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F E D E R A L R E SE R V E B A N K O F N E W YO R K Fiscal Agent of the United States r C ir cu la r N o . 3 7 6 8 1 L O c to b e r 11,1951 J Offering o f $1,200,000,000 of 91-Day Treasury Bills Dated October 18, 1951 Maturing January 17, 1952 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: Follow ing is the text o f a notice published tod a y : TREASU RY DEPARTM ENT W ashington 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 , Thursday, O ctober 11, 1951. The Secretary o f the Treasury, by this public notice, invites tenders fo r $1,200,000,000, or thereabouts, o f 91-day Treasury bills fo r cash and in exchange fo r Treasury bills maturing O ctober 18, 1951, in the amount o f $1,201,811,000, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. T he bills o f this series w ill be dated October 18, 1951, and w ill mature January 17, 1952, when the face amount w ill be payable without interest. Th ey will be 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 value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Standard time, M onday, O ctober 15, 1951. Tenders will 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 m ore 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 forw arded in the special envelopes which will 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 for, unless the tenders are accompanied by 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 Banks and Branches, follow in g which public announcement w ill 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 o r rejection thereof. T h e Secretary o f the Treasury expressly reserves the right 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. 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 fu ll at the average price (in three decimals) o f accepted competitive bids. Settlement f o r accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on O ctober 18, 1951, in cash or other immediately available funds or in a like face amount o f Treas ury bills maturing O ctober 18, 1951. Cash and exchange tenders will receive equal treatment. Cash adjustments w ill be made fo r differences 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 any special treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. T he bills shall be subject to estate, inheritance, g ift, or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States, o r by any local taxing authority. F or purposes o f taxa tion the amount o f discount at which Treasury bills are originally sold b y the United States shall be considered to be interest. U nder Sections 42 and 1 1 7 (a ) ( 1 ) o f the Internal Revenue Code, as amended by Section 115 o f the Revenue A c t o f 1941, the amount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or other wise disposed o f, and such bills are excluded from consideration as capital assets. A ccordin gly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale o r 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 m ay be obtained fro m any Federal Reserve Bank o r Branch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, October 15, 1951, at the Securi ties Department o f 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 l l a n S p r o u l , President. Results of last offering of Treasury bills (91-day bills dated October 11, 1951, maturing January 10, 1952) Total applied f o r ................$2,163,091,000 T otal accepted .................... $1,200,655,000 (includes $176,881,000 entered on a non-competitive basis and accepted in full at the average price shown below ) A verage price.............. 99.602 Equivalent rate o f discount approx. 1.576% per annum Range o f accepted competitive bids : H igh ............................. 99.621' Equivalent rate o f discount approx. 1.499 % per annum L ow ............................... 99.600 Equivalent rate o f discount approx. 1.582% per annum (93 percent o f the amount bid fo r at the low price was accepted) Federal Reserve District ...... N ew Y o rk ............................ Philadelphia .................. Cleveland ....................... Richmond ...................... Atlanta ............................ St. Louis ........................ Minneapolis .................. Kansas City .................. Dallas .............................. San Francisco .............. T otal .............................. ....... Total A pplied for $ 23,857,000 1,537,594,000 33,387.000 60,232.000 30,062.000 25,182,000 209,437,000 34,610,000 8.974,000 69,904.000 47,702,000 82,150,000 $2,163,091,000 Total Acccpted $ 23,537,000 756,847,000 16,712,000 47,507,000 27,379,000 20,570,000 131,351,000 22,140,000 7,854.000 54,455.000 31,462,000 60,841,000 $1,200,655,000 ( over) 26D IMPORTANT— If you desire to bid on a competitive basis, fill in 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 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. _________________ TENDER 91 -D A Y T R E A S U R Y BILLS FOR Dated October 18, 1951 To Maturing January 17, 1952 Dated at ------------------F ed era l R eserve B a n k o f N ew Y ork , Fiscal Agent o f the United States. COMPETITIVE 1951 BID NON-COMPETITIVE BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions o f the public notice on October 11, 1951, as issued by the Secretary of the Treasury, the undersigned offers (Rate per 100) — * for a total amount of Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions o f the public notice on October 11, 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) $.................................................... (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: □ By surrender o f maturing Treasury bills amounting t o .................... $ _____________________ □ □ □ By cash or other immediately available funds By surrender of maturing Treasury bills amounting t o .................... $ _____________________ By cash or other immediately available funds * Price must be expressed on the basis o f 100, with not more than three decimal places, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated October 18, 1951, and are to mature on January 17, 1952. This tender will be inserted in special envelope marked “ Tender for Treasury Bills” N am e o f Bidder ............................................... By (Please print) (Official signature required) (T itle) Street Address ................................................ (City, Town or Village, P. O. No., and State) I f this ten der is subm itted b y a b a n k f o r th e a ccou n t o f a cu stom er, indicate th e cu stom er’ s nam e o n lin e b e lo w : (Name of Customer) (City, Town or ViUage, P. O. No., and State) IMPORTANT INSTRUCTIONS: 1. N o tender fo r (m aturity valu e). 2. I f the person authorized to make the tender, tion by him that he has been so less than $1,000 w ill 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 w ill be construed as a representa authorized. I f the tender is made by a partnership, it should be signed b y a member o f the firm, w ho should sign in the form “ ............................................................. ...................................................................................... , a copartnership, by ......................................................................................................................, a member o f the firm.” 3. Tenders will be received without deposit fro m incorporated banks and trust companies and from 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 by 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 may be disregarded. Payment by credit through Treasury Tax and Loan Account will not be permitted. http://fraser.stlouisfed.org/ T N T B — 111 1-a FederalEReserve Bank of St. Louis ( over)