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FED ERAL RESERVE BANK O F N EW YORK r Circular N o. 3 5 6 5 1 I June 16, 1950 J Fiscal A g e n t o f the U nited States Public Notice o f Offering o f $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills Dated June 22, 1950 Maturing September 21, 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 riday, June 16, 1950. TREASURY DEPARTM ENT W ash in g to n T h e Secretary of the T reasu ry, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 9 1-d a y bills, for cash and in exchange for T reasu ry bills m aturing June 22, 1950, to be issued on a discount basis under tive and non -com petitive bidding as hereinafter provided. T h e bills o f this series will be dated June 22, 1950, mature Septem ber 21, 1950, when the face am ou n t will be payable w ithout interest. T h e y will be issued in bearer form in denom ination s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m atu rity va lu e). T reasu ry com peti and will on ly, and T enders will be received at Federal R eserve B anks and B ranches up to the clo sin g hour, tw o o ’clock p .m ., Eastern D a y lig h t S avin g tim e, M on d ay, June 19, 1950. T enders will 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 m ultiple of $1,000, and in the case o f com petitive tenders the price offered m ust be expressed on the basis o f 100, w ith n ot 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 R eserve B anks or B ranches on application therefor. T e n d e rs will be received w ithout deposit from incorporated banks and trust com panies and from responsible and reco g nized dealers in investm ent securities. T en ders from others m u st be accom panied b y p aym ent o f 2 percent o f the face am ount o f T re asu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an incorporated bank or trust com pany. Im m ed iately after the closin g hour, tenders w ill be opened at the Federal R eserve B anks and Branches, follow in g which public announcem ent w ill be m ade b y the Secretary o f the T reasu ry of the am ount and price range o f accepted bids. T h o se subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary of the T reasu ry e xp ressly reserves the righ t 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 full at the average price (in three decim als) o f accepted com petitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank on June 22, 1950, in cash or other im m ediately avail able funds or in a like face am ount o f T reasu ry bills m aturing June 22, 1950. Cash and exchange tenders will receive equal treatm ent. C ash adjustm ents will be m ade for differences betw een the par value o f m aturing bills accepted in exchange and the issue price o f 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 an y 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 law s am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift or oth er excise taxes, w hether Federal or State, but shall be exem p t from all taxation n ow or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions of the U n ited States, or b y an y local taxin g authority. F or purposes of taxation the am ount o f discount at which T reasu ry bills are originally sold by 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 C ode, as am ended by Section 115 o f the R evenue A c t o f 1941, the am ount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeem ed o r otherw ise disposed o f, and such bills are excluded fro m consideration as capital assets. A cco rd in g ly , the ow ner o f T re asu ry bills (other than life insurance c o m panies) issued hereunder need include in his incom e ta x return o n ly the difference betw een the price paid for such bills, w hether on original issue o r 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 reasu ry D epartm ent Circular N o . 418, as am ended, and this notice, prescribe the term s o f the T reasu ry bills and govern the conditions of their issue. C opies o f the circular m a y be obtained fr o m any Federal R eserve 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, June 19, 1950. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Paym ent 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 r o u l , President. (E xtract from Treasury Department statement released f o r publication June 13, 1950, announcing results a fter tenders w ere opened f o r 91-day Treasury bills dated June 15, 1950 maturing Septem ber 14, 1950) T otal applied fo r T otal accepted .........$1,611,725,000 ................$1,002,565,000 (includes $98,862,000 entered on a non-com petitive basis and accepted in full at the average price show n below ) A verage price . . . R ange H ig h of accepted 99.703 Equivalent rate o f discount approx. 1 .1 7 7 % per annum com petitive b id s: E quivalent rate o f discount approx. 1 .16 3 % per annum ........................ 99.706 L o w .......................... 99.701 E quivalent rate o f discount approx. 1 .18 3 % per annum (34 percent o f the am ount bid for at the low price w as accepted) Boston ............................. N ew Y o rk ...................... Philadelphia .................. Cleveland ........................ Richmond ......................... Atlanta ............................. Chicago ........................... St. Louis ......................... Minneapolis .................... Kansas City .................. Dallas ............................... San Francisco ............. T otal ........................ Total A ccepted Total Applied fo r Federal R eserve District $ 16,377,000 1,184,020,000 24,165,000 23,588,000 11,030,000 12,826,000 195,752,000 11,564,000 4,140,000 35,578,000 29,005,000 63,680,000 $1,611,725,000 $ 15,877,000 714,231,000 15,489,000 17,122,000 9,950,000 12,166,000 120,152,000 8,539,000 3,908,000 24,754,000 17,157,000 43,220,000 $1,002,565,000 (o v e r ) 23M 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 on ly 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 must be used fo r each bid. N o .................................. T E N D E R F O R 91 - D A Y T R E A S U R Y BILLS Dated June 22, 1950. M aturing September 21, 1950. Dated at T o F e d e r a l R e se r v e B a n k o f N e w Y o r k , Fiscal Agent o f the United States. 1950 C OM PETITIVE 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 June 16, 1950, as issued by the Secretary o f the Treas Pursuant to the provisions o f Treasury Department Circular N o. 418, as amended, and to the provisions o f the public notice on June 16, 1950, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender ury, the undersigned o ffe rs.......................................* (R ate per 100) fo r a total amount o f $ fo r 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 below : □ By surrender of Treasury bills............... the maturing issue of $ _______________________ (N ot to exceed $200,000) (maturity value) o f the Treasury bills therein described, at the average price (in three decimals) o f accepted competitive bids, settlement therefor to be made at your bank, on the date stated in the public notice, as indicated b elow : □ By surrender o f Treasury b ills the maturing issue (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 fo r which tender is hereby made are to be dated June 22, 1950, and are to mature on September 21, 1950. This tender will be inserted in special envelope entitled “ Tender f o r Treasury bills". N a m e o f B i d d e r ................................................ (Please print) By (T id e ) (Official signature required) Street A d d ress (C ity, T ow n o r V illage, 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 ST R U C T IO N S: 1. N o tender for less than $1,000 w ill be considered, and each tender m u st be fo r 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 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 signing o f the tender by an officer o f the corporation w ill be construed as a representation b y him that he has been so authorized. I f the tender is m ade b y a partnership, it should be signed by a m em ber o f the firm, w h o should sign in th e form “ ............................................................................................................ a copartnership, by ........................................................................................................................... . a m em ber o f the firm ” . 3. T en d ers 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 en d ers from others m u st be accom panied by paym ent o f 2 percent o f the face am ou nt o f 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 lan gu age o f this tender is changed in any respect, w hich, in the opinion o f the Secretary o f the T reasury, is m aterial, th e tender m a y be disregarded. Payment by credit through Treasury Tax and Loan A ccount will not be permitted. * Price must be expressed on the basis o f 100, with not more than three decimal places. Fractions may not be used. T E N T B — 1042-a <ov*») a J / 3 J '^ - T FED ERAL RE SE R V E BANK OF NEW YORK June 30, 1950. Sem iannual D ivid en d G entlem en : The board o f directors o f Federal Reserve Bank o f New York has declared a dividend for the six-month period ending June 30, 1950, at the rate o f six per centum per annum on the paid-in capital stock o f the bank, payable June 30, 1950, to stockholders as shown by the books o f the bank at the opening o f business on that date. Payment of $....................... , the amount o f such dividend due you, is being made today by credit to your reserve account. F or your infor mation in connection with your reporting this dividend for tax purposes, $....................... thereof represents dividend on stock for which payment was made to this bank prior to March 28, 1942, and $....................... represents dividend on stock for which payment was made to this bank on or after March 28,1942. F or information as to taxation of dividends upon Federal Reserve Bank stock see our Operating Circular No. 16, Revised June 10, 1949. Very truly yours, President.
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