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FEDERAL RESERVE BANK OF N EW YORK
Fiscal Agent of the United States

[

October ? 7 1947 3
°’

Public Notice of Offering of $ 1 ,1 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 91-Day Treasury Bills
Dated October 23, 1947

Maturing January 22, 1948

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 non-competitive bidding.
FOR RELEASE, M ORNING NEW SPAPERS,
Friday, October 17, 1947.

TRE ASU RY D EPAR TM E N T
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 October 23, 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 October 23, 1947, and will mature
January 22, 1948, 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, October 20, 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 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, 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 October 23, 1947, in cash or other immediately avail­
able funds or in a like face amount of Treasury bills maturing October 23, 1947. Cash and exchange tenders will receive equal
treatment. 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 o f 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 the Internal Revenue Code, or laws amendatory or supplementary thereto. 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 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 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 Y ork 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, on Monday, October 20, 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 p r o u l , President.

(Extract from Treasury Department statement released for publication October 11, 1947, announcing
results after tenders were opened for Treasury bills dated October 16, 1947 maturing January 15, 1948)
Total applied fo r ........$1,393,846,000
Total accepted............. $1,104,761,000 (includes $24,700,000
entered on a non-competitive basis
and accepted in full at the aver­
age price shown below)
Average price-----

99.789
Equivalent rate of discount
approx. 0.835 percent per annum

Range of accepted competitive bids :
H igh ..................... 99.830
Equivalent rate of discount
approx. 0.673% per annum
L ow .......................

99.786

Equivalent rate of discount
approx. 0.847% per annum

Federal Reserve
District
B o s to n ............................
New York .....................
Philadelphia .................
Cleveland .......................
Richmond .....................
Atlanta ..........................
Chicago ........................
St. Louis .......................
Minneapolis .................
Kansas City .................
Dallas ............................
San Francisco .............

Total
Applied for
$

11,750,000
1,297,751,000
1,976,000
1,670,000
2,960,000
1,870,000
35,338,000
2,139,000
4,560,000
15,451,000
8,665,000
9,716,000

Total
Accepted
$

11,642,000
1,037,664,000
1,976,000
1,670,000
2,960,000
1,870,000
12,798,000
2,139,000
3,245,000
11,451,000
8,630,000
8,716,000

(73 percent o f the amount bid for at the low price


was accepted)


T

otal

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

$1,393,846,000

$1,104,761,000

18D
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 B id” . If it is desired to bid on a non­
competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive
B id” . DO N O T fill in both paragraphs on one form . A separate tender must be used for
each bid.
N o ...............................

TENDER FOR 91-DAY TREASURY BILLS
Dated October 23, 1947.
To F e d e r a l R e s e r v e B a n k

of

N ew Y

Maturing January 22, 1948.
Dated at

ork,

Fiscal Agent of the United States.

1947

C O M P E T IT IV E B ID

N O N -C O M P E T IT IV E

B ID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
October 17, 1947, as issued by the Secretary
of
the
Treasury,
the undersigned
offers

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on October 17,
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)

(R ate 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) 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 b ills................

$_________________________

Treasury b ills.................. $___________________________
By cash or other immediately available

By cash or other immediately available
funds...................................

$__________________________

funds...................................

$ _ ______________________

The Treasury bills for which tender is hereby made are to be dated October 23, 1947, and are to mature
on January 22, 1948.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills’’ .
Name of Bidder.
(Please print)

By.
(O fficia l signature required)

(T itle)

Street Address

(C ity, Town or V illage, 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 o f Customer)

(C ity, Town or V iliage, P.O. No., and State)

Use a separate tender fo r 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 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 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.
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.
Paym ent b y credit through W ar Loan D eposit Account will not be permitted.


T E N T B —903-a


* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
(O V E R )

/

'

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