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F E D E R A L R E S E R V E B AN K O F N E W YO R K
C ir cu la r N o. 3 7 2 7
Fiscal Agent of the United States
June 28, 1951
Offering o f $1,200,000,000 of 91-Day Treasury Bills
Dated July 5, 1951
Maturing O ctober 4, 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:
TREASU RY DEPARTM EN T
W a sh in g ton
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 ,
Thursday, June 28, 1951.
The Secretary of the Treasury, by this public notice, invites tenders for $1,200,000,000, or thereabouts, of 91-day Treas
ury bills, for cash and in exchange for Treasury bills maturing July 5, 1951, to be issued on a discount basis under competi
tive and non-competitive bidding as hereinafter provided. The bills of this series will be dated July 5, 1951, and will mature
October 4, 1951, when the face amount will be payable without interest. They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
T e n d e rs w ill be received at F ed eral R eserve 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
Daylight Saving time, Monday, July 2, 1951. Tenders will not be received at the Treasury Department, Washington. Each
ten der m u st be fo r an even m u ltiple o f $1,000, and in the case of com p etitive ten ders the price offered m u st be exp ressed on
the basis o f 100, w ith n ot m o re than three 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 velopes w h ich w ill b e supplied b y F ed eral R e serv e B an k s o r
B ran ch es o n application th erefor.
O th e rs than ban kin g institutions w ill n ot be perm itted to subm it tenders e x ce p t fo r their ow n a ccou n t. T en d ers w ill be
receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fr o m respon sible and recog n ized 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 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 ten ders 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 corpora ted bank or trust com pan y.
Im m ed ia tely after the clo s in g h ou r, ten ders w ill be op en ed at the F ed eral R eserve B anks and B ra n ch es, fo llo w in g w h ich
p u b lic a n n ou n cem en t will be m ade b y the S ecreta ry o f the T reasu ry o f the a m ou n t and price ra n ge o f a ccep ted bids. T h o s e
subm itting tenders w ill be advised o f the a ccep ta n ce o r rejection 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 reject a n y o r all ten ders, in w h ole o r in part, and his action in a n y such resp ect shall be final. S u b ject
to these reservations, n on -com p etitiv e tenders fo r $200,000 o r less w ith ou t stated price fro m any on e b idder w ill be a ccep ted
in full at the a vera ge price (in three d ecim a ls) o f a ccep ted com petitive bids. Settlem ent fo r a ccep ted tenders in a ccord a n ce
with the bids must be made or completed at the Federal Reserve Bank on July 5, 1951, in cash or other immediately avail
able funds or in a like face amount of Treasury bills maturing July 5, 1951. Cash and exchange tenders will receive equal
treatm ent. Cash adjustm ents will b e m ade fo r differences betw een the par valu e o f m aturing bills a ccep ted in ex ch a n g e and
the issue price o f the n ew bills.
T h e in com e derived fr o m T rea su ry b ills, w h eth er interest o r gain fro m the sale or oth er d isp osition o f th e b ills, shall
n ot have a n y e x e m p tion , as such, a n d loss 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, under th e Internal R even u e C ode, o r laws am en da tory or supplem entary thereto. T h e bills shall be
su b je ct t o estate, inheritance, gift, o r oth er excise taxes, w h eth er F ed eral o r State, but shall be ex em p t fro jn all taxation
n o w o r hereafter im posed on the principal o r interest th ereof b y a n y State, o r any o f th e p ossession s o f the U n ited States,
o r b y a n y loca l ta x in g authority. F o r pu rp oses o f taxation the am ou nt o f d iscou n t at w hich T rea su ry bills are origin a lly
sold by the United States shall be considered to be interest. Under Sections 42 and 117(a)(1) o f the Internal Revenue
Code, 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 h ereun der are
so ld shall n o t be con sidered t o a ccru e until su ch bills shall be sold , red eem ed o r oth erw ise disp osed of, and su ch bills are
e xclu d e d fro m con sideration as capital assets. A c co 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 need in clude in his in com e ta x return on ly th e differen ce betw een th e price pa id fo r such bills,
w h eth er o n o rig in a l issue or on subsequen t pu rch ase, and the am ou nt actu a lly receiv ed either u pon sale o r red em ption at
m aturity du rin g the taxable year 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 epa 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 g o v e rn
the con d ition s o f th eir issue. C opies o f the circular m a y b e ob ta in ed fr o m a n y F ed eral R eserve B a n k o r B ranch.
This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, July 2, 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 T ax and Loan Account. Settlement must be nuide 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 s u l t s o f la s t o f f e r i n g o f T r e a s u r y b ills ( 9 1 - d a y b ills d a t e d J u n e 2 8 , 1 9 5 1 , m a t u r i n g S e p t e m b e r 2 7 , 1 9 5 1 )
Total applied for.......... $1,744,508,000
Total accepted .............$1,000,372,000 {includes $95,905,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Average price....... 99.614-j- Equivalent rate of discount
approx. 1.527% per annum
Range of accepted competitive bids: (excepting one tender
of $100,000)
High .................... 99.645
Equivalent rate of discount
approx. 1.404% per annum
Low ...................... 99.608
Equivalent rate of discount
approx. 1.551% per annum
(44 percent o f the amount bid for at the low
price was accepted)
Federal Reserve
District
Boston ...................... ....
New York .............. ....
Philadelphia ............
Cleveland ................
Richmond .................
Atlanta ....................
St. Louis ..................
Minneapolis .............
Kansas City .............
Dallas ......................
San Francisco .........
T
otal
...................... ....
Total
Applied fo r
$ 14.933,000
1,327,326,000
20,673,000
26,229,000
25,183,000
9,689,000
145 944 000
13,397,000
3,407,000.
25,322,000
40,249,000
92,156,000
Total
Accepted
$ 14,261,000
640,482,000
20,673,000
26,229,000
25,183,000
9,689,000
115 944 000
12,817,000
3,407,000
25,322,000
40,249,000
66,116,000
$1,744,508,000
$1,000,372,000
( over)
250
I M P O R T A N T — I f y o u desire to b id on a com petitive basis, fill in ra te per 1 0 0 a n d m a t u r it y
v a lu e in p a r a g ra p h h eaded "C o m p e t it iv e B id .”
I f y o u desire t o b id on a non-com petitive
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 ra p h h eaded " 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 fo rm . A sep arate ten d e r m u s t be u sed f o r ea ch b id ,
e x c e p t th a t b an k s s u b m ittin g bids on a c o m p e titiv e basis f o r th eir o w n and th eir c u sto m ers’
a cc o u n ts m a y s u b m it one ten d e r f o r th e t o t a l a m o u n t b id a t ea ch p ric e, p ro v id e d a list is
a tta c h e d sh o w in g th e n am e o f ea ch b id d e r, th e a m o u n t b id f o r his a c c o u n t, a n d m eth o d o f
p a y m e n t. F orm s f o r this pu rp o se w ill be fu r n ish e d u p o n req u est.
T E N D E R F O R 9 1 -D A Y T R E A S U R Y BILLS
D a t e d J u ly 5 , 1 9 5 1
M a tu r in g O c to b e r 4 , 1 9 5 1
Dated a t _______________
To F e d e ra l R eserv e B a n k of N ew Y o r k ,
Fiscal A gent o f the United States.
.1951
COMPETITIVE BID
NON-COMPETITIVE BED
Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on
June 28, 1951, as issued by the Secretary
of
the Treasury,
the
undersigned
offers
Pursuant to the provisions o f Treasury De
partment Circular N o. 418, as amended, and to the
provisions o f the public notice on June 28,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender
___________________________* for a total amount o f
for a total amount o f
(Rate per 100)
(Not to exceed $200,000)
(maturity value)
o f the Treasury bills therein described, o r 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) 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
By surrender o f
maturing Treasury bills
amounting to--------------------- $--------------------------------
amounting to______________$_____________________
□
□
By cash or other immediately available funds
B y cash or other immediately available funds
* Price must be expressed on the basis of 100, with not
more than three decimal places, fo r example, 99.925.
The Treasury bills for which tender is hereby made are to be dated July 5, 1951, and are to mature on
October 4, 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..........
B y ...
(Please print)
(Official signature required)
(Title)
S treet A d d ress
(City, Town or Village, P.O. No., and State)
I f this ten der is subm itted b y a bank Cor th e a cco u n t o f a cu stom er, in dicate th e cu stom er’ s nam e o n line b e lo w :
(Name o f Customer)
(City, Town or Village, P.O. No., and State)
IM PORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill b e con sidered, and each ten der m u st be f o r an even m u ltiple o f $1,000
(m a tu rity v a lu e ).
2. I f the person 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 rp o ra
tion a uthorized t o m a k e the tender, and th e sig n in g o f th e ten der b y an o ffice r o f the corp ora tion w ill be con stru ed as a
represen tation b y h im that he has b een s o a uthorized. I f the ten der is m ade b y a partnership, it sh ou ld b e 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 d ep osit fr o m in corp ora ted banks and trust com pa n ies and fr o m resp o n
sible and re co g n ize d dealers in in vestm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y paym ent 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 pp lied for, u nless th e tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent
b y an in corp ora ted b a n k o r trust com p a n y .
4. I f the language o f this ten der is ch a n g ed in a n y respect, w hich, in th e op in ion o f th e S ecreta ry o f the
T re a su ry , is m aterial, th e ten der m a y be disregarded.
Paym ent b y cred it through Treasury T a x and Loan A cco u n t w ill n ot be perm itted.
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