View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK O F N EW YORK
Circular No. 85271
January 13,1950 J

Fiscal Agent o f the United States

Public Notice o f Offering o f $900,000,000, or thereabouts, o f 91-Day Treasury Bills
Dated January 19, 1950

Maturing April 20, 1950

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

Following is the text o f a notice today made public by the Treasury Department with respect to a new offering o f 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 ,
F rid a y, January 13, 1950.

TREASURY DEPARTM ENT
W a sh in g to n

T h e Secretary o f the T reasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for T reasu ry bills m aturing January 19, 1950, to be issued on a discount basis under com peti­
tive and non-com petitive bidding as hereinafter provided. T h e bills of this series w ill be dated January 19, 1950, and will
m ature A p ril 20, 1950, when the face am ount w ill be payable without interest. T h e y w ill be issued in bearer form only, and
in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity value).
T en ders will be received at Federal R eserve B anks and Branches up to the closing hour, tw o o ’clock p .m ., Eastern
Standard tim e, M o n d a y , January 16, 1950. T en ders w ill not be received at the T reasu ry D epartm ent, W a sh in g to n . Each
tender m u st be for an even multiple of $1,000, and in the case of competitive tenders the price offered m u st be expressed on
the basis of 100, w ith not m ore than three decim als, e. g ., 99.925. F ractions m a y not be used. I t is urged that tenders be
m ade on the printed form s and forw arded in the special envelopes which will be supplied by Federal R eserve B anks or
B ranches on application therefor.
T en d ers w ill be received without deposit from incorporated banks and trust companies and from responsible and recog­
nized dealers in investm ent securities. T en d ers from others m ust be accom panied by paym ent of 2 percent of the face am ount
of T re asu ry bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank
or trust com pany.
Im m ed iately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow in g which
public announcem ent will be m ade by the Secretary of the Treasury of the am ount and price range of accepted bids. T h o se
subm ittin g tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry 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 w ill be accepted
in fu ll at the average price (in three decim als) of accepted competitive bids. Settlem ent for accepted tenders in accordance
w ith the bids m u st be m ade or com pleted at the Federal Reserve B ank on January 19, 1950, in cash or other im m ediately
available funds or in a like face am ount of T reasu ry bills m aturing January 19, 1950. Cash and exchange tenders will receive
equal treatment. Cash adjustm ents will be m ade for differences between the par value of m aturing bills accepted in exchange
and the issue price of the new bills.
T h e incom e derived from T reasu ry 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 of T reasu ry bills shall not have any special
treatm ent, as such, under the Internal R evenue Code, or laws am endatory or supplem entary thereto. T h e bills shall be
subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exem p t from all taxation
n ow o r hereafter im posed on the principal or interest thereof by any State, or any of the possessions o f the U n ited States,
or by any local taxin g authority. F or purposes of taxation the am ount o f discount at w hich T reasury bills are originally
sold by the U nited States shall be considered to be interest. U nd er Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue
Code, as am ended by Section 115 of the R evenue A c t of 1941, the am ount of discount at w hich bills issued hereunder are
sold s'hall 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 ccord in gly, the ow ner of T reasu ry bills (other than life insurance com ­
panies) issued hereunder need include in his income tax return on ly the difference between 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
m aturity during the taxable year for which the return is m ade, as ordinary gain or loss.
T reasu ry D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s of the T reasu ry bills and govern
the conditions of their issue. Copies o f the circular m a y be obtained from any Federal Reserve B ank or Branch.

In accordance with the above announcement tenders will be received at the Securities Department o f this bank (9th
floor, 33 Liberty Street) New Y ork 45, N. Y ., or at the Buffalo Branch o f this bank (270 Main Street) Buffalo 5,
N. Y ., up to two o’clock p.m., Eastern Standard time, on Monday, January 16, 1950. It is requested that tenders be
submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Paym ent fo 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

llan

S proul , President.

(E xtract from Treasury Department statement released fo r publication January 10,1950, announcing results
a fter tenders w ere opened fo r 91-day Treasury bills dated January 12, 1950 maturing A pril 13, 1950)
T o ta l applied fo r.............$1,646,065,000
T o ta l a c c e p te d ............... $ 905,112,000 (includes $117,799,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
A verage price.........

9 9 .7 2 8 +

E quivalent rate of discount
approx. 1 .0 7 6 % per annum

Federal R eserve
District
B oston ........................... ....
N e w Y o r k .................... ....
Philadelphia ................
Cleveland ......................
R ichm ond ....................

R ange o f accepted competitive bids:
H ig h

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

99.733

Equivalent rate o f discount
approx. 1 .0 5 6 % per annum

L o w ...........................

99.726

Equivalent rate of discount
approx. 1 .0 8 4 % per annum

(3 percent of the am ount bid for at the low
price was accepted)
FRASER

Digitized for


St. L ou is .......................
M inneapolis ................
K an sa s C ity ................
San Francisco ...........
T o ta l .................... ....

Total
Applied for
$

Total
Accepted

22,400,000
1,179,412,000
23,715,000
24,524,000
9,156,000
18,739,000
209,798,000
21,813,000
8,260,000
19,407,000
28,745,000
80,096,000

$ 21,908,000
492,149,000
13,715,000
24,130,000
8,656,000
18,739,000
170,098,000
21,546,000
8,163,000
19,207,000
26,805,000
79,996,000

$1,646,065,000

$905,112,000
( over)

22 Q

IM P O R T A N T — I f it is desired to bid on a com petitive basis, fill in rate per 100 and
m atu rity value in paragraph headed "C om petitive Bid” . I f it is desired to bid on a non­
com petitive basis, fill in only the m atu rity value in paragraph headed "N on -com petitive
Bid” . D O N O T fill in both paragraphs on one form . A separate tender m ust be used fo r
each bid.
Nq„______________

TENDER FOR 91 -D A Y TREASURY BILLS
D ated January 19, 1950.

M aturing A pril 20, 1950.
Dated at...

To

F

ederal

R

eserve

B

a n k

of

N

ew

Y

o rk

,

Fiscal Agent o f the United States.

.1950

COM PETITIVE BID

N O N -C O M P E TIT IV E BID

Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
January 13, 1950, as issued by the Secretary
of
the Treasury,
the
undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on January 13,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

........... ................... ............... for a total amount o f

fo r a total amount o f
(N ot to exceed $200,000)

(R a t e p e r 100)

$......................................................... (maturity value)
o f 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 indicated below:

(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 below :

□

□

By

surrender

of

the

Treasury bills...............-.......

maturing

issue

of

$____________________

By

surrender

of

the

Treasury bills.......................

maturing

By cash or other immediately available funds

of

$.__________________ ___

(A m ount surrendered)

□

issue

(A m ount surrendered)

□

By cash or other immediately available funds

The Treasury bills for which tender is hereby made are to be dated January 19, 1950, and are to mature
on April 20, 1950.
This tender will be inserted in special envelope entitled “ Tender fo r Treasury bills” .
N a m e of Bidder.
(Please print)
By
(Official signature required)

(T itle)

Street A dd ress ................................................

(C ity, T ow n o r V illage, P.O. No., and State)
I f this tender is subm itted for the account o f a custom er, indicate the custom er’s nam e on line b e lo w :

(N am e o f Custom er)

(C ity, T ow n o r V illage, P.O . No., and State)

U s e a separate tender fo r each custom er’s bid.

IM P O R T A N T IN ST R U C T IO N S:
1. N o tender for less than $1,000 will be considered, and each tender m u st be for an even m ultiple o f $1,000
(m aturity va lu e). A separate tender m u st 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 m ake the tender, and the signin g o f the tender by an officer of the corporation w ill be construed as a
representation by him that he has been so authorized. I f the tender is m ade by a partnership, it should be signed b y a
m em ber of the firm, w h o should sign in the form “ ............................................................................................................. . a copartnership, by
......................................................................................................................... a m em ber of the firm” .
3. T enders w ill be received w ithout deposit from incorporated banks and trust com panies and from respon­
sible and recognized dealers in investm ent securities. T enders from others m ust be accom panied b y p aym ent o f 2 percent
o f the face am ount of T re asu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent
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 of the Secretary of the
T reasu ry, is material, the tender m a y be disregarded.

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

http://fraser.stlouisfed.org/
T E N T B — 1020-a
Federal Reserve Bank of St. Louis

* Price must be expressed on the basis o f 100, with not m ore than
three decimal places. Fractions m ay not be used.
(

over)

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