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FED ERAL RESERVE BANK O F N E W YORK
Fiscal Agent of the United States
{CirCApru^°i9fi686 }
Offering o f $ 1 ,0 0 0 ,0 0 0 ,0 0 0 o f 91-D a y Treasury B ills
Dated April 12, 1951
Maturing July 12, 1951
T o all In corp ora ted B anks and T rust Com panies in the
S econd F edera l R eserv e D istrict and O thers C on cern ed:
Following is the text of 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 , A p r il 5, 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 p u b lic n otice, in vites ten ders fo r $1,000,000,000, o r th ereabouts, o f 9 1 -d a y T rea su ry
bills, f o r cash and in e x ch a n g e for T rea su ry bills m atu rin g A p ril 12, 1951, to b e 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 bid d in g as h ereinafter provid ed . T h e bills o f this series w ill b e dated A p r il 12, 1951, a n d w ill
m ature Ju ly 12, 1951, w h en the 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 b e issued in bearer fo r m only,
and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, a n d $1,000,000 (m a tu rity v a lu e).
T e n d e rs w ill be re ceiv ed at F ed eral R es e rv e B an ks 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 ta n da rd tim e, M o n d a y , A p ril 9, 1951. T en d ers w ill n ot be receiv ed a t th e 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 ultiple o f $1,000, and in the case o f com p etitiv e tenders the price o ffe re d m u st 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 a y n ot be used. It is u rg ed that ten ders be
m a d e o n the printed io rm s and fo rw a rd e d in the special en velopes w h ich w ill be sup plied b y F ed eral R e serv e B ank s o r
B ran ch es o n a pp lica tion 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 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 and fr o m resp on sib le and re co g n iz e d dealers in
in vestm en t securities. T en d ers fr o 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 face a m ou n t o f T rea su ry
bills a pplied fo r, unless th e tenders are a cco m p a n ie d b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted b a n k or
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 th e F ed eral R e serv e B anks and B ran ches, fo llo w in g w h ich
p u b lic 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
su b m ittin g ten ders w ill be 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 ex p ressly reserves
the righ t to a cce p t o r re je ct a n y o r all ten ders, in w h o le or in part, and his a ction in a n y such resp ect shall be final. S u b je ct
to these reservations, n o n -com p etitiv e tenders fo r $200,000 or less w ith ou t stated p rice fro m any o n e b idder w ill be a ccep ted
in fu ll at the a vera ge price (in three d ecim a ls) o f a ccep ted com p etitiv e bids. S ettlem en t fo r a ccep ted ten ders in a ccord a n ce
w ith th e bids m u st b e m ade o r com p leted at the F ed eral R e serv e B a n k o n A p ril 12, 1951, in cash o r oth er im m ediately
available fu n ds o r in a like fa ce a m ou n t o f T rea su ry bills m atu rin g A p r il 12, 1951. Cash and exch a n ge tenders w ill receive
equal treatm ent. Cash adjustm ents w ill be m ade f o r d ifferen ces b etw een th e par valu e 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 billsj w h eth er interest or gain fr o m th e sale o r oth er d isp osition o f the bills, shall
n o t have a n y exem ption , 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 ot 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 o r su p plem en ta ry th ereto. T h e bills shall be
s u b je ct to estate, inheritance, g ift, or oth er ex cise taxes, w h eth er F ed era l or State, b u t shall be ex em p t fro m all ta xation
n o w o r hereafter im p osed on th e principal or interest th ereof 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 o rigin a lly
so 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 u e
C ode, as a m en ded b y S ection 115 o f th e 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
so ld shall n o t b e co n sid ered to a ccru e until su ch bills shall b e sold , red eem ed o r oth erw ise disp osed of, and such bills are
exclu d e d fr o m con sidera tion 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 in su rance c o m
pan ies) issued h ereun der n eed in clu d e in his in co m e ta x return o n ly the differen ce b etw een the price paid fo r such bills,
w h eth er o n origin a l issue o r on subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u p on 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 e p a rtm e n t C ircu lar 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 g o v e rn
th e con d ition s o f th eir issue. C opies o f the circular m ay be obtain ed fr o m a n y F ed eral R e s e rv e B a n k o r B ranch.
This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, April 9, 1951, at the Securities
Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of 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 Tax and Loan Account. Settlement must be made in cash or other
immediately available funds or in maturing Treasury bills.
Allan Sproul, President.
Results of last offering of Treasury bills (9 1 -day bills dated April 5, 1951, maturing July 5, 1951)
T o ta l a pplied fo r . . $1,642,994,000
T o ta l a cce p te d . . . . $1,001,004,000 (in clu d es $98,071,000
entered on a n o n -com p etitiv e basis
and a ccep ted in full at the a verage
p rice sh ow n b e lo w )
A v e ra g e p rice . . . . 99.617 E quivalent rate o f d iscou n t
a p p rox. 1.517% p er annum
Federal R e s e r v e
T otal
D istrict
A pplied f o r
5,910,000
B o s to n .............................. $
N e w Y o r k .....................
1,172,863,000
P h iladelp hia ...................
26,636,000
C levelan d ..........................
74,441,000
11,837,000
R ich m o n d .......................
? angf *oi 0 0 M 0 i le d co m p e tiliv e b id s : <e x c e » ,in « ° “
ten der o f $100,000)
H ig h ........................... 99.630 E quivalent rate o f discou n t
a pp rox. 1.464% per annum
L o w ........................... 99.614 E quivalent rate o f d iscou n t
a p p rox. 1.527% p er annum
(95 p ercen t o f the a m ou n t b id f o r at th e lo w
price w as a cce p te d )
cM cago ' ! : ! ! : ! ! : : ! ! ! !
St. L ou is .........................
M in neapolis ..................
K an sas C ity ..................
D allas ...............................
San F r a n cis co ..............
T o ta l
..................
m s Issoooo
13,536,000
3,183,000
31,322,000
31,408,000
58,678,000
-----------------------$1,642,994,000
$
Total
A ccep ted
5,910,000
624,663,000
11,636,000
74,341,000
11,837,000
is s S
ooo
11 431000
2,948,000
31,322,000
21,308 000
58,678^000
-----------------------$1,001,004,000
(o v m )
25C
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.
No..........................
TENDER FOR 91 -DAY TREASURY BILLS
Dated April 12, 1951
To
F e d e r a l
R e se rv e
B a n k
o f
N e w
Maturing July 12, 1951
Dated at
Y o r k ,
Fiscal Agent of the United States.
1951
COMPETITIVE BID
NON-COMPETITIVE
Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
April 5, 1951, as issued by the Secretary
of the Treasury, the undersigned offers
................ * for a total amount of
( R a t e p er 100 )
BID
Pursuant to the provisions of Treasury De
partment Circular No. 418, as amended, and to the
provisions of the public notice on April 5,
1951, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender
for a total amount of $.................
( N o t to e x c e e d $ 2 0 0 ,0 0 0 )
$.................... (maturity value)
of 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 of maturing Treasury bills
amounting to....... $________________
(maturity value) of the Treasury bills therein
described, at the average price (in three deci
mals) of accepted competitive bids, settlement
therefor to be made at your Bank, on the date
stated in the public notice, as indicated below:
□ By surrender of maturing Treasury bills
amounting to....... $________________
□
□
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, with not
m ore than th ree decim al places, f o r exam ple, 99.925.
The Treasury bills for which tender is hereby made are to be dated April 12, 1951, and are to mature
on July 12, 1951.
This tender will be inserted in special envelope marked “Tender for Treasury Bills.”
N a m e o f B idder
(P le a s e p rin t)
By .
(O fficia l sig n a tu re req u ired )
(T itle )
Street Address
(C it y , T o w n o r V illa g e , P .O . N o ., a n d S ta te )
I f this ten der 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 line b e lo w :
(N a m e o f C u sto m e r)
(C it y , T o w n or V illa g e , P .O . N o ., an d S ta te )
U se a separate ten d er fo r ea ch cu stom er’ s bid.
IMPORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill b e con sidered, and each ten der m ust b e fo r an even m ultiple o f $1,000
(m a tu rity v a lu e ). A separate tender m ust b e e xecu ted fo r each bid.
2. I f the person m ak in g the ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the c o r p o r a
tion authorized to m ak e the tender, and the s ig n in g o f the tender b y an officer o f the corp o ra tio n w ill b e con stru ed as a
representation b y him that he has been so authorized. I f the tender 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 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 d ep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m re s p o n
sible and re co g n iz e d dealers in in vestm en t securities. T en d ers fr o m oth ers m u st b e a cco m p a n ie d b y p a y m en t o f 2 p ercen t
o f th e fa ce a m ou n t o f T r e a s u ry bills a pplied fo r, unless the ten ders 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 bank o r trust com p a n y .
4. I f th e la n g u a ge o f this ten der is ch a n g ed in any respect, w h ich , in the op in ion o f th e 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.
Digitized Tfor
E NFRASER
T B — 1084-a
Cora)
aV 3
FEDERAL RESERVE BANK
OF NEW YORK
Fiscal A g e n t o f the U nited States
A p r il 4 , 1951
To All Issuing Agents in the
Second Federal Reserve District:
The letter below is a brief and simple explanation of the options open
to holders of Series E Savings Bonds when their bonds mature. We prepared this
letter to meet our own needs, but we shall be glad to make copies available to
you for distribution to owners of Series E Bonds. You may obtain them without
charge by writing to the Savings Bond Department, Federal Reserve Bank of
New York, Federal Reserve P. 0. Station, New York 45, N. Y.
March 30, 1951.
THREE OPTIONS FOR OWNERS OF SAVINGS BONDS
To Owners of Series E Savings Bonds:
Under the provisions of a new law, you may choose any of the following
options when your Series E Savings Bonds mature:
Option 1. You can receive full cash payment of the face amount. Two other
choices have been added in a law passed by Congress and signed by the President,
but they do not affect in any way your right to payment in cash. You can always
cash in your bond at most banks or other paying agents, at a Federal Reserve Bank
or branch, or at the United States Treasury.
Option 2. You can continue to hold your bond for another ten years. If you
do, it will earn
per cent simple interest a year for the first
years,
and then an increased interest rate for the remaining 2\ years, so that the rate
for the full ten years is approximately 2.9 per cent compounded semiannually.
(For example, a bond bought for $18.75 ten years ago is now worth $25; in
another ten years it will be worth $33.33.) If you choose this option, you don't
have to do anything when your Series E bond matures; if you just continue to
hold it, the life of the bond will be extended automatically. You can, of
course, cash the bond at any time during the second ten years. If you do, you
will receive the face amount plus the accrued interest. Under this option, you
also continue to have the choice of paying income taxes on the interest in the
year it is earned, or in the year in which the bonds mature or are redeemed.
Option 3. You can exchange your bond for a Series G Savings Bond, which is
registered in your name and earns interest at the rate of 2% per cent annually.
This interest is paid by Treasury check semiannually from the time you get the
bond until it matures 12 years later. Unlike the Series E bond, the interest on
a Series G bond is subject to income taxes each year. This Series G bond may
be redeemed for the face amount at any time during its life (after six months
from the issue date upon one calendar month's notice). This bond is designed for
those people who would like to have an income from interest payments each year.
The smallest denomination in which it is issued, however, is $500, and therefore
you must have at least $500 in matured Series E bonds to get a Series G bond.
Such Series E bonds must have matured within a twelve-month period.
If you would like any additional information about these choices, or about
Savings bonds in general, your bank will be glad to help you. The rules govern
ing these options are set forth in Treasury Department Circular No. 885, copies
of which are available upon request.
SAVINGS BOND DEPARTMENT
@FedFRASER