The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL R E SERVE BANK O F N E W YO R K
{ CirMayrn,°iwT05 1
Fiscal Agent o f the United States
Offering of $1,100,000,000 of 91-Day Treasury Bills
D a ted M a y 2 4 , 1951
Maturing August 2 3 , 1951
T o ail Incorporated B anks and Trust Com panies 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:
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 y 17, 1951.
TREASURY 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 fo r $1,100,000,000, or th ereabouts, o f 91 -d a y T re a su ry
bills, fo r cash and in ex ch a n g e for T rea su ry bills m atu rin g M a y 24, 1951, to be issued on a d iscou n t basis u nder co m p e ti
tive and n on -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 be dated M a y 24, 1951, and w ill
m ature A u g u s t 23, 1951, w h en the fa ce a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form on 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 en d ers w ill be receiv ed at F ed eral 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 c k p.m ., E astern
D a y lig h t S a vin g tim e, M on d a y, M a y 21, 1951. T en d ers w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E a ch
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 offered m ust be expressed
on 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 rg ed that ten ders be
m ade o n the printed fo rm s and fo rw a rd e d in the special en velopes w h ich w ill be supplied b y F ed eral R eserve B anks or
B ran ches o n a pp lication th erefor.
O th ers than b ank in g institutions w ill n ot be perm itted to subm it ten ders e x ce p t fo r their ow n a ccou n t. T e n d e rs w ill be
receiv ed w ith o u 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 recog n ized dealers in
in vestm ent securities. T en d ers fro m oth ers m ust 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 reasu ry
bills applied for, unless the tenders are a ccom p a n ie d b y an exp ress gu a ra n ty o f paym ent b y an in corp ora ted bank or
trust co m p a n y .
Im m ed ia tely a fter the clo s in g h our, tenders w ill be op en ed at the F ed eral R es e rv e B anks and B ra n ch es, fo llo w in g w hich
pu blic a n n ou n cem en t w ill be m ade b y th e 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 b ids. 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 reje ctio n th ereof. T h e S ecreta ry o f the T r e a s u ry e x p ressly reserves
the righ t to a ccep t o r re je ct any o r all tenders, in w h ole o r in part, and his action in a n y such resp ect shall be final. S u bject
to these reservations, n on -co m p e titiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fro m any on e b idd er will be a ccep ted
in full at the average price (in three decim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted tenders in a cco rd a n ce
w ith the bids m ust be m ade o r com p leted at the Federal R eserve Bank on M a y 24, 1951, in cash or 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 aturing M a y 24, 1951. Cash and ex ch a n g e ten ders w ill receive
equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par valu e o f m aturing bills a ccep ted in exch an ge
and the issue price o f the n ew bills.
T h e in co m e derived fro m T rea su ry bills, w h eth er interest o r gain fr o m the sale o r oth er d isp osition o f th e 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 a n y special
treatm ent, as such, under the Internal R even u e C od e, or law s a m en d a tory o r su p plem en ta ry thereto. T h e bills shall be
su b je ct to estate, inheritance, gift, o r oth er ex cise taxes, w h eth er F ed eral or 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 a n y State, or any o f the p ossession s o f the U n ited States,
o r b y any loca l taxing authority. F o r pu rp oses o f taxation the am ou nt o f d iscou n t at w h ich T rea su ry bills are o rigin a lly
sold 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 th e In tern al R even ue
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 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 of, and such bills are
e x clu 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 hereun der need in clude in his in com e ta x return o n ly the differen ce betw 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 ally receiv ed either u p on sale o r red em p tion at
m aturity d u rin g the taxable yea r fo r w h ich th e 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 C ircu lar N o . 418, as am en ded, and this n otice, p rescrib e th e term s o f the T r e a s u ry bills and go v e rn
the con d ition s o f their issue. C opies o f th e circular m a y be obtain ed fr o m a n y F ed eral R e serv e B ank or B ranch.
This Bank will reccive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, M ay 21, 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.
R e su lts o f la s t o ffe rin 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 y 1 7 , 1 9 5 1 , m a t u r in g A u g u s t
T o ta l applied fo r . . $1,865,807,000
T o ta l a ccep ted . .
A v e ra g e price . . . .
$1,100,696,000 (in clu d es $115,105,000
entered on a n on -com p etitiv e basis
and a ccep ted in fu ll at the a verage
p rice sh ow n b e lo w )
99.589
' equivalent rate o f d iscou n t
a p p rox. 1.626% per annum
R a n g e o f a ccep ted com p etitive b ids:
H igh ........................ 99.625
equivalent rate
a p p rox. 1.484%
L ow
........................ 99.586
equivalent rate
a p p rox. 1.638%
o f discou n t
p er annum
o f discou n t
per annum
(99 p ercen t o f th e a m ou n t bid for at the lo w
p rice w a s a ccep ted )
Total
A pplied f o r
F ederal R eserv e
D istrict
B o s to n ........................
N ew Y o r k ..................
Philadelphia .............
C leveland ....................
R ich m on d ..................
A tlanta ........................
C h ica g o ......................
St. L o u is ....................
M in neapolis
...........
K an sas C ity .............
D allas
........................
San F ra n cisco .........
T o t a l ..................
16, 1 9 5 1)
$
8,513,000
1,430,224,000
30,748,000
52,488,000
8,607,000
15,204,000
178.481,000
20,641,000
4,889,000
39,885,000
14,530,000
61,597,000
$1,865,807,000
Total
A ccep ted
$
8,513,000
715,669,000
15,748,000
52,468,000
8,597,000
14,204,000
146,261,000
19,485.000
4.889,000
38.885,000
14,530,000
61,447,000
$1,100,696,000
(over)
251
I M P O R T A N T — I f y o u desire t o b id on a competitive basis, fill in r a te p e r 1 0 0 a n d m a t u r it y
v a lu e in p a r a g r a p h h ead ed "C o m p e t it iv e B id .”
I f y o u desire t o b id on a non-competitive
basis, fill in o n ly th e m a t u r it y v a lu e in p a r a g r a p h h ead ed " N o n -c o m p e t i t i v e B id .”
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
D ated M a y 2 4 ,
M a tu r in g A u g u s t 2 3 , 1 9 5 1
1951
T o F ed eral R eserve B a n k o f N e w Y
Fiscal Agent o f the United States.
Dated at
ork,
1951
C O M P E T I T I V E B ID
N O N -C O M P E T I T I V E
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
M ay 17, 1951, as issued by the Secretary
of
the
Treasury, the undersigned
offers
............................................. * fo r a total amount o f
(Rate per 100)
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 May 17,
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, 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 b elow :
□
B y surrender o f maturing Treasury bills
(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
amounting t o ................... $_______________________
amounting t o ................... $------------------------------------
□ _ B y _ c a s h or other immediately available funds
p
By ^
or other immediately available funds
* Price must be expressed on the basis o f 100, with not
more than three decimal places, f o r example, 99.925.
The Treasury bills for which tender is hereby made are to be dated May 24, 1951, and are to mature
on August 23, 1951.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills ”
N am e o f B id der
By
(Please print)
..
(Title)
(Official signature required)
S treet A d d re ss
(City, Town or Village, P.O. No., and State)
I f this ten der is su b m 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 :
(Name of Customer)
(City, Town or Village, P.O. No., and State)
U se a separate ten der f o 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 sidered, and each tender m ust be fo r an even m ultiple o f $1,000
(.m aturity va lu e). A separate tender m ust be execu ted fo r each bid.
2. I f the person m ak in g the tender is a corp ora tion , the ten d er shou ld be signed 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
represen tation b y him that he has been so authorized. If the tender is m ade b y a partnership, it sh ou ld be signed .by a
m em b er 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 em b er 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 resp o n
sible and re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o m oth ers m ust b e 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 r e a s u ry bills applied for, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent
by an in co rp o ra te d ba n k o r trust com p a n y .
4. I f the la n g u a ge o f this ten der is ch a n ged in any respect, w h ich , in the op in ion o f th e S ecreta ry o f the
T rea su ry, is m aterial, the ten der m a y be disregarded.
Payment b y credit through Treasury Tax and Loan Account -will not be permitted.
http://fraser.stlouisfed.org/
TEN TB— 1090-a
(ovsa)
Federal Reserve Bank of St. Louis
@FedFRASER