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FEDERAL RESERVE BANK O F NEW YORK [ C ir c u la r N o . 36011 L O c to b e r 12, 1950J Fiscal Agent o f the United States Offering o f $1,000,000,000 o f 91-Day Treasury Bills Dated October 19, 1950 Maturing January 18, 1951 To all In corporated B anks and Trust Companies in the S econd Federal R eserv e D istrict and O thers C on cern ed: Following is the text o f a notice published tod ay: 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 , Thursday, O ctober 12, 1950. TREASU RY DEPARTM ENT W ashington 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 O ctober 19, 1950, to be issued on a discount basis under competi tive and non-competitive bidding as hereinafter provided. The bills of this series will be dated O ctober 19, 1950, and will mature January 18, 1951, when the face amount will be payable without interest. T h ey will be issued in bearer form on ly, 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, O ctober 16, 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 m ore 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. Others than banking institutions w ill not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied fo r, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. Im m ed ia tely after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g w h ich public a n n ou n cem en t will be made by the Secretary o f the Treasury o f the amount and price range o f acccpted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves th e right to accept or 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-compctitive tenders for $200,000 or less without stated price from any one bidder w ill be a ccep ted in fu ll at th e average price (in three decimals) o f accepted competitive bids. Settlement for accepted tenders in a ccord a n ce with the bids must be made or com pleted at the Federal Reserve Bank on O ctober 19, 1950, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing O ctober 19, 1950. Cash and exchange tenders will re ceive equal treatment. Cash adjustments w ill be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. T h e incom e derived from Treasury bills, whether 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 o f Treasury bills shall not have any special treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The 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 o r hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or b y any local taxing authority. F or purposes o f taxation the amount o f discount at which Treasury bills are originally sold b y the United States shall be considered to be interest. U nder Sections 42 and 117 (a )(1 ) o f the Internal Revenue Code, as amended by Section 115 o f the Revenue A ct o f 1941, the amount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed o r otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch. T h i s B a n k w ill r e c e iv e te n d e r s u p t o 2 p .m ., E a s t e r n S t a n d a r d tim e , M o n d a y , O c t o b e r 16, 1950, a t th e S ecu rities D ep a rtm en t o f its H e a d O ffice an d at its B u ffa lo B ra n ch . P lea se use the fo r m o n th e reverse side o f th is c ir cu la r to su bm it a ten der, and retu rn it in an en v elop e m a rk ed “ T e n d e r f o r T r e a s u r y B ills.” Payment fo r the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. immediately available f unds or in maturing Treasury bills. Settlement must be made in cash or other A lla n President. S p r o u l, Results o f last offering o f Treasury bills (9 0 -d a y bills dated O ctober 13, 1950, m aturing January 11, 1951) Total applied f o r ......... $1,616,323,000 Total accep ted ..............$1,001,891,000 (includes $114,998,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) Average price........ 99.666 Equivalent rate o f discount approx. 1.337% per annum Range o f accepted competitive bids: H igh ...................... 99.675 Equivalent rate o f discount 1.300% per annum L ow ........................ 99.663 Equivalent rate o f discount 1.348% per annum (8 percent o f the amount bid for at the low pricc was accepted) Federal R eserve D istrict Total Applied for .... New Y ork ............... .... Philadelphia ........... Cleveland .................. Richm ond .................. Atlanta ...................... Chicago ...................... Minneapolis ............. Kansas City ............. Dallas ........................ San Francisco ......... T o t a i. ........................ Please note that the results shown above are fo r 90-day Treasury bills. .... $ 14,031,000 1,236,058,000 24,790,000 28,249,000 7,172,000 14,916,000 151,192,000 14,934,000 5,393,000 29,482,000 38,010,000 52,096,000 $1,616,323,000 Total A ccepted $ 14,031,000 656,218,000 14,790,000 28,157,000 7,172,000 14,716,000 127,392,000 14,934,000 5,393,000 28,982,000 38,010,000 52,096,000 $1,001,891,000 ( oyer) 24D IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” If you desire to bid on a non-com petitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.’* D O N O T fill in both paragraphs on one fo rm . A separate tender m ust b e used f o r each bid. N o___________________ T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS Dated October 19, 1950 Maturing January 18, 1951 Dated a t ____________________ T o F ed era l R eserve B a n k o f N ew Y o rk , Fiscal A gent o f the United States. .1950 COMPETITIVE BID NON-COMPETITIVE 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 O ctob er 12, 1950, as issued b y 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 O ctober 12, 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 o f (Bate per 100) (Not to exceed $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 below ; □ □ By surrender of the maturing issue o f Treasury bills---------------- $.----------------------------------- By surrender o f the issue of Treasury bills_____ (Amount surrendered) □ maturing (Amount surrendered) By cash o r other immediately available funds □ By cash or other immediately available funds ♦ P r ice must be expressed on the basis o f 100, w ith not m ore than three decimal places , f o r exam ple, 99.925. T h e T reasu ry bills for w hich tender is hereby made are to be dated O cto b e r 19, 1950, and are to mature on January 18, 1951. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” Nam e of Bidder.. By (Please print) (Official signature required) (Title) Street A d dress ............................... (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 custom er’s name on line below: (Name of Customer) (City, Town or Village, P.O. No., and State) U se a separate tender fo r each custom er’s bid. IMPORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). A separate tender must be executed for each bid. 2. If the person making the tender is a corporation, the tender should be signed by an officer of the corpora tion authorized to make 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. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ........................................................................................, a copartnership, by ............................................................................................... a member o f the firm.” 3. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary o f the Treasury, is material, the tender may be disregarded. Paym ent b y cred it through T reasu ry T a x and Loan A cco u n t w ill n ot b e perm itted . T E N 'T B — 1059-a /
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