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FED ERAL R E SE R V E BANK O F N E W YO R K £ C ircjufy 12!'ilsi31 Fiscal A gent o f the United States Offering o f $1,200,000,000 of 91-Day Treasury Bills D ated July 19, 1951 M aturing O ctober 18, 1951 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: F ollow ing is the text o f a notice published to d a y : TREASU RY DEPARTM ENT W ash in gton 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 ursd ay, Ju ly 12, 1951. T h e Secretary o f the T reasu ry, b y this public notice, invites tenders for $1,200,000,000, o r thereabouts, o f 91-day Treasu ry bills, fo r cash and in exch ange fo r T reasu ry bills m aturing Ju ly 19, 1951, to be issued on a discou nt basis under com p e ti tive and n on-com petitive bid d in g as h ereinafter provided . T h e bills o f this series w ill be dated July 19, 1951, and w ill mature O cto b e r 18, 1951, when 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 valu e). T en ders w ill be received at F ed eral R eserve Banks and Branches up to the closin g hour, tw o o ’c lo ck p.m., E astern D a yligh t S a vin g time, M on day, July 16, 1951. T en ders w ill n ot be received at the T reasu ry Departm ent, W a sh in gton . Each tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be exp ressed on the basis o f 100, w ith not more than three decim als, e.g., 99.925. F raction s m ay not be used. It is urged that tenders be made on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied b y F ed eral R eserve Banks or B ranches on application therefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be received w ithout deposit from in corpora ted banks and trust com panies and from responsible and recogn ized dealers in in vestm ent securities. T en ders fro m others must be accom panied by paym ent o f 2 percent o f the face am ount o f T rea su ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank o r trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich public announcem ent w ill be made by the S ecretary o f the T rea su ry o f the amount and price range o f accepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T he S ecretary o f the T reasu ry exp ressly reserves the right to accept o r reject any or all tenders, in w hole o r in part, and his action in any such respect shall be final. S ubject to these reservations, non-com p etitive tenders fo r $200,000 o r less w ithout stated price from any one b idder w ill be accepted in full at the average price (in three decim als) o f accepted com petitive bids. Settlem ent for accepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the Federal R eserve Bank on July 19, 1951, in cash or oth er im m ediately available funds o r in a like fa ce am ount o f T reasu ry bills m aturing July 19, 1951. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents w ill be made fo r differences between the par value o f m aturing bills accepted in exchange and the issue price o f the new bills. T he incom e derived from T reasu ry bills, whether interest o r gain from the sale o r other disp osition o f the bills, shall n ot have any exem ption, as such, and loss fro m the sale or other disp osition o f T rea su ry bills shall not have any special treatment, as such, under the Internal R evenue Code, or laws am endatory o r supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift, or other e x cis e taxes, w hether Federal or State, but shall be exem pt from all taxation n ow o r hereafter im posed on the principal o r interest th ereof b y any State, o r any o f the possessions o f the U nited States, o r by any local ta x in g authority. F o r purposes o f taxation the amount o f discou nt at w hich T reasu ry bills are origin a lly sold b y the U nited States shall be con sidered to be interest. U nder S ections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue Code, as amended by S ection 115 o f the Revenue A ct o f 1941, the am ount o f discou n t at w hich bills issued hereunder are sold shall not be con sidered to accrue until such b ill shall be sold, redeem ed or otherw ise disp osed of, and such bills are exclu d ed from con sideration as capital assets. A ccord in g ly , the ow ner o f T reasu ry bills (oth er than life insurance co m panies) issued hereunder need include in his incom e tax return on ly the difference between the price paid fo r such bills, w hether on o rigin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity d u rin g the taxable year fo r w hich the return is made, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu lar N o. 418, as amended, and this notice, prescribe the terms o f the T reasu ry bills and govern the con ditions o f their issue. Copies o f the circu la r m ay be obtain ed from any Federal R eserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, July 16, 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 for 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 llan S proul, President. Results o f last offering o f Treasury bills (91-day b ills dated July 12, 1951, maturing O ctober 11, 1951) T o ta l applied f o r .........$1,964,371,000 T ota l a c c e p t e d ............. $1,201,731,000 (in clu des $131,636,000 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 era ge p r ic e ........... 99.592 Equivalent rate o f discount approx. 1.615% per annum R ange o f accepted com petititve b id s : H ig h ............................ 99.650 Equivalent rate o f discount app rox. 1.385% per annum L o w ............................. 99.590 E quivalent rate o f discount approx. 1.622% per annum (75 percent o f the am ount bid fo r at the low price w as accepted) Total Applied for Federal Reserve District ... $ .... $1,964,371,000 N ew Y o rk ............... P h iladelphia ........... C leveland ................. R ic h m o n d ................. C h ica go ................... St. L ouis ................. M inneapolis .......... K ansas C ity ........... Dallas ....................... San F ra n cisco . . . . T o t a l ...................... 21,610,000 1,454,549,000 31.604,000 30.393.000 11,751,000 16,983,000 201,722,000 22,486.000 4.004.000 47,365,000 32,465.000 89,439,000 Total Accepted $ 21,485,000 787,971,000 19,104,000 30.268.000 11.489,000 16,733,000 156,847,000 22,461,000 4.004,000 37,740,000 29,965,000 63,664,000 $1,201,731,000 ( over ) IM P O R T A N T — I f you desire to b id on a com p etitive basis, fill in rate per 100 and maturity value in paragraph headed “ Com petitive B id .” I f you desire to bid on a non-com petitive basis, fill in only the maturity value in paragraph headed “ N on-com petitive B id.” DO N O T fill in b oth paragraphs on on e form . A separate tender must be used fo r each bid, except that banks submitting bids on a com petitive basis fo r their ow n and their customers’ accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the name o f each bidder, the amount bid fo r his account, and m ethod o f payment. Forms for this purpose w ill be furnished upon request. No. T E N D E R F O R 9 1 -D A Y T R E A S U R Y B IL L S Maturing O ctober 18, 1951 Dated July 19, 1951 T o F e d e r a l R eserve B a n k o f N e w Y Fiscal A gent o f the United States. Dated a t ......................... ork, 1951 N O N -C O M P E TIT IV E BID C O M P E T IT IV 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 12, 1951, as issued by the Secretary o f the Treasury, the undersigned offers Pursuant to the provisions o f Treasury D e partment Circular No. 418, as amended, and to the provisions of the public notice on July 12, 1951, as issued by the Secretary o f the Treasury, the undersigned offers a non-com petitive tender ............................................ * fo r a total amount o f for a total amount o f $. (Not to exceed $200,000) (Rate per 100) $ ..................................................... (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 e lo w : (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) o f accepted com petitive 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 By surrender o f maturing Treasury bills amounting t o ................... $------------------------------------ amounting t o ................... $_______________________ □ □ By cash or other immediately available funds By cash or other immediately available funds * P rice must be expressed on the basis of 100, zvith not more than three decimal places, for example, 99.925. The Treasury bills for which tender is hereby made are to be dated July 19, 1951, and are to mature on O ctober 18, 1951. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N am e o f B idder By ......... (Please print) (Official signature required) (Title) Street A dd ress ............................................ (City, Town or Village, P. O. No., and State) I f this tender is subm itted b y a bank fo r the accou nt o f a custom er, indicate the custom er’s name on line b elow : (Name of Customer) (City, Town or Village, P. O. No., and State) IM P O R T A N T IN STRU CTIO N S: 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). 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 corporation authorized to m ake the tender, and the sign in g o f the tender 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. If the tender is m ade by a partnership, it should be signed by a m em ber o f the firm, w ho should sign in the fo rm “ ................................................................................................................. . a copartnership, by ....................................................................................................................... a m em ber o f the firm .” 3. T en ders w ill be received w ithout deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investment securities. T en ders from others m ust be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom pa n ied by an express guaranty o f paym ent by an in corporated bank o r trust com pany. 4. I f the language o f this tender is changed 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. Paym ent b y cred it through Treasury T ax and Loan A ccou n t will n ot b e perm itted. http://fraser.stlouisfed.org/ TENTB—1098-a (OVER) Federal Reserve Bank of St. Louis