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FEDERAL RESERVE BANK O F NEW YORK Fiscal A gent o f the United States [ CiMay i^ imo59 ] Public Notice o f Offering o f $1,100,000,000, or thereabouts, o f 91-Day Treasury Bills D a t e d M a y 1 8 , 1950 M a tu r in g A u g u s t 17, 1950 T o all Incorporated Banks and Trust Companies in the Second Federal R eserve D istrict and O thers 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 a y 12, 1950. NEW SPAPERS, TREASURY DEPARTM ENT W ashington T h e Secretary of the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing M a y 18, 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 ay 18, 1950, and will mature A u gu st 17, 1950, when the face amount w ill be payable without interest. T h ey 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 (maturity valu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern D a yligh t Saving time, M onday, M ay 15, 1950. Tenders will not be received at the Treasury Department, W ash in gton . Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 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 of 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 mediately 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 will be advised of the acceptance or rejection thereof. T h e 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 m ust be made or completed at the Federal Reserve Bank on M ay 18, 1950, in cash or other immediately avail able funds or in a like face amount of Treasury bills maturing M ay 18, 1950. Cash and exchange tenders w ill receive equal treatment. Cash adjustments w ill be made for differences between the par value of m aturing bills accepted in exchange and the issue price of 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, gift 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 taxin g authority. F or purposes of taxation the am ount of discount at which T reasury 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 c t of 1941, the amount of discount at which bills issued hereunder are sold shall 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 ccordingly, the owner of Treasury 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. Treasury Department Circular N o . 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay 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 Daylight Saving time, on Monday, May 15, 1950. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. P a ym en t fo r the T rea su ry bills cannot be made by credit through the T rea su ry T a x and L oan A cco u n t. S ettlem en t m ust be made in cash or oth er im m ediately available funds or in maturing T rea su ry bills. A l l a n S p ro u l, President. (E x tr a c t from T reasury D epartm en t statem ent released fo r publication M a y 9, 1950, announcing results a fter tenders w ere opened fo r 91-day T reasury bills dated M a y 11, 1950 maturing A u g u st 10, 1950) Federal R eserv e D istrict T o ta l applied f o r ......... $1,739,542,000 T o ta l a c c e p te d ............. $1,102,803,000 (includes $116,891,000 entered on a non-competitive basis and accepted in full at the average price shown below ) A verage price____ 9 9 .7 0 5 + Equivalent rate of discount approx. 1.166% per annum , .. Range of accepted competitive b id s: H l§ h ........................ 9 97 1 5 Equivalent rate o f discount o o 7n , approx 1 1 2 7 % per annum L o w ........................... 9 97 0 4 Equivalent rate of discount approx. 1.171% per annum (51 percent of the amount bid for at the low price was accepted) --------------------------- Boston ................................ $ N ew Y o r k ........................ Philadelphia ................... Cleveland .......................... Richmond .......................... A tlanta .............................. C h ic a g o .............................. St. L o u i s ............................ M inneapolis ..................... 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 -------------------- 19,407,000 1,313,578,000 35,348,000 24,181,000 9,255,000 14,655,000 155,049,000 12,568,000 6,035,000 39,041,000 30,020,000 80,405,000 Total A ccepted $ --------------- 18,760,000 795,653,000 21,663,000 22,695,000 8,716,000 12,675,000 96,403,000 9,869,000 5,668,000 34,631,000 22,570,000 53,500,000 ---------------------------------------------------------$1,739,542,000 $1,102,803,000 (o v e r ) 23 H T e n d e r s w ill b e r e c e iv e d up to tw o o ’c lo c k p.m ., E astern D a yligh t S aving tim e, M o n d a y , M a y 15, 1950. 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 maturity value in paragraph headed “ Com petitive B id ” . I f it is desired to b id on a non com petitive basis, fill in on ly the m aturity value in paragraph headed “ N on-com petitive B id ” . D O N O T fill in both paragraphs o n o n e form . A separate tender must b e used fo r each bid. N o ........................................... T E N D E R FOR 91-D A Y T R E A SU R Y BILLS Dated May 18, 1950. To F ed eral R eserve B a n k of N ew Maturing August 17, 1950. Dated a t ....................... Y ork, Fiscal A gent of the United States. 1950 C O M P E TIT IV E BID N O N -C O M P E TIT IV E BID Pursuant to the provisions o f Treasury Department Circular N o. 418, as amended, and to the provisions of the public notice on May 12, 1950, as issued by the Secretary o f 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 May 12, 1950, as issued by the Secretary o f the Treasury, the undersigned offers a non-com petitive tender .............................................* for a total amount of for a total amount o f $ .............................................. (R a te per 100) (N o t to exce e d $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 : (m aturity 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 of the maturing issue o f Treasury bills ............... $ .................................... (A m ou nt surrendered) □ B y cash or other immediately available funds (A m ou nt surrendered) □ B y cash or other immediately available funds T h e Treasury bills for which tender is hereby made are to be dated May 18, 1950, and are to mature on A ugust 17, 1950. This tender will be inserted in special envelope entitled “ Tender for Treasury bills” . N am e o f Bidder. (P le a se p rint) B y ... (O fficial signature required) (T itle ) Street A d d r e s s ...................................... (C ity , T ow n or V illa ge, P. O. N o., and State) If 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 STRU CTIO N S: 1. N o tender for less than $1,000 w ill be considered, and each tender must be $1,000 (m aturity value). 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 o f the corporation authorized to make the tender, and the signing of the tender by an officer o f 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 o f the firm, who should sign in the form “ ....................................................................................................................... a copartnership, by .......................................................................................................................... . a member of the firm”. 3. Tenders 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 o f the face amount o f Treasury 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 o f the Secretary of the Treasury, is material, the tender m ay be disregarded. P aym ent b y cred it through Treasury Tax and Loan A ccoun t w ill n ot b e perm itted. * P rice must be expressed on the basis o f 100, w ith not m ore than three decimal places. Fractions may not be used. T E N T B — 1037-a (o v e r )
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