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FEDERAL RESERVE BANK O F NEW
Fiscal Agent o f the United States
YORK
{^ S S y M ^ w o 1 1
Public Notice o f Offering o f $900,000,000, or thereabouts, o f 91-Day Treasury Bills
D a ted J a n u a ry 2 6 , 1 9 5 0
M a tu r in g A p r il 2 7 , 1 9 5 0
To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:
Follow ing 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 riday, January 20, 1950.
TREASURY DEPARTM ENT
W a sh in g to n
T h e Secretary of the T reasu ry, by this public notice, invites tenders for $900,000,000, or thereabouts, of 9 1 -d ay T reasury
bills, for cash and in exchange for T reasu ry bills m aturing January 26, 1950, to be issued on a discount basis under com petitive
and non -com petitive bidding as hereinafter provided. T h e bills of this series w ill be dated January 26, 1950, and w ill mature
A p ril 27, 1950. w hen the face am ount w ill be payable w ithout interest. T h e y w ill be issued in bearer form on ly , and in denom i
nations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity valu e).
T enders will be received at Federal R eserve B anks and Branches up to the closin g hour, tw o o ’clock p .m .. E astern Standard
tim e, M on d ay , January 23, 1950. T en d ers w ill not be received at the T re asu ry D epartm ent, W a sh in g to n . E ach tender m ust
be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on the basis of 100,
with not m ore than three decim als, e. g ., 99.925. F ractions m a y n ot be used. It is urged that tenders be m ade on the printed
form s and forw arded in the special envelopes w hich w ill be supplied by Federal Reserve B anks or B ranches on application
therefor.
T en d ers will be received without deposit from incorporated banks and trust com panies and from responsible and reco g
nized dealers in investm ent securities. T enders from others m ust be accom panied b y paym ent o f 2 percent of the face am ount
o f 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 ed iately after the closin g hour, tenders will be opened at the Federal Reserve B anks and Branches, fo llo w in g which
public announcem ent w ill be m ade by the Secretary o f the T re asu ry of the am ount and price range of accepted bids. T h o se
subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the T reasu ry exp ressly reserves
the right to accept or reject an y 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
w ith the bids m u st be m ade or com pleted at the Federal R eserve B ank on January 26, 1950, in cash or other im m ediately avail
able funds or in a like face am ount of T reasu ry bills m aturing January 26, 1950. Cash and exchange tenders w ill receive equal
treatm ent. Cash adjustm ents will be m ade for differences between the par value o f 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 o r other disposition o f the bills, shall
not have any exem ption, as such, and loss from the sale or other disposition o f T re asu ry bills shall n ot 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, g ift or other excise taxes, w hether Federal or State, but. shall be exem p t from all taxation
n ow o r hereafter im posed on the principal or interest th ereof by any State, or any of the possessions o f the U n ited States,
or b y any local taxin g authority. F or purposes o f taxation the am ount o f discount at w hich T reasu ry bills are originally
sold b y the U nited States shall be considered to be interest. U n d e r Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue
Code, as am ended by Section 115 o f the R evenue A c t of 1941, the am ount o f discount at w hich bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold, redeem ed or otherw ise disposed o f, and such bills are
excluded from consideration as capital assets. A cco rd in gly , the ow ner o f T reasu ry bills (other than life insurance co m
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
m aturity during the taxable year for w hich the return is m ade, as ordinary gain or loss.
T re asu ry D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s o f the T re asu ry bills and govern
the conditions o f their issue. Copies of the circular m a y be obtained from any Federal R eserve Bank 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 23, 1950. It is requested that tenders be submitted
on special form printed on reverse side and returned in special envelope enclosed herewith. Payment f o 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 l l a n S p ro u l, President.
(E xtract from Treasury Department statement released f o r publication January 17, 1950_, announcing results
after tenders w ere opened f o r 91-day Treasury bills dated January 19, 1950 maturing April 20, 1950)
T o ta l applied for ......... $1,683,106,000
T o ta l accepted ................ $ 902,376,000 (includes $114,147,000
entered on a non -com petitive basis
and accepted in full at the average
price show n b e lo w )
A ve ra ge price . . .
99.722
E quivalent rate of discount
approx. 1 .1 0 1 % per annum
R ange of accepted com petitive b id s:
H ig h
.......................
99.735
E quivalent rate of discount
approx. 1 .0 4 8 % per annum
Low
......................99.720
Equivalent rate of discount
a p p r o ,. 1 .1 0 8 % per a „ „ „ m
(14 percent o f the am ount bid fo r at the low
price w as accepted)
Federal Reserve
District____
Boston .....................................
N e w Y o r k ...........................
Philadelphia
.........................
Cleveland
R ichm ond
..............................
A tlanta ...................................
Chicago ..................................
St. L ou is ................................
M inneapolis
.........................
fSa« sas C lty .................................
£ X
ancisc0 !
!
V
T o ta l
...............t............
$
Total
Applied for
Total
_ Accepted__
25,980,000
1,232,092,000
23,513,000
27,070,000
12,089,000
11,981,000
205,722,000
12,469,000
8,403,000
$ 19,540,000
572.312,000
9,513,000
27,070,000
12,089,000
11,121,000
154,062,000
12,469,000
8,403,000
’J H ’S S
—----------------------$1,683,106,000
fo S J u ’nnn
--------------------$902,376,000
(ovxb)
22 R
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 ‘ 'Com petitive Bid” . I f it is desired to bid on a non
com petitive basis, fill in on ly the m atu rity value in paragraph headed "N on -com petitive
Bid” . D O N O T fill in b oth paragraphs on one form . A separate tender m ust be used fo r
each bid.
N o.
TENDER FOR 9 1-D A Y TREASURY BILLS
D ated January 26, 1950.
M aturing A p ril 27, 1950.
Dated at
T o F ederal R eserve B a n k of N e w Y o r k ,
Fiscal A gent o f the United States.
1950
CO M PE TITIV E BID
N O N -C O M P E T IT IV E BID
Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on January
20, 1950, as issued by the Secretary o f the Treas
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions o f the public notice on January
20, 1950, as issued by the Secretary o f the Treas
ury, the undersigned offers a non-competitive
ury, the undersigned o ffers.......................................*
(R ate per 100)
tender fo r a total amount o f $ ..................................
for a total amount o f $ ...............................................
(maturity value) o f the Treasury bills therein
described, or fo r 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 b elow :
(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
maturing
issue o f
Treasury bills.............
(N ot to exceed $200,000)
By
surrender
of
Treasury bills.............
the
(A m ount surrendered)
□
maturing
issue o f
$_.
(A m ount surrendered)
B y cash or other immediately available funds
□
B y cash or other immediately available funds
The Treasury bills fo r which tender is hereby made are to be dated January 26, 1950, and are to mature
on A pril 27, 1950.
This tender will be inserted in special envelope entitled “ Tender fo r Treasury bills” .
N a m e o f Bidder
(Please print)
By
...
(T itle)
(Official signature required)
Street A d d ress
.........................................
(C ity, T ow n or Village, P.O . N o., 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
Customer)
(C ity, T ow n or V illage, P .O . N o., 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 m ust be for an even m ultiple of $1,000
(m atu rity va lu e). A separate tender m ust be executed for each bid.
2. I f the person m akin g the tender is a corporation, the tender should be signed b y an officer o f the corpora
tion authorized to m ake the tender, and the sign ing of the tender by an officer of the corporation will be construed as a
representation by him that he has been so authorized. If the tender is m ade by a partnership, it should be signed by a
m em ber of the firm, w h o should sign in the form “ ..........................................................................................................., a copartnership, by
............................................................................................................................... a m em ber o f the firm” .
3. T enders will 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 of 2 percent
of the face am ou nt of T re a su 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.
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
T reasury, is material, the tender m a y be disregarded.
Paym ent b y c r e d i t through Treasury T a x and Loan A cc o u n t w ill n ot be perm itted.
T E N T B — 1021-a
* Price must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.
(O V E R )
@FedFRASER