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F E D E R AL R E S E R V E B AN K OF NEW YORK Fiscal Agent of the United States r C ircular No. 3 75 6 "1 L Septem ber 13, 1951 J O ffe rin g o f $ 1 ,2 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y T rea su ry B ills Dated September 20, 1951 Maturing December 20, 1951 T o all Incorporated B anks and Tru st Companies in the Second Federal R eserv e D istrict and O thers C oncerned: Following is the text of 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 ay, Septem ber 13, 1951. TREASU RY DEPARTM ENT W ash in gton T he Secretary o f the T reasu ry, by this public notice, invites tenders fo r $1,200,000,000, or thereabouts, o f 91-day T reasu ry b ills, fo r cash and in exch ange fo r T reasu ry bills m aturing Septem ber 20, 1951, in the amount o f $1,000,902,000, to be issued on a discou n t basis under com petitive and non-com p etitive bid d in g as h ereinafter provided. T h e bills o f this series w ill be dated Septem ber 20, 1951, and w ill mature D ecem ber 20, 1951, w hen 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 atu rity valu 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 ck p.m., Eastern D a yligh t Savin g time, M on day, Septem ber 17, 1951. T en ders wi l l not be received at the T reasu ry D epartm ent, W a sh in gton . E ach tender must be f o r an even m ultiple o f $ 1 ,000, and in the case o f com petitive tenders the price offered m ust be exp ressed 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 sp ecia l envelopes w hich w ill be supplied b y F ed era l R eserve Banks or B ranches o n a pp lication th erefor. O thers than ban k in g 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 corporated banks and trust com panies and fro m 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 fa ce 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 b y an in corporated bank o r trust com pany. Im m ediately after the clo s in g hour, tenders w ill be opened at the Federal R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made by the S ecretary o f the T reasu ry o f the am ount and price range o f accepted 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 o r all tenders, in w hole or in part, and his action in any such respect shall be final. S ubject to these reservations, n on-com petitive tenders fo r $200,000 o r less w ithout stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim als) o f accepted 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 Bank on Septem ber 20, 1951, in cash or other im m ediately available funds o r in a like face amount o f T reasu ry bills m aturing Septem ber 20, 1951. Cash and exch an ge tenders w ill receive equal treatment. Cash adjustm ents w ill be m ade fo r differences between 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 rea su ry bills, w hether interest or gain from the sale or other disp osition o f the bills, shall not have any exem ption, as such, and loss from the sale or oth er d isp osition o f T reasu ry bills shall n ot have any special treatm ent, as such, under the Internal Revenue Code, or law s am endatory o r supplem entary thereto. T h e bills shall be su b ject to estate, inheritance, gift, or oth er excise taxes, w hether F ed eral or State, but shall be exem pt from all taxation now o r hereafter im posed on the principal or interest th ereof by any State, or any o f the possessions o f the U nited States, o r by any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discou n t at w hich T reasu ry bills are origin a lly so ld by 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 C ode, as am ended 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 n ot 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 exclu d e d from con sideration as capital assets. A cco rd in g ly , the ow n er o f T reasu 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 between the price paid fo r such bills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption at m aturity du rin g the taxable yea r fo r w hich the return is m ade, as ord in a ry gain or loss. T re a su ry D epartm ent C ircu la r 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. C opies o f the circu la r m a y be obtain ed from any F ed eral R eserve Bank or Branch. This Bank will receive tenders up to 2 p.m.. Eastern Daylight Saving time, Monday, September 17. 1951, at the Securi ties Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in an envelope marked “Tender for Treasury Bills.” Payment for the Treasury bills cannot be made by credit through the Treasury Tax 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 of last offering of Treasury bills (91-day bills dated September 13, 1951, maturing December 13, 1951) T o ta l applied f o r ......... $1,913,013,000 T ota l a c c e p t e d .............$1,202,609,000 (in clu des $164,138,000 entered on a n on -com p etitive basis and accepted in fu ll at the aver age price show n b elow ) A v era ge p r ic e ........... 99.584 E quivalent rate o f discount approx. 1.646% per annum R ange o f accepted com petitive b id s : H ig h ............................ 99.610 Equivalent rate o f discount approx. 1.543% per annum L o w ............................. 99.583 E quivalent rate o f discount app rox. 1.650% per annum (71 percent o f the am ount bid for at the low price w as accep ted) F ederal R eserv e D istrict B oston ........................... .. N ew Y o r k ................... Philadelphia .............. Cleveland ..................... R ic h m o n d ..................... Atlanta ....................... C h i c a g o ......................... St. L o u i s ....................... M inneapolis ............... K ansas C ity ............... D allas ........................... San F ra n cisco ........... T o t a l ...................... . T otal A pplied for $ 23,866,000 1,397,280,000 26,728,000 70,656,000 36,535,000 20,746,000 189,374,000 19,421,000 9,050,000 47,920,000 50,893,000 20,544,000 $1,913,013,000 T otal A ccepted $ 21,336,000 816,937,000 10,848,000 39,565,000 31,763,000 20,152,000 150,772,000 16,599,000 9,050,000 28,672,000 37,996,000 18,919,000 $1,202,609,000 ( over) 25 Z IMPORTANT— If you desire to bid on a competitive basis, fillin rate per 100 and maturity value in paragraph headed “Competitive Bid.” If you desire to bid on a non-competitive basis, fill in only the maturity value in paragraph headed “Non-competitive Bid.” DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid, except that banks submitting bids on a competitive basis for their own and their customers’ accounts may submit one tender for the total amount bid at each price, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. No........... T E N D E R FO R 91-D A Y T R E A S U R Y BILLS Dated September 20, 1951 Maturing December 20, 1951 Dated at......... To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States. COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on September 13, 1951, as issued by the Secretary of the Treasury, the undersigned offers ................ * for a total amount of 1951 NON-COMPETITIVE BID Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions of the public notice on September 13, 1951, as issued by the Secretary of the Treasury, the undersigned offers a non-competitive tender for a total amount of $. (Not to exceed $200,000) (Rate per 100) $................... (maturity value) of 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) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ amounting to....... $_______________ □ By surrender of maturing Treasury bills amounting to....... $________________ □ □ By surrender of maturing Treasury bills 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, w ith 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 September 20, 1951, and are to mature on December 20, 1951. This tender will be inserted in special envelope marked “Tender for Treasury Bills.” N am e o f B id der (Please print) By .... (Official signature required) (T itle) Street A d d ress ............................................ (C ity, Town or V illage, P. O. No., and State) I f this tender is subm itted b y a bank fo r the a ccou n t o f a custom er, in dicate the custom er’ s nam e on line b e lo w : (Name of Customer) (City, Town or Village, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o tender f o 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 atu rity v a lu e). 2. I f the person m akin g 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 by 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 ten der is made by a partnership, it should be sign ed by a m em ber o f the firm, w h o should sign in the form “ ................................................................................................................... a copartnership, by a m em ber o f the firm.’ ; 3. T en ders w ill be sible and recogn ized dealers 2 percent o f the fa ce am ount o f paym ent b y an in corporated received w ith ou t deposit from in corporated banks and trust com panies and from respon in investm ent securities. T en ders from others m ust be accom panied b y paym ent o f o f T rea su ry bills applied fo r, unless the tenders are accom pa n ied b y an express guaranty bank or trust com pany. 4. I f the language o f this tender is changed in any respect, w hich, in the op in ion o f the Secretary o f the T reasu ry, is m aterial, the tender m ay be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B —1107-a ( oveb)
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