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FEDERAL RE SER VE BANK O F NEW YORK r C ir cu la r N o. 35001 I M a y W , 1950 J Fiscal Agent o f the United States Public Notice o f Offering o f $1,100,000,000, or thereabouts, o f 91-Day Treasury Bills Dated May 25, 1950 Maturing August 24, 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 , Friday, M a y 19, 1950. TREASURY DEPARTM ENT W a sh in g to n T h e Secretary of the T reasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for T reasu ry bills m aturing M a y 25, 1950, to be issued on a discount basis under competitive and non-com petitive bidding as hereinafter provided. T h e bills of this series will be dated M a y 2 5, 1950, and will mature A u g u st 24, 1950, when the face am ount will be payable without interest. T h e y will 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 valu e). T en ders will be received at Federal R eserve Banks and Branches up to the closing hour, tw o o ’clock p .m ., E astern D a y lig h t Saving tim e, M on d ay, M a y 22, 1950. T en ders will not be received at the T reasury 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 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 ay not be used. It 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 Reserve Banks or Branches on application therefor. T en d ers w ill be received w ithout deposit from incorporated banks and trust companies and from responsible and reco g nized dealers in investm ent securities. T en d ers from others must be accom panied by paym ent of 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 of paym ent by an incorporated bank or trust com pany. Im m ediately after the closin g 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 T reasu ry of the am ount and price range of accepted bids. T h o se subm ittin g tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of the T reasury 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 w ill be accepted in full at the average price (in three decim als) o f accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal Reserve Bank on M a y 25, 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 M a y 25, 1950. Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents 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. v T h e incom e derived from T reasury bills, w hether interest or gain from the sale or other disposition of the bills, shall not have an y exem ption, as such, and loss from the sale or other disposition o f 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 pt from all taxation now o r hereafter im posed on the principal or interest thereof by any State, or any of the possessions of the U n ited States, or b y any local taxing authority. F or purposes o f taxation the am ount o f discount at w hich T reasury bills are originally sold b y the U n ited States shall be considered to be interest. U n d e r Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue Code, as am ended b y Section 115 o f the R evenue A c t o f 1941, the am ount of discount at w hich bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed o r otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccord 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 fo r such bills, whether 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 fo r which the return is m ade, as ordinary gain o r loss. T reasu ry D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s of the T re asu ry bills and govern the conditions o f 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 ., u p to t w o o ’c l o c k p .m ., Eastern D ayligh t Saving time, on M onday, M ay 22, 1950. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Payment 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 fujids or in maturing Treasury bills. A lla n S prou l , President. (E xtract from Treasury Department statement released fo r publication M ay 16, 1950, announcing results a fter tenders w ere opened fo r 91-day Treasury bills dated M ay 18, 1950 maturing August 17, 1950) T o ta l applied for...........$1,782,603,000 T o ta l accepted ............. $1,102,027,000 (includes $101,434,000 entered on a non-com petitive basis and accepted in full at the average price show n below ) A verage price........ 9 9 .7 0 5 -f Equivalent rate of discount approx. 1 .1 6 5 % per annum R ange of accepted competitive bids: H ig h ......................... 99.710 Equivalent rate of discount approx. 1 .1 4 7 % per annum L o w ........................... 99.704 Equivalent rate of discount approx. 1 .1 7 1 % per annum Total Applied for Federal R eserve District B oston ................................ N ew Y o r k ......................... Philadelphia ............. Cleveland .................. R ichm ond .................. A tlanta ......................... C hicago ....................... St. L ou is .................... M inneapolis ............. K ansas City ............. D allas ......................... San Francisco ........ $ 14,573,000 1,406,804,000 34,445,000 15,970,000 5,177,000 9,662,000 160,781,000 14,890,000 5,580,000 33,051,000 30,511,000 51,159,000 Total Accepted $ 13,243,000 845,139,000 23,635,000 15,687,000 5,094,000 9,662,000 95,051,000 10,889,000 5,477,000 32,270,000 22.111,000 23,769,000 (17 percent o f the am ount bid for at the low price w as accepted) T otal ................... ....... $1,782,603,000 $1,102,027,000 ( over) 23 I T en d ers w ill be received up to tw o o ’clo ck p.m., Eastern D a yligh t Saving tim e, M onday, May 22, 1950. IMPORTANT— If it is desired to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid” . If it is desired to bid on a non competitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid” . DO N O T fill in both paragraphs on one form . A separate tender m ust b e used fo r each bid. No__________________________ TENDER FOR 91-D A Y TREASURY BILLS Dated May 25, 1950. To Maturing August 24, 1950. Dated at F ed er al R eserve B a n k of N e w Y o r k , .1950 Fiscal A gent o f the United States. COMPETITIVE BID NON-COMPETITIVE 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 May 19, 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 May 19, 1950, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender -----------------------------------------* for a total amount o f for a total amount o f $_ (B a t e p e r 100) (N o t t o e x c e e d 1200,000) $______________________________ (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 p u blic 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 competitive bids, settlement therefor to be made at your bank, on the date stated in the p ublic notice, as indicated below: □ □ By surrender of the maturing issue of By surrender o f the maturing issue of Treasury bills__________ $.......................................... Treasury bills----------------$------------------------------------(A m o u n t su rre n d e re d ) □ (Amount surrendered) By cash or other immediately available funds □ B y cash o r other immediately available funds The Treasury bills for which tender is hereby made are to be dated May 25, 1950, and are to mature on August 24, 1950. This tender will be inserted in special envelope entitled " Tender f o r Treasury bills’\ N a m e o f Bidder. (Please print) B y ......... (O fficia l s ig n a t u r e r e q u ire d ) (Title) Street A d d ress .................................................. (C it y , T o w n o r V illa g e , P .O . N o., a n d S ta te ) 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 a m e of C u s t o m e r ) ( C i t y , Town or Viiiage, P.O. N o ., and State) U se a separate tender fo r each custom er’s bid. IMPORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 w ill be considered, and each tender m u st be for an even m ultiple o f (m aturity va lu e). A separate tender m u st be executed for each bid. $1,000 2. I f the person m aking 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 signin g o f the tender by an officer o f the corporation w ill be construed as a representation by him that he has been s o authorized. I f the tender is m ade by a partnership, it should b e 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 recognized dealers in investm ent securities. T enders from others m ust be accom panied b y paym ent o f 2 pcrcent o f 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. 4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the T reasu ry, is material, the tender m a y be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T E N T B — 1038-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 may not be used. (OVER) FEDERAL RESERVE BANK OF N EW YORK N ew York 4 5 , N. Y. May 18s 1950 RAISED TREASURY CHECKS To all 3anks in the Second federal Reserve District: Some checks drawn on the Treasurer o f the United States and mailed to payees in the P h ilip p in e Islands have re ce n tly been fra u d u len tly ra ised . Most o f these checks were clea red through commercial houses and banking in s tit u t io n s in HongKong b e fo re reaching banking channels in the United S tates. The a lte re d checks were o r ig in a lly drawn fo r small amounts but were raised to su b sta n tia l sums with such s k i l l as to be almost im possible o f d e te ctio n without a magnifying a id . Some checks issued by United States Disbursing O ffic e r s to payees in the P h ilip p in e s are o r ig in a lly drawn fo r la rg e amounts, o f course; but banks should be mindful o f the p o s s i b i l i t y that Treasury checks appearing to be fo r large amounts may have been fraudulently ra ised . It is p o s s ib le that th is s itu a tio n i s not con fin ed to areas in the Far East, but may a rise in other p arts o f the world. Banks should, th e re fo re , take such steps as are deemed advisable fo r th e ir p r o te c tio n b e fo re making a v a ila b le the proceeds o f Treasury checks fo r la rge amounts, p a r t ic u la r ly those issued to persons in fo re ig n cou n tries or n eg otia ted o u tsid e o f the United S tates. ALLAN SFROUL, President.
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