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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent o f the United States [ C ir c u la r N o . 3 « 7 0 March 15, 1951 Offering o f $1,000,000,000 of 91-Day Treasury Bills Dated March 22, 1951 Maturing June 21, 1951 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: 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 , M a rch 15, 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 $1,000,000,000, o r th ereabouts, o f 9 1 -d a y T reasu ry bills, fo r cash and in e x ch a n g e for T rea su ry bills m atu rin g M arch 22, 1951, t o be issued on a d iscou n t basis u nder co m p e ti tive and n o n -co m p e titiv e b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated M a rch 22, 1951, and will m ature June 21, 1951, w h en the face 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 bearer fo r m o n 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 receiv ed at Federal R e serv e 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 Standard tim e, M on d a y, M arch 19, 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 te n d e r m ust be f o r an even m ultiple o f $1,000, and in the case o f com p etitive ten ders the p rice o ffe re d m ust be exp ressed o n the basis o f 100, w ith n ot m ore than th ree 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 o n the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be supplied b y Federal R e serv e B anks o r B ran ch es o n a pp lication th erefor. O th e rs than b ank in g institutions w ill n ot be perm itted to subm it tenders e x ce p t for their ow n a ccou n t. 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 respon sib le and re co g n iz e d dealers in in vestm ent securities. T en d ers fr o m oth ers m ust 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 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 corp ora ted b a n k o r trust co m p a n y . Im m ed ia tely after 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 ran ches, fo llo w in g w h ich pu blic a n n ou n cem en t w ill b e 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 ten ders w ill be advised o f the a ccep ta n ce o r re je ctio n 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 o le o r in part, and his a ction in a n y such resp ect shall be final. S u b ject to these reservations, n o n -com p etitiv e tenders f o r $200,000 or less w ith ou t stated p rice fro m a n y on e b idd er w ill be a ccep ted in fu ll at the a verage price (in three decim a ls) o f a ccep ted com p etitive bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith the b id s m u st be m ade o r com p le te d at the Federal R eserve Bank on M a rch 22, 1951, in cash or oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m aturing M a rch 22, 1951. Cash and exch a n ge ten ders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces betw een the par valu e o f m aturing bills a ccep ted in exch a n ge and the issue price o f the n ew bills. T h e in com e derived fro m T rea su ry b ills, w h eth er interest o r gain fro m the sale o r oth er d isp osition o f th e bills, shall n o t have a n y exem ption , as such, and loss fr o m the sale o r oth er d isp osition o f T r e a s u ry bills shall n ot have a n y special treatm ent, as such, under th e Internal R e v en u e C od e, o r law s a m en d a tory or supplem entary thereto. T h e bills shall be su b je ct to estate, inheritance, g ift, or oth er e x cis e taxes, w h eth er F ed era l o r State, but shall be exem p t fro m all taxation n o w o r hereafter im posed on the principal or interest th ereof b y any State, o r any o f the p ossession s o f th e U n ited States, o r b y a n y lo ca l taxin g authority. F o r pu rposes o f taxation the a m ou n t o f d iscou n t at w hich 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 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 co n sid ered to a ccru e until such bills shall be sold, red eem ed o r oth erw ise disp osed o f, and such bills are exclu d ed fr o m con sideration as capital assets. A c c o 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 pan ies) issued h ereun der need in clude in his in com e tax return on ly the differen ce betw een the price paid fo r such bills, w hether o n origin al issue o r on subsequen t pu rch ase, and the a m ou n t actu ally receiv ed either u pon sale o r red em p tion at m aturity du rin g the ta xab le year fo r w h ich the 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 Circular N o. 418, as am en ded, and this n otice, p rescrib e the term s o f the T rea su ry bills and go v e rn th e co n d itio n s o f their issue. C opies o f the circular m ay be ob ta in ed fr o m a n y F ed eral R e serv e Bank o r B ran ch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, March 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 f o r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A lla n S p r o u l , President. R esu lts o f la s t o ffe r in g o f T r e a s u r y b ills ( 9 1 -d a y b ills d a te d M a r c h 1 5 , 1 9 5 1 , m a tu r in g Ju n e 1 4 , 1 9 5 1 ) T o ta l applied fo r . . $1,721,778,000 T o ta l a cce p te d . . . . $1,000,789,000 (in clu d es $114,498,000 en tered o n a n on -co m p e titiv e basis and a ccep ted in full at the average p rice sh ow n b e lo w ) A v e ra g e p r i c e ......... 99.646 E quivalent rate o f discou n t a p p rox. 1.402% per annum R a n ge o f a ccep ted co m p etitiv e b id s: H ig h ........................... 99.656 E quivalent rate a pp rox. 1.361% L o w ............................. 99.643 E quivalent rate a p p rox . 1.412% o f discou nt per annum o f discount per annum (9 percent o f the am ou nt bid fo r at the lo w price w as a cce p te d ) Federal Rescrz e District B o sto n ......................... N e w Y o r k .................. P h iladelphia ............. C leveland R i c h m o n d .................. A tlanta ........................ C h ica g o .................... St. L ou is .................... M in n eap olis ............. K an sas C ity ............. D allas ........................... San F ra n cisco ......... T ota l T olal Applied for $ 19,339,000 1,270,913,000 27,425,000 49,403,000 17,780,000 15,387,000 170,677,000 18,641,000 4,955,000 30,473,000 32,260,000 64,525,000 $1,721,778,000 Total Accepted $ 16,064,000 665,529,000 16,055,000 45,583,000 17,771,000 15,387,000 104,747,000 16,630,000 4,955,000 25,013,000 21,260,000 51,795,000 $1,000,789,000 ( over) 24Z 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. 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 March 22, 1951 Maturing June 21, 1951 T o F ederal R eserve B a n k of N e w Y o r k , Fiscal A gen t o f the U nited States. Dated a t ................................................. COMPETITIVE BID N O N -C O M P E T IT IV E Pursuant to the p rovisions o f T reasu ry Departm ent C ircular N o. 418, as am ended, and to the provision s o f the public notice on M arch 15, 1951, as issued by the Secretary of the T reasu ry, the undersigned offers ................................................ * fo r a total am ount o f (Rate per 100) $ ......................................................... (m aturity value) o f the T reasu ry bills therein described, or fo r any less am ount that m ay be awarded, settlement th erefor to be made at you r Bank, on the date stated in the public notice, as indicated b e lo w : □ B y surrender o f m aturing T reasury bills am ounting t o .....................$_________________________ □ B y cash o r other immediately available funds B ID Pursuant to the provisions o f Treasury De partment Circular No. 418, as amended, and to the provisions o f the public notice on March 15, 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 b elow : □ By surrender o f maturing Treasury bills amounting t o ................... $_______________________ □ B y cash or other immediately available funds * P rice must be exp ressed on the basis o f 100, w ith not m ore than three decim al places, f o r exam ple, 99.925. T h e T reasu ry bills fo r which tender is hereby made are to be dated M arch 22, 1951, and are to mature on June 21, 1951. This tender will be inserted in special envelope marked “ Tender fo r Treasury B ills” N am e By of B id der ........................................................................................................................................ (Please print) : .........................................................................................., (Official signature required) Street A d d re s s ........................................................................ ........................................................... (Title) ................................................................. (City, Town or Village, P.O. No., and State) I f this tender is subm itted b y a bank fo r the a ccou n t o f a cu stom er, indicate the cu sto m e r’ s nam e o n lin e b e lo w : (Name of Customer) (City, Town or Village, P.O. No., and State) U se a separate ten der fo r ea ch cu stom er’ s bid. IM P O R T A N T IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be con sid ered , and each tender m ust be fo r an even m ultiple o f $1,000 (m atu rity v a lu e ). A separate tender m ust be ex ecu ted fo r each bid. 2. I f the person m ak in g the tender is a co rp o ra tio n , the ten der shou ld be sign ed b y an officer o f the c o rp o ra tion authorized to m ake the tender, and the sign in g o f the tender b y an officer o f the co rp o ra tio n w ill be con stru ed as a representation b y him that he has been so authorized. If the tender is m ade b y a partnership, it sh ou ld be sign ed b y a m em ber 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 e m b e r 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 corp ora ted banks and trust com p a n ies and fro m re sp o n sible and re co g n ized dealers in in vestm ent securities. T e n d e rs fro m oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 percent o f the face 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 b y an in co rp o ra ted bank o r trust com p a n y . 4. I f th e 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 the S ecreta ry o f the T reasu ry, is m aterial, the ten der m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B — 1081-a (over)