View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FED ERAL RESERVE BANK O F N EW YORK
f Circular No. 3 6 4 9 1
I February 1, 1951 J

Fiscal Agent o f the United States

Offering of $1,100,000,000 of 91-Day Treasury Bills
Maturing May 10, 1951

D a te d F e b ru a ry 8 , 1 9 5 1
To all Incorporated Banks and T ru st Companies in the
Second F edera l R eserv e D istrict and O thers C oncerned:
F o l l o w i n g is th e t e x t o f a n o t ic e p u b lis h e d t o d a y :
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, F eb ru a ry 1, 1951.

TREASU RY DEPARTM EN T
W a s h in g to n

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 $1,100,000,000, o r th ereabouts, o f 9 1-d ay T reasu ry
bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g F eb ru a ry 8, 1951, to be issued on a discou n t basis under c o m 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 F eb ru a ry 8, 1951, and w ill
m ature M a y 10, 1951, w h en th e fa ce a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill be issued in b ea rer 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 v a lu e).
T e n d e rs w ill be receiv ed at Federal R e serv e B anks and B ran ch es up t o the clo s in g h our, tw o o ’ c lo c k p.m ., E astern
S tandard tim e, M on d a y , F ebru ary 5, 1951. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E a ch
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 offered m u st be exp ressed
o n the 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 ot be used. It is u rg ed th at ten ders be
m ade o n the printed fo rm s and forw a rd ed in th e special en velop es w h ich w ill be supplied b y F ed era l 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 a n k in g institutions w ill n ot be perm itted to subm it tenders e x ce p t fo r their o w n a ccou n t. T e n d e rs w ill be
receiv ed 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 r e 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 be a ccom p a n ied b y p a y m 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 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 p a y m en t b y an in corp ora ted bank o r
trust co m p a n y .
Im m ed ia tely a fter the clo s in g h our, ten ders w ill be op en ed at the F ed era l R e serv e B anks and B ra n ch es, fo llo w in g w hich
p u blic a n n ou n cem en t w ill be m ade b y the S ecreta ry o f th e T rea su ry o f th e a m ou n t and p rice ra n ge o f a ccep ted bids. T h o s e
s u b m ittin g ten ders w ill b e advised o f the a ccep ta n ce or re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry e x p ressly reserves
the righ t to a cce p t o r re je ct any o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall b e final. S u b ject
to these reservations, n o n -co m p e titiv e ten ders fo r $200,000 o r less w ith ou t stated p r ice fr o m any on e b id d er w ill be a ccep ted
in full at the a vera ge price (in th ree decim a ls) o f a ccep ted com p etitive bids. S ettlem en t fo r a ccep ted tenders in a ccord a n ce
w ith the bids m u st be m ade o r com p le te d at the F ed eral R eserve B ank o n F eb ru a ry 8, 1951, in cash or oth er im m ediately
available fu n ds o r in a like fa ce am ou nt o f T rea su ry bills m atu rin g F eb ru a ry 8, 1951. Cash and exch a n ge tenders w ill receive
equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een th e par value o f m atu rin g 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 fro m T rea su ry bills, w h eth er in terest o r ga in fro m the sale or 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 loss fr o m the sale or oth er d isp osition o f T r e a s u ry bills shall n o t have a n y special
treatm ent, as such, under the In tern al 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, gift, o r o th e r e x cis e taxes, w h eth er F ed era l o r State, b u t shall be e x e m p t fro m all taxation
n o w o r h erea fter im p osed on the principal o r interest th e re o f b y a n y State, o r a n y o f the p ossession s o f th e 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 h ich T rea su ry bills are origin a lly
sold b y the 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 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 h ereun der are
so ld shall n o t be co n sid ered to a ccru e until su ch bills shall be 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 sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (oth er than life in su rance c o m ­
pan ies) issued h ereun der need in clu d e in his in co m e tax return o n ly the differen ce betw een the price paid fo r su ch bills,
w h eth er o n origin al issue o r on su b seq u en t pu rch ase, and the a m ou n t actu a lly receiv ed either u pon sale o r red em p tion at
m atu rity d u rin g the ta xab le yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss.
T r e a s u ry D ep a rtm en t C ircular N o . 418, as am en ded, and this n otice, p rescrib e the term s o f the T r e a s u ry bills and go v e rn
the co n d itio n s o f th eir issue. C op ies o f the circu la r m ay be obtain ed fr o m a n y F ed eral R e serv e B a n k o r B ran ch.
T h i s B a n k w ill r e c e iv e t e n d e r s u p t o 2 p .m ., E a s t e r n S t a n d a r d tim e , M o n d a y , F e b r u a r y 5 , 1 9 5 1 , a t th e S e c u r it ie s
D e p a r t m e n t o f its H e a d O f f i c e a n d a t its B u f f a l o B r a n c h . P le a s e u s e th e f o r m o n th e r e v e r s e s id e o f th is c ir c u la r t o
s u b m it a te n d e r , a n d r e t u r n it in a n e n v e lo p e m a r k e d “ T e n d e r f o r T r e a s u r y B ills .”
Payment f o r the Treasury bills

cannot be made by credit through the Treasury T ax and Loan Account.
immediately available funds or in maturing Treasury bills.

Settlement must be made in cash or other
A

llan

S proul,

President.

R e s u l t s o f l a s t o f f e r i n g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a t e d F e b r u a r y 1 , 1 9 5 1 , m a t u r i n g M a y 3 , 1 9 5 1 )
T otal applied f o r ___ $1,898,002,000
Total accepted ...........$1,103,250,000 (includes $104,803,000
entered on a non-com petitive basis and
accepted in full at the average price
shown b elow )
.
t> •
nn aao i tr • 1 *
+
f at
A verage P rice
99.648+ Equivalent rate o f discount
approx. 1.391% per annum
Range o f accepted competitive b id s :
H igh .......................
99.658
Equivalent rate o f discount
annrox 1 353% ner annum
noA„7
r
i V
* P r ,.anm™
fe
L ow ......................... 99647
Equivalen1 , n
t r^Le o f d,scount
approx. 1.396% per annum
(44 percent o f the amount bid fo r at the low
price was accepted)




Federal R eserv e

T ota l

T otal

____ P is
.trict____
A pplied f o r
. A ccep ted
Boston ..................................
$
19,023,000
$
18,743,000
N ew Y o r k ......................... 1,429,473,000
754,473,000
Philadelphia .......................
26,865,000
11,585,000
Cleveland ............................
36,637,000
35,237,000
Richm ond ............................
12,690,000
l^ O .O O O
................................
18,946,000
18,386,000
Atlanta
Chicago ................................
198,683,000
140,963,000
St. Louis ..............................
Minneapolis ........................
4,005,000
4,005,000
Kansas City ........................
25,943,000
25,943 000
Dallas ...................................
32,120,000
29,264,000
San Francisco ....................
73,159,000
34,679,000
---------------------- ---------------------------T otal ............................
$1,898,002,000
$1,103,250,000
(over)

24T
IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity
value in paragraph beaded "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.” D O
N O T fill in both paragraphs on one fo rm . A separate tender m ust be used f o r each bid.

No.......................
T E N D E R F O R 91 -D A Y T R E A S U R Y BILLS
Dated February 8, 1951
To

F ederal R eserve B a n k of N e w

Maturing May 10, 1951
Dated at

Y ork,

Fiscal Agent o f the United States.

.............................................................. 1951

COMPETITIVE BID
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
February 1, 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 :
□
By surrender o f the maturing issue o f
Treasury bills................... $________________________
(Amount surrendered)

□

B y cash or other immediately available funds

N O N -C O M P E T IT IV E

B ID

Pursuant to the provisions o f Treasury D e­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on February 1,
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:
□
By surrender o f the maturing issue o f
Treasury bills................... $-----------------------------------(Amount surrendered)

□

By cash or other immediately available funds

* P r ic e m ust be ex p ressed on the basis o f 100, w ith not
m ore than th ree decim al places, f o r exa m ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated February 8, 1951, and are to
mature on M ay 10, 1951.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.”
N a m e o f B id der

By

(Please print)

(Title)

(Official signature required)

S treet A d d re s s

(City, Town or Village, P.O. No., and State)

I f this tender is su b m itted b y a bank fo r th e a ccou n t o f a cu stom er, indicate th e 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)

U s e a separate ten der f o r ea ch cu stom er’ s b id.

IMPORTANT INSTRUCTIONS:

.

1. N o ten der fo r less than $1,000 w ill be con sid ered , and each ten der m ust be fo r an even m u ltiple 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 erson m a k in g the ten der is a corp ora tion , th e ten der sh ou ld b e sign ed b y an officer o f the c o rp o ra ­
tion a uthorized to m ake the tender, and the sig n in g o f th e ten der b y an officer o f th e co rp o ra tio n w ill be con stru ed as a
represen tation b y him that he has been s o authorized. If th e ten der is m ade b y a partnersh ip, it sh ou ld be sign ed b y a
m em b er o f the firm , w h o sh ou ld sign 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 en d ers fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t
o f the face a m ou n t o f T r e a s u 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 pa ym en t
b y an in co rp o ra te d b a n k o r trust com p a n y .
4. I f the language o f this ten der is ch a n ged in any respect, w h ich , in the op in ion o f the S ecreta ry o f the
T rea su ry, is m aterial, the ten der m a y be disregarded.

Paym ent b y cred it through Treasury T ax and Loan A cco u n t tvill n ot be perm itted.

T E N T B — 1075-a


(ovbb)

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