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FE D E R A L R E S E R V E BANK O F N E W Y O R K
Fiscal Agent of the United States

^August 2 °'i9464
]

Public Notice o f Offering of $ 1 ,3 0 0 ,0 0 0 ,0 0 0 , or thereabouts, o f 91-D ay Treasury Bills

Dated August 8, 1946

Maturing November 7, 1946

T o 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, August 2, 1946.

TREASU RY DEPARTM ENT
W ashington

The Secretary o f the Treasury, by 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 competitive and fixed-price bidding as hereinafter provided. The bills of this
series w ill be dated August 8, 1946, and will mature Novem ber 7, 1946, when the face amount w ill be payable without interest.
They w ill 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
(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, M onday, August 5, 1946. Tenders w ill not be received at the Treasury Department, W ashington. Each tender
must be for an even multiple o f $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 w ill be supplied by Federal Reserve Banks or Branches on application therefor.
Tenders w ill 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.
Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing 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. Those
submitting tenders w ill be advised o f the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves
the right to accept o r 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 w ill 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 August 8, 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 of 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 o r interest thereof by any State, or any of the possessions o f the United States, or by any local taxing authority.
F or 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 of
the Revenue A ct o f 1941, the amount of 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. A ccordingly, 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 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 m ay 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, August 5,
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. Pay­

ment 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 30, 1946, announcing
results after tenders were opened for Treasury bills dated August 1, 1946 maturing October 31, 1946)
Total applied f o r .......... $1,796,174,000
Total accepted ............ $1,305,837,000 (includes $33,175,000
entered on a fixed-price basis at
99.905 and accepted in full)
A verage p rice ........ 99.905+

Equivalent rate o f discount
approx. 0.376% per annum

Range o f accepted competitive bids :
H igh ........................ 99.907

Equivalent rate o f discount
approx. 0.368% per annum

L o w .......................... 99.905

Equivalent rate o f discount
approx. 0.376% per annum

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




Federal R eserve
District
Boston ............
N ew Y o r k ___
Philadelphia ..
Cleveland ___
Richm ond ___
Atlanta ............
C hicago ..........
St. Louis ........
M inneapolis ..
Kansas City . .
D allas ..............
San Fran cisco
T otal ..............

Total
Applied for
$ 14,591,000
1,350,129,000
16.215.000
5.580.000
9.200.000
8.910.000
287,305,000
23.996.000
9.583.000

Total
A ccepted

5.705.000
53,950,000

10,821,000
974.055.000
12,155,000
5.406.000
8.620.000
8,620,000
205.427.000
17.761.000
7.503.000
9.618.000
5.531.000
40.320.000

$1,796,174,000

$1,305,837,000

.

11 010.000

$

( ov e r )

15S
IMPORTANT— 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.

TEN DER FOR 91-DAY TREASURY BILLS
Maturing November 7, 1946.

Dated August 8, 1946.
/

Dated at ................................
1946

To F e d e r a l R e serv e B a n k o f N ew Y o r k ,
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
August 2, 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 August
2, 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
(Rate per 100)

$ ................................................... (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.

$ .......... ........................................
(Not to exceed $200,000)

(maturity value)

o f 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 8, 1946, and are to mature on
November 7, 1946.

This tender will be inserted in special envelope entitled “ Tender for Treasury bills.”
Name o f Bidder.
(Please priât)

By .....

(Official signature required)

(Title)

Street Address ........................................

(City, Town or Village, P.O. No., and State)

If 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 for less than $1,000 w ill be considered, and each tender must be for an even multiple o f
$1,000 (m aturity valu e), A separate tender must be executed for each bid.
2. If the person making the tender is a corporation, the tender should be signed by an officer o f the corporation
authorized to make the tender, and the signing o f the tender by an officer o f the corporation w ill be construed as a rep­
resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem­
ber o f the firm, w ho should sign in the form “ .............................................................................................................. a copartnership, by
............................................................. ........................................................ a member o f the firm.”
3. Tenders w ill be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others must be accom panied by payment o f
2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied 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 of the Secretary o f the
Treasury, is material, the tender may be disregarded.

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

http://fraser.stlouisfed.org/
TENTB-840-a
Federal Reserve Bank of St. Louis

* P rice must be expressed on the basis of 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