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FEDERAL RESERVE BANK O F NEW YORK j C ir cu la r N o. 3 6 f « V 4>y?VeD1b e r 23,1950J Fiscal Agent o f the United States Offering o f $1,100,000,000 o f 91-Day Treasury Bills D a te d N o v e m b e r 3 0 , 1 9 5 0 M a tu rin g M a rc h 1, 1 9 5 1 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: Following is the text o f a notice published today: TREASURY DEPARTM ENT W ashington 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, N ovem ber 23, 1950. T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing Novem ber 30, 1950, to be issued on a discount basis under com petitive and non-competitive bidding as hereinafter provided. T h e bills o f this series will be dated Novem ber 30, 1950, and will mature March 1, 1951, when the face amount will be payable without interest. T h ey will 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 vaiue). 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, N ovem ber 27, 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 o f 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 will not be permitted to submit tenders except for their own account. Tenders w ill be received without deposit from incorporated banks and trust com panies 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. Imm ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcement will be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept or reject any o r 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) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on N ovem ber 30, 1950, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing N ovem ber 30, 1950. Cash and exchange tenders will re ceive equal treatment. Cash adjustments w ill be made for differences between the par value of maturing bills accepted in exchange and the issue price o f the new bills. The 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. T h e 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 im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. F or 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. A ccordingly, 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 or loss. Treasury Department Circular N o. 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, Monday, November 27, 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 Treasury 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 lla n S p r q u l , P r e s id e n t. Results o f last offering o f Treasury bills (91 -d ay bills dated N ovem ber 24, 1950, m aturing February 23, 1951) Total applied for......... $1,563,835,000 Total a c c e p te d ..............$1,105,135,000 (includes $122,100,000 entered on a non-competitive basis and accepted in full at the average price shown below ) Average price....... 99.651+ Equivalent rate of discount approx. 1.380% per annum Range o f accepted competitive bids: Federal Reserve District Boston ...................... ..... N ew Y ork .............. ..... Philadelphia ........... Cleveland ............... Richm ond ............... ...................... 99.666 Equivalent rate o f discount approx. 1.321% per annum St. Louis ................ M inneapolis ......... . Kansas City ........... L o w ........................ 99.649 Equivalent rate o f discount approx. 1.389% per annum San Francisco ....... High (T h e entire amount bid for at the low price was accepted) T otal ...................... Total Applied for $ 16,783,000 1,117,532,000 25,103,000 54,245,000 11,775,000 9 299 000 Total Acccpted $ 14,418,000 6,290,000 25,965,000 28,008,000 84,122,000 16,783,000 684,032,000 20,103,000 54,245,000 11,775,000 9 299 000 150,295,000 14,218,000 6,290,000 25,965,000 28,008.000 84,122,000 $1,563,835,000 $1,105,135,000 ( over) ■f. Tsii-^ii ' •e-'r*l‘:' 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.” DO N O T fill in b oth paragraphs on one fo rm . A separate tender m ust be used f o r each bid. N o............ .................... TENDER FOR 91 -D A Y TREASURY BILLS Dated November 30, 1950 T / .H M i / iA t d u To Maturing March 1, 1951 . Dated at ----------------------------- F ed era l R eserve B a n k o f N ew Y ork , Fiscal Agent o f the United States. -mo.) v> .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 November 23, 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 November 23, 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 $___________________________ a d i l i w- i (Rate per 100) - ii X iiii (Not to exceed $200,000) )) 1 ii . . . $ ---------------------------------------------- (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: □ □ m u L By surrender of the maturing issue of By surrender of maturing issue of Treasury bills__________ Treasury bills— .... (Amount surrendered) □ the B y cash or other immediately available funds (Amount surrendered) □ By cash or other immediately available funds * P r ic e must b e expressed on the basis o f 100, w ith not m ore than three dccimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated November 30, 1950, and are to mature on March 1, 1951. This tender ivill be inserted in special envelope marked “ Tender f o r Treasury B ills” Name o f Bidder. (Please print) H F S iiu a .■il’. id r i3 U 3 lo t noitqiR-ib n By ........ (Title) (Official signature required) Street Address (City, Town or Village, P.O. No., and State) ()J If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: .V, (Name of Customer) (City, Town or Village, P.O. No., and State) Use a separate tender for each customer’s bid. ( I ? IM PORTANT INSTRUCTIONS: 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple o f $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 o f the corpora tion authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed as a representation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a mem ber o f the firm, w ho should sign in the form “ ............................................................................................. a copartnership, by ijfi.t.v-v.--'.................»—■•••.....>............................................................ a member o f the firm.” 3. Tenders will be received without deposit from incorporated banks and trust companies and from respon’Sttite'and recognizec! dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent ' .o f Hie. face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment " ' b y iifi in corporated bank o r 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 T a x and Loan A cco u n t w ill n ot be perm itted. http://fraser.stlouisfed.org/ 'I 'E X T B — 10t>5 a Federal Reserve Bank of St. Louis ( over)
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