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FED ERAL R E SE R V E B AN K OF N EW YORK f C ir c u la r N o . 3 7 4 5 1 Fiscal A gent o f the United States L A u g u s t 23, 1951 J Offering o f $1,100,000,000 of 91-Day Treasury Bills Dated August 30, 1951 Maturing November 29, 1951 T o all Incorporated B anks and Tru st Companies in the Second Federal R eserv e D istrict and O th ers C oncerned: F ollow ing is the text o f a notice published to d a y : TREASURY DEPARTM ENT W a sh 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 ursday, A u gu st 23, 1951. T h e S ecretary o f the T reasu ry, b y this public notice, invites tenders fo r $1,100,000,000, or thereabouts, o f 91-day T reasu ry bills, fo r cash and in exch ange fo r T reasu ry bills m aturing A u g u st 30, 1951, to be issued on a discou nt basis under com peti tive and n on-com petitive b idd ing as h ereinafter provided. T h e bills o f this series w ill be dated A u gu st 30, 1951, and w ill mature N ovem ber 29, 1951, when the fa ce am ount w ill be p ayable 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 va lu e). T en ders w ill be received at F ed era l R eserve Banks and Branches up to the clo s in g hour, tw o o ’c lo c k p.m., Eastern D a yligh t S a vin g tim e, M on day, A u gu st 27, 1951. T en ders w ill n ot be received at the T rea su ry Departm ent, W a sh in gton . E ach 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 expressed on the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the special envelopes w h ich w ill be supplied b y F ed eral R eserve Banks o r Branches 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 b y paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by an in corporated bank or trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich public announcem ent w ill be made b y the S ecretary o f the T reasu ry o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance o r rejection thereof. T h e S ecretary o f the T rea su ry exp ressly reserves the righ t 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. Su bject to these reservations, non-com p etitive tenders fo r $200,000 or less w ithout stated price from any one b idd er w ill be accepted in fu ll at the average price (in three decim a ls) o f a ccepted com petitive bids. Settlem ent fo r accepted tenders in a ccord a n ce w ith the bids must be made o r com pleted at the F ed eral R eserve B ank on A u gu st 30, 1951, in cash o r oth er im m ediately available funds o r in a like face am ount o f T rea su ry bills m atu rin g A u gu st 30, 1951. Cash and exch a n ge tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade fo r differences betw een the par value o f m aturing bills a ccepted in exch ange and the issue price o f the new bills. T h e incom e derived from T reasu ry bills, w hether interest o r gain from the sale or oth er disp osition o f the b ills, shall n ot have any exem ption, as such, and loss fro m the sale or oth er d isp osition o f T reasu ry bills shall n ot have any special treatment, as such, under the Internal Revenue Code, o r law s am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift, or oth er ex cise taxes, w hether Federal o r State, but shall be exem pt from all taxation n o w o r hereafter im posed on the principal or interest th ereof b y any State, o r any o f the possessions o f the U n ited States, o r b y any lo ca l ta x in g authority. F o r purposes o f ta xation th e am ount o f discou nt at w hich T reasu 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 ections 42 and 1 1 7 (a )(1 ) o f the Internal Revenue C ode, as am ended b y S ection 115 o f the R evenue A c t o f 1941, the am ount o f discou n t at w hich bills issued hereunder are sold shall not be con sid ered to a ccru e until such b ill shall b e sold, redeem ed o r otherw ise disp osed of, and such bills are e xclu d e d from con sidera tion as capital assets. A ccord in g ly , the ow n er o f T rea su ry bills (oth er than life insurance co m panies) issued hereunder need include in his incom e ta x return on ly the difference betw een the price paid fo r such bills, w hether on origin a l issue or on subsequent purchase, and the am ount actu a lly received either upon sale o r redem ption at m aturity d u rin g the taxable yea r fo r w h ich the return is made, as ord in a ry gain o r loss. T re a su ry D epartm ent C ircu la r N o. 418, as am ended, and this n otice, prescribe the term s 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 or Branch. This Bank will receive tenders up to 2 p.m., Eastern D aylight Saving time, Monday, August 27, 1951, at the Securi ties 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 “ T ender 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 (92-day bills dated August 23, 1951, maturing N ovem ber 23, 1951) T o ta l applied f o r ......... $1,992,646,000 T o ta l a c c e p t e d ............. $1,100,562,000 (in clu des $152,660,000 entered on a non-com p etitive basis and accepted in fu ll at the aver age price show n b elow ) A ve ra g e p r ic e ........... 99.578+E quivalent rate o f discount approx. 1.651% per annum R ange o f accepted com petitive b id s : (E x ce p tin g one tender o f $100,000) H ig h ............................ 99.600 Equivalent rate o f discount approx. 1.565% per annum L o w ............................. 99.576 Equivalent rate o f discou nt approx. 1.659% per annum (22 percent o f the am ount bid fo r at the low price w as accepted) Federal R eserve D istrict B o s t o n ........................... .. N ew Y o r k ................... P h iladelphia .............. C leveland ................. R ich m on d ................... C h ica go ....................... St. Louis ..................... M inneapolis .............. K ansas C ity ............... San F ra n cisco .......... T o t a l .......................... .. Total A pplied for $ 17,340,000 1,387,353,000 35,745,000 50,255,000 26,885,000 24,003,000 228,589,000 15,934,000 9,665,000 34,734,000 45,770,000 116,373,000 $1,992,646,000 Please note that the results shown above are fo r 92-day Treasury bills. Total A ccepted $ 16,170,000 609,309,000 20,245,000 41,575,000 24,935,000 20,883,000 192,709,000 15,044,000 9,665,000 33,554,000 37,380,000 79,093,000 $1,100,562,000 ( over ) 25W 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 “ C om petitive B id .” I f you desire to b id on a n on-com petitive basis, fill in on ly the maturity value in paragraph headed “ N on-com petitive B id.” DO N O T fill in both, 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 subm it 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. N o ............................... 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 Dated August 30, 1951 Maturing November 29, 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 C O M P E T IT IV E BID N O N -C O M P E TIT IV 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 A ugust 23, 1951, as issued by the Secretary o f 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 A ugust 23, 1951, as issued by the Secretary o f the Treasury, the undersigned offers a non-com petitive tender ............................................ * for a total amount oi fo r a total amount o f $. ( N o t t o e x c e e d $200,000) ( R a t e p e r 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 elow : (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 : □ □ B y surrender o f maturing Treasury bills B y 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 r ic e must be expressed on the basis o f 100, with not m ore than three decimal places, fo r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated August 30, 1951, and are to mature on N ovem ber 29, 1951. This tender will be inserted in special envelope marked " Tender for Treasury Bills.” N am e o f B id der ( P l e a s e p r in t ) By ----- (Title) (O ffic ia l s ig n a tu r e r e q u ir e d ) Street A d d ress ............................................ ( C i t y , T o w n o r V i l la g e , P . O . N o ., a n d S ta te ) I f this tender is subm itted b y a bank fo r the accou n t o f a cu stom er, in dicate the cu stom er’s nam e on line b e lo w : (N a m e o( C f iC t yu,s to T omwe n r) o r V i l la g e , P . O . N o ., a n d S ta te ) IM P O R T A N T IN STR U C T IO N S: 1. N o tender fo r less than $1,000 w ill be con sidered, and each tender must be fo r an even m ultiple o f $1,000 (m atu rity va lu e). 2. I f the person m aking the tender is a corp ora tion , the tender should be signed b y an officer o f the corp ora tion authorized to m ake the tender, and the sign ing o f the tender b y an officer o f the corp ora tion w ill be construed as a rep resentation b y him that he has been so authorized. I f the tender is m ade b y a partnership, it should be signed b y a m em ber o f the firm, w h o sh ou ld sign in the form “ ................................................................................................................... a copartnership, by a m em ber o f the firm .” 3. T en d ers w ill be received w ith ou t deposit from in corporated banks and trust com panies and from respon sible and recogn ized dealers in investm ent securities. T en ders fro m others must be accom panied b y paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied 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. P aym ent b y cred it through Treasury Tax and Loan A ccou n t w ill n ot b e perm itted. http://fraser.stlouisfed.org/ 4 -a N T B - -1 1 0 FederalT EReserve Bank of St. Louis ( over )
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