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FE D E R A L R E SE R V E BANK O F N EW Y O R K f Circular No. 31121 I July 26, 1946 J Fiscal Agent of the United States Public Notice of Offering of $ 1 ,3 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 91-Day Treasury Bills Dated August 1, 1946 Maturing October 31, 1946 To all Incorporated Banks and Trust Companies in the Second Federal R eserve 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 Treasury 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, July 26, 1946. TREASURY DEPARTM ENT W ash ington T h e Secretary o f the Treasury, b y this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day Treasury bills, to be issued on a discount basis under com petitive and fixed-price bidding as hereinafter provided. T h e bills o f this series w ill be dated A u gu st 1, 1946, and will m ature O ctob er 31, 1946, when the face am ount will be payable without interest. T h e y w ill be issued in bearer fo rm only, and in denom inations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity value). T en ders will be received at Federal R eserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern Standard time, M on day, July 29, 1946. T enders w ill not be received at the Treasury Departm ent, W ashington. Each tender must be fo r an even multiple o f $1,000, and the price offered must be expressed on the basis o f 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 form s and forw arded in the special envelopes w hich will be supplied b y Federal R eserve Banks or Branches on application therefor. Ten ders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recogn ized dealers in investm ent securities. T en ders from others must be accom panied b y paym ent of 2 percent of the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an incorporated bank o r trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcem ent w ill be made b y the Secretary o f the^ Treasury o f the am ount and price range o f accepted bids. T h ose subm itting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the righ t to accept or reject any or all tenders, in w hole 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 w ill be accepted in full. P aym ent o f accepted tenders at the prices offered must be made or com pleted at the Federal Reserve Bank in cash or other im m ediately available funds on A u gu st 1, 1946. T h e in com e derived from Treasury bills, w hether interest or gain from the sale or other disposition o f the bills, shall not have any exem ption, as such, and loss from the sale or other disposition o f Treasu ry bills shall not have any special treatment, as such, under Federal tax A cts n ow or hereafter enacted. T h e bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exem pt from all taxation now or hereafter im posed on the principal o r interest thereof b y any State, or any o f the possessions o f the United States, or b y any local taxing authority. F o r purposes of taxation the am ount of discount at w hich Treasu ry bills are originally sold b y the U nited States shall be considered to be interest. U nder Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue Code, as am ended b y Section 115 of the R evenue A ct o f 1941, the am ount of discount at w hich bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. A ccord in gly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his in com e tax return on ly the difference betw een the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. T reasu ry D epartm ent Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and go v e rn the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal R eserve 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, July 29, 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 lla n S p r o u l, President. ( Extract from Treasury Department statement released for publication July 23, 1946, announcing results after tenders were opened for Treasury bills dated July 25, 1946 maturing October 24, 1946) Total applied fo r .. $1,767,751,000 T otal a cce p te d ............ $1,305,129,000 (includes $35,286,000 entered on a fixed-price basis at 99.905 and accepted in fu ll) A verage price . . . . 99.905-f- Equivalent rate o f discount approx. 0.375% per annum 7 .. v Range o f accepted competitive bids: H igh ....................... 99.907 Equivalent rate o f discount approx. 0.368% per annum nnnnr _ . . . ,. L ow ....................... 99.905 Equivalent rate o f discount approx. 0.376% per annum , , , ., , . . • (71 percent o f the am ount bid for at the lo w price w as a ccep ted) Federal R eserve Total --------- D istrict-------Applied f o r Boston .......................... $ 9,425,000 N ew Y ork .................... 1,357,799,000 Philadelphia ................ 13,210,000 Cleveland ...................... 8,82o,000 Richmond ...................... 18,895,000 Atlanta ............................ 7,270,000 Chicago ........................... 252,480,000 St. Louis ........................ 13,23d,000 Minneapolis .................. 2,357,000 Kansas City .................. 27,120,000 Dallas ............................. 3,535,000 San Francisco .............. 53,600,000 --------------------T otal .............. $1,767,751,000 Total A ccepted $ 7,424,000 991,384,000 10,136,000 7,375,000 15,053,000 7,270,000 183,750,000 9,900,000 2,357,000 23,785,000 3,535,000 43,160,000 —---------------$1,305,129,000 ( o ver) 15R 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. T E N D E R FO R 9 1 -D A Y T R E A S U R Y BILLS Maturing October 31, 1946. Dated August 1, 1946. Dated at To F e d e ra l R eserve B a n k o f N ew Y o rk , Fiscal Agent of the United States. 1946 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 July 26, 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 July 26, 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 oi (Rate per 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 pubHc notice. (Not to exceed $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 August 1, 1946, and are to mature on October 31, 1946. This tender will be inserted in special envelope entitled “ Tender for Treasury bills” N am e o f B idder. B y .... (Please print) (Official signature required) Street Address (Tide) ................................... (City, Town or Village, P. O. No., and State) I f this tender is submitted 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) Use a separate tender for each customer’s bid. IMPORTANT INSTRUCTIONS: 1. N o tender fo r less than $1,000 will be considered, and each tender must be $1,000 (maturity value). A separate tender must be executed for each bid. fo r an even multiple o f 2. I f the person making the tender is a corporation, the tender should be signed by an officer o f the cor poration authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed as a representation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ .............................................................................................................. f a copartnership, b y .................................................................................................... . a member of the firm.” 3. 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 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. 4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f Treasury, is material, the tender may be disregarded. Payment by credit through War Loan Deposit Account will not be permitted. * P rice must be expressed on the basis o f 100, with not m ore than three decimal places. Fractions may not be used. T E N T B 839-a (o v m ) the