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F E D E R A L R E S E R V E BAN K O F N E W Y O R K f C ir c u la r N o. 35701 L A u g u s t 10,1950 J Fiscal Agent o f the United States Offering o f $1,100,000,000 o f 91-Day Treasury Bills Dated August 17, 1950 Maturing November 16, 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 published today: TREASURY DEPARTM ENT W ash in g ton 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 hursday, A u gu st 10, 1950. T h e Secretary of the T reasu ry, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day T re a s ury bills, for cash and in exchange for T reasu ry bills m aturing A u gu st 17, 1950, to be issued on a discount basis under co m petitive and non-com pctitive bidding as hereinafter provided. T h e bills of this series will be dated A u g u st 17, 1950, and will m ature N o vem b er 16, 1950, w hen the face am ount will be payable w ithout interest. T h e y will be issued in bearer form only, and in denominations of $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 B anks and Branches up to the closing hour, tw o o ’clock p .m ., Eastern D a yligh t Saving tijne, M ond ay, A u gu st 14, 1950. T en ders will not be received at the T reasury D epartm ent, W ash in g ton . Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 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 m ade on the printed form s and forw arded in the special envelopes w hich w ill be supplied by Federal Reserve B anks or Branches on application therefor. O th ers than banking institutions w ill not be perm itted to subm it tenders except for their ow n account. T enders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in in vestm ent securities. T enders from others m u st be accom panied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders will be opened at the Federal R eserve B anks and Branches, follow in g which public announcem ent will be m ade by the Secretary of the T reasury of the am ount and price range o f accepted bids. T h o se subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary o f the T reasury expressly 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 fo r $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) of accepted com petitive bids. Settlem ent for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on A u g u st 17, 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 gu st 17, 1950. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents w ill be m ade for differences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. T h e income 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 exemption, as such, and loss from the sale or other disposition of 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 or hereafter im posed on the principal or interest thereof by any State, or any of the possessions of the U n ited States, or by any local taxing authority. F or purposes of taxation the am ount o f discount at w hich 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 R evenue Code, as amended by Section 115 o f the Revenue 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 o f, and such bills are excluded from consideration as capital assets. A ccord in gly, the ow ner o f T reasury bills (oth er than life insurance co m panies) issued hereunder need include in his incom e tax return only 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 o r 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 of the T reasu ry bills and govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve B ank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, August 14, 1950, at the Securities Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Payment fo r the Treas ury 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 proul, President. Results of last offering o f Treasury bills (dated August 10, 1950, maturing November 9, 1950) T o ta l applied for...........$1,809,571,000 T o ta l a c ce p te d ............... $1,101,916,000 (includes $116,211,000 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 3 + Equivalent rate of discount approx. 1 .1 7 4 % per annum Range of accepted competitive bids: H ig h ......................... 99.707 Equivalent rate of discount approx. 1 .1 5 9 % per annum L o w ........................... 99.702 Equivalent rate o f discount approx. 1 .1 7 9 % per annum (64 percent o f the am ount bid for at the low price w as accepted) Federal R eserve District Boston ................................ N e w Y o r k ......................... Philadelphia Cleveland ....... R ichm ond ....... A tlanta .............. Chicago ............ St. L ou is .......... M inneapolis ... K ansas City ... D allas ................. San Francisco T otal ............. .........:. Total Total Applied for A c ccptcd 14,367,000 1,372,667,000 33.684.000 31.031.000 9.040.000 8.039.000 163.288.000 20.914.000 5.755.000 37.478.000 41.415.000 71.893.000 14.367.000 758.475.000 24.715.000 30.959.000 9.040.000 7.679.000 124.608.000 17.142.000 5.701.000 33.878.000 29.579.000 45.773.000 $1,809,571,000 $1,101,916,000 $ ( over) 23U IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity value in paragraph headed "C om petitive Bid.” I f you desire to bid on a non-com petitive basis, fill in only the m aturity value in paragraph headed "N on -com petitive Bid.” DO N O T fill in both paragraphs on one form . A separate ten d er must be used fo r each bid. _ N o__! _______________ TENDER FOR 91-D A Y TREASURY BILLS Dated A u gu st 17, 1950 M aturing N ovem ber 16, 1950 Dated a t ................................ T o F ederal R eserve B a n k of N ew Y o r k , Fiscal Agent o f the United States. ____ 1950 COM PETITIVE 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 August 10, 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 August 10, 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 of (R a t e p e r 100) (N o t t o e x c e e d $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 elow : (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 public notice, as indicated b elow : □ □ By surrender of the maturing issue of Treasury bills- By surrender of Treasury bills__ _______ the (A m o u n t s u rre n d e re d ) □ B y cash or other immediately available funds maturing issue of $ ----(A m o u n t s u rre n d e re d ) □ By cash or other immediately available funds * Price must be expressed on the basis o f 100, with not more than three decimal places, f o r example, 99.925. The Treasury bills fo r which tender is hereby made are to be dated August 17, 1950, and are to mature On November 16, 1950. ' This tender ixrill be inserted in special envelope marked '‘ Tender f o r Treasury Bills.” N a m e o f Bidder.. (P le a s e p r in t ) By (O fficia l s ig n a t u r e r e q u ire d ) ( T it le ) Street A d d ress .................................................. (C it y , T o w n o r V U la ge, P .O . N o ., a n d S ta te ) I f this tender is subm itted b y a bank for the account of a custom er, indicate the custom er’s nam e on line b e lo w : (N a m e o f C u stom er) (C it y , T o w n o r V illa g e , P .O . N o ., a n d S ta te) U s e a separate tender fo r 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 will be considered, and each tender m u st be for an even m ultiple o f $1,000 (m aturity valu e). A separate tender m ust 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 o f the corporation will be construed as a representation b y him that he has been s o authorized. I f the tender is m ade by a partnership, it should be signed by a m em ber of the firm, w h o should sign in the f o r m “ ..................................................................................................................... , a copartnership, by ................... .................................................................................. , a m ember of the firm.” 3. T enders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. T enders from others must be accom panied by payment o f 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. y 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 reasury, is material, the tender m ay be disregarded. 000 . (J Paym ent b y credit through Treasury Tax and Loan A ccou n t -will not be perm itted. http://fraser.stlouisfed.org/ T E X T B — 1050 a Federal Reserve Bank of St. Louis ( over)