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FED ERAL RESER VE BANK O F NEW YORK Fiscal A gent o f the United States ° L f Ci'lcu,alr N ° - ~ | M arch 10, 1950 J P u b lic N o tice o f O fferin g o f $ 9 0 0 ,0 0 0 ,0 0 0 , o r th ereabou ts, o f 9 1-D ay T reasu ry B ills D a t e d M a r c h 16, 1950 M a t u r in g J u n e 1 5 , 1950 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 F riday, M arch 1U, 1950. NEW SPAPERS, TREASURY DEPARTM ENT W ashington The Secretary o f the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing M a rc h 16, 1950, to be issued on a discount basis under competi tive and non-competitive bidding as hereinafter provided. T h e bills of this series w ill be dated M arch 16, 1950, and will mature June 15, 1950, when the face amount w ill be payable without interest. They w ill be issued in bearer form only, and in denominations of $1,000, $5,000, $10,0U0, $100,000, $500,000, and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern Standard time, M onday, M arch 13, 1950. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis o f 100, with not more 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 which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Secretary of the Treasury of the amount and price range of accepted bids. Those submitting tenders w ill be advised of the acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, non-competitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted in full at the average price (in three decim als) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on M arch 16, 1950, in cash or other immediately available funds or in a like face amount of Treasury bills m aturing M ^rch 16, 1950. Cash and exchange tenders will receive equal treat ment. Cash adjustments will be made for differences between the par value of m aturing bills accepted in exchange and the issue price o f the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of T reasury bills shall not have any special treatment, as such, under the Internal Revenue Code, or laws am endatory or supplementary thereto. T he bills shall be subject to estate, inheritance, g ift or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. F or purposes of taxation the am ount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 ( a ) (1 ) of the Internal Revenue Code, as amended by Section 115 of the Revenue A ct of 1941, the am ount of discount at which bills issued hereunder arc sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed o f, and such bills are excluded from consideration as capital assets. A ccordingly, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury Department Circular N o . 418, as amended, and this notice, prescribe the terms of the Treasury bills govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch. and 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, March 13, 1950. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Payment jo r the Treasury bills cannot be made by credit through the Treasury Tax and l.oan A ccount. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. ( Extract from Treasury Department statement released for publication March 7, 1950, announcing results after tenders w ere opened for 91-day Treasury bills dated March 9,19 50 maturing June 8 ,1 9 5 0 ) t n - T o ta l applied f o r ........ $l,52o,461,000 T otal accepted ............. $1,001,102,000 (includes $90,919,000 entered on a non-competitive basis and accepted in full at the average price shown below ) A verage price____ 9 9 .7 1 2 + Equivalent rate o f discount approx. 1.139% per annum Range o f accepted competitive b id s : H i g h ......................... 99.720 Equivalent rate o f discount approx. 1.108% per annum L o w ........................... 99.710 Equivalent rate of discount approx. 1.147% per annum (9 percent of the amount bid for at the low price was accepted) F ederal R eserve District --------- ^ 7 ■ B o s t o n ................................. N e w Y ork ........................ Philadelphia ................... Cleveland .......................... Richmond ........................ A tlanta .............................. C h ic a g o .............................. St. L o u i s ............................ M in n e a p o lis ..................... K ansas C i t y ..................... D allas ................................ San F r a n c is c o ................. T o t a l ....................... Total Applied for $ 13,945,000 1,178,851,000 36,660,000 28,889,000 7,580,000 9,962,000 125,278,000 13,040,000 5,915,000 18,315,000 29,205,000 57,821,000 $1,525,461,000 $ Total Accepted . P . 13,445,000 734,941,000 25,930,000 28,598,000 7,580,000 9,962,000 66,628,000 12,858,000 5,915,000 18,315,000 19,564,000 57,366,000 $1,001,102,000 ( over) 22 Y IM P O R T A N T — I f it is desired to b id on a com petitive basis, fill in rate per 100 and m aturity value in paragraph headed “ Com petitive B id ” . I f it is desired to bid on a non com petitive basis, fill in on ly the m aturity value in paragraph headed “ N on-com petitive B id ” . DO N O T fill in both paragraphs on o n e form . A separate tender must b e used for each bid. N o ............................ T E N D E R FOR 91-D A Y T R E A S U R Y BILLS Dated March 16, 1950. Maturing June 15, 1950. Dated a t ....................................................... T o F e d e ra l R eserve B a n k o f N ew Y o rk , Fiscal A gent o f the United States. ................................................................1950 C O M P E T IT IV E B ID N O N -CO M PETITIVE 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 March 10, 1950, as issued by the Secretary o f the Treasury, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular No. 418, as amended, and to the provisions o f the public notice on March 10, 1950, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender .............................................* for a total amount of for a total amount o f $ ............................................... (R ate per 100) (N ot to exceed $200,000) $ ..................................................... (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 b e lo w : (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted com petitive bids, settlement therefor to be made at your bank, on the date stated in the public notice, as indicated b e lo w : □ □ By surrender of Treasury b ills ............... the maturing issue o f $ .................................... By surrender o f the maturing issue Treasury bills ............... $ .................................... (A m ount surrendered) □ B y cash or other immediately available funds of (A m ount surrendered) □ B y cash or other immediately available funds The Treasury bills for which tender is hereby made are to be dated M arch 16, 1950, and are to mature on June 15, 1950. This tender will be inserted in special envelope entitled “ Tender for Treasury bills” . N am e o f B id d er............................................................................................................................... (P lea se print) B y .......................................................... .................................. (Official signature required) .................................... (T itle ) Street Address (C ity , T o w n o r V illa g e , P . O. N o., and State) I f this tender is submitted for the account of a customer, indicate the customer’s name on line below : (N am e o f Custom er) (C ity , T ow n o r V illa ge, P . O. N o., and State) U se a separate tender for each customer’s bid. IM P O R T A N T IN STR U C T IO N S: 1. N o tender for less than $1,000 w ill be considered, and each tender must be $1,000 (maturity va lu e). A separate tender must be executed for each bid. for an even multiple of 2. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation w ill be construed as a rep resentation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a m em ber of the firm, who should sign in the form “ ....................................................................................................................... a copartnership, by ............................................................................................................................ a member of the firm”. 3. T enders w ill be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face am ount o f T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 4. I f the language of this tender is changed in any respect, which, in the opinion of the Secretary of the T reasury, is material, the tender m ay be disregarded. Paym ent b y credit through Treasury Tax and Loan A ccoun t w ill n ot b e perm itted. T E N T B —1028-a * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (o v e r )
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