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FEDERAL RESERVE BANK O F NEW YORK [C ircu la r No. 3Booi LF ebruary 15,1951J Fiscal Agent o f the United States Offering o f $1,100,000,000 of 90-Day Treasury Bills Dated February 23, 1951 Maturing May 24, 1951 T o 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 today: 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 15, 1951. TREASU RY DEPARTM ENT W a sh in g ton T h e S ecreta ry o f the T rea su ry , b y this p u b lic n otice, invites tenders fo r $1,100,000,000, or th ereabouts, o f 9 0-d ay T r e a s u ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing F ebru ary 23, 1951, to be issued on a d iscou n t basis u nder 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 eb ru a ry 23, 1951, and w ill m ature M a y 24, 1951, w hen the face am ou nt 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 F ed eral R eserve B anks and B ra n 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 , F eb ru a ry 19, 1951. T en d ers w ill n ot be receiv ed at the T reasu 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 u ltiple o f $1,000, and in the case o f com p etitive ten ders the price o ffe re d m u st be exp ressed on the basis o f 100, w ith n ot m o re than three decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be m ade o n the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed era l R e serv e B anks or B ra n ch es o n application therefor. O th ers than b ankin g institutions w ill n ot be perm itted to subm it tenders e x ce p t fo r their ow n a ccou n t. T en d ers w ill be re ce iv e d w ith ou t dep osit from in corp ora ted banks and trust com panies and fr o m respon sible and recog n ized dealers in in v e stm en t securities. T en d ers fro m oth ers m ust be a ccom p a n ied b y paym ent 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 tenders are a ccom p a n ied b y an express gu a ra n ty o f p a ym en t b y an in corpora ted bank or trust com pan y. Im m ed ia tely after 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 pu blic 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 subm itting tenders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecretary o f the T rea su ry ex p ressly reserves the righ t to a cce p t o r reject any o r all tenders, in w h o le or in part, and his a ction in any such resp ect shall be final. S u b ject to these reservations, n on -com p etitive tenders fo r $200,000 or less w ith ou t stated price fr o m a n y on e bidder w ill be a ccep ted in full at the average price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted tenders in a cco rd a n ce w ith the bids m u st be m ade or com p leted at the Federal R eserve B ank on F eb ru a ry 23, 1951, in cash o r oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m aturing F eb ru a ry 23, 1951. Cash and ex ch a n g e tenders w ill re ceive equal treatm ent. Cash adjustm ents 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 from T rea su ry bills, w hether interest or gain fro m the sale or oth er d isp osition o f the b ills, shall n ot have a n y exem ption , as such, and loss fr o m the sale or oth er disp osition o f T rea su ry bills shall n o t have a n y special treatm ent, as such, under the Internal R even u e C ode, o r law s a m en d a tory or supplem entary th ereto. T h e bills shall be su b ject to estate, inheritance, g ift o r oth er excise taxes, w h eth er Federal or State, but shall be exem pt fro m all taxation n o w o r hereafter im posed on the principal or interest th ereof b y a n y State, o r any 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 rp oses o f taxation the a m ou n t o f d iscou n t at w hich T rea su ry bills are originally sold 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 ue 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 sold shall n o t be con sidered to accru e until such bills shall be sold, red eem ed o r oth erw ise d isp osed of, and such bills are exclu d ed from con sideration as capital assets. A c co r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance c o m pa n ies) issued hereun der need in clude in his in com e tax return o n ly the differen ce betw een the price paid fo r such bills, w h eth er on o rig in a l issue or on subsequent pu rch ase, and the am ou nt actu a lly receiv ed either u p on sale or redem ption at m aturity d u rin g the taxable yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss. T re a su ry D epa rtm en t C ircular N o . 418, as am ended, and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C opies o f the circular m a y be obtain ed fro m a n y Federal R eserve B a n k o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, February 19, 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 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. R esu lts o f la st o ffe rin g o f T r e a s u r y bills ( 9 1 - d a y b ills d a ted F e b r u a r y 1 5 , 1 9 5 1 , m a tu r in g M a y 1 7 , 1 9 5 1 ) T o t a l applied fo r ............ $1,904,536,000 T o ta l a ccep ted ...............$1,101,541,000 (in clu des $99,399,000 entered on a n on -com p etitive basis and accepted in full at the average price show n b e lo w ) A v e ra g e p rice ........ 99.648 E q u iva len t rate o f discount app rox. 1.391% per annum R a n g e o f a ccep ted com p etitive b id s: (e x ce p tin g on e tender o f $310,000) H ig h ........................ 99.651 E quivalent rate o f discount a pp rox. 1.381% per annum L o w .......................... 99.647 E quivalent rate o f discount a pp rox. 1.396% per annum (19 percent o f the am ount bid fo r at the low price w as a ccep ted) Federal R eserv e D istrict B oston .............................. N ew Y o r k ...................... Philadelphia C leveland ....... R ich m on d ....... A tlanta ........... C h ica g o ........... St. L ou is ......... M in n eap olis ... K ansas C ity ... D allas .............. San F ra n cisco T o t a l ....................... Total A pplied f o r $ T otal A ccepted 6,855,000 1,473,113,000 23.419.000 49.433.000 7.730.000 7.908.000 169.548.000 26.050.000 4.244.000 32.862.000 38.090.000 65.284.000 6.403.000 821.053.000 7.609.000 40.442.000 7.730.000 7.908.000 109.968.000 13.158.000 4.244.000 28.812.000 25.940.000 28.274.000 $1,904,536,000 $1,101,541,000 £B~Please note that the current offering is fo r 9 0-day Treasury Bills ( over ) 24V I M P O R T A N T — -Please n ote th a t this o ffe rin g is f o r 9 0 - D A Y T R E A S U R Y B IL L S w h ic h w ill be d a te d February 2 3 , 1951 , in stead o f Thursday, February 2 2 , 1951, Washington's Birthday. I M P O R T A N T — I f y o u desire t o b id on a competitive basis, fill in r a te p er 1 0 0 an d m a t u r it y v a lu e in p a r a g ra p h h ea d e d "C o m p e t it iv e B id .” I f y o u desire t o b id on a non-competitive b asis, fill in o n ly th e m a t u r it y v a lu e in p a r a g r a p h h ead ed "N o n -c o m p e t i t i v e B id .” DO N O T fill in both paragraphs on one form. A separate tender must be used for each bid. N o__________________ T E N D E R F O R 9 0 -D A Y T R E A S U R Y BILLS M a tu r in g M a y 2 4 , 1 9 5 1 D a ted F eb ru ary 2 3 , 19 51 Dated at -----------------------To F e d e ra l R eserve B a n k o f N ew Y o rk , Fiscal Agent o f the United States. .1951 C O M P E T I T I V E B ID N O N - C O M P E T I T I V E B ID Pursuant to the provisions o f Treasury Department Circular N o. 418, as amended, and to the provisions o f the public notice on February 15, 1951, as issued by the Secretary 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 February 15, 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 $.. (R ate per 100) (N ot to exceed $200,000) (maturity value) $.. o f the Treasury bills therein described, o r 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 maturing Treasury bills (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 b elow : □ By surrender o f maturing Treasury bills amounting to......................... $.................................... amounting to......................... $.................................... □ □ By cash or other immediately available funds By cash or other immediately available funds * P ricc must be expressed on the basis o f 100, w ith not m ore than three decimal places, f o r example, 99.925. The Treasury bills for which tender is hereby made are to be dated February 23, 1951, and are to mature on M ay 24, 1951. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B idder. B y .......... (P lease p rin t) (T itle) (Official signature required) Street A d d ress (C ity, T ow n or V illage, 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: (N am e o f Custom er) (C ity, T ow n or V illage, P.O. No., aud Slate) 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 u st be f o r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). A separate ten der m u st b e execu ted fo r each bid. 2. I f the person m a k in g the ten der is a corp ora tion , the 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 the ten der b y an officer o f th e corp ora tion w ill be con stru ed as a represen tation b y h im that he has b een 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 e m b e r o f the firm , w h o sh ou ld sign in the fo r m “ ..................................................................................................... a copartn 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 fro m in corpora ted banks and trust com pa n ies and fro m resp o n sible and re co g n ize d dealers in in vestm ent securities. T en d ers fro 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 face a m ou n t o f T r e a s u ry bills a pplied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted ba n k o r trust com pan y. 4. I f the language o f this ten der is ch a n ged in a n y respect, w hich, in the opin ion o f the S ecreta ry o f the T re a su ry , is m aterial, the ten der m a y be disregarded. Payment b y credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ TENTB—1077-a Federal Reserve Bank of St. Louis ( over)
@FedFRASER