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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