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FEDERAL RESERVE BANK O F NEW YORK
f Circular N o . 3 6 2 0 1
I November 30, 1960 j

Fiscal A g e n t o f the U nited States

Offering o f $1,100,000,000 o f 91-Day Treasury Bills
Dated December 7, 1950

Maturing March 8, 1951

T o all In corpora ted Banks and Trust Com panies in the
Second Federal R eserv e D istrict and O thers C oncerned:

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, N ovem ber 30, 1950.

TREASU RY DEPARTM ENT
W ashington

T he 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 ireasu ry bills maturing D ecem ber 7, 1950, to be issued on a discount basis under com peti­
tive and non-com petitive bidding as hereinafter provided. T he bills o f this series will be dated D ecem ber 7, 1950, and will
mature March 8, 1951, when the face am ount will be payable without interest. T h ey 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 closin g hour, tw o o’ clock p.m., Eastern
Standard time, M onday, D ecem ber 4. 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 com petitive 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 ow n account. Tenders w ill be
received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in
investment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face am ount o f Treasury
bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or
trust com pany.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g 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 will be advised o f the acceptance or rejection thereof. T he 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-com petitive 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 D ecem ber 7, 1950, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing D ecem ber 7, 1950. Cash and exchange tenders w ill receive
equal treatment. Cash adjustments will 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. 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 ccordin gly, the ow ner o f Treasury bills (other than life insurance c o m ­
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 o r 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, December 4, 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 f o r the Treasury bills
cannot be made by credit through the Treasury T a x and Loan Account. Settlement must be made in cash or other
immediately available funds or in maturing Treasury bills.
A l l a n S p r o u l , President.
Results o f last offering o f Treasury bills (9 1 -d a y bills dated N ovem ber 30, 1950, m aturing M arch 1, 1951)
Total applied f o r .......... $1,705,212,000
Total accepted .............. $1,101,205,000 (includes $101,804,000
entered on a non-com petitive basis
and accepted in full at the average
price shown below )
Average price .
99.650+ Equivalent rate o f discount
npprox. 1.383% per annum
Range o f accepted com petitive bids: (excepting one tender
n f *100 000)
or
H ,gh
99.660
Equivalent rate o f discount
approx. 1.345 % per annum
L ow
...................
99.649
Equivalent rate o f discount
approx. 1.389% per annum
(59 percent o f the amount bid for at the low
price was accepted)




Federal R eserv e
D istrict

Boston .............................
New Y ork .....................
Philadelphia ...................
Cleveland
Richm ond ......................
Atlanta
Chicago ...........................
St Louis .........................
M in n e a p o lis ...................
Kansas City ..................
Dallas .............................
San Francisco ..............
Total

..............

T otal
A pplied f o r

Total
A ccep ted

$

7,240,000
$
6,240,000
1,289,438,000
782,758,000
31,757,000
19,297,000
26,224.000
25,983,000
9,555.000
9,473,000
7.011,000
6,601,000
197,375,000
143,159,000
22,045,000
16,490,000
4,205,000
4;i03;000
21.660,000
21,660,000
19,985.000
19,885,000
68,717,000
45,556.000
---------------------- ---------------------------$1,705,212,000
$1,101,205,000

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24K
IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity
value in paragraph headed “ Com petitive Bid.” I f you desire to bid on a non-com petitive
basis, fill in only the m atu rity value in paragraph headed "N on -com petitive Bid.”
DO
N O T fill in both paragraphs on one fo rm . A separate ten d er m ust be used fo r each bid.
N o...........................

TENDER FOR 91-D A Y TREASURY BILLS
D ated Decem ber 7, 1950
To

M aturing M arch 8, 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.

1950

CO M PE TITIV E 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 30, 1950, as issued by the Secretary
of
the Treasury, the undersigned
offers
.............................................* for a total amount o f

N O N -C O M P E T IT IV E BID
Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on November 30,
1950, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender
for a total amount o f $ .............................................

(R ate per 100)

(N ot 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 below :
□
By surrender o f the maturing issue o f

(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 o f the maturing issue o f

Treasury bills................... $_

Treasury bills................... $_
(A m ount surrendered)

□

By cash or other immediately available funds

(A m ount surrendered)

□

B y cash or other immediately available funds

* Price must be expressed on the basis o f 100, with not
more than three decimal places, fo r example, 99.925.

The Treasury bills for which tender is hereby made are to be dated December 7, 1950, and are to
mature on March 8, 1951.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills."
Name o f Bidder
(Please print)

By .

(Official signature required)

(T itle )

Street Address

(C ity, T ow n o r V illage, P .O . N o., and State)

If this tender is submitted by a bank for the account o f a customer, indicate the custom er’s name on line below :
(N am e o f Custom er)

(C ity, Town o r V illage, P .O . N o., and State)

Use a separate tender fo r each custom er’ s bid.

IM P O R T A N T IN ST R U C T IO N S:
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. If 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
..................................................................................................... a mem ber 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 accom panied by payment o f 2 percent
o f the face amount o f Treasury bills applied for, unless the tenders are accom panied b y 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 T a x and Loan A cco u n t w ill n ot be perm itted.
Digitized forE N T B — 1066-a
T FRASER


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