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FEDERAL RESERVE BANK OF N EW YORK
rCircular No. 3233 1
L July 11, 1947
J

Fiscal Agent of the United States

Public Notice of Offering of $1,100,000,000, or thereabouts, of 91-Day Treasury Bills
Dated July 17, 1947

Maturing October 16, 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 Treas­
ury bills payable at maturity without interest to be sold on a discount basis under competitive and non-competitive bidding.
F O R R E L E A S E , M O R N IN G N E W SP A P E R S ,
Friday, July 11, 1947.

TREASURY DEPARTM ENT
Washington
The Secretary of the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing July 17, 1947, to be issued on a discount basis under competitive
and non-competitive bidding as hereinafter provided. The bills of this series will be dated July 17, 1947, and will mature O cto­
ber 16, 1947, when the face amount will be payable without interest. They will be issued in bearer form only, and in denomi­
nations 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, July 14, 1947. Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders 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 appli­
cation 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, non-competitive tenders for $200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on July 17, 1947, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing July 17, 1947. Cash and exchange tenders will receive equal treat­
ment. 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 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 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, July 14,
1947. It is requested that tenders be submitted on special form printed on reverse side and returned in special envel­
ope enclosed herewith. Payment for the Treasury bills cannot be made by credit through the War Loan Deposit Account.
Settlement must be made in cash or other immediately available funds or in maturing Treasury bills.
A l l a n S p r o u l , President.
(Extract from Treasury Department statement released for publication July 8, 1947, announcing
results after tenders were opened for Treasury bills dated Jidy 10, 1947 maturing October 9, 1947)
Total applied for...........$1,661,863,000
Total accepted .............$1,300,023,000 (includes $13,873,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Average price....... 99.850
Equivalent rate of discount
approx. 0.594% per annum
Range of accepted competitive bids:
High .....................

99.906

Equivalent rate of discount
approx. 0.372% per annum

L ow .......................

99.811

Equivalent rate o f discount
approx. 0.748% per annum

(74 percent o f the amount bid for at the low price
was accepted)




Federal Reserve
District
Boston ..................... .....
New York ............. .....
Philadelphia ...........
Cleveland ...............
Richmond ...............
Atlanta ...................
St. Louis .................
Minneapolis ...........
Kansas City ...........
Dallas .....................
San Francisco .......
T otal .........................

Total
Applied for
$

13,220,000
1,556,974,000
6,536,000
1.560.000
2,690,000
625,000
69,640,000
450,000
1,190.000
2,490,000
5.125,000
1.363.000

$1,661,863,000

Total
Accepted
$

220,000
1,268,054,000
1.536.000
1.560.000
690.000
625.000
16,740,000
450.000
1.170.000
2.490.000
5.125.000
1.363.000

$1,300,023,000
( o ver)

17P

IM P O R T A N T — I f it is desired to bid on a com petitive basis, fill in rate per 100 and
m aturity value in paragraph headed "C om peiitive Bid” . I f it is desired to bid on a non­
com petitive basis, fill in only the m aturity value in paragraph headed ' :N on-com petitive
Bid” . D O N O T fill in both paragraphs on one form . A separate tender must be used for
each bid.

No.
TEN D ER FOR 91 -D A Y TR E A SU R Y BILLS
D ated July 17, 1947.

M aturing O ctober 16, 1947.
Dated at ____________

To F

ederal

.1947

R eserve B a n k of N e w Y o r k ,

Fiscal Agent of the United States.
C O M P E T IT IV E B ID

N O N -C O M PE T ITIV E BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
July 11, 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 July 11,
1947, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender
for a total amount of $.....................................................

...... ........ — ------- ----------------- * for a total amount of

(Not to exceed $200,000)

(Sate 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 follows:

(maturity value) of the Treasury bills therein
described, at the average price (in three deci­
mals) of accepted competitive bids, settlement
therefor to be made at your bank, on the date
stated in the public notice, as follows :

By surrender of the maturing issue of

By surrender of the maturing issue of

Treasury bills___________ $_________________________

Treasury bills___________ $ __________________________

By cash or other immediately available
funds ___________________ $__________________________

By

cash or other immediately available

funds ----------------------- ----- $

The Treasury bills for which tender is hereby made are to be dated July 17, 1947, and are to mature
on October 16, 1947.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name of Bidder.,
(Please print)

By ----(Title)

(Official signature required)

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 ViUage, P.O. No., and State)

Use a separate tender for each customer’s bid.
IM P O R T A N T IN S T 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 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 cor­
poration authorized to make the tender, and the signing of the tender by an officer of 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
member 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 per­
cent 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.
4. If the language o f 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 b y credit through W ar Loan Deposit Accou n t will not be permitted.
* Price must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.


TENTB— 889-a


(OVER)

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