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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States Circular N o. 3 7 9 1 t . Decem ber 6, 1951 J Offering of $1,200,000,000 of 91-Day Treasury Bills Dated Decem ber 13, 1951 Maturing March 13, 1952 T o all In corporated Banks and T ru st Companies, and Others Concerned, in the Second Federal R eserv e D istrict: 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 a y , D e ce m b e r 6, 1951. TREASU RY DEPARTM EN T W a s h in g to n T h e S ecreta ry o f the T rea su ry, b y this p u b lic n otice, invites ten ders fo r $1,200,000,000, o r th ereabouts, o f 9 1 -d a y T re a su ry b ills, fo r cash and in e x ch a n g e fo r T rea su ry bills m a tu rin g D e ce m b e r 13, 1951, in the a m ou n t o f $1,202,909,000, to b e issued o n a d isco u n t basis under com p etitiv e and n o n -com p etitiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be dated D e ce m b e r 13, 1951, and w ill m atu re M a rch 13, 1952, w h en the fa ce a m ou n t w ill b e p a ya b le w ith ou t interest. T h e y w ill be issued in b ea rer fo r m o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m a tu rity va lu e). T e n d e rs w ill be received at Federal R eserve B anks and B ra n ch es up t o the clo s in g hour, tw o o ’ c lo c k p.m ., E astern Standard tim e, M o n d a y , D e ce m b e r 10, 1951. T en d ers w ill n ot be receiv ed at the T r e a s u ry D ep a rtm en t, W a s h in g to n . E ach tender 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 p rice o ffe re d m u st be exp ressed on the basis o f 100, w ith n ot m ore than th ree decim als, e.g., 99.925. F ra ction s m a y n o t be used. It is u rg ed th at ten ders be m ade on th e printed fo rm s and forw a rd ed in th e special en velopes w h ich w ill b e sup plied b y F ed eral R e s e rv e B anks o r B ran ch es o n a pp lica tion therefor. O th e rs than ban k in g institutions w ill n ot be perm itted t o su b m it ten ders e x ce p t f o r their ow n a ccou n t. T e n d e rs w ill be receiv ed w ith o u t dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m respon sib le and re co g n iz e d dealers in in vest m en t securities. T e n d ers fr o 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 face a m ou n t o f T rea su ry bills a pp lied fo r, unless th e tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in corp ora ted ba n k o r trust com p a n y . -tDi tjyir't m : Im m ediately.j^fter the clo s in g h our, tenders w ill be op en ed at the F ed era l R e serv e B an ks and B ran ches, fo llo w in g w hich pu blic a n n ou n cem en t w ill b e m ade b y th e S ecreta ry o f the T rea su ry o f the a m ou n t and p rice ra n ge o f a cce p te d bids. T h o s e subm itting1tender^ 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 rea su ry ex p ressly reserves th e ri&ht t o iattbepi)o r reject any o r all tenders, in w h o le or in part, and his a ction in a n y such resp ect shall be final. S u b ject t o th^se resejcya.tj'tpns^non-competitive ten ders fo r $200,000 or less w ith ou t stated p rice fr o m a n y on e b idd er w ill b e a ccep ted in fu ll at the a vera ge price (in th ree d ecim a ls) o f a ccep ted com p etitiv e bids. S ettlem en t fo r a ccep ted ten ders in a ccord a n ce w ith the bids m u st be m ade o r com p le te d at the F ed eral R e serv e B a n k on D e ce m b e r 13, 1951, in cash o r o th e r im m ediately available fu n ds o r in a like face a m ou n t o f T rea su ry bills m atu rin g D e ce m b e r 13, 1951. Cash and ex ch a n g e ten ders w ill receive equal treatm ent. C ash adju stm en ts w ill be m ade fo r d ifferen ces b etw een the par valu e o f m a tu rin g bills a ccep ted in exch an ge and the issue p rice o f the n ew bills. T h e in com e derived fro m T rea su ry bills, w h eth er interest o r ga in fr o m th e sale o r oth er d isp osition o f the bills, shall n o t have any exem ption , as such, and lo s s fr o m the sale o r oth er d isp osition o f T rea su ry bills shall n ot have any special treatm ent, as such, under the In tern al R even u e C od e, o r law s a m en d a tory or su p plem en ta ry thereto. T h e bills shall be su b je ct to estate, inheritance, gift, o r oth er ex cise taxes, w h eth er F ed eral or State, but shall be exem p t fr o m all taxation n o w o r hereafter 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 ossession s o f th e U n ited States, o r b y a n y loca l ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly so ld b y the U n ited States shall be con sid ered t o b e interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the In tern a l R even u e C o d e , as am ended b y S ection 115 o f th e R even u e A c t o f 1941, th e a m ou n t o f d iscou n t at w h ich bills issued hereun der are so ld shall n o t be co n sid ered to a ccru e until such bills shall be sold, red eem ed o r oth erw ise disposed o f, and such bills are exclu d e d fro m con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T r e a s u ry bills (o th e r than life insurance com p a n ies) issued hereunder need include in his in com e tax return o n ly the differen ce betw een the price pa id fo r such b ills, w hether on origin al issue o r o n subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u pon sale or red em ption at m aturity du rin g the taxable yea r for w h ich the return is m ade, as ord in a ry gain o r loss. T re a su ry D ep a rtm en t C ircu la r N o. 418, as am en ded, and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn th e co n d itio n s o f their issue. C op ies o f th e circu la r m ay be obtain ed fr o m a n y F ed era l R e serv e B ank o r B ranch. This Bank will receive tenders up to 2 p.m., Eastern Standard time, Monday, December 10, 1951, at the Securities 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 l l a n S p r o u l , President. Results o f last offering o f Treasury bills (91-day bills dated December 6, 1951, maturing March 6, 1952) Total applied f o r ........ $1,940,072,000 T otal accepted $1,103,422,000 (includes $147,242,000 entered on a non-com petitive basis and accepted in fu ll at the average price shown b elow ) . no cq7 i T? ■ i * * c a' * A verage p n ee 99.587+ Equivalent rate o f discount approx. 1.632 % per annum Range o f accepted competitive b id s : TT. . C- • 1 * . C A* H ,g h " - 604 Equivalent rate o f discount approx. 1.567% per annum L ow ...............- . . 99.586 Equivalent rate o f discount approx. 1.638% per annum (T h e entire amount bid f o r at the low price was accepted) Federal R eserv e ----- D istrict------B oston .......... ........................... N ew Y o r k ......................... '. Philadelphia ................. ....... Cleveland ............................... Richm ond ............................... Atlanta ................................... Chicago .................................... St. Louis ................................. Minneapolis ............ Kansas C ity ....................... Total Applied f o r $ 13,086,000 1,358,788,000 24,772,000 47,931,000 tt^ O O O 19,743,000 214,270,000 27,788,000 17,721,000 40,502,000 Total _ A ccep ted $ 10,086,000 655,788,000 7,372,000 46,931,000 13 446 000 18,443,000 173,270,000 20,188,000 17,321,000 36,502,000 •• :.................. •••• San Francisco ....................... 48,720,000 110,355,000 28,720,000 75,355,000 $1,940,072,000 $1,103,422,000 T o t a l ......................... ( over) 26L IM PORTANT— I f you desire to bid on a c o m p e titiv e basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid.” I f you desire to bid on a n o n -c o m p e titiv e basis, fill in only the maturity value in paragraph headed "N on-competitive Bid.’* DO N O T fill in b o th para grap h s on o n e fo r m . 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 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 method o f payment. Forms for this purpose will be furnished upon request. No............ TENDER FOR 91-DAY TREASURY BILLS Dated December 13, 1951 To Maturing March 13, 1952 Dated at............. F ederal R eserve B a n k o f N e w Y o r k , Fiscal Agent of the United States. 1951 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on December 6, 1951, as issued by the Secretary of the Treas ury, the undersigned offers............. * Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on December 6, 1951, as issued by the Secretary of the Treas ury, the undersigned offers a non-competitive tender for a total amount of $ ............ (Rate per 100) for a total amount of $................. (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: □ By surrender of maturing Treasury bills (Not to exceed $200,000) amounting to....... $________________ (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 of maturing Treasury bills amounting to....... $________________ □ □ By cash or other immediately available funds By cash or other immediately available funds *P rice must be exp ressed on the basis o f 100, with not m ore than th ree decimal places, f o r exam ple, 99.925. The Treasury bills for which tender is hereby made are to be dated December 13, 1951, and are to mature on March 13, 1952. This tender will be inserted in special envelope marked “ Tender for Treasury Bills.” N a m e o f B id d er B y ......... (Please print) (Title) (Official signature required) Street A d d re s s ........................................ (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 PORTANT INSTRUCTIONS: 1. N o te n d e r fo r less than $1,000 w ill be con sid e re d , a n d each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the p erson m a k in g the ten d er is a co rp o ra tio n , th e ten d er sh ou ld be sig n ed b y an officer o f th e c o rp o ra tion a u th orized t o m a k e the ten der, and the s ig n in g o f th e ten der b y an officer o f th e co rp o ra tio n w ill be co n stru ed as a rep resen tation b y h im th at he has been s o auth orized. I f th e ten der is m a d e b y a p a rtn ersh ip, it s h ou ld be sig n ed b y a m e m b e r o f the firm , w h o sh ou ld sig n in the fo r m “ ......... ........................................................................................ a cop artn ersh ip, by ........................................................................................................................ a m e m b e r o f the firm .” 3. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks an d tru st com pa n ies an d fro m r e s p o n sible an d re co g n ize d d ea lers in in vestm ent securities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y p a 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 b ills applied fo r , unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in co rp o ra te d b a n k o r tru st com p a n y . 4. I f the la n g u a ge o f this ten der is ch a n g e d in any respect, w h ich , in the op in ion o f the S ecreta ry o f the T reasu ry, is m aterial, th e ten der m a y be disregarded. P a ym en t b y c r e d it th ro u g h T r e a s u r y T a x and L oan A c c o u n t w ill n o t b e p erm itted . http://fraser.stlouisfed.org/ T E N T B — 1 1 1 9 -a Federal Reserve Bank of St. Louis ( over)
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