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FE D ERAL RESERVE B AN K O F N E W YO R K f Circular No. 3 7 3 0 I July 5, 1951 Fiscal Agent of the United States Offering o f $1,200,000,000 of 91-Day Treasury Bills D a te d J u ly 12, Maturing O ctober 11, 1951 1951 T o all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: F o l l o w i n g is th e t e x t o f a n o t ic e p u b lis h e d t o d a y : TREASU RY D EPARTM EN T W a s h in g to n 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, Ju ly 5, 1951. T h e S ecreta ry o f the T rea su ry , b y this p u b lic n otice, invites tenders fo r $1,200,000,000, or th ereabouts, o f 9 1-d ay T reasu ry bills, fo r cash and in e x ch a n g e for T rea su ry bills m atu rin g Ju ly 12, 1951, to be issued on a d iscou n t basis u nder com p etitiv e and n o n -co m p e titiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated July 12, 1951, and w ill m ature O c t o b e r 11, 1951, w h en the fa ce a m ou n t w ill be p a ya b le w ith ou t interest. T h e y w ill be issued in bearer fo r m 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 v a lu e). T e n d e rs w ill be receiv ed at F ed eral R e serv e B anks and B ra n ch es up to the c lo s in g h ou r, tw o o ’ c lo ck p.m ., E astern D a y lig h t S a v in g time, M on d a y, Ju ly 9, 1951. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E a ch ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive ten ders the price offered m u st be exp ressed o n the basis o f 100, w ith n o t 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 rged that ten ders be m a d e o n the printed fo rm s and fo rw a rd e d in th e special en velop es w h ich w ill be sup plied b y F ed era l R e serv e B ank s o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x cep t fo r their o w n a ccou n t. T en d ers w ill be re ce iv e d 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 resp on sib le and re co g n iz e d dealers in in vest m en 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 pa 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 applied fo r, unless th e ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t b y an in corp ora ted b a n k 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 era l R e serv e 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 w ill b e m ade b y the S ecreta ry o f the T r e a s u ry o f the a m ou n t and price range o f a cce p te d b id s. T h o s e su b m ittin g tenders w ill be a d vised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T r e a s u ry ex p ressly reserves the righ t t o a cce p t o r re je c t a n y or all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b ject to these reserva tion s, n o n -co m p e titiv e ten ders fo r $200,000 o r less w ith ou t stated p rice fro m a n y on e b idd er w ill b e a ccep ted in fu ll at th e a vera ge p r ice (in th ree d ecim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent fo r a ccep ted ten ders in a ccord a n ce w ith th e b id s m u st be m a d e o r com p le te d at th e F ed eral R eserve B ank on July 12, 1951, in cash o r oth er im m ed ia tely available funds o r in a like face a m ou n t o f T rea su ry bills m a tu rin g J u ly 12, 1951. Cash and ex ch a n g e ten ders w ill receiv e equal treatm ent. Cash ad ju stm en ts w ill be m a d e fo r d ifferen ces betw 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 th e n ew bills. T h e in co m e d erived fr o m T rea su ry bills, w h eth er interest or gain fr o m the sale or oth er d isp osition o f the bills, 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 ode, o r law s a m en d a tory or su p plem en ta ry th ereto. T h e bills shall be s u b je ct to estate, inheritance, gift, or oth er e x cis e taxes, w h eth er F ed eral or State, b u t shall be ex em 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 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 any lo ca l ta x in g authority. F o r p u rp oses o f taxation th e a m ou n t o f d iscou n t at w h ich T r e a s u ry bills are origin a lly s o ld b y the U n ite d States shall be co n sid e re d to be interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f th e In tern al R even u e C ode, 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 hich 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 hereun der n e e d in clu d e in his in com e ta x return o n ly the differen ce b etw een the p rice paid for such bills, w hether o n o rigin a l issue o r o n subsequen t pu rch a se, 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 atu rity d u rin g the ta x ab le yea r f o r w h ich th e return is m ade, as ord in a ry g a in 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 r e a s u ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f th e circu la r m a y b e ob ta in ed fr o m a n y F ed era l R eserve B ank o r B ran ch. T h i s B a n k w ill r e c e iv e t e n d e r s u p t o 2 p .m ., E a s t e r n D a y lig h t S a v in g tim e , M o n d a y , J u ly 9 , 1 9 5 1 , a t th e S e c u r it ie s D e p a r t m e n t o f its H e a d O f fic e a n d a t its B u f f a lo B r a n c h . P le a s e u s e th e f o r m o n th e r e v e r s e s id e o f th is c ir c u l a r t o s u b m it a t e n d e r , a n d r e t u r n it in a n e n v e lo p e m a r k e d “ T e n d e r f o r T r e a s u r y B ills .” Paym ent f o r the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. immediately available funds or in maturing Treasury bills. Settlement must be made in cash or other A llan S proul, 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 l y 5 , 1 9 5 1 , m a t u r i n g O c t o b e r 4 , 1 9 5 1 ) T otal applied f o r ........ $1,821,659,000 T otal accepted ...............$1,200,374,000 (includes $113,293,000 entered on a non-competitive basis and accepted in full at the average price shown below ) A verage price . . . . 99.595 Equivalent rate o f discount approx. 1.604% per annum , t . .... ... Range o f accepted competitive b id s : H igh ....................... 99.650 Equivalent rate o f discount approx. 1.385% per annum Low ......................... 99.590 Equivalent rate annrnv 1 approx. l.6 * !% (65 percent o f the amount bid f o r at the price was accepted) o f discount nrr annum per annum low Federal Reserve District Total Total Applied fo r Accepted Boston ..................................... $ 11,397,000 $ 11,222,000 N ew Y o r k ............................. 1,394,902,000 811,352,000 Philadelphia .......................... 34,309,000 29,309,000 Cleveland ...............................37,833,000 37,833,000 Richm ond ...............................17,363,000 16,688,000 Atlanta ................................... 10,109,000 10,109,000 Chicago ................................... 151,928,000 125,878,000 St. L ouis ................................ 19,298,000 19,063,000 Minneapolis .......................... 9,983,000 9,983,000 S j g f City .......................... Dallas .................................... San Francisco ..................... T o t a l .............................. S ’iS n m i S 'J U 24,168,000 22,418,000 72,785,000 69,285,000 ---------------------- ---------------------------$1,821,659,000 $1,200,374,000 (over) 25P I M P O R T A N T — I f y o u desire t o b id on a com petitive b asis, 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 n on -com petitive b asis, 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 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 te n d e r m u s t be used f o r ea ch b id , e x c e p t t h a t b a n k s s u b m ittin g b ids on a c o m p e titiv e basis f o r th eir o w n a n d th eir c u sto m e r s’ a cc o u n ts m a y s u b m it one te n 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 r o 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 e th o d o f p a y m e n t. F o rm s f o r th is p u rp o se w ill be fu r n ish e d u p o n req u est. N o................................. TENDER FOR 91-DAY TREASURY BILLS M a tu r in g O c to b e r 1 1 , 1 9 5 1 D a t e d J u ly 1 2 , 1 9 5 1 T o F e d e r a l R eser v e B a n k o f N e w Y o r k , Fiscal Agent o f the United States. Dated at 1951 C O M PE TITIV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on July 5, 1951, as issued by the Secretary o f the Treas ury, the undersigned o ffe rs .................................... * N O N -C O M P E T I T I V E B ID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on July 5, 1951, as issued by the Secretary o f the Treasury, the undersigned offers a non-competitive tender fo r a total amount o f $ ............................................... (Rate per 100) 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 (Not to exceed $200,000) (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 ................... $_______________________ □ □ B y cash or other immediately available funds By cash or other immediately available funds * Price must be expressed on the basis o f 100, with not more than three decimal places, fo r example, 99.925. The Treasury bills fo r which tender is hereby made are to be dated July 12, 1951, and are to mature on October 11, 1951. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” N a m e o f B id der (Please print) By ... (Title) (Official signature required) S treet 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 bank f o r th e 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) IM P O R T A N T IN S T R U C T IO N S : 1. N o ten der f o r less th an $1,000 w ill be con sidered, and each ten d er m u st b e 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 , the 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 u th orized t o m ake the tender, and the sig n in g o f th e tender b y an officer o f th e co rp o ra tio n w ill be con stru e d as a rep resen ta tion b y h im that he has b een s o auth orized. I f the ten der is m ade b y a partnership, it sh ou ld b e sign ed b y a m e m b e r o f th e firm , w h o s h ou ld sign in th e 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 fro 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 oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T r e a s u ry bills applied for, unless 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 h ich , in the op in ion o f th e S ecreta ry o f the T re a s u ry , is m aterial, th e ten der m ay be disregarded. Paym ent b y cred it through T reasu ry T a x and Loan A cco u n t -will n ot be perm itted. Digitized TENTB— for FRASER 1097-a (oveb) a fr 2 7 3 <? (s4 ) F e d e r a l o f R N eserve ew Y b a n k ork N e w Y o r k 4 5 , N . Y. J u ly 2 , 1951 DANGEROUS COUNTERFEIT FEDERAL RESERVE NOTES To all Banks in the Second Federal Reserve D i s t r i c t : Counterfeit Federal Reserve notes in the $10 and $20 denominations are again appearing in the Second Federal Reserve District, and have been detected in consid erable volume in the New York metropolitan area. These notes, which first appeared several years ago, are of good workmanship and are not easily detected. Your tellers and customers should be warned to scrutinize such Federal Reserve n o t e s . The United States Secret Service describes the counterfeits that are now ap pearing as f o l l o w s : COUNTERFEITS APPEARING A S FEDERAL RESERVE BANK OF DALLAS (K) ISSUE $10 Denomination Lack of proper shading in Hamilton portrait makes the lower lip very in definite. Treasury seal and serial numbers are printed in bright green and the numerals are unlike the genuine in design. Round dots instead of 5 -pointed stars appear between the abbreviated words around the border of the seal, and the stem of the key appears to be thicker than the genuine. The notes bear facsimile signatures of W. A. Julian and John W. Snyder. Serial number v a r i e s . Check letter and face plate number— J 1 6 Back plate number— 9 or 1219 $20 Denomination Red ink lines have been drawn on face of note only, to simulate the genuine colored fibres. White areas appear at the top and at the left of Jackson's hair, due to omission of etched lines. A tiny black vertical line appears just above the bridge of Jackson's nose. Treasury seal and serial numbers are in bright green. In the row of four dots appearing just above the key in the seal, the dot at extreme right touches the key handle. In the genu ine it does not touch. The notes bear facsimile signatures of W. A. Julian and John W. Snyder. Serial number varies. Check letter and face plate number— J 16 Back plate number— 488 (over) COUNTERFEITS APPEARING A S FEDERAL RESERVE BANK OF SAN FRANCISCO (L) ISSUE $10 Denomination The edges of the Hamilton portrait are ragged against the dark crossruled background, especially where the lines of the hair fail to meet the b a c k ground. In the Treasury seal the center dot is missing in the second row of dots above the key. The seal has such a faded appearance that it is difficult to distinguish other characteristics. The back of the note is printed in dull green and the sky effect is so faint as to be barely visible. The notes bear facsimile signatures of W.A. Julian and John W. Snyder. Serial number varies. Check letter and face plate number--J 100 Back plate number— 7 > 12, 207, or 1207 $20 Denomination A few red lines have been drawn on the face only to simulate the genuine colored fibres. White areas appear at the top and at the left of Jackson's hair, due to omission of etched lines. The Treasury seal and serial numbers are in bright green. A tiny black vertical line appears just above the bridge of Jackson's nose. O n the back of the note several curly hair lines are visible in the sky shading. The notes bear facsimile signatures of W.A. Julian and John W. Snyder. Serial number varies. Check letter and face plate number— J 100 Back plate number— 88 COUNTERFEITS APPEARING A S FEDERAL RESERVE BANK OF RICHMOND (E) ISSUE $20 Denomination In the Jackson portrait, missing hair lines give the head an unnaturally white appearance at the top and left. Treasury seal and serial numbers are in a very faded light green. The notes bear facsimile signatures of W.A. Julian and John W. Snyder. There are small but noticeable breaks at extreme left of the fine line underscoring the facsimile signature of W.A. Julian, and in the inner hairline border of the scroll immediately below the underscoring. Serial number varies. Check letter and face plate number--F 28 Back plate number— 59> 88, or 1289 All counterfeit money received from any source should be forwarded to the nearest office of the United States Secret Service, rather than to Washington, D. C. The Secret Service has offices in R o o m 9 1 7 > Federal Office Building, 90 Church Street, New York 7, N. Y.; in the United States Court House, Buffalo 1, New York; in the Post Office Building, Utica 1, New York; and at 1060 Broad Street, Newark 1, New Jersey. Additional copies of this letter will be furnished upon request. ALL A N SPR0UL, P r e s id e n t. N E W Y O R K -N E W J E R S E Y M U T U A L S A V IN G S BA N K V O L U N TA R Y C R E D IT R E S TR A IN T C O M M ITTE E Created pursuant to the Program for Voluntary Credit Restraint authorized by the Defense Production Act of 1950 3 3 L IB E R T Y S T R E E T N E W Y O R K 4 5 . N. Y. July 3, 1951. To the Chief Executive Officer o f each Mutual Savings Bank in the States of New York and New Jersey: The national V oluntary Credit R estraint Committee has approved the establishment o f regional com m ittees to consult with and advise mutual savings banks in their respective terri tories concerning the application o f the Statement o f P rinciples o f the P rogram to specific loan inquiries. Sim ilar comm ittees h eretofore have been announced fo r com m ercial banks, insur ance companies, investm ent bankers, and savings and loan associations. The New Y ork-N ew J ersey M utual Savings Bank V oluntary Credit R estraint Committee is the regional com m ittee representing mutual savings banks in the States o f New Y ork and New Jersey. The members o f the Committee are as fo llo w s: a i s e r , Chairman, Executive V ice President, The W illiam sburgh Savings Bank, Brooklyn, N. Y. J oseph A . K R andolph H . B r o w n e l l , President, U niop Square Savings Bank, New Y ork, N. Y. R aymond F . E i s e n h a r d t , V ice President, The Buffalo Savings Bank, Buffalo, N. Y . N orm an P . M c G r o r y , V ice President, The H ow ard Savings Institution, Newark, N. J. A rthur P W helan, V ice President, Federal Reserve Bank o f New Y ork, New York, N. Y . F . T r e i b e r , V ice President, Federal Reserve Bank o f New Y ork, New Y ork, N. Y. (Alternate fo r Mr. Phelan) il l ia m The P rogram fo r V oluntary Credit R estraint, dated M arch 9, 1951, and the fo u r bulletins issued thereafter b y the national V oluntary Credit R estraint Committee have already been sent to you. W e expect to furnish you with additional m aterial fro m time to time. The basic purpose o f the P rogra m is to provide credit necessary to sustain essential production and services, and at the same time to restrain financing which w ill add to inflationary pressures. A s the P rog ra m is entirely voluntary, the prim ary function o f this Committee w ill be to serve the mutual savings banks in N ew Y ork and New J ersey in an advisory capacity to aid them in their efforts to observe the principles set forth in the P rogra m governing the exten sion o f credit. The Committee w ill be glad to help individual mutual savings banks to resolve questions which they m ay have as to the appropriateness under the P rog ra m o f any loan under consideration. A m eeting o f the Committee will be held shortly to appoint a secretary and to devise a fo rm o f application, copies o f which w ill be forw a rded to you, fo r use in sub ( OVER) m itting to the Committee fo r consideration the details o f any specific loan fo r the purpose o f determ ining whether the loan conform s to the P rogram . If, in the interim, you wish the Com mittee to consider any specific loan about which you m ay have any doubt, please submit com plete details o f the loan, w ithout nam ing the borrow er, to G. M o r g a n B r o w n e , 3 3 L iberty Street, New Y ork 45, N. Y. The Committee has every confidence that all mutual savings banks in the States o f New Y ork and N ew J ersey w ill cooperate to the fullest extent to make a success o f this P rogram which is designed to provide credit necessary fo r the essentials as defined b y the P rogram , both in defense production and in private business, and at the same time to restrain loans out side the scope o f the P rogra m which w ill add to the danger o f inflation. J oseph A. K a is e r , Chairman.
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