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FE D E R A L R E SE R V E BANK O F N E W Y O R K fCircular No. 33191 l March 1 9 . 1948 i Fiscal Agent of the United States Public Notice of Offering of $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills Dated March 25, 1948 Maturing June 24, 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 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, March 19, 1948. TREASURY DEPARTM ENT Washington The Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing March 25, 1948, to be issued on a discount basis under competi tive and non-competitive bidding as hereinafter provided. The bills of this series will be dated March 25, 1948, and will mature June 24, 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, March 22, 1948. 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 March 25, 1948, in cash or other immediately available funds or in a like face amount of Treasury bills maturing March 25, 1948. 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 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 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 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, March 22, 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 imme diately 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 March 16, 1948, announcing results after tenders were opened for Treasury bills dated March 18, 1948 maturing June 17, 1948) Total applied for........... $1,935,941,000 Total accepted ........... $1,107,232,000 (includes $43,282,000 entered on a non-competitive basis and accepted in full at the average price shown below) Average price....... 99.748 Equivalent rate of discount approx. 0.996% per annum Federal Reserve District ..... New Y o r k .................... Philadelphia ........... Cleveland ............... Richmond ............... Range of accepted competitive bids: High ..................... 99.756 L ow ....................... 99.747 Equivalent rate approx. 0.965% Equivalent rate approx. 1.001% of discount per annum of discount per annum (26 percent of the amount bid for at the low price was accepted) St. Louis ................. Minneapolis ........... Kansas City ........... Dallas ..................... San Francisco ....... T otal ............... ..... Total Applied for $ 10,585,000 1,596,028,000 18,990,000 15,715,000 4,925,000 2,780,000 198,875,000 3.800,000 2,305,000 21,040,000 4,360.000 56,538,000 $1,935,941,000 Total Accepted $ 6,515,000 889,026,000 6,262,000 8,315,000 4,851,000 2,632,000 141,581,000 3,349,000 1,935,000 16,278,000 4,360,000 22,128,000 $1,107,232,000 ( over) 18Z IMPORTANT— 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 N O T fill in both paragraphs on one form. A separate tender must be used for each bid. No___________________ TENDER FOR 91 -D A Y TREASURY BILLS Dated March 25, 1948. Maturing June 24, 1948. Dated at To F ederal 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 BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on March 19, 1948, as issued by the Secretary of the Treasury, the undersigned oifers Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on March 19, 1948, as issued by the Secretary of the Treasury, the undersigned oifers a non-competitive tender for a total amount of $___________________________ ___________________________ * 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: By surrender of the maturing issue of Treasury bills__________ $________________________ By cash or other immediately available funds __________________ $_______________________ (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 Treasury bills__________ $_______________________ By cash or other immediately available funds __________________ $_______________________ The Treasury bills for which tender is hereby made are to be dated March 25, 1948, and are to mature on June 24, 1948. This tender will be inserted in special envelope entitled “ Tender for Treasury bills” . Nam e o f Bidder............................................ By (Please print) (Official signature required) (Title) Street A d d r e s s ............................................... (City, Town or Village, P.O. No., and State) I f this tender is submitted fo r the account o f a custom er, indicate the custom er’s name on line b elow : (Name o f Customer)(City, Town or Village, P.O. No., and State) U se a separate tender for each custom er’ s bid. IMPORTANT INSTRUCTIONS: N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of 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 1. $1,000 (maturity value). 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 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. Payment b y credit through War Loan Deposit Account tvill not be permitted. TENTB—925-a * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (orsa)
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