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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 (ovut) 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 for T EFRASER N T B — 1066-a (ovu)