dated N ovem ber 3, 1949, and will
mature February 2, 1950, when the face amount w ill be payable w ithout interest. T h ey w ill 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).
Tenders w ill be received at Federal R eserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern
Standard time, M on day, O ctober 31, 1949. Tenders will not be received at the Treasury Department, W ashington. Each
tender must be for an even multiple o f $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 b y Federal R eserve Banks or
Branches on application therefor.
T en ders 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 of the face amount of
T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f 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 w ill be made by the Secretary of the Treasury o f the amount 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 of the Treasury expressly reserves
the right to accept o r 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. Settlem ent for accepted tenders in accordance
with the bids m ust be made or com pleted at the Federal Reserve Bank on N ovem ber 3, 1949, in cash or other immediately
available funds or in a like face am ount of Treasury bills m aturing N ovem ber 3, 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 incom e derived from Treasury bills, w hether interest or gain from the sale or other disposition o f the bills, shall
not have any exem ption, as such, and loss from the sale or other disposition o f Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws am endatory or supplem entary thereto. T h e bills shall be
subject 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 by any State, or any o f the possessions o f the United States,
or by any local taxing authority. F or purposes o f taxation the am ount of discount at which Treasury bills are originally
sold by the United States shall be considered to be interest. U nder Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue Code,
as am ended by Section 115 o f the Revenue A ct o f 1941, the am ount o f discount at which 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 Treasu ry bills (oth er 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, whether 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.
Treasu 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 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 Y ork 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 Standard time, on Monday, October 31, 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 War Loan Deposit Account.
immediately available funds or in maturing Treasury bills.

Settlement must be made in cash or other
A l l a n S p ro u l President

(Extract from Treasury Department statement released for publication October 25, 1949, announcing results
after tenders were opened for 91-day Treasury bills dated October 27, 1949 maturing January 26, 1950)
Total applied fo r .......... $1,618,878,000
Total accepted
............ $ 900,403,000 (includes $84,135,000

Federal Reserve
District

a X « e X d ^ ^ ; ^ Pr te ^ v e 'S l
a
average
price shown below )
A vera ge price .
99.738+ Equivalent rate o f discount
approx. 1.036% per annum
„
,
. ,
....
, ..
R ange o f accepted com petitive b ids.
H igh ...................... 99.746
Equivalent rate o f discount
approx. 1.005% per annum
L o w ........................ 99.737
Equivalent rate o f discount
approx. 1.040% per annum

B° s,on .................................
N ew Y o rk ..........................
P h ila d e lp h ia ........................
Cleveland ............................
R ich m on d ........................
Atlanta ................................
C h icago ..............................
St. L ou is ............................
M in n e a p o lis .......................
JSaHsas
........................
Dallas ..................................
San F r a n c is c o ...................

(95 percent o f the am ount bid for at the low
price was accep ted)




T ota l ............................

Total
Applied for
5

“ .162,000
1,264,501,000
24,838,000
40,480,000
5,336,000
11,849,000
113,963,000
16,528,000
7,590,000
14,932,000
23,609,000
81,090,000
----------------------$1,618,878,000

Total
Accepted
$ 12,562,000
619,121,000
13,583,000
40 480 000
5,336^000
10,799,000
75,863,000
13,973,000
7,590,000
14,932,000
21,299,000
64,865,000
------------------$900,403,000
(ov*»)

22 F
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” . 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 .....................................

TEN DER FO R 9 1 -D A Y

T R E A S U R Y BILLS

Dated November 3, 1949.

Maturing February 2, 1950.
Dated at

T o F e d e r a l R ese r v e 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 B ID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on October 28,
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 28,
1949, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender

(Rate per 100)

for a total amount of $ .................................................

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:

(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 .....................

$ --------------------------------

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

$ _____________________

By cash or other immediately available

or other immediately available
funds

$ --------------------------------

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

$ _____________________

The Treasury bills for which tender is hereby made are to be dated November 3, 1949, and are to mature
on February 2, 1950.

This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
N am e o f Bidder .................
By

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

(Please print)

(Official signature required)

(Title)

Street A ddress
(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 cu stom er’s name on line b elow :

(Name of Customer)

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

U se a separate tender fo r 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 will be considered, and each tender must be for an even multiple of
$1,000 (m aturity valu e). A separate tender m ust 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 b y an officer of the corporation w ill be construed
as a representation b y him that he has been so authorized. If the tender is made b y 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, b y
.............................................................................................................................. a m em ber o f the firm” .
3. T en ders w ill be received w ithout deposit from incorporated banks and trust com panies and from respon­
sible and recogn ized dealers in investm ent securities. T enders from others must be accom panied b y paym ent o f 2
percent o f the face am ount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f
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, w hich, in the opinion o f the Secretary o f the
Treasury, is material, the tender may be disregarded.

P aym ent b y credit through W ar Loan D eposit Account will not be perm itted.
* Price must be expressed, on the basis of 100, with not more than
three decimal places. Fractions may not be used.
TENTB— 1009-a




(ora)

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