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F E D E R A L R E S E R V E B AN K O F N E W Y O R K
r Circular No. 3592
[.September 21,1950 J
LSei

Fiscal Agent o f the United States

Offering o f $1,000,000,000 of 91-Day Treasury Bills
Dated September 28, 1950

Maturing Decemb6rv2g, 1950

To all Incorporated Banks and Trust Companies in the
Second Federal R eserve District and Others Concerned:

Following i the t of a n t c published today:
s
ext
oie
TREASURY DEPARTM ENT
W ash in g to n

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 ay, S eptem ber 21, 1950.

T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing September 28, 1950, to be issued on a discount basis under com ­
petitive and non-competitive bidding as hereinafter provided. The bills o f this series will be dated September 28, 1950, and
will mature D ecem ber 28, 1950, when the face amount will be payable without interest. Th ey 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 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern
Standard time, M onday, September 25, 1950. Tenders will not be received at the Treasury Department, W ashington. Each
tender must be for an even multiple o f $1,000, and in the case of competitive tenders the price offered must be expressed on
the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed form s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks 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 en d ers will be
received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in in­
vestm en t securities. T en ders from others m u st be accom panied by paym ent of 2 percent of the face am ount of 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 closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which
public announcem ent will be m ade by the Secretary of the Treasury of the am ount and price range of accepted bids. T h o se
subm itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the T reasury expressly reserves
the right to accept o r 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-com petitive tenders for $200,000 or less without stated price from any one bidder will be accepted
in full a t the average price (in three decim als) of accepted competitive bids. Settlem ent for accepted tenders in accordance
w ith the bids m ust be made or com pleted at the Federal Reserve Bank on September 28, 1950, in cash or other im m ediately
available funds or in a like face amount o f Treasury bills maturing September 28, 1950. Cash and exchange tenders w ill re­
ceive equal treatm ent. Cash adjustm ents 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 h e incom e derived from T reasury bills, whether 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 reasury bills shall not have any special
treatm ent, as such, under the Internal Revenue 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 pt 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 nited States,
or b y an y local taxing authority. F or purposes of taxation the am ount of discount at which T reasury bills are originally
sold b y 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 of discount at w hich bills issued hereunder are
sold shall n ot be considered to accrue until such bills shall be sold, redeemed or otherwise disposed o f, and such bills are
excluded from consideration as capital assets. A ccord 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 between 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 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 of the T re asu ry bills and govern
the conditions o f their issue. Copies o f the circular m a y be obtained from any Federal R eserve B ank o r Branch.

T h is Bank w ill rece iv e ten d ers u p to 2 p .m ., Eastern Standard tim e, M o n d a y , S e p te m b e r 25, 1950, at th ^
Securities Departm ent o f its H ead Office and at its B uffalo Branch. Please use the form on the reverse side o f this cir­
cular to submit a tender, and return it in an envelope marked “ T en d er fo r Treasury B ills.” P aym en t f o r the T reasury
bills cannot be made by credit through the T reasury T a x and L oan Acco-unt. S ettlem ent must be made in cash or other
im m ediately available fu n d s o r in maturing T reasury bills.
A

llan

S p r o u l , P resident.

Results o f last offering o f Treasury bills (9 1 -d a y bills dated September 21, 1950, m aturing December 21, 1950)
Total applied f o r ......... $1,504,000,000
Total accep ted ............. $1,001,508,000 (includes $114,206,000
entered on a non-competitive basis
and accepted in full at the average
price shown below )
Average price....... 99.667
Equivalent rate o f discount
approx. 1.317% per annum
Range o f accepted competitive bids:
H igh ...................... 99.685
Equivalent rate o f discount
approx. 1.246% per annum
L ow ........................

99.665

Equivalent rate o f discount
approx. 1.325% per annum

(16 percent o f the amount bid for at the low price
was accepted)




Total
Applied for

Federal R eserve
District

Boston ..................
New Y ork .........
Philadelphia .......
Cleveland ...........
Richm ond ...........
Atlanta .................
Chicago ...............
St. Louis .............
Minneapolis .......
Kansas City .......
Dallas ..................
San Francisco ...
T

otal

.
.

$

9,517,000
1,090,720,000
25,963,000
35,865,000
28,774,000
6,743,000
152,439,000
10,427,000
8,384,000
24,571,000
26,687,000
83,910,000

.

$1,504,000,000

Total
Accepted
$

9,517,000
637,438,000
11,763,000
35,655,000
28,774,000
6,743,000
117,839,000
10,427,000
8,384,000
24,371,000
26,687,000
83,910,000

$1,001,508,000

( oveb)

24A

IM PORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity
value in paragraph headed "Competitive Bid.” If you desire to bid on a non-competitive
basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.’ * DO

NOT fill in both paragraphs on one form.

A separate tender must be used for each bid.

No________________

TENDER FOR 91-D AY TREASURY BILLS
Dated September 28, 1950

To

Maturing December 28, 1950

Dated a t_________________
F e d era l R eserve B a n k o f N ew Y o rk ,

F sc l Agent of the United S a e .
i a
tts

.1950

COMPETITIVE BID

NON-COMPETITIVE BID

Pursuant t the provisions of Treasury
o
Department Circular No. 418, as amended, and
t the provisions of the public n ti e on
o
o c
September 2 , 1950, as issued by the Secretary
1
of the Treasury, the undersigned o f r
fes

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public n t c on September 2 ,
oie
1
1950, as issued by the Secretary of the Treasury,
the undersigned o f r a non-competitive tender
fes

__________________ * for a t t l amount of
oa

for a t t l amount of $
oa
~

(Rate per 100)

(Not to exceed 1200,000)

$__________________________ (maturity value)
of the Treasury b l s therein d s r b d or for
il
ecie,

(maturity value) of the Treasury b l s th r i
il e e n
desc ib d at the average p
r e,
rice (in three d c ­
ei
mals) of accepted competitive b d , s
i s ettlement
therefor t be made at your Bank, on the date
o
s a e i the public n t c , as i dicated below:
ttd n
oie
n

any l s amount t a may be awarded, settlement
es
ht
therefor t be made at your Bank, on the date
o
s a e i the public n t c , as i d c t d below:
ttd n
oie
niae
□

By surrender of the maturing i s e of
su

Treasury b l s
i l -------3
□

□ By surrender of the maturing i s e of
su
Treasury b l s
i l _______ $________________

(Amount surrendered)

(Amount surrendered)

By cash or other immediately a a l b e funds
vial

□

By cash or other immediately a a l b e funds
vial

* 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 b l s for which tender i hereby made are t be dated September 2 , 1950, and are t
il
s
o
8
o
mature on December 2 , 1950.
8
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills."
Name of Bidder...................................

(Please print)

By ........ ........ ...
(Official signature required)

(Title)

Street Address .... ............................. (City, Town or Village, P.O. No., and State)

If this tender is submitted by a bank for the account of a customer, indicate the customer's name on line below:
(Name of Customer)

(City, Town or village, P.O. No., and State)

Use a separate tender for each customer’s bid.

IMPORTANT INSTRUCTIONS:
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
(m aturity va lu e). A separate tender m u st be executed for each bid.

$1,000

2. I f the person m aking the tender is a corporation, the tender should be signed by an officer o f the corpora­
tion authorized to m ake the tender, and the sign ing o f the tender by an officer of the corporation will be construed as a
representation b y 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, w ho should sign in the form “ ................... ......................................................................................., a copartnership, by
..................................................................................................................., a m ember of the firm .”
3. T en d ers 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 m ust be accom panied b y paym ent o f 2 percent
o f the face am ount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f paym ent
b y an incorporated bank or trust company.

4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary
T reasu ry, is material, the tender m ay be disregarded.

Payment by credit through Treasury Tax and Loan Account tuill not be permitted.

T E N T H — 1056* A


(OVEE)

of the


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102