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F E D E R A L R E S E R V E BANK O F N EW Y O R K
r Circular N o. 3 0 8 7 1
L M ay 17, 1 9 4 6 J

Fiscal A gent o f the United States

Public Notice o f Offering o f $1,300,000,000, or thereabouts, o f 91-Day Treasury Bills
Dated May 23, 1946

Maturing August 22, 1946

To all Incorporated Banks and Trust Companies in the
Sccond Federal Reserve District and Others Concerned:

Following is the text of a notice today made public by the Treasury Department with respect to a new offering of Treas­
ury bills payable at maturity without interest to be sold on a discount basis under competitive and fixed-price bidding.
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 ,
Friday, May 17, 1946.

TREASU RY D EPARTM EN T
Washington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 91-day Treasury
bills, to be issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this
series will be dated May 23, 1946, and will mature August 22, 1946, when the face amount will be payable without interest.
They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern
Standard time, Monday, May 20, 1946. Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor.
Tenders will be received without deposit from 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 of the
face amount' o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an
incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Secretary of the Treasury of the amount and price range o f accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, tenders for $200,000 or less from any one bidder at 99.905 entered on a fixed-price basis will 'be accepted
in full. Payment o f accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash
or other immediately available funds on May 23, 1946.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of 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 Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift,
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 of the United States, or by any local taxing authority.
For purposes o f taxation the amount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 42 and 117 (a ) (1 ) o f the Internal Revenue Code, as amended by Section 115 o f
the Revenue A ct 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 otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner o f Treasury bills (other than life insurance companies) 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 or redemption at maturity during the taxable year for which the return
is made, as ordinary gain or loss.
Treasury Department Circular No. 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 may be obtained from any Federal Reserve Bank or Branch.

In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th
floor, 33 Liberty Street) New York 7, N. Y ., or at the Buffalo Branch of this bank (270 Main Street) Buffalo 5, N. Y .,
up to two o ’clock p.m., Eastern Standard time (three o ’clock p.m., “ Daylight Saving time” ), on Monday, May 20,
1946. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope
enclosed herewith. Payment for the Treasury bills cannot be made by credit through the War Loan Deposit Account.

Payment must be made in cash or other immediately available funds.
A llan

S proul,

President.

(Extract from Treasury Department statement released for publication May 14, 1946, announcing
results after tenders were opened for Treasury bills dated May 16, 1946 maturing August 15, 1946)
Total applied for ..... $1,900,939,000
Total accepted ........... $1,301,341,000 (includes $40,866,000
entered on a fixed-price basis at
99.905 and accepted in full)
Average price .......

99.905+

Equivalent rate o f discount
approx. 0.375% per annum

Federal Reserve
District

Total
Applied for

...
New Y ork ........................ ..
Philadelphia ....................

$ 9.900.000
1,469,893,000
30,918,000
12,355,000
14,064,000
12,905,000
270,244,000
5,255,000
2,495,000
12.500.000
13,400,000
47,010,000

Richmond

........................

Range o f accepted competitive bids :
H igh ...... '................

99.908

Equivalent rate o f discount
approx. 0.364% per annum

Low ..........................

99.905

Equivalent rate o f discount
approx. 0.376% per annum

(66 percent of the amount bid for at the low price
was accepted)



Chicago ............................
St. Louis ..........................
Minneapolis ....................
Kansas City .....................
Dallas ................................
San Francisco ................
T otal

......................... ..

$1,900,939,000

Total
Accepted
$

6,908,000
991,233,000
24,798,000
10.655,000
12,364,000
9,505.000
181.232,000
4,405,000
2.495,000
10.800,000
10.816,000
36,130,000

$1,301,341,000
( o ver )

15H
IM PORTAN T— If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed "Competitive Bid” . If it is desired to bid on a fixedprice basis, fill in only the maturity value in paragraph headed "Fixed-Price Bid” .

DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid.
No.

TENDER FOR 91 -DAY TREASURY BILLS
Dated May 23, 1946.

Maturing August 22, 1946.
Dated at ________

To

F e d eral R eserve B a n k

of

N ew

.1946

Y ork,

Fiscal Agent of the United States.
COMPETITIVE BID

FIXED-PRICE BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
May 17, 1946, as issued by the Secretary of
the Treasury, the undersigned offers to pay

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on May
17, 1946, as issued by the Secretary of the Treas­
ury, the undersigned offers to pay a fixed-price
of 99.905 (rate per 100) for a total amount of

.............................................* for a total amount of
( R a t e p e r 100)

$..................................................... (maturity value)

$..................................................... (maturity value)
of the Treasury bills therein described, or for
any less amount that may be awarded, payment
therefor to be made at your bank in cash or other
immediately available funds on the date stated
in the public notice.

(N o t t o e x c e e d $200,000)

of the Treasury bills therein described, payment
therefor to be made at your bank in cash or other
immediately available funds on the date stated
in the public notice.

The Treasury bills for which tender is hereby made are to be dated May 23, 1946, and are to mature on
August 22, 1946.

This tender will be inserted in special envelope entitled “ Tender for Treasury bills”
Name of Bidder.
( P le a s e p r in t )

B y ........
( O ffic ia l s ig n a t u r e

r e q u ir e d )

(T itle )

Street Address ...............................................
(C it y , T o w n o r V illa g e , P .O . N o ., a n d S ta te )

If this tender is submitted for the account of a customer, indicate the customer’s name on line below:

(N a m e o f C u s to m e r )

(C ity , T o w n o r V illa g e , P .O . N o., a n d S ta te )

Use a separate tender for each customer’s bid.

IM PORTANT INSTRUCTIONS:
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of
$1,000 (m aturity value). A separate tender must be executed for each bid.
2. If the person m aking the tender is a corporation, the tender should be signed by an officer of the cor­
poration authorized to make the tender, and the signing of the tender by an officer o f the corporation will be construed as
a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
m em ber o f the firm, w ho should sign in the form “ ................................................................................................. a copartnership, by
..................................................................................................................... . a m em ber o f the firm.”
3. Ten ders will be received without deposit from incorporated banks and trust com panies and from respon­
sible and recognized dealers in investment securities. T enders from others must be accom panied by payment of 2 per­
cent o f the face amount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty of
paym ent b y an incorporated bank or trust com pany.
4. I f the language of this tender is changed in any respect, w hich, in the opinion o f the Secretary of the
Treasury, is material, the tender may be disregarded.

Payment by credit through War Loan Deposit Account will not be permitted.


TENTB-829-a


* Price must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.
( over )


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102