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FEDERAL RESERVE BANK O F N EW YORK f Fiscal A gent o f the United States I Circular No. 3 6 4 2 1 January 11, 1951 J Offering o f $1,000,000,000 of 91-Day Treasury Bills Dated January 18, 1951 Maturing April 19, 1951 To all In corporated Banks and T ru st Com panies in the S econd Federal R eserv e D istrict and O thers C oncerned: Follow ing is the text o f a notice published today: TREASU RY DEPARTM EN T W a s h in g to n 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 , T h u rsd a y, January 11, 1951. T h e S e cre ta ry o f the T rea su ry, b y this pu blic n otice, invites tenders fo r $1,000,000,000, o r thereabouts, o f 9 1 -d a y T rea su ry bills, f o r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g January 18, 1951, to be issued on a d iscou n t basis u n d er com p e ti tive and n o n -co m p e titiv e bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated January 18, 1951, and w ill m ature A p ril 19, 1951, w h en the fa ce a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo r m on ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity va lu e). T e n d e rs w ill be receiv ed at F ed eral R e serv e B anks and B ran ches up to the clo s in g hour, tw o o ’ c lo ck p.m ., Eastern Standard tim e, M o n d a y , January 15, 1951. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price o ffe re d m u st be exp ressed o n th e basis o f 100, w ith n ot m ore than th ree decim a ls, e.g., 99.925. F ra ction s m a y n o t be used. It is u rged that ten ders be m ade o n the prin ted fo rm s and fo rw a rd e d in th e special en velop es w h ich w ill be sup plied b y F ed eral R eserve B ank s o r B ran ch es o n a pp lica tion th erefor. O th e rs than b ankin g institutions w ill n ot be perm itted t o subm it tenders e x ce p t f o r th eir o w n a ccou n t. T e n d e rs w ill be re ce iv e d w ith o u t d ep o sit fr o m in corp ora ted banks and trust com p a n ies a n d fr o m resp on sib le and re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y p a ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T rea su ry bills a pp lied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted bank o r trust co m p a n y . Im m ed ia tely after the clo s in g h our, ten ders w ill be op en ed at the F ed eral R e s e rv e B anks and B ra n ch es, fo llo w in g w h ich p u b lic an n ou n cem en t w ill be m ade b y the S ecreta ry o f the T rea su ry o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be advised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry ex p ressly reserves the righ t to a cce p t o r re je ct a n y or all tenders, in w h ole o r in part, and his action in a n y such resp ect shall be final. S u b ject to these reservations, n o n -co m p e titiv e tenders fo r $200,000 or less w ith ou t stated p rice fr o m any on e b idd er w ill be a ccep ted in full at the a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitive bids. S ettlem en t fo r a ccep ted ten ders in a ccord a n ce w ith the b id s m ust be m ade or com p leted at the F ed era l R eserve Bank on January 18, 1951, in cash or oth er im m ediately available fu n ds o r in a like face a m ou n t o f T rea su ry bills m atu rin g January 18, 1951. C ash and ex ch a n g e tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade f o r d ifferen ces betw een th e par value o f m aturing bills a ccep ted in exch a n ge and the issue p rice o f the n ew bills. T h e in co m e derived fr o m T rea su ry bills, w h eth er interest o r gain fro m the sale o r oth er d isp osition o f th e b ills, shall n o t have a n y e x e m p tion , as such, and loss fr o m the sale or oth er d isp osition o f T rea su ry bills shall n o t have a n y special treatm ent, as such, under th e Internal R even u e C od e, o r law s a m en d a tory o r su p plem en ta ry th ereto. T h e bills shall be s u b je ct to estate, inheritance, g ift, o r oth er excise taxes, w h eth er F ed era l o r State, but shall be ex em p t fr o m all taxation n o w o r h erea fter im p osed on the principal o r interest th ereof b y any State, or any o f the p ossession s o f the U n ited States, o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f ta xation the a m ou n t o f d iscou n t at w hich T rea su ry bills are origin a lly s o ld b y th e U n ited States shall b e con sid ered to be interest. U n d er S ection s 42 and 117 ( a ) ( 1 ) o f the In tern a l R even u e C o d e , as a m en ded b y S ection 115 o f the R even u e A c t o f 1941, the a m ou n t o f d iscou n t at w h ich bills issued hereun der are s o ld shall n o t b e co n sid ered to a ccru e u ntil su ch bills shall b e sold , red eem ed o r oth erw ise disp osed o f , and such bills are e xclu d e d fr o m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (oth er than life in su rance c o m p a n ies) issued h ereu n der need in clude in h is in co m e ta x return o n ly the differen ce betw een the p rice paid fo r such bills, w h e th e r o n origin al issue o r on subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m aturity d u rin g the taxable yea r fo r w hich th e return is m ade, as ord in a ry gain or loss. T r e a s u ry D ep a rtm en t Circular N o . 418, as am en ded, and this n otice, prescrib e th e term s o f the T rea su ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f th e circular m ay be ob ta in ed fr o m any F ed eral R eserve B ank or B ranch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 15, 1951, 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 fo r Treasury Bills.” Payment f o 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 l l a n S p r o u l , President. Results of last offering of Treasury bills (91-day bills dated January 11, 1951, maturing April 12, 1951) T otal applied f o r ....$1,653,764,000 Total accepted .......... $1,000,019,000 (includes $140,562,000 entered on non-com petitive basis and accepted in full at the average price shown below ) A verage price 9 9.649+ Equivalent rate o f discount approx. 1.387% per annum Range o f accepted competitive b ids: H igh ..................... 99.670 Equivalent rate o f discount approx. 1.305% per annum L ow ....................... 99.647 Equivalent rate o f discount approx. 1.396% per annum (5 percent o f the amount bid fo r at the low price was accepted) Federal R eserve D istrict Boston ......................... . . . N ew Y o r k ................... Philadelphia ............... Cleveland ..................... Richmond ..................... Atlanta ......................... Chicago ......................... St. Louis ..................... Minneapolis ................. Kansas City ................. Dallas ............................ San Francisco ............. T otal ........................... ... Total A pplied f o r $ 25,275,000 1,196,226.000 29,695.000 39,779.000 9,454.000 18.998,000 167,212,000 24.000.000 6,073,000 29,946,000 53,993.000 53,113,000 $1,653,764,000 Total A ccep ted $ 25,275,000 592,026,000 14,945,000 39,779,000 9,454,000 18,998,000 137,262,000 23,905,000 6.073,000 29.946,000 53,993,000 48,363,000 • $1,000,019,000 (o v e r) 24Q IMPORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” If you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” DO N O T fill in both paragraphs on one form. A separate tender must be used for each bid. No............................ T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS Dated January 18, 1951 To F ederal R eserve B a n k of N e w Maturing April 19, 1951 Fiscal Agent o f the United States. 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 January 11, 1951, as issued by the Secretary of the Treasury, the undersigned offers ............................................. * fo r a total amount o f (Rate per 100) $ ...................................................... (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 : □ B y surrender o f the maturing issue o f Treasury bills................... $-----------------------------------(Amount surrendered) □ Dated at Y ork, B y cash or other immediately available funds .............................................................. 1951 NON-COMPETITIVE 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 January 11, 1951, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender for a total amount o f $ ............................................. (Not to exceed $200,000) (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 : Q B y surrender o f the maturing issue o f Treasury bills................... $-----------------------------------(Amount surrendered) □ B y cash or other immediately available funds * P r ice must be expressed, on the basis o f 100, with not m ore than three decim al places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated January 18, 1951, and are to mature on April 19, 1951. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B idder By (Please print) (Title) (Official signature required) Street A d d r e s s .................................. (City, Town or Village, P.O. No., and State) I f this ten der is subm itted b y a bank fo r the a ccou n t o f a cu stom er, indicate the cu sto m e r’ s nam e on line b e lo w : (Name of Customer) (City, Town or Village, P.O. No., and State) Use a separate tender for each customer’s bid. IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sidered, and each ten der m ust be fo r an even m ultiple o f $1,000 (m a tu rity v a lu e ). A separate tender m ust be execu ted fo r each bid. 2. I f the p e rso n m ak in g the ten der is a corp ora tion , the ten der shou ld b e sign ed b y an officer o f the c o rp o ra tion a uthorized to m ak e the tender, and the s ig n in g o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a representation b y him that he has been s o authorized. I f the tender is m ade b y a partnership, it shou ld be sig n ed b y a m em ber o f the firm , w h o sh ou ld sig n in the fo r m “ ............................................................................................... a cop artn ersh ip, b y ........................................................................................................... . a m em b er o f the firm .” 3. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m re sp o n sible and re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y pa ym en t o f 2 percent o f the face a m ou n t o f T rea su ry bills a pplied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t b y an in co rp o ra ted bank o r trust com p a n y . 4. I f the language o f this ten der is ch a n ged in a n y respect, w h ich , in the op in ion o f th e S ecreta ry o f the T re a su ry , is m aterial, the ten der m a y b e disregarded. "Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B — 1072-a (o v e r)