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FE D ER A L R ESERV E BANK OF NEW YORK
1
£ Circular No. 3297 ~

Fiscal Agent of the United States

January 9, 1948 J

Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills
Dated January 15, 1948

Maturing April 15, 1948

To all Incorporated Banks and Trust Companies in the
Second Federal R eserve D istrict 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 S P A P E R S ,
Friday, January 9, 1948.

TREASU RY DEPARTM EN T
W ashington

The Secretary o f the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, o f 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing January 15, 1948, to be issued on a discount basis under com peti­
tive and non-com petitive bidding as hereinafter provided. The bills of this series w ill be dated January 15, 1948, and will
mature A pril 15, 1948, when the face amount w ill be payable without interest. They w ill be issued in bearer form only,
and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o ’clock p.m., Eastern
Standard time, M onday, January 12, 1948. Tenders w ill 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 competitive tenders the price offered must be expressed on
the basis o f 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 form s and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or
Branches on application therefor.
Tenders w ill 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 o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an
incorporated bank or trust company.
Imm ediately after the closin g hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which
public announcement w ill be made by the Secretary o f the Treasury o f the amount and price range o f accepted bids. Those
submitting tenders w ill be advised of the acceptance or rejection thereof. The Secretary o f 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-com petitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted
in full at the average price (in three decim als) o f accepted competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank on January 15, 1948, in cash or other immediately
available funds o r in a like face amount o f Treasury bills maturing January 15, 1948. Cash and exchange tenders w ill receive
equal treatm ent Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange
and the issue price o f 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 o f 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 o r hereafter imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States,
or by any local taxing authority. F or purposes o f taxation the amount o f discount at which Treasury bills are originally
sold by the U nited 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 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, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. A ccordingly, 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 o r 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 o f 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, on Monday, January 12, 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 January 6,1948, announcing
results after tenders were opened for Treasury bills dated January 8 ,1948 maturing April 8, 1948)
Total applied f o r ........ $1,914,793,000
T ota l a cce p te d ............ $1,305,222,000 (includes $40,111,000
entered on a non-com petitive basis
and accepted in full at the aver­
age price shown below )
A verage p r ic e ...

99.760

Equivalent rate of discount
approx. 0.950% per annum

Range o f accepted com petitive bids :
H ig h ....................... 99.770
Equivalent rate o f discount
approx. 0.910% per annum
L o w .......................

99.759

Equivalent rate o f discount
approx. 0.953% per annum

Federal R eserve
District
B o s t o n ..............................
N ew Y o r k ......................
Philadelphia ..................
Cleveland ........................
Richm ond ......................
Atlanta .............................
C hicago ...........................
St. Louis .........................
Minneapolis ..................
Kansas City ...................
D allas ..............................
San Francisco ..............

Total
Applied for
$

7,961,000
1,540,832,000
1,280,000
26,550,000
2,310,000
5,835,000
235,215,000
7,175,000
4,260,000
19,800,000
8,655,000
54,920,000

(79 percent o f the amount bid for at the low


price was accepted)


T o t a l ........................

$1,914,793,000

Total
Accepted
$

7,961,000
952.253.000
1.255.000
26.550.000
2.310.000
3.735.000
222.015.000
7.175.000
4.260.000
15.700.000
8.603.000
53,405,000

$1,305,222,000

(o v e r )

18P
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.
N o............................

TENDER FOR 91-DAY TREASURY BILLS
Maturing April 15, 1948.

Dated January 15, 1948.
To F

ederal

Dated a t ..........................................................

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

Fiscal Agent of the United States.

.....................................................................1948

COMPETITIVE BID

NON-COMPETITIVE

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
January 9, 1948, as issued by the Secretary
of the Treasury, the undersigned offers
............................................. * for a total amount of

BID

Pursuant to the provisions of Treasury De­
partment Circular No. 418, as amended, and to the
provisions of the public notice on January 9,
1948, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender
for a total amount of $ ..................................................
(Not to exceed $200,000)

(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 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 15, 1948, and are to
mature on April 15, 1948.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name o f B idder................................................................................................................ .
(Please print)

B y .................................................................................... .
(Official signature required)

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

(Title)

Street Address

(City, Town or Village, 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 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 w ill be considered, and each tender must be for an even multiple o f
$1,000 (maturity valu e). 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 corporation
authorized to make the tender, and the signing o f the tender by an officer o f the corporation w ill 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 o f the firm, who should sign in the form “ ........................................................................................................... . a copartnership, by
................................................................................................................ a member of the firm” .
3. Tenders w ill 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 accom panied by payment o f
2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied 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.

Payment by credit through War Loan Deposit Account will not be permitted .
TENTB 915a



* P rice must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
(q v e r )

FED ER A L R ESER V E BANK
O F NEW YORK
Fiscal Agent of the United States

January 2, 1948
PAYMENT AT MATURITY OF UNITED STATES SAVINGS BONDS OF SERIES C-1938
Exchange for United States Savings Bonds of Series E
To Incorporated Banlcs and Trust Companies and Other Financial Institutions
in the Second Federal Beserve District Qualified to Make Payments in.
Connection with the Redemption o f United States Savings B onds:

We have been requested by the Secretary of the Treasury to bring to your attention his
public statement concerning the payment at maturity of United States Savings Bonds of Series
C-1938, beginning on January 1, 1948. A copy of the statement is printed on the reverse side
of this letter.
Any individual (natural person), named as owner or coowner of maturing bonds in his
own right, has the option of receiving payment o f the maturity value in cash, or of exchanging
his bonds for United States Savings Bonds o f Series E, registered in his own name in anyauthorized form of registration. Any Series E bonds issued in exchange for Series C bonds
will not be subject to the limitation on holdings prescribed for Series E bonds on original
issue. The exchange may be made at any time after the maturity of the Series C bonds, but an
owner who desires to preserve the continuity of his investment should present his maturing
bonds in the month in which they mature and make the exchange at that time.
The Secretary wishes each institution, which is qualified both to pay and to issue savings
bonds, to receive maturing Series C bonds and to issue Series E bonds in exchange therefor,
when so requested by the individual owner or coowner. Series E bonds may be issued in any
authorized denominations, the issue price of which is fully covered by the proceeds of the
maturing bonds presented, or such lesser amount as the owner or coowner may direct. Any
remaining balance should, of course, be paid to such owner or coowner.
The original registration stubs of Series E bonds issued in exchange for Series C bonds
should be marked in the lower left corner, as follows:
EXCH
Rubber stamps to be used in imprinting this notation on the stubs are being sent to all qualified
paying agents in this District. Stubs bearing this notation may be included in the same trans­
mittal letter with stubs of bonds issued against regular cash payments. The maturing bonds
received in exchange should be stamped with your payment stamp and handled in the same
manner as any other paid bonds.
Registered owners of Series C bonds, other than individuals, are not eligible to purchase
Series E bonds, and therefore may not exchange their maturing bonds as provided above. Quali­
fied paying agents are authorized to pay only those savings bonds registered in the names of
individuals; any bonds bearing other forms of registration should be sent to us for redemption.
Additional copies of this letter will be furnished upon request.




A

llan

S

pboul,

President.
(o v e r )

TR EA SU R Y DEPARTM ENT
Washington

FOR IM M E D IA T E R E LE ASE,
Wednesday, December 31, 1947.
Secretary of the Treasury Snyder today reminded bond holders and bond buyers generally
of the fact that the Treasury is urging individuals to buy more savings bonds as a means of
combatting inflation.
The campaign to increase the sale of savings bonds is being stimulated in various ways. In
furtherance of this campaign, the Secretary has decided to permit individual holders of the Series
C-1938 savings bonds, which start maturing January 1, 1948, to reinvest the proceeds, as they
mature, in the Series E savings bonds which are currently on sale, without regard to the annual
limitation. This can be accomplished through the established payment and issue procedure, and
the Series E bonds so acquired will be exempt from the $5,000 (maturity value) annual limitation
on holdings of Series E bonds. Holders will be permitted to reinvest any part of the proceeds of
their maturing bonds up to such denominational amount as the proceeds will fully cover. Since
Series E bonds may be purchased only in the names of individuals, only those Series C-1938 sav­
ings bonds held by individuals will be eligible for this privilege.
Any agent qualified to pay savings bonds, which is also an issuing agent, can accomplish
this exchange through the simple procedure of redeeming matured bonds registered in the name of
an individual owner or coowner, and applying the proceeds to the purchase of new Series E bonds.
The bonds may also be exchanged, of course, at any Federal Reserve Bank or Branch, or at the
Treasury Department.
The new bonds will be dated as of the first day of the month in which the matured Series
C-1938 savings bonds are presented for payment. In order to preserve the continuity of the invest­
ment, individual holders of the maturing bonds should present them for exchange during the
month in which they mature.
The Secretary took occasion to express appreciation for the splendid response of the people
of the country to the Treasury’s savings bond program. He also expressed his confidence that
people will divert their spending dollars to savings bonds to the fullest extent, in recognition of
the check which this action has against inflationary pressures.




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