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FEDERAL RESERVE BANK O F N E W YORK Fiscal Agent of the United States [s 5 a ^ e 0 *T9M 2 } O f f e r in g o f $ 1 , 2 0 0 , 0 0 0 , 0 0 0 o f 9 1 - D a y T r e a s u r y B i ll s Dated October 4, 1951 Maturing January 3, 1952 To all Incorporated Banks and Trust Com panies in th e Second Federal Reserve District and Others Concerned: Following i the t of a n t c published today: s ext oie 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 , S ep tem ber 27, 1951. TREASU RY DEPARTM ENT W ashington T he Secretary o f the Treasury, b y this public notice, invites tenders f o r $1,200,000,000, or thereabouts, o f 91-day Treasury bills, fo r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g O c to b e r 4, 1951, in the a m ou n t o f $1,200,829,000, to be issued o n a discount basis under competitive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w jll be dated O c t o b e r 4, 1951, and w ill m ature Janu ary 3, 1952, w h en the face a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill b e issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity valu e). T e n d e rs w ill be receiv ed at Federal R es e rv e B anks and B ra n ch es up to the clo s in g h ou r, tw o o ’ c lo c k p.m ., E astern Sta n da rd time, M o n d a y , O c t o b e r 1, 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 u ltiple o f $1,000, and in the case o f com p etitive ten ders the price o ffe re d m u st be ex p ressed o n the basis o f 100, w ith n o t m ore than three decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is u rg ed that ten ders be m ade o n th e prin ted fo rm s and forw a rd ed in th e special en velop es w h ich w ill be supplied b y F ed era l R e serv e B an ks o r B ra n ch e s o n a pp lica tion th erefor. O th e rs than b a n k in g institutions w ill n ot b e perm itted to su b m it ten ders e x ce p t fo r their o w n a ccou n t. T en d ers w ill be receiv ed w ith ou t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fro m respon sib le and re co g n iz e d dealers in in vest m e n t securities. T e n d e rs fro m oth ers m u st b e a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a y m en t b y an in corp ora ted b a n k o r trust com p a n y . Im m e d ia te ly after the clo s in g h ou r, ten ders w ill be op en ed at the F ed era l R e s e rv e B a n k s and B ra n ch es, fo llo w in g w h ich p u b lic an n ou n cem en t w ill b e m ade b y the S ecreta ry o f the T r e a s u ry o f the a m ou n t and price ran ge o f a cce p te d b id s. T h o s e su b m ittin g ten ders w ill be advised 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 r e a s u ry ex p ressly reserves the righ t to a cce p t o r r e je c t a n y o r all ten ders, in w h o le o r in part, and his a ction in any such re s p e ct shall b e final. S u b ject to th ese reserva tion s, n o n -co m p e titiv e ten ders for $200,000 o r less w ith ou t stated p r ice fr o m a n y on e b id d er w ill be a ccep ted in fu ll at th e a vera ge p rice (in th ree decim a ls) o f a ccep ted com p etitiv e bids. S ettlem ent for a ccep ted ten ders in a ccord a n ce w ith th e bids m u st be m ade o r com p le te d at the F ed eral R eserve B ank on O c to b e r 4, 1951, in cash o r oth er im m ed iately avail able fu n ds o r in a like fa ce a m ou n t o f T r e a s u ry bills m atu rin g O c t o b e r 4, 1951. Cash and e x ch a n g e ten ders w ill receiv e equal treatm ent. Cash a dju stm en ts w ill b e m ade fo r d ifferen ces betw een th e par valu e o f m aturing bills a ccep ted in ex ch a n g e and the issue p rice o f the n e w bills. T h e in co m e derived fr o m T rea su ry b ills, w h eth er in terest o r gain fr o m the sale or oth er d isp osition o f th e bills, shall n o t have a n y exem p tion , 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 o t have a n y special treatm ent, as such, u nder the In tern a l R even u e C od e, o r law s a m en d a tory o r sup plem en ta ry th ereto. T h e bills shall be s u b je ct to estate, inheritance, gift, o r oth er ex cise taxes, w h eth er Federal o r State, but shall b e ex em p t fr o m a ll taxation n o w o r h ereafter im p osed on the prin cip a l o r interest th ereof b y a n y State, o r a n y o f the p oss e s s io n s o f the U n ited States, o r b y a n y lo ca l ta x in g authority. F o r p u rp oses o f taxation th e 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 s o ld b y th e 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 th e Internal R even u e C o d e , as a m en ded b y S e ction 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 h ich bills issued h ereun der are s o ld shall n o t b e co n sid e red to a ccru e until su ch bills shall b e sold , red eem ed o r oth erw ise d isp osed o f , and su ch bills are ex clu d e d fr o m con sid era tion as capital assets. A c c o r d in g ly , th e 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 ies) issued h ereun der n e e d in clu d e in his in com e ta x return o n ly the differen ce betw een the p rice pa id fo r such bills, w hether on origin a l issue o r o n subsequen t pu rch ase, and the a m ou n t actu ally receiv ed eith er u p on sale o r red em p tion at m aturity d u rin g th e ta x a b le yea r fo r w h ich th e return is m ade, as o rd in a ry ga in o r loss. T re a su ry D ep a 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 th e T r e a s u ry bills and gov e rn th e co n d itio n s o f th eir issue. C op ies o f the circu la r m a y be ob ta in ed fr o m any F ed eral R eserve B a n k o r B ran ch. This Bank w l r c i e tenders up t 2 p.m., Eastern Standard time, Monday, October 1 1951, a the S c r t e il e e v o , t euiis Department of is Head O f c and a is Buffalo Branch. Please use the form on the reverse s d of t i c r u a t t fie t t ie hs iclr o submit a te d r and return i i an envelope marked “Tender for Treasury B l s ” Payment for the Treasury bills ne, t n il. 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 l l a n S p r o u l , President. Results of last offering o f Treasury bills (91-day bills dated September 27, 1951, maturing December 27, 1951) Federal Reserve Total Total T ota l applied f o r ----- $1,772,727,000 Total a c c e p t e d ...............$1,200,926,000 (includes $142,639,000 District Applied for Accepted entered on a non-com petitive basis and accepted in full at the average price shown b elow ) A vera ge price ----- 99.584 Equivalent rate o f discount approx. 1.647% per annum D , . . .... .., Range o f accepted competitive b id s : H igh ......................... 99.612 Equivalent rate o f discount approx. 1.535% per annum L ow ......................... 99.581 Equivalent rate o f discount approx. 1.658% per annum ' (16 percent o f the amount bid fo r at the low price was accepted) Boston .................................... $ 13,162,000 N ew Y o r k .............................. 1,294,316,000 Philadelphia ......................... 27,728,000 Cleveland ........ ..................... 45,178,000 R ic h m o n d ................................ 33,096,000 Atlanta .................................... 17,472,000 Chicag0 .................................. 173,118,000 St. L ouis _................................. 14,475,000 M in n e a p o lis ............................ 7,407,000 .......................... ^ ’£ij2’222 P ^ ................................ San Francisco ...................... 67,217,000 _______________ T otai ............................. $1,772,727,000 $ 13,062,000 747;316!000 13,528,000 45,178,000 33,096,000 17,472,000 163,043,000 14,291,000 7,407,000 36,208,000 43,108,000 67,217,000 _______________ $1,200,926,000 (o v x ») 26B IMPORTANT— If you desire to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph beaded "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 N O T 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 F O R 9 1 -D A Y T R E A S U R Y BILLS Dated October 4, 1951 To F ederal R eserve Ban k of N ew Maturing January 3, 1952 Y Dated a t ork, Fiscal Agent of the United S a e . tts 1951 COMPETITIVE BID NON-COMPETITIVE BID Pursuant t the provisions of Treasury o Department Circular No. 418, as amended, and t the provisions of the public no i on September o t ce 2 , 1951, as issued by the Secretary of t e Treas 7 h ury, the undersigned offers............. * Pursuant t the provisions of Treasury o Department Circular No. 418, as amended, and t the provisions of the publicn i e on September o ot c 2, 1 7 951, as issued by the Secretary of the Treas ury, the undersigned o f r a non-competitive fes tender for a t t l amount of $............. oa (Rate per 100) for a t t l amount of $................. oa (maturity value) of t e Treasury b l s ther n h il ei des ri e or f r any l s amount t a may be c b d, o es ht awarded, settlement therefor t be made a your o t Bank, on t e date s a e i the public n t c , as h ttd n oie indicated below: □ By surrender of maturing Treasury b l s il (Not to exceed $200,000) (maturity value) of the Treasury b l s t e e n il h r i d ri e a the average price ( n three deci esc b d, t i mals) of accepted competitive b d , set e en is tl m t therefor t be made a your Bank, on the date o t s a e i the public n t c , as in ttd n oie dicated below: □ By surrender of maturing Treasury b l s il amounting to....... $________________ amounting to....... $________________ □ q By c or other immediately a a l b e funds ash vial By cash or other immediately a a l b e funds vial * P r ic e 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 b l s for which tender i hereby made are t be dated October 4 1951, and are t il s o , o mature on January 3 1 5 . , 92 This tender will be inserted in special envelope marked “Tender for Treasury Bills.” Name o f Bidder (Please print) By ... (Official signature required) (Title) Street Address (City, Town or Village, P.O. No., and State) I f 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) IMPORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill be con sidered, and each ten d er m ust be fo r an even m ultiple o f $1,000 (m a tu rity v a lu e ). 2. I f the person m a k in g the ten der is a corp ora tion , the tender sh ou ld be sign ed b y an officer o f the c o r p o r a tion authorized to m ake the tender, and the sign in g o f the tender b y an officer o f the corp o ra tio n w ill be con stru ed as a represen tation b y him that he has been so authorized. I f the tender is m ade b y a partnership, it shou ld be signed b y a m em ber o f the firm , w h o sh ou ld sign in the fo r m “ .................................................................................................. . a cop artn ersh ip , b y ............................................. i ....................................................................... . a m em b er o f th e firm .” 3. T en d ers w ill b e receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com pa n ies and fr o m re sp o n sible and re co g n iz e d dealers in in vestm en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills applied fo r, unless the ten ders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted ba n k o r trust com p a n y . 4. I f th e la n g u a ge o f this ten d er is ch a n ged in a n y respect, w hich, in the op in ion o f the S ecreta ry o f the T re a su ry , is m aterial, the ten der m ay b e disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. T E N T B — 1109-a (ovwO
