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FEDERAL RESERVE BANK O F NEW YORK
Fiscal Agent of the United States
{SSSKS? 1
Offering of $1,200,000,000 of 91-Day Treasury Bills
Dated Decem ber 27, 1951
Maturing March 27, 1952
T o all Incorporated Banks and Trust 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 u e s d a y , D e ce m b e r 18, 1951.
TREASURY DEPARTM ENT
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 ay T rea su ry
bills, fo r cash and in exch a n ge fo r T rea su ry bills m aturing D e ce m b e r 27, 1951, in the a m ou n t o f $1,200,936,000, to be issued on
a d isco u n t basis u n d er com p etitive and n on -co m p e titiv e b id d in g as h erein a fter p rov id ed . T h e bills o f this series w ill be dated
D e c e m b e r 27, 1951, and w ill m ature M a rch 27, 1952, w h en the fa ce a m ou n t w ill be pa 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 v a lu e ).
T e n d e rs w ill be receiv ed at F ed eral R e serv e B anks and B ra n ch es up t o the clo s in g h our, tw o o ’ c lo ck p.m ., E astern
S tandard tim e, F rida y, D e ce m b e r 21, 1951. T en d ers w ill n ot be received at the T r e a s u ry D epa rtm en t, W a s h in g to n . E a ch
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 etitiv e ten ders the p rice o ffe re d m u st be exp ressed o n
the basis o f 100, w ith n o t m ore than th ree decim a ls, e.g., 99.925. F ra ction s m a y n ot be used. It is u rg ed th at ten ders be
m ade o n th e printed 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 eral R e serv e B anks o r
B ran ch es o n a pp lica tion th erefor.
O th e rs than b ank in g institutions w ill n ot b e perm itted to subm it ten ders e x cep t fo r their ow n a ccou n t. 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 and trust com p a n ies and fr o m resp on sib le and recog n ized dealers in in vest
m en t securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y paym ent 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 for, unless th e ten ders 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 bank o r trust com p a n y .
Im m ed ia tely a fter th e clo s in g h ou r, ten ders w ill be op en ed at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich
pu blic an n ou n cem en t w ill be m ade b y the S ecreta ry o f the T rea su ry o f the a m ou n t and price ran ge o f a ccep ted bids. 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 rea su ry exp ressly reserves
th e righ t to a cce p t o r re ject any o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b ject
t o th ese reservations, n on -co m p e titiv e tenders fo r $200,000 o r less w ith ou t stated p rice fr o m a n y on e b idd er w ill be a ccep ted
in fu ll at the a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitive bids. S ettlem ent fo r a ccep ted tenders in a ccord a n ce
w ith the bids m ust be m ade or com p le te d at the F ed eral R es e rv e B ank on D e ce m b e r 27, 1951, in cash or oth er im m ediately
available fu n ds o r in a like fa ce a m ou n t o f T rea su ry b ills m atu rin g D e ce m b e r 27, 1951. Cash and exch a n ge ten ders w ill receiv e
equal treatm ent. C ash a dju stm en ts w ill b e m ade fo r d ifferen ces betw een the par va lu e o f m a tu rin g bills a cce p te d in exch a n ge
and th e issue p r ice o f th e n ew bills.
T h e in co m e derived fr o m T r e a s u ry bills, w h eth er interest o r gain fr o m th e sale or oth er d isp osition o f the bills, shall
n o t h av e a n y exem ption , as such, and loss fr o m th e sale o r oth er d isp osition o f T r e a s u ry bills shall n ot have a n y 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 o r sup plem entary th ereto. T h e bills shall be
s u b je ct to estate, inheritance, gift, o r oth er excise taxes, w h eth er F ed era l or State, but shall b e exem p t fr o m all taxation
n o w o r hereafter im p osed on th e prin cip a l o r in terest 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 lo ca l ta x in g authority. F o r pu rposes o f ta xation the am ou nt o f d iscou n t at w h ich T r e a s u ry bills are originally
so ld b y th e U n ited States shall b e co n sid e re d t o b e interest. U n d er S ection s 42 and 1 1 7 (a )(1 ) o f the In tern al R even u e
C ode, as a m en ded b y S ection 115 o f th e 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 hereun der are
so ld shall n o t be co n sid ered t o a ccru e u ntil such bills shall be sold , red eem ed o r oth erw ise disp osed o f, and such bills are
e xclu ded fro m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life insurance com p a n ies)
issued hereun der need in clude in his in co m e ta x return o n ly the differen ce b etw een the p rice paid fo r such bills, w hether
o n o rigin a l issue o r o n subsequen t pu rch ase, and the a m ou n t actu ally receiv ed either u p on sale or red em ption at m aturity
d u rin g th e ta x ab le yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss.
T r e a s u 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 go v e rn
th e co n d itio n s o f th eir 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, Friday, December 21, 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.
(CLOSING D A Y FOR RECEIPT OF TENDERS IS F R ID A Y , D E C EM B ER 2 1 , 1 9 5 1 )
RESULTS OF BIDDING FOR TREASURY BILLS
DATED DECEMBER 20, 1951 WERE N O T A VAIL
ABLE W H EN THIS CIRCULAR WAS PRINTED.
( oveb)
26N
IM PORTANT— Please note that tenders for this issue must be received not later than
2 p.m., Eastern Standard time, Friday, December 21, 1951.
IM PORTANT— If 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.” If you desire to bid on a n o n -co m p e titiv e
basis, fill in only the maturity value in paragraph headed "Non-competitive Bid.” DO
N O T fill in b o th para grap h s on on 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 for the total amount bid at each price, provided a list is
attached showing the name o f each bidder, the amount bid for 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 27, 1951
To
Maturing March 27, 1952
Dated at
F ed era l R eserve B an k o f N ew Y ork ,
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
18, 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
18, 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
amounting to....... $________________
□_Bycash or other immediately available funds
(Not to exceed $200,000)
(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....... $________________
Q By ^ or other immediately available funds
*P rice must be exp ressed on the basis o f 100, with not
m ore than three decimal places, f o r exam ple, 99.925.
The Treasury bills for which tender is hereby made are to be dated December 27, 1951, and are to
mature on March 27, 1952.
This tender will be inserted in special envelope marked “Tender for Treasury Bills.”
N am e o f B id d er
B y .........
(Please print)
(Official signature required)
S treet A d d re s s
(Title)
........................................
(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 ten d er fo r less than $1,000 w ill b e con sid ered , and each ten der m u st be f o r an even m u ltiple o f $1,000
(m a tu rity v a lu e ).
2. I f th e p erson m a k in g th e ten der is a co rp o ra tio n , the 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 ake th e tender, and th e s ig n in g o f the ten der b y an officer o f th e co rp o ra tio n w ill b e con stru ed as a
rep resen tation b y h im th at he has b een s o auth orized. I f th e ten der is m a d e b y a partnersh ip, it sh ou ld be sign ed b y a
m e m b e r o f the firm , w h o sh ou ld sign in th e fo r m “ ................................................................................................ , a cop artn ersh ip , b y
...................................................... ............................................................... , 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 d ep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m r e s p o n
sible a n d re co g n iz e d d ea lers in in vestm en t securities. T en d ers fr o m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 percen t
o f th e fa ce a m ou n t o f T r e a s u ry bills applied fo r, unless th e ten ders are a cco m p a n ie d 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 or tru st com p a n y .
4. I f th e la n g u a ge o f this ten der is ch a n g e d in a n y respect, w hich, in the o p in io n o f the S ecreta ry o f the
T re a su ry , is m aterial, th e ten der m a y be disregarded.
P a y m en t b y c r e d it th r o u g h T r e a s u ry T a x and L oan A c c o u n t w ill n o t b e p erm itted .
T E N T B — 1121-a
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@FedFRASER