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FEDERAL

RESERVE

BANK

OF

NEW

YORK

Fiscal A gent o f the United States

[

Circular No. 3662
M a r c h 1, 1951

Offering of $1,100,000,000 of 91-Day Treasury Bills
Dated March 8, 1951

Maturing June 7, 1951

T o all Incorporated Banks and T ru st Com panies in the
Second Federal R eserv e D istrict and O thers C oncerned:

F ollow ing is the text of a notice published to d a y :
F O R R E L E A S E , M O R N IN G
T h ursday, M arch 1, 1951.

TREASURY DEPARTM ENT
W ash in gton

N EW SPAPERS,

T h e S ecreta ry o f the T reasu ry, by this pu blic notice, invites tenders fo r $1,100,000,000, o r thereabouts, o f 91-day T reasu ry
bills, fo r cash and in exch ange fo r T reasu ry bills m aturing M a rch 8, 1951, to be issued on a discou nt basis under com peti­
tive and n on-com petitive b idd ing as h ereinafter provided. T h e bills o f this series w ill be dated M a rch 8, 1951, and w ill
mature June 7, 1951, when the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer fo rm only,
and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e).
T en ders w ill be received at Federal R eserve Banks and B ran ches up to the clo s in g hour, tw o o ’ c lo ck p.m., Eastern
Standard time, M on day, M arch 5, 1951. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . Each
tender must be fo r an even m ultiple 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, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is u rged that tenders be
m ade on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied by Federal R eserve Banks or
B ranches on a pp lication therefor.
O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be
received w ith ou t deposit fro m in corporated banks and trust com panies and from responsible and recogn ized dealers in in­
vestm ent securities. T en ders from others must be accom panied b y paym ent o f 2 percent o f the fa ce am ount o f T rea su ry bills
applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank or trust com pany.
Im m ediately after the clo s in g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich
pu blic announcem ent w ill be made by the S ecretary o f the T rea su ry o f the am ount and price range o f accepted bids. T h ose
subm itting tenders w ill be advised o f the acceptance o r rejection th ereof. T h e S ecreta ry o f the T reasu ry exp ressly reserves
the right to accept o r reject any o r all tenders, in w h ole or in part, and his action in any such respect shall be final. Su bject
to these reservations, non-com p etitive tenders fo r $200,000 or less w ith ou t stated price from any one b idd er w ill be accepted
in fu ll at the average price (in three decim a ls) o f a ccepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce
w ith the bids must be made or com pleted at the Federal R eserve Bank on M a rch 8, 1951, in cash or oth er im m ediately
available funds o r in a like face am ount o f T reasu ry bills m aturing M arch 8, 1951. Cash and exch a n ge tenders w ill receive
equal treatment. Cash adjustm ents w ill be made fo r differences between the par value o f m aturing bills a ccepted in exch ange
and the issue price o f the new bills.
T h e incom e derived from T reasu ry bills, w hether interest or ga in from the sale or oth er disp osition o f the bills, shall
not have any exem ption, as such, and loss fr o m the sale o r oth er d isp osition o f T reasu ry bills shall n ot have any special
treatment, as such, under the Internal Revenue C ode, o r laws am endatory o r supplem entary thereto. T h e bills shall be
subject to estate, inheritance, gift, or oth er e x cis e taxes, w hether Federal or State, but shall be exem pt from all taxation
n ow o r hereafter im posed on the principal or interest th ereof by any State, or any o f the possessions o f the U nited States,
o r b y any lo ca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w hich T reasu ry bills are o rigin a lly
sold by the U nited States shall be con sidered to be interest. U n der S ections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue
Code, as am ended by S ection 115 o f the Revenue A ct o f 1941, the am ount o f discou n t at w hich bills issued hereunder are
s o ld shall n ot be con sidered to a ccru e until such bills shall be sold, redeem ed or oth erw ise disp osed o f , and such bills are
e xclu ded from con sideration as capital assets. A ccord in g ly , the ow n er o f T reasu ry bills (oth er than life insurance co m ­
panies) issued hereunder need include in his in com e ta x return on ly the difference betw een the price paid fo r such bills,
w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at
m aturity du rin g the taxable year f o r w hich the return is m ade, as ordinary gain o r loss.
T reasu ry D epartm ent C ircu la r N o. 418, as am ended, and this notice, prescribe the terms o f the T reasu ry bills and
govern the conditions o f their issue. C opies o f the circu la r m ay be obtain ed from any Federal R eserve Bank o r Branch.

This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 5, 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 for 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 o f last offering o f Treasury bills (91-day bills dated March 1, 1951,maturing May 31, 1951)
T o ta l applied f o r ........ $1,904,082,000
T o ta l accepted ............. $1,105,413,000 (inclu des $93,084,000
entered on a n on -com p etitive basis
and accepted in fu ll at the a ver­
a ge price shown b elow )
A ve ra g e p r ic e ...........

99.649

E quivalent rate o f discount
approx. 1.390% per annum

R ange o f accepted com petitive bids :
H igh ........................... 99.660 Equivalent rate o f discount
approx. 1.345% per annum
L o w .............................

99.648

Equivalent rate o f discount
a pp rox. 1.393% per annum

(86 percent o f the am ount b id fo r at the low
price was accepted)




Federal R eserv e
D istrict

Total
A pplied fo r

Total
A ccepted

B oston .............................
N ew Y o rk .....................
Philadelphia .................
Cleveland .....................
R ich m on d .....................
Atlanta ...........................
C h icago .........................
St. L ou is .......................
M inneapolis .................
K ansas City .................
D allas .............................
San F ra n cisco .............

$
6,979,000
1,394,893,000
32,799,000
55,392,000
4,475,000
8,816,000
278,338,000
23,546,000
3,020,000
29,008,000
16,600,000
50,216,000

$

.......................

$1,904,082,000

$1,105,413,000

T otal

5,937,000
712,690,000
20,099,000
44,304,000
4,447,000
8,676,000
202,258,000
19,566,000
2,992,000
27,008,000
14,460,000
42,976,000

( over)

24 X

IM P O R T A N T — I f you desire to b id on a co m p etitiv e basis, fill in rate per 100 and maturity
value in paragraph headed “ Com petitive B id .” I f you desire to bid on a non-com petitive
basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive B id.” DO
N O T fill in b oth paragraphs on on e form . A separate tender must b e used fo r each bid.
N o ............................

T E N D E R FOR 91-D A Y T R E A S U R Y BILLS
Dated March 8, 1951
To F

ederal

R

eserve

Ban

k

of

N

ew

Y

Maturing June 7, 1951
Dated a t ..................... .................................

ork,

Fiscal Agent of the United States.

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

C O M P E T IT IV E BID

N O N -C O M P E TIT IV 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
March 1, 1951, as issued by the Secretary
of
the Treasury, the undersigned offers

Pursuant to the provisions o f Treasury De­
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on March 1,
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)

(Not 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 you r Bank, on the date
stated in the public notice, as indicated b e lo w :

(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 e lo w :

□

□

B y surrender o f maturing Treasury bills

By surrender o f maturing Treasury bills

amounting t o ................... $-----------------------------------

amounting t o ................... $_______________________

□

□

By cash or other immediately available funds

By cash or other immediately available funds

* P r ic e must be exp ressed on the basis o f 100, w ith not
m ore than three decimal places, fo r exam ple, 99.925.

The Treasury bills for which tender is hereby made are to be dated March 8 , 1951, and are to
mature on June 7, 1951.
This tender zvill be inserted in special envelope marked “ Tender for Treasury Bills.”
Nam e o f B id d e r.............................................................................................................................................
(Please print)

B y .......................................................................................
(Official signature required)

..................................
(T itle)

Street A d d ress ..........................................................................................................................
(City, Town or Village, P. O. No., and State)

I f this tender is subm itted b y a bank fo r the accou n t o f a cu stom er, indicate the cu stom er’s name on line b elow :
(Name o f Customer)

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

Use a separate tender fo r each custom er’ s bid.

IM P O R T A N T IN STR U C T IO N S:
1. N o tender fo r less than $1,000 w ill be con sid ered , and each tender must be for an even m ultiple o f
$1,000 (m atu rity v a lu e). A separate tender must be execu ted fo r each bid.
2. I f the person m akin g the tender is a corp ora tion , the tender should be signed b y an officer o f the corp ora tion
authorized to m ake the tender, and the sign in g o f the ten der b y an officer o f the corp ora tion w ill be construed as a rep­
resentation by him that he has been so authorized. I f the ten d er is m ade b y a partnership, it should be sign ed b v a m em ­
ber o f the firm, w h o should sign in the form “ ................................................................................................................ . a copartnership, by
......................................................................................................................... a m em ber o f the firm .”
3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon ­
sible and recogn ized dealers in investm ent securities. T en ders from others must be accom pa n ied by paym ent o f
2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom pa n ied by an express guaranty
o f paym ent b y an in corporated bank o r trust com pany.
4. I f the language o f this tender is changed in any respect, w hich, in the opin ion o f the S ecreta ry o f the
T reasu ry, is m aterial, the tender m ay be disregarded.

Paym ent b y cred it through Treasury T ax and Loan A ccoun t will n ot b e perm itted.
DigitizedNfor FRASER
T E T B — 1079-a


(cv i* )

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