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FE D E RA L RE SE R V E BANK O F N EW YO RK
[C ircular No. 3648.1
LJanuary 25,1951 J
Fiscal Agent o f the United States
Offering o f $1,100,000,000 of 91-Day Treasury Bills
Dated February 1, 1951
Maturing May 3, 1951
To all Incorporated Banks and Trust Companies in the
Second Federal R eserv e D istrict and O thers C on cern ed:
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 ,
T h u rsd a y, January 25, 1951.
TREASU RY DEPARTM ENT
W a s h in g to n
T h e S ecreta ry o f the T reasu ry, b y this pu blic n otice, invites tenders for $1,100,000,000, or thereabouts, o f 91-day T r e a s
u ry bills, fo r cash and in exch a n ge for T rea su ry bills m aturing F eb ru a ry 1, 1951, to be issued on a discou nt basis under c o m
petitive and n on -co m p etitiv e bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated F ebru ary 1, 1951, and w ill
m ature M a y 3, 1951, w hen the face a m ou n t w ill be payable 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 received at Federal R eserve B anks and B ran ch es up to the clo s in g h our, tw o o ’ c lo ck p.m ., E astern
S tandard tim e, M o n d a y , January 29, 1951. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a sh in g ton . E ach
ten der m u st be fo r an even m u ltiple o f $1,000, and in the case o f com p etitive ten ders the price offered m u st be exp ressed on
the ba sis o f 100, w ith n ot m o re than three decim a ls, e. g., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be
m a d e o n the prin ted fo rm s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed eral R e serv e B anks o r
B ra n ch es o n application th erefor.
O th e rs than b ankin g institutions w ill n ot be perm itted to subm it tenders e x cep t fo r their o w n a ccou n t. T e n d e rs w ill be
receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies and fr o m respon sible a n d recog n ized dealers in in
vestm en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 percen t o f the face a m ou n t o f T rea su ry bills
applied fo r, u nless the tenders are a ccom p a n ied b y an express gu a ra n ty o f pa ym en t b y an in corp ora ted bank o r tru st com p a n y .
Im m e d ia te ly a fter the clo s in g h our, tenders w ill be op en ed at the F ed eral R eserve B anks and B ra n ch es, fo llo w in g w hich
p u b lic a n n ou n cem en t w ill be m ade b y th e S ecreta ry o f th e 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
subm itting tenders w ill be advised o f the a ccep ta n ce o r rejection 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 o r all tenders, in w h ole or in part, and his a ction in a n y such resp ect shall be final. S u b ject
to these reservations, n on -com p etitiv e tenders fo r $200,000 or less w ith ou t stated price from any on e b idd er w ill be a ccep ted
in fu ll a t th e a vera ge price (in three decim a ls) o f a ccep ted com p etitive b ids. Settlem ent fo r a ccep ted tenders in a ccord a n ce
w ith the bids m ust be m ade or com p leted at the F ed eral R eserve B ank on F eb ru a ry 1, 1951, in cash or oth er im m ediately
available fu n ds o r in a like face am ou nt o f T rea su ry bills m aturing F eb ru a ry 1, 1951. Cash and exch a n ge tenders w ill re
ceive equal treatm ent. Cash adju stm en ts w ill be m ade fo r differences betw een the par value o f m aturing bills a ccep ted in
e x ch a n g e and the issue price o f the n ew bills.
T h e in co m e derived fro m T rea su ry bills, w hether interest or gain fr o m th e sale o r oth er d isp osition o f th e b ills, shall
n o t have a n y exem p tion , as such, and lo s s fro m the sale o r oth er d isp osition o f T rea su ry bills shall n ot have a n y special
treatm ent, as su ch , under the Internal R even u e C od e, o r laws a m en d a tory or supplem entary th ereto. T h e bills shall be
s u b je ct to estate, inheritance, gift, or oth er ex cise taxes, w h eth er Federal or State, but shall be exem p t fr o m all taxation
n o w o r h ereafter im p osed on the principal o r interest th ereof b y any State, or a n y o f the p ossession s o f the U n ited States,
o r b y a n y loca l ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly
s o ld b y the U n ited States shall be con sid ered to be interest. U n der S ection s 42 and 117 ( a ) ( 1 ) o f the In tern al R even u e
C ode, 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
so ld shall n o t be con sidered t o a ccru e until such bills shall b e sold, red eem ed o r oth erw ise disp osed o f, a n d such bills are
e xclu d e d fro m con sideration as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance c o m
pan ies) issued h ereu n der need in clude in his in com e ta x return o n ly th e differen ce betw een the price pa id f o r such bills,
w hether o n o rigin a l issue or on subsequen t pu rch ase, a n d the a m ou n t actu ally receiv ed either u p on sale o r red em ption at
m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss.
T re a su ry D epartm en t C ircu lar N o. 418, as am ended, and this n otice, prescrib e th e term s o f the T rea su ry bills and go v e rn
the con d ition s o f th eir issue. C opies o f the circular m a y be obtain ed fro m a n y F ed era l R eserve B a n k or B ran ch.
This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, January 29, 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 for Treasury Bills.” Payment fo r the Treasury bills cannot
be made by credit through the Treasury T ax and Loan A ccount. Settlement must be made in cash or other immediately
available funds or in maturing Treasury bills.
A llan
S proul,
President.
Results of last offering of Treasury bills (91-day bills dated January 25, 1951, maturing April 26, 1951)
T o ta l applied fo r.......... $1,748,818,000
T o ta l a cce p te d ............ $1,003,199,000 (in clu d es $121,892,000
entered on a n on -com p etitive basis
and a ccep ted in full at the a verage
price sh ow n b e lo w )
A v e ra g e p rice ........
99.649
E quivalent rate o f discou nt
app rox. 1.389% per annum
R a n ge o f a ccep ted com petitive b ids:
H ig h
........................
E q u iva len t rate o f discou nt
app rox. 1.353% per annum
L o w .......................... 99.648
E quivalent rate o f discou nt
a pp rox. 1.393% per annum
(98 percent o f the am ount bid for at the low
price w as a ccep ted )
99.658
Federal Reserve
District
B o s to n ..............................
N ew Y o r k .......................
Philadelphia
C leveland .......
R ich m on d .......
A tlanta ...........
C h ica g o ...........
St. L o u is .........
M in n eap olis ...
K ansas C ity ...
D allas ..............
San F ra n cisco
T o t a l ........................
Total
Applied for
Total
Accepted
21,665,000
1,283,117,000
27.140.000
51.748.000
6.557.000
19.480.000
170,275,000
20.940.000
6.897.000
25.879.000
38.983.000
76.137.000
17.109.000
664.215.000
12.140.000
51.146.000
6.556.000
19.436.000
113.851.000
17.464.000
6.553.000
25.871.000
28.787.000
40.071.000
$1,748,818,000
$1,003,199,000
$
(ovra)
24S
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.
XoQ I
N o .......
T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS
Dated February 1, 1951
' J ' 3 U 'r r j »
'•*,*{’
V
Maturing May 3, 1951
Dated at _____________
V
T o F e d e r a l R ese rv e B a n k o f N e w Y o r k ,
Fiscal Agent o f the United States.
.1951
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
January 25, 1951, as issued by the Secretary
v of
the
Treasury,
the
undersigned
offers
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 25,
1951, 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 $-----------------------------------------
(Rate per 100)
:■ - H i w * 1 t 6 .
(Not to exceed $200,000)
I
$............. .... ................ ..... ..... ....... (maturity value)
' ' o f the Treasury bills therein described, or fo r
aily 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
of
(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
Treasury bills______
- Treasury bills.-------------(Amount surrendered)
□
B y cash or other immediately available funds
the maturing
issue
of
$----
(Amount 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.
i'i.r'
The Treasury bills for which tender is hereby made are to be dated February 1, 1951, and are to
^ mature on May 3, 1951.
viJ?
This tender will be inserted in special envelope marked " Tender f o r Treasury Bills.,,
■ib
j all!
'i i S O O
m.w; fcsiKT!
■
■.;
N a m e o f Bidder..
U- rlo'ton':i
By
KWV02 bis
Street A d d ress
. ' T
. H
(Please print)
J M fE ” ?
' i i ?-
(Official signature required)
(Title)
(City, Town or Village, P.O. No., and State)
I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below:
vh ss>t
i
v
..........................................................................
(Name of Customer)
............................................................
(City, Town or Village, P.O. No., and State)
a separate tender for each customer’s bid.
IMPORTANT INSTRUCTIONS:
1.
N o ten der fo r less than $1,000 w ill b e con sidered, and each ten der m u st be fo r an even m u ltiple o f $1,000
(•maturity v a lu e ). A separate ten der m u st be execu ted fo r each bid.
*
2. I f the person m a k in g the ten der is a corp ora tion , th e ten der sh ou ld be sign ed b y an officer o f the c o rp o ra !v; tioh authorized to m ake the tender, and the sign in g o f th e ten der b y an officer o f the corp ora tion w ill be con stru ed as a
*0’ represen tation b y him that he has been s o authorized. I f the ten der is m ade b y a partnership, it sh ou ld be sign ed b y a
m ein b er o f the firm , w h o sh ou ld sign in the fo r m “ .................................................................................................... a copartn ersh ip, b y
C00jis&jA................. .V............................................................................ . a m em b er o f the firm .”
‘ :Ki
?j
3. T e n d e rs w ill be receiv ed w ith ou t d ep osit fr o m in corp ora ted banks and trust com pa n ies and fr o m resp o n <W)W?^.T*id re co g n iz e d dealers in in vestm en t securities. T en d ers fr o m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t
j-'iij/.oi th e fa ce a m ou n t o f T rea su ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent
,-jVjbyv'an in co rp o ra te d ba n k o r trust com p a n y .
00<>,\8\,34. I f thfe 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
OOOTSfotetary, is m aterial, the ten der m a y be disregarded.
OOO.^H.f.OO. It
Payment by credit through Treasury Tax and Loan Account w ill not be permitted.
(AWNjfTB—1074-a
(o v e k )
@FedFRASER