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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [ C i r c u l a r N o . 3689 A p r i l 12, 1951 Offering o f $1,000,000,000 of 91-Day Treasury Bills Dated April 19, 1951 Maturing July 19, 1951 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: 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 T h u rsd ay, A p ril 12, 1951. N EW SPAPERS, TREASU RY DEPARTM ENT W a sh in gton T h e Secretary o f the T reasu ry, by this public notice, invites tenders f o r $1,000,000,000, or thereabouts, o f 91-day Treasu ry bills, fo r cash and in exch a n ge fo r T reasu ry bills m aturing A p ril 19, 1951, to be issued on a discou nt basis under com peti tive and non-com petitive bid d in g as h ereinafter provided. T h e bills o f this series w ill be dated A p ril 19, 1951, and w ill m ature July 19, 1951, w hen the face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity v a lu e). T en ders w ill be received at Federal R eserve Banks and Branches up to the clo s in g hour, tw o o ’ c lo ck p.m., E astern Standard time, M on day, A p ril 16, 1951. T en ders w ill not be received at the T reasu ry D epartm ent, W a sh in gton . E ach ten der must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust 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 urged 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 b y F ed era l R eserve Banks o r B ran ches o n a pp lica tion th erefor. O thers than banking institutions w ili n ot be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be receiv ed w ith ou t deposit from in corporated banks and trust com panies and fro m responsible and recogn ized dealers in in vestm ent securities. T en ders from others m ust be accom panied b y paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom pa n ied by an express guaranty o f paym ent b y an in corpora ted bank o r trust com pany. Im m ediately a fter the clo s in g hour, tenders w ill be opened at the F ed eral R eserve Banks a n d B ranches, fo llo w in g w hich p u b lic announcem ent w ill be m ade by the Secretary o f the T reasu ry o f the am ount and p rice ra n ge o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the accep tance o r rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the righ t to a ccep t o r reject any or all tenders, in w hole or in part, and his a ction in any such respect 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 p rice 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 a ccepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the Federal R eserve Bank on A p ril 19, 1951, in cash o r oth er im m ediately available funds o r in a like fa ce am ount o f T reasu ry bills m aturing A p ril 19, 1951. Cash and exch an ge tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade fo r differences betw een the par valu e o f m aturing bills a ccepted in exch a n ge and the issue price o f the new bills. T h e incom e derived fro m T reasu ry bills, w hether interest o r g a in from the sale or other d isp osition o f the bills, shall n o t have any exem ption, as such, and loss fro m the sa le 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 su b ject to estate, inheritance, gift, or oth er e x cis e taxes, whether F ed eral o r State, but shall be exem pt from all taxation n o w o r hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U nited States, o r by any lo ca l ta x in g authority. F o r purposes o f taxation the am ount o f discou n t at w hich T rea su ry bills a re origin a lly sold b y 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 b y S ection 115 o f the Revenue A c t o f 1941, the am ount o f discou n t at w h ich bills issued hereunder 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 disposed o f , and such bills are exclu d e d fro m con sideration as capita l assets. A ccord in g ly , the ow ner o f T rea su ry bills (oth er than life insurance co m pa n ies) issued hereunder need include in his incom e ta x return on ly the difference betw een the p rice pa id fo r such bills, w hether o n o rig in a l issue o r on subsequent purchase, and the am ount actu a lly received either upon sale o r redem ption at m aturity d u rin g the taxable year f o r w h ich the return is m ade, as ord in a ry ga in o r loss. T re a su ry D epartm ent C ircu lar N o. 418, as am ended, and this notice, prescrib e the terms o f the T rea su ry bills and govern the con ditions o f th eir issue. Copies o f the circu la r m ay be obtain ed fro m any F ed eral R eserve B ank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, April 16, 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. A l l a n S p r o u l , President. Results of last offering of Treasury bills (91-day bills dated April 12, 1951, maturing July 12, 1951) T o ta l applied f o r .........$1,743,013,000 T o ta l a c c e p t e d .............$1,000,603,000 (in clu des $117,618,000 entered on a n on -com p etitive basis and a ccepted in fu ll at the a ver age price show n b elow ) A v e ra g e p r ic e ........... 99.614 E quivalent rate o f discount a pp rox. 1.528% per annum R a n g e o f accepted com petitive b id s : H ig h ........................... 99.630 Equivalent rate o f discount a pp rox. 1.464% per annum L o w ............................. 99.612 Equivalent rate o f discount approx. 1.535% per annum (90 percent o f the am ount b id fo r at the low p rice w as accepted) Federal Reserve District B oston ....................... . . . N ew Y o r k ............... P h iladelphia ........... C leveland ................. R ic h m o n d ................. St. L o u i s ................... M in n e a p o lis ............. K ansas City ........... D allas ....................... San F ra n cisco T o ta l .................... . . . Total Accepted Total Applied for $ 17,594,000 1,285,441.000 25,725,000 50,240,000 5,367,000 16,639.000 198,777.000 18,951.000 4,197,000 30,261,000 32,682,000 57,139,000 $1,743,013,000 $ 15,494,000 677,291,000 14,725,000 38,940,000 5,367,000 16,639,000 132,577,000 17,791,000 4,197,000 30,261,000 22,482,000 24,839,000 $1,000,603,000 ( over) 25D 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 NOT fill in both paragraphs on one form. A separate tender must be used for each bid. No.......... T E N D E R FO R 91-D A Y T R E A S U R Y BILLS Dated April 19, 1951 Maturing July 19, 1951 Dated at To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States. 1951 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on April 12, 1951, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions of the public notice on April 12, 1951, as issued by the Secretary of the Treasury, the undersigned offers a non-competitive tender for a total amount of $................. ................ * for a total amount of (N o t to exceed (200,000) (R ate per 100) $................... (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: (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 By surrender of maturing Treasury bills amounting to....... $--------------- amounting to....... $_____________ □ □ By cash or other immediately available funds By cash or other immediately available funds * Price must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. The Treasury bills for which tender is hereby made are to be dated April 19, 1951, and are to mature on July 19, 1951. This tender will be inserted in special envelope marked “ Tender for Treasury Bills” N am e o f B id d er. (Please p rin t) B y. (Official signature required) ( T it l e ) Street A d d ress ...................................... (C it y , T o w n or V illa g e , P . O . N o ., 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 of Custom er) (C it y , T o w n or V illa g e , P . O . N o ., and State) Use a separate tender for each customer’s bid. IMPORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 w ill be con sidered, and each tender m ust be fo r an even m ultiple o f $1,000 (m aturity valu e). A separate tender must be execu ted fo r each bid. 2. I f the person m aking the tender is a corp ora tion , the tender should be signed by an officer o f the corp ora tion authorized to make the tender, and the sign ing o f the ten der by 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 der is made by a partnership, it should be signed b y a m em ber o f the firm, w ho 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 incorporated banks and trust com panies and fro m respon sible and recogn ized dealers in investm ent securities. T enders from others must be accom panied b y paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent by an incorporated bank o r trust com pany. 4. I f the language o f this tender is ch anged in any respect, w hich, in the opin ion o f the S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. TENT B— 1085-a ( over) A* SECOND D IS T R IC T C O M M E R C IA L BANKING V O L U N T A R Y C R E D IT R E S T R A IN T CO M M ITTEE Created pursuant to the Program for Voluntary Credit Restraint authorized by theDefense Production Act of 1950 33 LIBERTY STREET N E W Y O R K 4 5 . N. Y. April 11, 1951. To the Chief Executive Officer of each Commercial Bank in the Second Federal Reserve District; The Voluntary Credit Restraint Committee, created pursuant to the Program for Voluntary Credit Restraint authorized by the Defense Production Act of 1950, has appointed twenty regional committees to which inquiries by lenders may be addressed regarding lending activities under the Program. Twelve regional committees have been organized to deal with commercial banking prob lems; one committee is located in each Federal Reserve District. Four regional committees for insurance companies and four regional committees for investment banking houses have also been organized; one o f each is located in New York. The Second District Commercial Banking Voluntary Credit Restraint Committee is the regional committee to deal with commercial banking problems arising in the Second Federal Reserve Dis trict. The members of the Committee are as follows: Chairman Chairman of the Board, J. P. Morgan & Co. Incorporated, New York, N. Y. D a v id C. B a r r y , Senior Vice President, Lincoln Rochester Trust Company, Rochester, N. Y. G e o r g e C h a m p io n , Senior Vice President, The Chase National Bank of the City of New York, New York, N. Y. H o r a c e K. C o r b i n , President, Fidelity Union Trust Company, Newark, N. J. C h a r l e s H. D i e p e n d o r f , President, The Marine Trust Company of Buffalo, Buffalo, N. Y. R. E. M c N e i l l , Jr., President, Central Hanover Bank and Trust Company, New York, N. Y. A r t h u r P h e l a n , Vice President, Federal Reserve Bank of New York, New York, N. Y. G eorge W h itn e y , The Program for Voluntary Credit Restraint was sent to you under date of March 9, 1951, by the Chairman o f the Board of Governors of the Federal Reserve System. We expect to furnish you with additional material from time to time. As the Program is entirely voluntary, the primary function of this Committee will be to serve the banks in the Second Federal Reserve District in an advisory capacity to aid them in their efforts to observe the principles set forth in the Program governing the extension of credit. The Committee will be glad to help individual banks to resolve questions which they may have as to the appropri ateness under the Program of any loan under consideration. To facilitate the work of the Com mittee, please submit your request for consideration of a specific loan in accordance with the form which is enclosed. Forms should be prepared in triplicate and sent to G. M o r g a n B r o w n e , Secre tary o f the Committee, 33 Liberty Street, New York 45, N. Y. Additional copies of the form and of the Program will be furnished by the Secretary upon request. The Committee has every confidence that all banks in this district will cooperate to the fullest extent to make a success o f this Program which is designed to provide credit necessary for the essentials as defined by the Program, both in defense production and in private business, and at the same time to restrain loans outside the scope of the Program which will add to the danger of inflation. G eorge W h it n e y , Chairman. C R -C B I (Please Submit in Triplicate) To S e c o n d D i s t r i c t C o m m e r c ia l B a n k in g V oluntary C r e d it R e s t r a in t C o m m it t e e , (Date) 33 Liberty Street, New York 45, N. Y. G entlem en : The following information, transmitted to you in confidence, refers to an application for a loan which we have received. In your opinion, would the approval of this loan be contrary to the principles of the Voluntary Credit Restraint Program? Very truly yours, By................................ , .............. (Title) INFORMATION REGARDING BORROWER (D o n ot give nam e) In du stry................................................................................................................. Nature of business: (Check) Retail.........Wholesale.............Manufacturer............ Service............ Other. Importance of this borrower and of industry to the Defense Program: .................................................... INFORMATION REGARDING LOAN REQUESTED Amount of loan $.......................................... Maturity. Purpose of loan: (Check and amplify if necessary) To increase inventory............... To retire debt............... For normal working capital requirements............... To retire net worth............... To purchase fixed assets............... Other (Explain) .................................................. Plan of loan repayment: Source of funds for loan repayment: (Be as specific as possible) ( over) The borrower states that the postponement of borrowing for the foregoing purpose would have the following result: ............................................................................................................................................ The Defense Program in our opinion would be affected as follows if the loan is not made: Other pertinent comments: (The spaces below for Committee use only) The loan does not appear to violate the principles of the Voluntary Credit Restraint P rog ra m .............. [ The loan appears to violate the principles of the Voluntary Credit Restraint P r o g ra m ........................... [ Additional committee comments: .................................................................................................................................... S V econd D is t r ic t oluntary C o m m e r c ia l B C r e d it R e s t r a in t a n k in g C o m m it t e e B y ......................................................................... Secretary
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