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FED ERAL RESER VE BANK O F N EW YORK
Fiscal A gent o f the United States
r circular No. 3567 -1
L June 23, 1950 4
Public Notice o f Offering o f $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills
D a t e d J u n e 2 9 , 1 95 0
M a tu r in g S e p te m b e r 2 8 , 1950
T o all Incorporated Banks and Trust Companies in the
Second Federal Reserve 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
Friday, June 23, 1950.
NEW SPAPERS,
TREASURY DEPARTM ENT
W ashington
T h e Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing June 29, 1950, to be issued on a discount basis under competi
tive and non-competitive bidding as hereinafter provided.
T he bills of this series w ill be dated June 29, 1950, and will
mature September 28, 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, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
D aylight Saving tim e, M onday, June 26, 1950. Tenders w ill n ot be received at the Treasury Department, W ashington. E ach
tender m ust be fo r an even multiple of $1,000, and in the case of competitive tenders the price offered must 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.
T enders 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 am ount 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 w ill 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. T hose
submitting tenders w ill 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. Settlem ent for accepted tenders in accordance
with the bids m ust be made or completed at the Federal Reserve Bank on June 29, 1950, in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing June 29, 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.
T he 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, w hether 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 amount 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 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 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
m aturity during the taxable year fo r which the return is made, as ordinary gain or loss.
Treasury Department Circular N o . 418, as amended, and this notice, prescribe the terms o f the Treasury bills
govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank 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. in., Eastern Daylight Saving time, on Monday, June 26, 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 must 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 r o u l , P resident.
(E x tr a c t from T reasury D epartm en t statem ent released fo r publication June 20, 1950, announcing results
a fter tenders w ere opened fo r 91-day T reasury bills dated June 22, 1950 maturing S ep tem b er 21, 1950)
^
Federal Reserve
District
T o ta l applied f o r ......... $1,824,473,000
T otal accepted .............. $1,002,827,000 (includes $88,749,000
entered on a non-competitive basis
and accepted in full at the average price shown below )
-----------------------------.
Boston .................................$
N ew Y o r k ........................
Philadelphia ...................
Cleveland ..........................
A verage p rice------ 9 9 .7 0 3 + Equivalent rate of discount
.
t .
approx. 1.174% per annum
Range of accepted competitive b id s .
A t l a n t a ^ .........................
£ £ £
;;;;;;;;;;;;;;
St. Louis .........................
H l g h ........................
t
L o w ........... ...............
99,709
qq 70 ?
" - 702
1 1 e f i discount
approx 1.151/0 per annum
Equivalent rate of discount
approx. 1.179 /o per annum
(90 percent of the amount bid for at the low
price was accepted)
Total
Applied for
14,122,000
1,322,345,000
30,298,000
23,275,000
Total
Accepted
$
--------------- 13,562,000
667,409,000
17,598,000
22,855,000
^ 391 000
^ 2 9 l’000
20,922,000
10,512,000
M inneapolis ...............................
K ansas C i t y ........................
D allas ..................................
San F r a n c is c o ...................
3,560,000
21,795,000
31,352,000
157,468,000
3,540,000
21,535,000
19,251,000
126,608,000
T o t a l .........................
-----------------------$1,824,473,000
-----------------------$1,002,827,000
(over)
23N
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 maturity 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 fo r
each bid.
Np. ..........................
T E N D E R FOR 91-D A Y T R E A S U R Y BILLS
Dated June 29, 1950.
Maturing September 28, 1950.
E}ate{i 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
C O M P E TIT IV E BID
N O N -C O M PE TITIVE 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 23, 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 pf the public notice on June 23,
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 a te 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
therpfor to be made at your bank, on the date
stated in the public notice, as indicated b e lo w :
□ ....B y
□
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)
□
By cash or other immediately available funds
The Treasury bills for which tender is hereby made are to be dated June 29, 1950, and are to mature
on September 28, 1950.
T his tender w ill be inserted in special en velope entitled “ T en d er fo r T reasury bills” .
Name of Bidder.
(P lea se print)
B y ...
(Official signature required)
(T itle )
Street A d d ress...............................
(C ity , T ow n or V illa g e , 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 C ustom er)
(C ity , T ow n o r y illa g e , P. O. N o., and State)
Use a separate tender for each customer’s bid.
IM P O R T A N T IN STR U CTIO N S:
1. N o tender for less than $1,000 w ill be considered, and_ each tender must be for an even multiple of
$1,000 (m aturity va lu e). A separate tender must be executed for each bid.
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 o f £he firm” .
3. Tenders will 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 of 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
T reasury, is material, the tender m ay be disregarded.
in any respect, which, in the opinion of the Secretary of the
P aym ent b y cred it through Treasury T ax and Loan A ccou n t w ill n ot b e perm itted.
* Price must be expressed on the basis of 100, with not m ore than
three decimal places. Fractions may not be used.
T E N T B —1043-a
(over)
@FedFRASER