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FED ERAL R E SE R V E BANK O F N EW YORK C ircular N o. 3615 "I Fiscal A gen t o f the United States [ N ovem ber 16, 1950 J O ffe r in g o f $ 1 ,1 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T r e a s u ry B ills D a t e d N o v e m b e r 2 4 , 1950 M a t u r in g F e b r u a r y 2 3 , 1951 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: F ollow in g is the text o f a notice published today: 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, November 16, 1950. TREASU RY DEPARTM ENT Washington The Secretary o f the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, o f 91-day Treasury bills, for cash and in exchange for Treasury bills maturing November 24, 1950, to be issued on a discount basis under competi tive and non-competitive bidding as hereinafter provided. The bills o f this series w ill be dated November 24, 1950, and will mature February 23, 1951, when the face amount w ill be payable without interest. They w ill be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern Standard time, Monday, November 20, 1950. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case o f 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 forms and forwarded in the special envelopes which w ill 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 w ill 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 for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. Those submitting tenders w ill be advised o f the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves the 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-competitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted in full at the average price (in three decimals) o f accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on November 24, 1950, in cash or other immediately avail able funds or in a like face amount o f Treasury bills maturing November 24, 1950. Cash and exchange tenders w ill receive 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. The income 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 exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, o r any o f the possessions o f the United States, or by any local taxing authority. For purposes o f taxation the amount o f discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under 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 or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his income 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 o r 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. This Bank will receive tenders up to 2 p.m, Eastern Standard time, M onday, Novem ber 20, 1950, at the Securities Department o f its H ead 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 for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlem ent 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 of Treasury bills (91-day bills dated November 16, 1950, maturing February 15, 1951) Total applied fo r ........ $1,716,782,000 Total accepted..............$1,100,787,000 (includes$124,780,000 entered on a non-competitive basis and accepted in full at the average price shown below) Average price----- 99.655 Equivalent rate o f discount approx. 1.366% per annum Federal Reserve ______ DlStrU.[___ B o s to n ........................... New Y ork .................... Philadelphia ................ Cleveland ...................... ;;;;;;;;;;;; Range o f accepted competitive b id s : H i g h ...................... 99.680 Equivalent rate o f discount approx. 1.266% per annum L o w ....................... 99.652 Equivalent rate o f discount approx. 1.377% per annum (5 percent o f the amount bid for at the low price was accepted) C h ic a g o ......................... St. Louis ........................ M in n eap olis.................. ^ a m a s C i t y .................. F ran cisco' ^ ^ ! T otal .................... Total _ A pphedfor■ $ 10,425,000 1,265,544,000 32,015,000 46,685,000 H442.000 182,904,000 16,416,000 7,120,000 S S X I^ C O O --------------------$1,716,782,000 Please note that the current offering is dated Friday, 24, 1950 and matures Friday , February 23, 1951. November Total A cc ep te d _ $ 10,425,000 713,344,000 17,265,000 144490 0 0 14,442,000 143,654,000 16,221,000 7,120,000 ' S --------------------$1,100,787,000 ( o v e r ), 241 Please note that the current offering is dated Friday, November 24, 1950 and matures Friday, February 23, 1951. IM P O R T A N T — If you desire to bid on a com p etitive basis, fill in rate per 100 and maturity value in paragraph headed “ Competitive B id .” If you desire to bid on a non-com petitive basis, fill in only the maturity value in paragraph headed “ Non-competitive Bid.” DO N O T fill in b oth paragraphs o n o n e form . A separate tender must b e used fo r each bid. N o . ......................... T E N D E R FO R 91-D A Y T R E A S U R Y BILLS Maturing February 23, 1951 Dated N ovem ber 24, 1950 Dated a t ...................................... ................ To F ed era l R eserve B a n k o f N ew Y ork , Fiscal A gen t o f the United States. ..................................................................1950 C O M P E T IT IV E BID N O N -C O M P E T IT IV E B ID Pursuant to the provisions o f Treasury Department Circular N o. 418, as amended, and to the provisions o f the public notice on N ovem ber 16, 1950, as issued by the Secretary o f 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 N ovem ber 16, 1950, as issued by the Secretary of the Treasury, the undersigned offers a non-com petitive tender .............................................* for a total amount of for a total amount o f $ ............................................... (R a te per 100) (N ot to exce 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 below: □ By surrender of the maturing issue of Treasury b i l l s ................... $ ........................................ (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted com petitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender of the By cash or other immediately available funds issue of (A m ount surrendered) (A m ount surrendered) □ maturing Treasury b i l l s ................... $ ........................................ □ By cash or other immediately available funds * P r ic e must be expressed on the basis o f 100, with not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated Novem ber 24, 1950, and are to mature on February 23, 1951. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” Name o f Bidder................................................................................................................................... (P lea se print) B y................................................................................ . ................................................... (Official signature required) (T itle ) Street Address .......................................................................................................................... (C ity , T ow n or V illa g e , P. O. N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f C ustom er) (C ity , T ow n o r V illa g e , P. O. N o., and State) Use a separate tender for each customer’s bid. IM P O R T A N T IN ST R U C TIO N S: 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. I f the person making the tender is a corporation, the tender should be signed by an officer o f the corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed as a rep resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem ber o f the firm, who should sign in the form “ ....................................................................................................... . a copartnership, by ......................................................................................................... a member o f the firm.” 3. Tenders w ill 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 o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. 4. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded. Paym ent b y cred it through Treasury Tax and Loan A ccou n t w ill n ot b e perm itted. TE N T B —1064-a ( oveb)
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