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F E 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

[

Circular No. 3122 1
August 23, 1946 j

Public Notice o f Offering of $ 1 ,3 0 0 ,0 0 0 ,0 0 0 , or thereabouts, o f 92-D ay Treasury Bills
D ated August 29, 1946

Maturing November 29, 1946

To all Incorporated Banks and Trust Companies in the
Second 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 Treasury
bills payable at maturity without interest to be sold on a discount basis under competitive and fixed-price bidding.
FO R RELEASE, M ORNING N EW SPAPERS,
Friday, August 23, 1946.

TRE ASU RY DEPARTM EN T
Washington
The Secretary o f the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 92-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 August 29, 1946, and will mature November 29, 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, August 26, 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 of 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 o f the Treasury of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or ali tenders, in whole or in part, and his action in any such respect shall be final. Subject
to these reservations, tenders for $2U ,CO or less from any one bidder at 99.905 entered on a fixed-price basis will be accepted
O O
in full. Payment of 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 29, 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 or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority.
For purposes of 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 Act of 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. Accordingly, the owner of 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 of the Treasury bills and
govern the conditions o f their issue. Copies of 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, August 26,
1946. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope
enclosed herewith. Payment jor 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 l l a n S p r o u l , President.
{Extract jrom Treasury Department statement released jor publication August 20, 1946, announcing
results after tenders were opened jor Treasury bills dated August 22,1946 maturing November 21, 1946)
Total applied fo r ..........$1,803,547,000
Total accepted ........... $1,308,007,000 (includes $35,658,000
entered on a fixed-price basis at
99.905 and accepted in full)
Average price........ 99.905+

Equivalent rate of discount
approx. 0.375% per annum

Range of accepted competitive bids :
High ....................... 99.908

Equivalent rate o f discount
approx. 0.364% per annum

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

Equivalent rate o f discount
approx. 0.376% per annum

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




Federal Reserve
District

Total
A pplied jor

Total
Accepted

Boston ..........................
New York .....................
Philadelphia .................
Cleveland .....................
Richmond .....................
Atlanta ..........................
Chicago ........................
St. Louis .......................
Minneapolis .................
Kansas City .................
Dallas ............................
San Francisco .............

$ 11,500,000
1,369,659,000
12,540,000
14,265,000
10,279,000
3,215,000
281,100,000
4,130.000
2,050,000
15,430,000
7,875,000
71,504,000

$

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

$1,803,547,000

$1,308,007,000

T ota l

8,920,000
988,209,000
9,540 000
11,265*000
9,529,000
3,215,000
198,900,000
3,680,000
2,050,000
14,080,000
6,915,000
51,704,000

( over)

15V
IM PORTAN T— It will be noted that the offering is for 92-day Treasury bills which will
mature on Friday, N ovem ber 29, 1946, owing to the fact that Thursday, November 28, will be
Thanksgiving Day.
If it is desired to
paragraph headed
only the maturity
paragraphs on one

bid on a competitive basis, fill in rate per 100 and maturity value in
“ Competitive B id” . If it is desired to bid on a fixed-price basis, fill in
value in paragraph headed “ Fixed-Price B id” . DO NOT fill in both
form. A separate tender must be used for each bid.

No....................................
T E N D E R FOR 92-D A Y T R E A S U R Y BILLS
Dated August 29, 1946.

Maturing November 29, 1946.
Dated at .................................................

To

.................................................................................... 1946

F e d e r a l R eserve B a n k o f N e w 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 23, 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
23, 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
$ ............................................. (maturity value)

........................................ * 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)

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 29, 1946, and are to mature on
November 29, 1946.
This tender will be inserted in special envelope entitled "Tender for Treasury bills.”
Name of Bidder.......
By . . . .

(Please print)

(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. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of
$1,000 (maturity value). 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 of the corporation
authorized to make the tender, and the signing of the tender by an officer of the corporation will 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 of the firm, who should sign in the form “ ..................................................................................................... . a copartnership, by
............................................................................................................. . a member of the firm.”
3. Tenders will 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 accompanied by payment of
2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty
of payment by an incorporated bank or trust company.
4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of 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-843-a
Federal Reserve Bank of St. Louis

* Price 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