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FED ER A L RESERVE BANK O F NEW YORK f Circular No. a a o e 1 Fiscal Agent of the United States ° I January 2. 1948 J Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated January 8, 1948 Maturing April 8, 1948 To 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 non-competitive 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 , TREASU RY D EPAR TM EN T Friday, January 2, 1948. W ashington T h e Secretary o f 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 January 8, 1948, to be issued on a discount basis under com peti tive and non-com petitive bidding as hereinafter provided. T he bills o f this series will be dated January 8, 1948, and w ill mature A pril 8, 1948, when the face amount will be payable without interest. T h ey will be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity value). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Standard time, M onday, January 5, 1948. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, with not m ore than three decimals, e. g., 99.925. Fractions m ay not be used. It is urged that tenders be m ade on the printed form s and forw arded in the special envelopes w hich w ill be supplied by Federal Reserve Banks o r Branches on application therefor. T en ders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accom panied by paym ent o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an incorporated bank or trust com pany. Im m ediately after the closin g hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g w hich public announcem ent will be made b y the Secretary o f the Treasury o f the am ount and price range o f accepted bids. T h ose subm itting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reservations, n on-com petitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) o f accepted com petitive bids. Settlem ent for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on January 8, 1948, in cash or other im m ediately available funds or in a ¡ike face amount of Treasury bills maturing January 8, 1948. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences between the par value o f m aturing bills accepted in exchange and the issue price o f the new bills. T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, shall not have any exem ption, as such, and loss from the sale or other disposition o f Treasury bills shall not have any special treatment, as such, under the Internal Revenue Code, or laws am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exem pt from all taxation n ow o r hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the U nited States, or b y any local taxing authority. F or purposes o f taxation the amount o f 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 C ode, as am ended by Section 115 o f the Revenue A ct o f 1941, the amount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. A ccord in gly, the ow ner o f Treasury bills (oth er than life insurance c o m panies) issued hereunder need include in his incom e tax return on ly the difference between the price paid for such bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasu ry D epartm ent Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasu ry bills and govern the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal R eserve 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, on Monday, January 5, 1948. 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. 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 December 30, 1947, announcing results after tenders were opened for 90-day Treasury bills dated January 2,1948 maturing April 1,1948) T o t a l a p p li e d fo r . $1,635,902,000 1,303,405,000 (includes $30,376,000 entered on a non-com petitive basis and accepted in full at the average price show n b elow ) A verage price . 99.762 Equivalent rate o f discount approx. 0.952% per annum ... R ange o f accepted com petitive bids: H igh ............... 99.770 Equivalent rate o f discount 0.920% per annum F edera} Reserve Total Total ---------District--------_ A ppliedfor A ccepted B oston $ 2,005,000$ 2 005 000 N ew Y ork 1,477,943,0001,168 463’000 Philadelphia 2,135,0002,135’,000 Cleveland 5,266,000 3,466,000 R ich m on d 1.-79,000 1,279,000 Atlanta 850,000 850,000 C h icago 85,905,000 66,466,000 St. L ou is 3,030,000 3,030,000 M inneapolis 6,970,000 6,570,000 L ow Dal"a?S ° ty Sa“ " Francisco T ota l accepted ......... ............... 99.761 Equivalent rate o f discount 0.956% per annun, (61 percent o f the am ount bid for at the low price w as accepted) 2( i'f ll'o o o 2 ^ ! » 2 0 ^ ® ---------------------------------------T ota l $1,635,902,000$1,303,405,000 (o v e r ) 180 IM PORTANT— 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 non competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive Bid” . DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. No.......................... TEN DER FOR 9 1 -D A Y T R E A S U R Y BILLS Dated January 8, 1948. Maturing April 8, 1948. Dated at T o F e d eral R eserve B a n k of N e w Y o r k , Fiscal Agent o f the United States. 1948 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on January 2, 1948, 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 ths public notice on January 2, 1948, 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 $ ......................................... (Rate per 100) (Not to exceed $200,000) $ ....................................................... (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 By cash or other immediately available funds ................................... $ ..................................... $ funds ................................... $ ..................................... The Treasury bills for which tender is hereby made are to be dated January 8, 1948, and are to mature on April 8, 1948. This tender will be inserted in special envelope entitled “ Tender for Treasury bills” . Name o f Bidder (Please print) B y ......... (Official signature required) Street Address (Title) .................................... (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. IM PO RTANT INSTRUCTIONS: 1. N o 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 o f the tender by an officer o f the corporation will be construed as a representation by him that he has beien 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, by ................................................................................................................. . 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 of 2 percent o f 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. I f 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. * P rice must be expressed on the basis o f 100, with not more than three decimal places. Fractions may not be used. TENTB— 914-a (OVER)
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