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FEDERAL RESERVE BANK OF NEW YORK N o. 3 2 2 9 1 June 27, 1947 J ( Circular Fiscal Agent of the United States Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated July 3, 1947 Maturing October 2, 1947 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. 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, June 27, 1947. TREASURY DEPARTM ENT Washington The Secretary of the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing July 3, 1947, to be issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this series will be dated July 3, 1947, and will mature October 2, 1947, 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, June 30, 1947. 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 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. 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 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 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. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 3, 1947, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 3, 1947. Equal treatment will be accorded all tenders, whether the bidders offer to exchange maturing bills or to pay cash for the new bills bid for. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. 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 ) of the Internal Revenue Code, as amended by Section 115 of the Revenue A ct 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 of 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 45, 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, June 30, 1947. 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 W ar Loan Deposit Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A llan S pr o u l , President. (Extract from Trcasury Department statement released fo r publication June 24, 1947, announcing results after tenders were opened for Treasury bills dated June 26, 1947 maturing September 25, 1947) Total applied fo r .. .$1,816,713,000 Total accepted.......... $1,103,664,000 (includes $16,518,000 entered on a fixed-price basis at 99.905 and accepted in full) Average p r ic e ........ 99.905+ Equivalent rate of discount approx. 0.376% per annum Range of accepted competitive bids: High L ow ......................99.906 Equivalent rate of discount approx. 0.372% per annum ........................99.905 Equivalent rate of discount approx. 0.376% per annum (59 percent o f the am ount bid for at the low price was accepted) Federal Reserve District Total A pplied for Boston ................ New York .......... Philadelphia ........ Cleveland ............ Richmond ............ Atlanta ................ Chicago ................ St. Louis ............ Minneapolis ........ Kansas City . . . . Dallas .................. San Francisco . . . T otal ... $ . 7,242,000 1,473,568,000 32,405,000 10,765,000 36,890,000 10.800,000 163,950,000 22,375,000 2,905,000 18.120.000 3,030,000 34,663,000 $1,816,713,000 Total Accepted $ 4,372,000 887,063,000 19,695,000 6,665,000 23,770,000 10,800,000 98,250,000 13,642,000 2,167,000 13,077,000 2,620,000 21,543,000 $1,103,664,000 ( over) 17N IM P O R T A N 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 N O T fill in both paragraphs on one form . A separate tender must be used for each bid. No.................. TEN D ER FOR 9 1 -D A Y T R E A S U R Y BILLS Dated July 3, 1947. Maturing Octobcr 2, 1947. Dated at To F e d e r a l R e serve B a n k o f N e w Y o r k , Fiscal Agent of the United States. 1947 C O M P E T IT IV E B ID F IX E D -P R IC E B ID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on June 27, 1947, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on June 27, 1947, as issued by the Secretary of the Treasury, the undersigned offers a fixed-price of 99.905 (rate per 100) for a total amount o f ............................................... * 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, settlement therefor to be made at your bank, on the date stated in the public notice, as follow s: $ .............................................................(maturity value) (Not to exceed $200,000) of the Treasury bills therein described, settlement therefor to be made at your bank, on the date stated in the public notice, as follows : surrender of the maturing issue of By surrender of the maturing issue of Treasury b i lls ..................... $ _________________________ Treasury b i l ls ..................... $ _________________________ By By By cash or cash or other immediately available funds .......................... $___________________ funds other immediately available ................................... $ _________________________ The Treasury bills for which tender is hereby made are to be dated July 3, 1947, and are to mature on October 2, 1947. This tender zvill be inserted in special envelope entitled “ Tender for Treasury bills.” Name o f Bidder......................................................................................................................... (Please print) By.. . (Official signature required) (Title) Street Address ................................ (City, Town or Village, P. O. No., and State) If this tender is submitted for the account o f 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. IM P O R T A N T IN ST R U C T IO N S: 1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple o f $1,000 (maturity value). A separate tender must be executed for each bid. 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 o f the firm, who should sign in the form “ ....................................................................................................... , a copartnership, b y ......................................................................................................... . a member o f 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 the Treasury, is material, the tender may be disregarded. Paym ent b y credit through W ar Loan Deposit Account will not be permitted. T E N T B — 887-a * 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 N EW YORK June 30, 1947. Semiannual Dividend G entlem en : The board of directors of Federal Reserve Bank of New York has declared a dividend for the six-month period ending June 30, 1947, at the rate of six per centum per annum on the paid-in capital stock of the bank, payable June 30, 1947, to stockholders as shown by the books of the bank at the close of business on that date. Payment of $...................... , the amount of such dividend due you, is being made at the close of business today by credit to your reserve account. Very truly yours, President,
@FedFRASER