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FE D ERAL R E SERVE BANK O F N E W YORK Circular No. 3 7 1 9 June 14, 1951 Fiscal Agent of the United States Offering of $1,000,000,000 of 91-Day Treasury Bills Maturing September 20, 1951 D ated Ju n e 21, 1951 T o all 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 , June 14, 1951. TREASU RY DEPARTM EN T W a s h in g to n T h e S e cre ta ry o f the T rea su ry, b y this p u b lic n otice, invites ten ders fo r $1,000,000,000, or th ereabouts, o f 9 1-d ay T rea su ry bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g June 21, 1951, to be issued on a d iscou n t basis under com p etitiv e and n o n -co m p e titiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated June 21, 1951, and w ill m ature S ep tem ber 20, 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 b e issued in bearer fo r m o n ly , and in d e n 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 v a lu e). T e n d e rs w ill be received at F ed eral R e serv e B anks and B ra n ch es up to the clo s in g h our, tw o o ’ c lo ck p.m ., E astern D a y lig h t S a vin g tim e, M on d a y , June 18, 1951. T e n d e rs w ill n ot be received at the T r e a s u 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 ten ders the p rice offered m u st be exp ressed on the basis o f 100, w ith n o t m ore than three decim a ls, e.g., 99.925. F ra ction s m a y n ot be used. It is u rged that ten ders 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 sup plied b y F ed era l R es e rv e B ank s o r B ra n ch e s o n a pp lica tion th erefor. O th e rs than b a n k in g institutions w ill n ot b e perm itted to subm it ten ders e x ce p t fo r th eir o w n a ccou n t. 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 resp on sib le and re co g n iz e d dealers in in vest m e n t securities. T e n d e rs fro m oth ers m u st be a cco m p a n ie d 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 r e a s u ry bills a pp lied fo r, unless th e ten ders are a ccom p a n ied b y an express gu a ra n ty o f p a y m en t b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely after th e clo s in g h ou r, ten ders w ill be op en ed at the F ed eral R e serv e B an ks and B ra n ch es, fo llo w in g w hich 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 am ou nt and price ran ge o f a cce p te d b ids. T h o s e su b m ittin g ten ders w ill be advised o f th e 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 t o a cce p t o r re je ct any o r all tenders, in w h o le o r in part, and his a ction in a n y such re s p e ct shall b e final. S u b ject to these reserva tion s, n o n -co m p e titiv e ten ders for $200,000 o r 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 vera ge price (in three d ecim a ls) o f a cce p te d com p etitiv e bids. S ettlem en t fo r a ccep ted tenders in a ccord a n ce w ith the bids m ust be m ade o r com p leted at the F ed eral R eserve B ank on June 21, 1951, in cash or oth er im m ediately available fun ds o r in a like fa ce a m ou n t o f T rea su ry bills m atu rin g June 21, 1951. Cash and ex ch a n g e ten ders w ill receiv e equal treatm ent. Cash adju stm en ts w ill be m ade f o r d ifferen ces b etw een the par valu e o f m a tu rin g bills a ccep ted in ex ch a n g e and the issue p rice o f the n e w bills. T h e in co m e derived fr o m T rea su ry b ills, w h eth er interest o r gain fr o m the sale o r oth er d isp osition o f the b ills, shall n o t have a n y exem ption , as such, and lo s s fr o m the sale o r oth er d isp osition o f T rea su ry bills shall n ot have a n y special treatm ent, as such, u nder the In tern al R even u e C od e, 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, o r oth er excise ta xes, w h eth er F ed eral o r State, but shall be exem p t fr o m all taxation n o w o r hereafter im p osed on the principal o r interest th ereof b y any State, o r a n y o f the p ossession s o f the 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 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 Internal R even u e C o d e , as a m en ded b y S ection 115 o f the 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 h ereu n der are so ld shall n o t be co n sid ered to a ccru e until such bills shall b e sold , red eem ed o r oth erw ise disp osed o f, and such bills are e xclu d e d fro m con sid era tion as capital assets. A c c o r d in g ly , th e o w n e r o f T r e a s u ry bills (o th e r than life in su rance co m p a n ie s ) issued h ereun der n eed in clu d e in his in com e ta x return o n ly the differen ce .b etw een the p rice pa id fo r such bills, w hether o n o rigin a l issue o r o n su b seq u en t p u rch a se, and the a m ou n t actu a lly receiv ed either u p on sale or red em p tion at m atu rity d u rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain or loss. T re a su ry D ep a rtm en 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 rea su ry b ills and g o v e rn the co n d itio n s o f th eir issue. C op ies o f the circu la r m a y b e ob ta in ed fr o m any F ed eral R eserve B ank o r B ra n ch . This Bank will rcceive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, June 18, 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.” Paym ent f o 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 June 14, 1951, maturing September 13, 1951) T otal applied f o r ...........$2,110,922,000 Total accepted ...............$1,001,224,000 (includes entered and accepted in full at price shown b elow ) A verage price 9 9 .62 9 + E — . ^ e Federal R eserv e $123,335,000 _____D istrict____ on a non-com petitive basis Boston the average N ew Y o rk .......................... Philadelphia .......................... o f discount “ d approx. 1.4077c per annum Range o f accepted com petitive b id s : H i g h ......................... 99.632 Equivalent rate o f discount approx. 1.456% per annum 99628 " " V S per^annum approx. lA/ZVo per annum (59 percent o f the amount bid fo r at the low price was accepted) A t la n t a ..................................... C h icago .......................... St- L ou is Minneapolis S f f ^ ! . .!! ! San Francisco ..................... T otal .............................. T otal A pplied f o r $ 43,341,000 1,500,008,000 26,328,000 51,491,000 18,061,000 233,866,000 22,102,000 8,825,000 $ Total A ccep ted 34,108,000 712,506,000 10,928,000 27,556,000 13,676,000 105,420,000 10,585,000 6,445,000 $ £ 3 8 8 g l f f i 82,835,000 24,838,000 ---------------------- ---------------------------$2,110,922,000 $1,001,224,000 (oveh) 25M IMPORTANT— If you desire to bid on a com petitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” If you desire to bid on a n on -com p etitive basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” D O N O T fill in both paragraphs on one fo rm . A separate tender must be used for each bid, except that banks submitting bids on a competitive basis for their own and their customers’ accounts may submit one tender for the total amount bid at each price, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. N o ................................. TENDER FOR 91 -DA Y TREASURY BILLS Dated June 21, 1951 To F ed era l R eserve B an k o f N ew Maturing September 20, 1951 Dated at Y ork , Fiscal A gent o f the United States. COMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on June 14, 1951, as issued by the Secretary o f the Treas ury, the undersigned o ffe rs .................................... * (Rate per 100) 1951 NON-COMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on June 14, 1951, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender for a total amount o f $ ............................................... fo r a total amount o f $ ............................................... (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 : □ By 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 : □ By surrender o f maturing Treasury bills amounting t o ................... $________________________ amounting t o ................... $________________________ D Q B y cash or other immediately available funds (Not to exceed $200,000) B y cash or other immediately available funds * P r ic e must be exp ressed on the basis o f 100, w ith not m ore than th ree decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated June 21, 1951, and are to mature on September 20, 1951. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” N a m e o f B id d er ........................................................................................................................................... (Please print) By ... (Official signature required) (Title) Street A d d ress (City, Town or Village, P.O. No., and State) I f this ten der is su b m itted b y a b a n k fo r the a cco u n t o f a cu stom er, in dica te th e cu sto m e r’ s n am e o n line b e lo w : (Name of Customer) (City, Town or Village, P.O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o ten der f o r less than $1,000 w ill be con sid ered , and each ten d er m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the p erson 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 th e c o r p o r a tion a uthorized to m ake the tender, and the sig n in g o f th e ten der b y an officer o f the corp o ra tio n w ill be con stru ed as a rep resen tation b y h im th at he has been so 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 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 dep osit fr o m in corp ora ted banks and trust com pa n ies and fro m re s p o n sible and re co g n iz e d dealers in in vestm ent securities. T e n d e rs fro m o th 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 th e face a m ou n t o f T r e a s u ry bills applied for, u nless the tenders are a ccom p a n ied b y an express gu aranty o f paym ent b y an in co rp o ra ted b a 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 a n y respect, w hich, in the op in ion o f th e S ecreta ry o f the T re a s u ry , is m aterial, the ten der m ay be disregarded. Paym ent b y cred it through Treasury T a x and Loan A cco u n t tvill n ot b e perm itted. T E N T B — 1 0 9 4 -a (over)