The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FE D E R A L R E SE R V E BANK O F N EW Y O R K
{ Cfrju ^ 27ai9so7SJ
Fiscal A g e n t of the United States
P u b lic N o tic e o f O ffe rin g o f $ 1 ,1 0 0 ,0 0 0 ,0 0 0 , o r th e re a b o u ts, o f 9 1 -D a y T re a su ry B ills
D a te d A u g u s t 3 , 1 9 5 0
M a tu r in g N o v e m b e r 2 , 1 9 5 0
T o all Incorporated Banks and Trust Companies in the
Second Federal R eserve District and Others Concerned:
Following is the text of 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 ,
T h u rsd a y, July 27, 1950.
TREASURY DEPARTM ENT
W ash in g to n
T h e Secretary o f the T reasu ry, b y this public notice, invites tenders for $1,100,000,000, or thereabouts, of 9 1-d a y T reasury
bills, for cash and in exchange for T reasu ry bills m aturing A u g u st 3, 1950, to be issued on a discount basis under com peti
tive and non -com petitive bidding as hereinafter provided. T h e bills o f this series will be dated A u g u st 3, 1950, and w ill mature
N o v e m b e r 2, 1950, w hen the face am ou nt will be payable w ithout interest. T h e y w ill be issued in bearer form on ly , and in
denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity value).
T en d ers w ill 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 yligh t S aving tim e, M on d ay , July 31, 1950. T en d ers will not be received at the T re asu 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, 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 w hich will be supplied by Federal Reserve B anks or
Branches on application therefor.
O th ers than banking institutions will not be perm itted to subm it tenders except for their ow n account. T en d ers w ill be
received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in invest
m ent securities. T en ders from others m u st 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 o f paym ent b y an incorporated bank or trust com pany.
Im m ediately after the closin g hour, tenders will be opened at the Federal Reserve B anks and Branches, follow in g which
public announcem ent will be m ade b y the Secretary o f the T reasury o f the am ount and price range o f accepted bids. T h o se
subm itting tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of the T reasu ry e xp 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, n on -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
with the bids m u st be m ade or com pleted at the Federal R eserve B ank on A u g u st 3, 1950, in cash or other im m ediately avail
able funds or in a like face am ount of T reasury bills m aturing A u g u st 3, 1950. C ash and exchange tenders will receive equal
treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value of m aturing bills accepted in exchange and
the issue price of 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 of 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, whether Federal or State, but shall be exem p t from all taxation
now or hereafter imposed on the principal or interest thereof by any State, or any o f the p ossessions of the U n ited States,
or by any local taxin g authority. F or purposes of taxation the am ount o f discount at which T reasury bills are originally
sold by the U n ited States shall be considered to be interest. U nd er Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue
Code, as am ended by Section 115 of the R evenue A c t of 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 or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
A cco rd 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 only the difference between the price paid for such bills,
w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at
maturity 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 of the T reasu ry bills and govern
the condition s of their issue. C opies of the circular m a y be obtained fro 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) N ew 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 31, 1950. It is requested that tenders be
submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Payment f o r the
Treasury bills cannot be made by credit through the Treasury Tax 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 July 25, 1950, announcing results
after tenders w ere opened f o r 91-day Treasury bills dated July 27, 1950 maturing October 26, 1950)
T o ta l applied f o r ............$1,776,128,000
T o ta l a c c e p t e d .................$1,001,318,000 (includes $103,646,000
Federal R eserv e
District
entered on a non -com petitive basis
and accepted in full at the average
price show n below )
A ve ra ge p r i c e -----9 9 .7 0 3 +
E quivalent rate o f discount
approx. 1 .1 7 4 % per annum
Range o f accepted com petitive b id s:
H i g h ..............
99.707
E quivalent rate o f discount approx.
1 .1 5 9 % per annum
L o w ..............
99.702 E quivalent rate o f discount approx.
1 .1 7 9 % per annum
B oston .................................
N e w Y o r k ..........................
Philadelphia .....................
Cleveland ..........................
R ichm ond ..........................
A tlanta ...............................
C hicago ...............................
St. L ou is ..........................
M inneapolis ......................
K an sa s C i t y ......................
D allas .................................
San Francisco .................
(70 percent of the am ount bid for at the low
price w as accepted)
T o ta l
..........................
T ota l
Applied fo r
$
17,195,000
1,302,508,000
30,860,000
79,075,000
5,352,000
9,549,000
180,773,000
15,553,000
4,060,000
29,399,000
32,640,000
69,164,000
---------------------$1,776,128,000
Total
A ccep ted
$
16,695,000
637,258,000
16,670,000
76,475,000
5,352,000
9,219,000
146,323,000
13,523,000
4,030,000
26,799,000
16,710,000
32,264,000
$1,001,318,000
(o v n )
23S
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 only the m aturity value in paragraph headed ''N on -com petitive
Bid” . D O N O T fill in both paragraphs on one fo rm . A separate tender m ust be used fo r
each bid.
N o...............
TENDER FOR 91-D A Y TREASURY BILLS
D ated A u gu st 3, 1950.
To
M aturing N ovem ber 2, 1950.
Dated a t ............................
F e d er al R eserve B a n k of N e w
Y ork,
Fiscal Agent o f the United States.
1950
CO M PE TITIV 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 o f the public notice on July 27,
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 July 27,
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, 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 below :
□
By
surrender o f
the
maturing
issue
of
Treasury bills
(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 o f
Treasury bills
the maturing
(Am ount surrendered)
□
By cash or other immediately available funds
issue o f
$
(Am ount surrendered)
□
By cash or other immediately available funds
The Treasury bills for which tender is hereby made are to be dated August 3, 1950, and are to mature
on November 2, 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
(Official signature required)
(T itle)
Street A dd ress
(C ity, Tow n or Village, 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 o r V illage, P .O . N o., and State)
U s e a separate tender for each custom er’s bid.
IM P O R T A N T IN STR U C T IO N S:
1. N o tender for less than $1,000 w ill be considered, and each tender m ust be for an even multiple 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 o f 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 b y a partnership, it should be signed by a
m em ber o f the firm, w ho 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 from respon
sible and recognized dealers in investm ent securities. T en d ers from others m ust be accom panied b y paym ent of 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 o r trust com pany.
4. I f the language of this tender is changed in an y respect, which, in the opinion o f the Secretary o f the
T reasury, is material, th e tender m a y be disregarded.
Paym ent b y cred it throu gh T reasury T a x and Loan A cco u n t w ill n ot b e perm itted.
* 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 —1048-a
(ov***
@FedFRASER