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F E D E R A L R E SE R V E BAN K O F N E W YO R K f Circular N o. 3 5 6 9 1 1 July 7, 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, of 9 2 -D A Y T R E A S U R Y BILLS Dated July 13, 1950 Maturing October 13, 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 rid ay, July 7, 1950. TREASURY DEPARTM ENT W a sh 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 92-day bills, for cash and in exchange for T reasu ry bills m aturing July 13, 1950, to be issued on a discount basis under tive and n on -com petitive bidding as hereinafter provided. T h e bills of this series w ill be dated July 13, 1950, mature O cto b er 13, 1950, w hen the face am oun t will be payable w ithout interest. T h e y w ill be issued in bearer fo rm in denom inations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e). T reasury com peti and will only, and T enders will be received at Federal R eserve B anks and B ranches up to the closing hour, tw o o ’clock p .m ., Eastern D a y lig h t Saving tim e, M on d ay , July 10, 1950. T en ders will not be received at the T reasu ry D epartm ent, W a sh in g to n . Each tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on the basis o f 100, with not m ore than three decimals, e. g., 99.925. F ractions m a y not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied by Federal R eserve B anks or Branches on application therefor. T enders will be received without deposit from incorporated banks and trust com panies and from responsible and reco g nized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent o f 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 w ill 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 reasury o f the am ount and price range o f accepted bids. T h o se subm itting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary of the T reasury exp ressly reserves the right 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 will 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 w ith the bids m u st be m ade or com pleted at the Federal R eserve B ank on July 13, 1950, in cash or other im m ediately avail able funds or in a like face am ount of T re asu ry bills m aturing July 13, 1950. Cash and exchange tenders w ill receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een the par value of 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 or other disposition o f the bills, shall not have any exem ption, as such, and loss from the sale or other disposition o f T reasu ry bills shall not have an y 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 other excise taxes, w hether Federal or State, but shall be exem p t from all taxation now or hereafter im posed on the principal or interest thereof by any State, or any of the p ossessions of the U n ited States, or by any local taxin g authority. F or purposes of taxation the am ount of discount at which T reasu ry bills are originally sold by the U n ited States shall be considered to be interest. U nder Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue Code, as am ended by 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, redeem ed or otherw ise disposed o f, and such bills are excluded from consideration as capital assets. A cco rd in gly , the ow ner of T reasury 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 for 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 for which 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 reasury bills and govern the condition s of their issue. Copies of the circular m a y be obtained from any Federal Reserve B ank o r Branch. In accordance with the above announcement tenders will be received at the Securities Department o f this bank (9th tloor, 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, July 10, 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 f o r the T rea su ry bills cannot be made b y credit through the T rea su ry T a x and L oan A ccou n t. S ettlem ent m ust be made in cash or oth er im m ediately available fu n d s or in m aturing T reasury bills. A llan S p r o u l , P resident. (E x tr a c t fr o m T reasury D epartm en t statem ent released f o r publication July 4, 1950, announcing results a fte r tenders w ere opened f o r 91-day T rea su ry bills dated Jidy 6, 1950 m aturing O cto b er 5, 1950) Total applied fo r Total ......... $1,608,114,000 accepted ................ $1,003,298,000 (includes $86,243,000 entered on a non -com petitive basis and accepted in full at the average price show n below ) Average price ____ 9 9 .7 0 3 + Equivalent rate o f discount approx. 1.174% per annum R ange H igh Low o f accepted com petitive bid s: Equivalent rate o f discount approx. 1.151% per annum ......................... 99.709 ........................... 99.702 Equivalent rate o f discount approx. 1.179% per annum (57 percent o f the amount bid for at the low price was accepted) Please Federal R eserv e District .................. Boston N ew Y ork ......... Philadelphia Cleveland .............. Richmond ........... Atlanta .................. Chicago ................ St. Louis ............. Minneapolis ......... Kansas City . . . . Dallas .................... San Francisco . . T otal .......... Total Applied fo r $ 14,327,000 1,182,429,000 26,243,000 28,825,000 11,085,000 4,052,000 169,798,000 22,752,000 3,879,000 19,943,000 34,807,000 89,974,000 $1,608,114,000 Total A ccep ted $ 14,327,000 679,489,000 15,803,000 28,682,000 11,085,000 4,052,000 115,178,000 19,319,000 3,879,000 19,943,000 27,907,000 63,634,000 $1,003,298,000 note that the current offering is f o r 92-day Treasury Bills (o v k b ) 23P IM P O R T A N T — It w ill b e n o te d that the o ffe r in g is f o r 9 2 -D A Y T R E A S U R Y B ILLS w hich w ill m a tu re o n F rid a y, O c to b e r 1 3 , 1 9 5 0 , o w in g t o th e fa c t that T h u rsd a y, O c to b e r 1 2 , w ill b e C olu m b u s D ay. IM P O R T A N T — I f it is d esired to b id o n a com p e titiv e basis, fill in rate p e r 1 0 0 and m atu rity va lu e in p a ra g ra p h h ead ed “ C om p etitive B id ” . I f it is d esired to b id o n a n on -co m p e titiv e basis, fill in o n ly the m atu rity va lu e in p a ra g ra p h h ead ed “ N on com p etitiv e B id ” . D O N O T fill in b o th p arag ra p h s o n o n e f o r m . A sep a ra te ten d er m u st b e u sed f o r ea ch bid. N o.................................... T E N D E R F O R 9 2 -D A Y T R E A S U R Y BILLS Dated July 13, 1950. To M aturing O ctober 13, 1950. Dated a t .............................. F ederal R eserve B a n k o f N e w Y o rk , Fiscal A gent o f the United States. .................................................. 1950 C O M PETITIVE BID N O N -C O M P E T IT IV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on July 7, 1950, as issued by the Secretary o f the Treas Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on July 7, 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) for a total amount o f $ ............................................... fo r a total amount o f $ ............................................. (maturity value) o f the Treasury bills therein described, o r 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 $_______________________ (A m ount surrendered) □ By cash or other immediately available funds (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 below: □ By surrender of Treasury bills............... □ the maturing issue o f $ (Am ount surrendered) B y cash or other immediately available funds The Treasury bills fo r which tender is hereby made are to be dated July 13, 1950, and are to mature on October 13, 1950. T his ten d er will be in serted in special en velop e entitled “ T en d er f o r T rea su ry bills” . N a m e o f B idder ............................................... (Please print) By (Official signature required) (T itle ) Street A d d ress (C ity, T ow n or V illage, P .O . N o., and State) '/• If 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) /2 T (C ity, T ow n o r V illage, P .O . N o., and State) U se a separate tender for each cu stom 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 will 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 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 signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. I f the tender is m ade by a partnership, it should be signed b y a m em ber o f the firm, w h o should sign in the form “ .......................................................................................................... , a copartnership, by ........................................................................................................................... , 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 fro m respon sible and recognized dealers in investm ent securities. T en d ers from others m ust be accom panied by paym ent o f 2 percent o f the face am ou nt o f T reasu 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 p any. 4. I f the language o f this tender is changed in any respect, w hich, in the opinion o f the Secretary o f the T reasu ry, is material, the tender m a y be disregarded. Paym ent b y cred it throu gh T reasu ry T a x and Loan A cco u n t w ill n ot be perm itted. http://fraser.stlouisfed.org/ E N T Bof —St. 1045-a Federal ReserveTBank Louis * Price must be expressed cm the basis o f 100, with not m ore than three decimal places. Fractions m ay not be used. (ovu) •.o
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