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FE D ERAL R ESERVE BANK O F N E W YORK
Fiscal Agent o f the United States
O ffe r in g
o f
$ 1 ,1 0 0 ,0 0 0 ,0 0 0
D a te d A u g u st 2 3 , 1 9 5 1
o f
9 2 -D a y
{ c 5Sj£t1i£
T reasu ry
im i 4
]
B ills
M a tu r in g N o v e m b e r 2 3 , 1 9 5 1
T o all Incorporated Banks and T ru st Com panies in the
Second F ederal 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, A u g u s t 16, 1951.
TREASURY DEPARTM ENT
W a s h in g to n
T h e S ecreta ry o f the T reasu ry, b y this p u b lic n otice, invites tenders fo r $1,100,000,000, o r thereabouts, o f 9 2 -d a y T re a su ry
bills, fo r cash and in e x ch a n g e fo r T r e a s u ry bills m a tu rin g A u g u s t 23, 1951, to be issued on a d iscou n t ba sis u nder com p etitive
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 A u g u s t 23, 1951, and w ill m ature
N o v e m b e r 23, 1951, w hen the face a m ou n t w ill b e p ayable w ith ou t in terest. 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 b e receiv ed at F ed era l R eserve B anks and B ra n ch es up t o th e c lo s in g h ou r, t w o o ’ c lo c k p.m ., E astern
D a y lig h t S a v in g tim e, M on d a y , A u g u s t 20, 1951. T e n d e rs w ill n ot be receiv ed at the T rea su ry D epa rtm en t, W a s h in g to n . E ach
ten der m u st b e fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitiv e ten ders th e price o ffe re d m u st be exp ressed on
the basis o f 100, w ith n ot m ore than th ree decim a ls, e.g., 99.925. F r a c tio n s m a y n ot be used. It is u rged th a t,te n d e rs be
m ade o n th e printed fo rm s and fo rw a rd e d in the 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 lication th erefor.
O th e rs than b a n k in g institutions w ill n o t b e perm itted to subm it ten ders e x ce p t fo r their 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 fr o 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 ers fro m oth ers m u st be a ccom p a n ied b y p a y m 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 fo r, unless th e tenders 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 bank or trust com p a n y .
Im m ed ia tely a fter the 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 rea su ry o f th e a m ou n t and price ra n 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 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 rea su ry ex p ressly reserves
th e righ t to a cce p t o r re je ct a n y o r all tenders, in w h ole or in part, and his a ction in a n y such re s p e ct shall b e final. S u b ject
t o these reservations, n on -co m p e titiv e ten ders fo r $200,000 o r less w ith o u t stated p rice fro m any o n e b idd er w ill be a ccep ted
in fu ll at the a vera ge p rice (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 cco rd a n ce
w ith the bids m u st be m ade or com p le te d at th e F ed era l R eserve B ank on A u g u s t 23, 1951, in cash o r oth er im m ed ia tely avail
able funds o r in a lik e face a m ou n t o f T r e a s u ry bills m a tu rin g A u g u s t 23, 1951. Cash and e x ch a n g e ten ders w ill receiv e equal
treatm ent. Cash adju stm en ts w ill be m ade fo r d ifferen ces betw een the par value o f m atu rin g bills a ccep ted in ex ch a n g e and
the issue p r ice o f th e n ew 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 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 r e a s u 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 o r su p plem en ta ry th ereto. T h e bills shall be
su b je ct to estate, inheritance, g ift, o r o th e r e x cis e taxes, w h eth er F ed eral o r State, b u t shall be exem p t fr o m all taxation
n o w o r hereafter im p o sed 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 the 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 the 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
so ld b y the U n ited 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 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 hich bills issued h ereu n der are
so ld shall n o t be co n sid ered to a ccru e u ntil su ch bills shall b e sold, red eem ed o r oth erw ise disp osed o f, and such bills are
exclu d e d fro m con sidera tion as capital assets. A c c o 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 com p a n ie s)
issued hereun der n eed in clu d e in his in com e ta x return o n ly the differen ce betw een th e p rice paid fo r such bills, w hether
on origin a l issue o r o n su b seq u en t pu rch a se, and the a m ou n t actu a lly receiv ed eith er u p on sale o r red em p tion at m aturity
du rin g the ta x ab le yea r f o r w h ich the 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 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 th eir issue. C op ies o f th e circu la r m a y be ob ta in ed fr o m any F ed era l R e serv e B ank o r B ran ch.
This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Monday, August 20, 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.” P a y m e n t f o r t h e T r e a s u r y b ills
c a n n o t b e m a d e b y c r e d i t t h r o u g h th e T r e a s u r y T a x a n d L o a n A c c o u n t .
i m m e d i a t e ly a v a ila b le f u n d s o r i n m a tu r in g T r e a s u r y bills.
S e ttle m e n t m u s t b e m a d e in ca sh o r o th e r
A l l a n S p ro u l, P r e s i d e n t .
R e su lts o f la s t o ffe rin g o f T r e a s u r y bills ( 9 1 -d a y b ills d a ted A u g u s t 1 6 , 1 9 5 1 , m a tu r in g N o v e m b e r 1 5 , 1 9 5 1 )
T otal applied f o r ........ $2,079,693,000
T otal accepted ............. $1,300,388,000 (includes $154,887,000
entered o n ; a non-com petitive basis
and accepted in fu ll at the average
price shown b elow )
A verage price . . . .
99.580-J- Equivalent rate o f discount
approx. 1.660% per annum
D
,
. .
....
. •.
Range o f accepted competitive b id s :
H igh .......................
99.637
Equivalent rate o f discount
approx. 1.436% per annum
L ow .........................
99.577
Equivalent rate o f discount
approx. 1.673% per annum
(45 percent o f the amount bid fo r at the low
price was accepted)
Please
Federal R eserv e T otal
* D istrict
B oston ..................................... "$
N ew Y o rk ...............................
Philadelphia ...........................
Cleveland .................................
R ic h m o n d .................................
Atlanta .....................................
Chicago ...................................
St. L ouis ................................
Minneapolis .........................
T^anSaS ^ ‘ t y ............................
D allas ......................................
San Francisco .....................
T ota l
..............................
T otal
A pplied f o r
16,7%,000
$
1,544 148|000
34,728,000
52,995,000
18,915,000
20,764,000
182,62^000
21,707,000
7,015,000
33,836,000
84,563,000
---------------------$2,079,693,000
A ccep ted
15,746 000
862 898 000
21,978,000
51,345,000
17,590,000
20,214,000
143|l21,000
18,182,000
7,015,000
^>050,000
28,336,000
56,913,000
---------------------$1,300,388,000
9
note that the current offering is fo r 92-day Treasury bills
(over)
25V
IM PORTANT— Please note that this offering is fo r 92-day Treasury bills which will
mature on Friday, N ovem b er 23, 1951, ow ing to th e f a c t th at Thursday, N ovem b er 22,
w ill be Thanksgiving D ay.
I M P O R T A N T — I f y o u desire to 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 to 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 ea d e d "N o n -c o m p e t i t i v e B id .”
DO
N O T fill in b oth paragraphs on one form . A sep a ra te te n 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 a n k s s u b m ittin g b ids o n a c o m p e titiv e basis fo r th eir o w n a n d th e ir c u sto m e rs’
a cc o u n ts m a y s u b m it on e 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 r ic 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 a m 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 od
o f p a y m e n t.
F o rm s f o r th is p u rp o se w i l l be fu r n ish e d u p o n r e q u e st.
N o .................................
T E N D E R F O R 9 2 -D A Y T R E A S U R Y BILLS
D ated A u g u s t 2 3 , 1 9 5 1
To F
ederal
R
eserve
B
ank
of
N
ew
M a tu r in g N o v e m b e r 2 3 ,
Y
1951
Dated a t .........................................
ork,
Fiscal Agent o f the United States.
1951
COMPETITIVE BID
NON-COMPETITIVE BID
Pursuant to the provisions of. Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on August
16, 1951, as issued by the Secretary o f the Treas
ury, the undersigned o ffe rs .................................... *
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
16, 1951, as issued by the Secretary o f the Treas
ury, the undersigned offers a non-competitive
tender fo r a total amount o f $ ..................................
(R a t e p e r 100)
for 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 :
□
B y surrender o f maturing Treasury bills
(maturity value) o f the Treasury bills therein
described, at the average p rice (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
amounting t o ................... $------------------------------------
amounting t o ................... $________________________
□
□
By cash or other immediately available funds
( N o t to e x c e e d $20 0 ,0 0 0 )
By cash or other immediately available funds
* P r ice must be expressed on the basis o f 100, w ith not
m ore than three decimal places, f o r exam ple, 99.925.
The Treasury bills fo r which tender is hereby made are to be dated August 23, 1951, and are to mature
on November 23, 1951.
This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills
N a m e o f B id der
(P le a s e p rin t)
By
...
(T it le )
(O fficia l sig n atu re re q u ire d )
S treet A d d ress
(C ity , T o w n o r V illa g e , P .O . N o ., a n d S ta te )
I f this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below:
(N a m e o f C u sto m e r)
_
(C it y , T o w n o r V illa g e , P .O . N o ., a n d S ta te)
IM PORTANT INSTRUCTIONS:
1. N o ten der fo r less than $1,000 w ill be con sidered, 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 , 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 to m ake th e tender, and th e sig n in g o f th e tender 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 th e fo r m “ .................................................................................................. . a cop artn ersh ip, by
........................................................................................................................ a m em b er o f the firm .”
3. T e n d e rs w ill b e receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fro m re s p o n
sible a n d re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o m oth 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 the fa ce a m o u 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 exp ress gu a ra n ty 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 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, the ten der m ay b e disregarded.
Paym ent b y cred it through T reasury T a x and Loan A cc o u n t w ill n ot b e perm itted.
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