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F E D ERAL R E SE R V E B AN K O F N E W Y O R K rcircuiar No. 37461 Fiscal Agent o f the United States I A ugust 28,' 1951 J Offering o f $1,100,000,000 o f 91-Day Treasury Bills Dated September 6 1951 , Maturing D^celhber 6 1951 , T o all Incorporated Banks and Trust Companies in the Second Federal R eserve D istrict and O thers 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 , Tuesday, August 28, 1951. TREASU RY DEPARTM ENT W ashington . T he Secretary o f the Treasury, b y this public notice, invites tenders fo r $1,100,000,000, or -theriaahouts, o f 91-day Treasury bills, fo r cash and in exchange fo r Treasury bills maturing September 6, 1951, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. T he bills o f this series will be dated September 6, 1951, and will mature Decem ber 6, 1951, when the face amount will be payable without interest. T h ey will be issued in bearer form only, and :ih denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Daylight Saving time, Friday, August 31, 1951. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be fo r an even multiple o f $1,000, and in the case o f competitive tenders the price offered must be expressed on the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed form s and f o r warded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions w ill not be permitted to submit tenders except fo r their own account. Tenders w ill be received without deposit fro m incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied fo r, unless the tenders are accompanied b y an express guaranty o f payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Bank and Branches, follow in g which public announcement will be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. T h ose submitting tenders will be advised o f the acceptance or rejection thereof. T he Secretary o f the Treasury expressly reserves the right to accept o r reject any o r all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, non-competitive tenders fo r $200,000 or less without stated price fr o m any one bidder will be accepted in full at the average price (in three decim als) o f accepted competitive bids. Settlement fo r accepted tenders in accordance with the bids must be made o r completed at the Federal Reserve Bank on September 6, 1951, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 6, 1951. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made fo r differ ences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. T h e income derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, shall not have any exemption, as such, and loss from the sale or other disposition o f Treasury bills shall not have a n y special treatment; as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T he bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation n ow or hereafter imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. F or purposes o f taxa tion the amount o f discount at which Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117(a) ( 1 ) o f the Internal Revenue Code, as amended by Section 115 o f the Revenue A ct o f 1941, the amount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bill shall be sold, redeemed o r other wise disposed o f, and such bills are excluded fro m consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference betwen the price paid fo r such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year f o r which the return is made, as ordinary gain or loss. Treasury Department Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be obtained fro m any Federal Reserve Bank or Branch. This Bank will receive tenders up to 2 p.m., Eastern Daylight Saving time, Friday, August 31, 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.” Payment 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. (C L O S I N G D A Y F O R R E C E I P T O F T E N D E R S IS F R ID A Y , A U G U ST 31, 1951) . T O U f l 71 Al 7 ^ A T ^ C W K I R E S U L T S O F B I D D I N G F O R T R E A S U R Y B IL L S D A T E D A U G U S T 30, 1951 W E R E N O T A V A IL A B LE W H E N T H IS C IR C U L A R W A S P R IN T E D . ( ovek ) 25X I M P O R T A N T — Please n o te t h a t tenders f o r th is issue m u s t be receiv ed n o t la te r th a n p .m ., E a ste rn D a y li g h t S a v in g tim e , F r id a y , A u g u s t 3 1 , 1 9 5 1 . fO f 2 I M P O R T A N T — I f y o u desire t o b id on a competitive basis, fill in r a te p er 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 o n a non-competitive basis fill in o n ly th e m a t u r it y v a lu e in p a r a g ra p h head ed " N o n -c o m p e t i t i v e B id .” Do lyCXF; fiH in- both, paragraphs on one form . A sep arate ten d e r m u s t b e u sed 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 bids 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 ers’ a cc o u n ts m a y s u b m it one ten 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 s h 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 pu rp o se w ill be fu r n ish e d u p o n req u est. No_ _ _ _ TENDER J iv FOR 9 1 -D A Y D a t e d S ep tem b er 6 , 1 9 5 1 >V-; Dated a ...... — t < i., . .--. > To F ederal R eserve B a n k of N e w Y ork , F s a Agent of the United S a e . icl tts C O M P E T IT IV E B IL L S M a tu r in g D e c e m b e r 6 , 1 9 5 1 bf s i i e m o t bi • £ I n ni v i f q o sn <i t o r lt m o s G 3 ir};;r> 7 ; i « . v h a s TREASU RY 1951 B ID N O N - C O M P E T I T I V E B ID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to t provisions of the public no e on he tic August 28, 1951, as issued by the Secretary . . f the tTreasury, the undersigned o f r o fes d 289! . a ....... ........ for a t t l amount o oa f Pursuant t the provisions of Treasury De o partment Circular No. 418, as amended, and t t o he provisions of the public n ce on August 2 , oti 8 1951, as is ed by the Secretary of the Treasury, su the undersigned o f r a non-competitive tender fes for a t t l amount of $. oa ._____ ___________ _ (Rate per 100) (Not to exceed $200,000) $. .... ... _............ (maturity value) of the Treasury b l s ther il ein d s r d, or for e c ibe any l s amount t a may be awarded, settlement es ht therefor to be made a your Bank, on the date t s a e i the public n t c , as in at below: ttd n oie dic ed □ By surrender of maturing Treasury b ls il amounting t _______ $............... o (maturity value) of the Treasury b l s the n il rei d s r b d a the average p ic ( n three deci ecie, t r e i mals) of accepted competitive b d , settlement is therefor t be made a your Bank, on the date o t s a e i the public n t c , as indicated below: ttd n oie □ By surrender of maturing Treasury b l s il amounting t ........$.............. . o □ By cash or other immediately a a l b e funds vial □ By cash or other immediately a a l b e funds vial *P rice must be expressed on the basis o f 100, w ith not m ore than three decimal places, f o r example, 99.925. The Treasury b l s for which tender i hereby made are t be dated September 6 1951, and are t mature il s o , o on December 6 1951. , This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Nam e o f Bidder 9 :ir i:“ V (Please print) :■ B y ......... ,-r, ijnj (Official signature required) (Title) Street Address ................................................ ht;- (City, Town or Village, P. O. No., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (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 tender fo r (maturity value). 2. I f the person authorized to make the tender, tion by him that he has been so less than $1,000 will be considered, and each tender must be fo r an even multiple o f $1,000 making the tender is a corporation, the tender should be signed by an officer o f the corporation and the signing o f the tender b y an officer o f the corporation will be construed as a representa authorized. I f the tender is made by a partnership, it should be signed by a member o f the firm, w ho should sign in the fo rm “ ...................................................................................................................................................... a copartnership, by ......................................................................................................................... a member o f the firm.” 3. Tenders w ill be received without deposit fro m incorporated banks and trust companies and fro m responsible and recognized dealers in investment securities. Tenders fr o m others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment b y an incor porated bank or trust company. 4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender m ay be disregarded. http://fraser.stlouisfed.org/ Payment by credit through Treasury Tax and Loan Account will not be permitted. T Reserve 1105-a Federal E t t T B —Bank of St. Louis (o v e r )