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FED ERAL RESER VE BANK O F NEW YO RK [ C i r c u l a r N o . 36681 L M a r c h 8 ,1 9 5 1 J Fiscal Agent o f the United States Offering o f $1,000,000,000 of 91-Day Treasury Bills Dated Match 15, 1951 Maturing June 14, 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: TREASU RY D EPARTM 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, M arch 8, 1951. T h e S ecretary o f the T reasu ry, b y this pu blic notice, invites tenders fo r $1,000,000,000, or thereabouts, o f 91-day T r e a s ury bills, fo r cash and in exch a n ge fo r T rea su ry biils m aturing M arch 15, 1951, to be issued on a discou n t basis under c o m petitive and n on -com p etitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a rch 15, 1951, and w ill m ature June 14, 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 rm on ly, and in den om in ation s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity valu e). T e n d e rs w ill be received at F ed eral R eserve Banks and B ran ches up to the clo s in g h our, tw o o ’ c lo ck p.m ., E astern Standard tim e, M on d a y, M arch 12, 1951. T en d ers w ill n ot be received 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 u ltiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F ra ction 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 en velopes w h ich w ill be supplied b y Federal R es e rv e B anks o r B ran 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 cep t fo r their ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fro m respon sible and recog n ized dealers in in vestm en t securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills applied for, 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 corporated bank o r trust com p a n y . Im m ed ia tely after the closin g h our, tenders w ill be op en ed at the F ed eral R eserve B anks and B ran ches, fo llo w in g w hich pu b lic a n n ou n cem en t will 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 tenders w ill be advised o f the a ccep ta n ce or rejection thereof. T h e S ecretary o f the T rea su ry ex p ressly reserves the righ t to a ccep t or reject a n y or all tenders, in w h ole or in part, and his action in any such resp ect shall be final. S u b ject to these reservations, n on -com p etitive tenders for $200,000 or less w ith ou t stated price from any on e b idder w ill be a ccep ted in full at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent for a ccep ted tenders in a cco rd a n ce w ith the bids m ust be m ade or com p leted at the Federal R es e rv e Bank on M arch 15, 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 atu rin g M arch 15, 1951. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences betw een the par value o f m aturing bills a ccep ted in exch an ge and the issue price o f the new bills. T h e in com e derived fro m T rea su ry bills, w h eth er interest or gain from the sale o r oth er disp osition o f the bills, shall n ot have any exem ption , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills shall n ot have any 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 thereto. T h e bills shall be su b ject to estate, inheritance, gift, or oth er ex cise taxes, w hether Federal o r State, but shall be exem p t fro m all taxation n o w o r h ereafter im posed on the principal or interest th ereof b y any State, or any o f the possession 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 am ou nt o f discou n t at w h ich T rea su ry bills are originally so ld b y the U n ited States shall be con sidered to be interest. U n d er 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 am ou nt o f d iscou n t at w h ich bills issued hereun der are so ld shall n o t be con sidered to a ccru e until such bills shall be sold, redeem ed or oth erw ise disp osed of, and such bills are exclu d ed fro m con sidera tion as capital assets. A c co r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance co m pan ies) issued hereun der need include in his in com e tax return on ly the differen ce betw een the price paid fo r such bills, w hether on origin al issue or on subsequent purchase, and the am ount actu ally receiv ed cither upon sale or red em ption at m aturity du rin g the taxable year for 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 Circular N o. 418, as am ended, and this n otice, prescribe the term s o f the T reasu ry bills and go v e rn the con dition s o f their issue. C opies o f the circular m ay be obtain ed fro m a n y F ed eral R eserve B ank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 12, 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. Results of last offering of Treasury bills (91-day bills dated March 8, 1951, maturing June 7, 1951) T o ta l applied fo r ............ $1,685,866,000 T o ta l a cccp ted ...............$1,100,691,000 (in clu des .$94,402,000 entered on a n on -com p ctitive basis and accepted in full at the average price show n b elow ) A v e ra g e price........ 99.645 E quivalent rate o f discount a pp rox. 1.406% per annum R a n ge o f a ccep ted com p etitive b ids: H igh ....................... L o w ...................... . 99.655 99.641 Equivalent rate app rox. 1.365% E quivalent rate a p p rox. 1.420% o f discou nt per annum o f discou n t per annum Total Applied f o r Federal R eserve D istrict B o s to n ....................... ..... N ew Y o r k ................. ...... Philadelphia ............ Cleveland ................. R ich m on d ................. C h ica go ..................... St. L ou is ................... M in neapolis ............ K ansas City ............ D allas ....................... San F ra n cisco ........ $ 15,195,000 1,262,525,000 19,421,000 47,746,000 8,513,000 13,213,000 192,503,000 9,122,000 2,995.000 24,352.000 23,735.000 66,546,000 Total A ccep ted $ 14,770,000 734,125,000 15,171,000 46,896,000 8,513,000 13,213,000 149,753,000 9,122,000 2,995,000 24,352,000 23,735,000 58,046,000 (15 p ercen t o f the am ou nt bid for at the low price w as a ccep ted ) T otal ..................... ...... $1,685,866,000 $1,100,691,000 ( over) 24 Y 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. T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS Dated March 15, 1951 Maturing June 14, 1951 Dated at ........................... T o F e d e r a l R eser v e B a n k o f N e w Y o r k , Fiscal Agent o f the United States. COMPETITIVE BED 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 March 8, 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 8 , 1951, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender .................................................* for a total amount of 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, 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: (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: □ □ B y surrender o f maturing Treasury bills 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 rice must be expressed, on the basis of 100, with 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 March 15, 1951, and are to mature on June 14, 1951. This tender zvill be inserted in special envelope marked “ Tender fo r Treasury B ills” N am e o f Bidder. B y .......... (P lease print) (Official signature required) (T itle) Street A d d ress (C ity, T ow n or V illage, P.O . N o., and State) If 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) (City, T ow n 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 u st be fo r an even m u ltiple o f (m a tu rity v a lu e ). A separate ten der m u st be execu ted fo r each bid. $1,000 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 co rp o ra tion a uthorized 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 con stru ed as a representation 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 em b er o f the firm , w h o sh ou ld sign in the fo rm “ ................................................................................................... . 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 received w ith ou t dep osit fro m in corp ora 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 en t securities. T en d ers fro m oth ers m u st be 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 pplied fo r, unless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in co rp o ra te d bank o r trust com p a n y . 4. I f the language o f this ten der is ch anged in a n y respect, w h ich , in the opin ion o f the S ecreta ry o f the T rea su ry, is m aterial, the ten der m ay be disregarded. Payment b y credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ TENTB— 1 0 8 0 -a Federal Reserve Bank of St. Louis (O V E R )