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F E D E R A L R E SE R V E B A N K O F N E W Y O R K
C ircular No. 3 7 4 1
A u gu st 9,1951

Fiscal Agent of the United States

O ffe r in g o f $ 1 ,3 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T re a su ry B ills
Dated August 16, 1951

Maturing N ovem ber 15, 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:
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, A u g u st 9, 1951.

TREASU RY DEPARTM EN T
W a s h in g to n

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 $1,300,000,000, or thereabouts, o f 91-day T r e a s ­
u ry bills, fo r cash and in ex ch a n g e fo r T rea su ry bills m atu rin g A u g u s t 16, 1951, t o be issued on a d iscou n t basis under c o m ­
petitive and n on -co m p etitiv e bid d in g as h ereinafter provid ed . T h e bills o f this series w ill be dated A u g u s t 16, 1951, and w ill
m ature N o v e m b e r 15, 1951, w hen the face a m ou n t w ill be payable 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 va lu e).
T e n d e rs w ill be received at F ed eral R eserve B anks and B ran ch es up t o the clo s in g h our, tw o o ’ c lo c k p.m ., E astern D a y ­
ligh t S a v in g tim e, M on d a y, A u g u st 13, 1951. T e n d e rs 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 ach
ten der m u st be fo r an even m ultiple o f $1,000, and in the ca se o f com p etitive tenders the price offered m u st be exp ressed on
the basis o f 100, w ith n ot m o re than th ree decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is u rg ed 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 be supplied b y F ed era l R e s e rv e B anks o r
B ra n ch es o n application th erefor.
O th ers than b ankin g in stitu tions 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 e n d e rs w ill be
re ce iv e d w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fr o m respon sib le and recog n ized dealers in in­
vestm ent securities. T en d ers fr o m oth ers m u st 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 rea su ry bills
a pplied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f p a ym en t b y an in corpora ted bank o r trust com pan y.
Im m ed ia tely after the clo s in g h our, 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 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 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 to a ccep t o r reject a n y o r all tenders, in w h o le o r in part, and his a ction in any such respect 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 a n y o n e b idd er w ill be a ccep ted
in full at the average price (in three decim a ls) o f a ccep ted com p etitive bids. Settlem ent fo r a ccep ted ten ders in a ccord a n ce
w ith the bids m u st be m ade o r com p leted at the Federal R eserve B ank on A u gu st 16, 1951, in cash or oth er im m ediately
available funds o r in a like face am ou nt o f T rea su ry bills m atu rin g A u g u s t 16, 1951. Cash and exch a n ge tenders w ill reccive
equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m aturing bills a ccep ted in e x ­
ch ange and the issue price o f the n ew bills.
T h e in com e derived fro m T rea su ry b ills, w h eth er interest or gain fro m th e sale o r oth er d isp osition o f the bills, shall
n o t have any exem p tion , as such, and loss fro 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 od e, o r laws a m en da tory o r supplem entary th ereto. T h e bills shall be
su b je ct to estate, inheritance, gift, or oth er ex cise taxes, w h eth er F ed eral or State, but shall be ex em p t fr o m all taxation
n o w o r h ereafter im posed on the principal o r interest th e re o f b y any State, o r a n y o f the possession 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 origin a lly
s o ld b y the U nited States shall be con sidered to be interest. U n der S ection s 42 and 1 1 7 (a )(1 ) o f the Internal R even ue
C ode, as a m en ded b y S ection 115 o f the R e v en u e A c t o f 1941, the am ou nt o f d iscou n t at w h ich bills issued hereun der are
so ld shall n o t be con sidered to a ccru e until such bills shall be sold, red eem ed o r oth erw ise d isp osed o f, and such bills are
e xclu ded fro m con sideration as capital assets. A c co r d in g ly , the ow n er o f T r e a s u 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 th e differen ce betw een the price paid fo r such bills,
w hether on o rigin a l issue or on subsequent pu rch ase, and the a m ou n t actu ally receiv ed either u pon sale o r redem ption at
m aturity du rin g the taxable yea r fo r w h ich th e return is m ade, as ord in a ry gain or loss.
T re a su ry D epartm en t Circular N o . 418, as am ended, and this n otice, prescrib e th e term s o f the T rea su ry bills and go v e rn
the con d ition s o f their issue. C opies o f the circular m a y b e obtain ed fr o m a n y F ed era l 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, August 13, 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.
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 A u g u s t 9 , 1 9 5 1 , m a t u r in g N o v e m b e r 8 , 1 9 5 1 )

T o t a l a pp lied fo r .......... $1,890,936,000
T o ta l a c c c p t e d ...............$1,300,336,000 (in clu d es $144,143,000
en tered on a n o n -com p etitiv e basis
and a ccep ted in full at the average
price sh ow n b e lo w )
A v e ra g e p rice ........

99.583

E q u iva len t rate o f discou n t
a p p rox. 1.652% per annum

R a n g e o f a ccep ted com p etitive b ids:
H ig h

........................

99.637

E quivalent rate o f discou nt
a pp rox. 1.436% per annum

L o w ..........................

99.579

E quivalent rate o f discount
approx. 1.665% per annum

(10 percent o f the am ou nt bid fo r at the low
price w as a ccep ted )




Federal Reserve
District
B o s to n ..............................
N e w Y o r k .....................
Philadelphia
C levelan d .......
R ich m on d .......
A tla n ta ...........
C h ica g o ...........
St. L o u is .........
M in n eap olis ...
K ansas C ity ...
D allas ..............
San F ra n cisco
T o ta l

........................

Total
Applied for

Total
Accepted

14,666,000
1,376,109,000
39.934.000
43.913.000
18.980.000
22.203.000
179,364,000
20.165.000
6.591.000
33.919.000
59.828.000
75.264.000

14.666.000
810.909.000
29.934.000
43.913.000
18.530.000
22.203.000
164.864.000
19.715.000
6.591.000
33.919.000
59.828.000
75.264.000

$1,890,936,000

$1,300,336,000

$

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25U
IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity
value in paragraph headed "C om petitive Bid.” I f you desire to hid on a non-com petitive
basis, fill in on ly the m aturity value in paragraph headed "N on -com petitive Bid.”
DO
N O T fill in both paragraphs on one form . A separate tender must be used f o r each bid,
except that banks subm itting bids on a com petitive basis f o r their ow n and their customers’
accounts may subm it one tender f o r the total am ount bid at each price, provided a list is
attached showing the name o f each bidder, the am ount bid f o r his accou n t, and method o f
payment. Forms fo r this purpose w ill be furnished upon request.
N o.

TENDER FOR 91-DAY TREASURY BILLS
D ated A u gu st 16, 1951

M aturing N ovem ber 15, 1951
Dated at

T o F e d eral R eserve B a n k of N e w Y o r k ,
Fiscal Agent o f the United States.

.1951

COMPETITIVE BID

N O N -C O M P E TIT IV E BID

Pursuant to the provisions o f Treasury
Department Circular N o. 418, as amended, and
to the provisions o f the public notice on
August 9, 1951, as issued by the Secretary
of
the
Treasury,
the
undersigned
offers

Pursuant to the provisions o f Treasury De­
partment Circular No. 418, as amended, and to the
provisions o f the public notice on August 9,
1951, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

----------------------------------------- * fo r a total amount of

for a total amount o f $„

(Rate per 100)

(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 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 :

□

□

By 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 fo r which tender is hereby made arc to be dated August 16, 1951, and arc to mature
on November 15, 1951.
This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.”
N a m e o f Bidder..
B y ..........

(Please print)

(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 bank f o r th e a ccou n t o f a cu stom er, indicate th e cu stom er’ s n am e o n lin e b e lo w :

(Name of Customer)
IM P O R T A N T

(City, Town or village, P.O. No., und State)

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 ten der 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 th e ten der is a corp ora tion , the t e n d e r s h o u l d
tion a uthorized to m ake the tender, and th e sign in g o f th e t e n d e r b y a n o f f i c e r o f
representation b y h im that he has been s o authorized. I f the t e n d e r i s m a d e b y

b e sign ed b y a n o f f i c e r o f t h e c o r p o r a ­
t h e c o r p o r a t i o n w i l l b e c o n s t r u e d as a
a p a r t n e r s h i p , it s h o u l d 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 dep osit fro 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 ize d dealers in in vestm en t securities. T en d ers fro m oth ers m u st b e a ccom p a n ied b y pa ym en t o f 2 p ercen t
o f th e fa ce a m ou n t o f T rea su ry bills applied for, unless 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 co rp o ra te d ba n k o r trust com p a n y .
4. I f th e language 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 reasu ry, is m aterial, th e ten der m ay 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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