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FED ER AL R ESER VE BANK OF NEW YO R K Fiscal Agent of the United States [ C iir iXpr1 i6i'm l2 ] 6 Public Notice of Offering of $1,000,000,000, or thereabouts, o f 91-Day Treasury Bills D ated April 22 , 1948 M atu rin g July 2 2 , 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. FOR RELEASE, MORNING NEW SPAPERS, Friday, April 16, 1948. TREASU RY DEPARTM EN T 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 April 22, 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 April 22, 1948, and will mature July 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, April 19, 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 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-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 April 22, 1948, in cash or other immediately available funds or in a like face amount of Treasury bills maturing April 22, 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 o f 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, April 19, 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 la n Sproul, President. (Extract from Treasury Department statement released for publication April 13,1948, announcing results after tenders were opened for Treasury bills dated April 15, 1948 maturing July 15, 1948) Total applied fo r ........$1,474,034,000 Total accepted........... $1,006,487,000 (included $37,715,000 entered on a non-competitive basis and accepted in full at the average price shown below) Federal Reserve ____ District B o s to n ............................ New York ..................... Philadelphia ................. Total Applied for $ 7,529,000 1,256,253,000 28,850,000 Average p rice ... R te ta o "d ! " " i ' i i'.” ! Atlanta .......................... Chicago ........................ St. Louis ....................... Minneapolis ................. 5,075,000 51,529,000 2,110,000 4,255,000 ‘ ^ ¡0 0 0 4,475,000 34,584,000 2,020,000 3,970,000 ^ ’S n ’nnn S » 0 -------------------$1,474,034,000 ^ ’ s7n’nnn S -------------------$1,006,487,000 Equivalentrate of approx. 0.998 /o per Range of accepted competitive bids: H igh..................... 99.754 Equivalent rate of approx. 0.973% per L o w ..................... 99.748 99.747 discount annum discount annum Equivalent rate of discount approx. 1.001% per annum (70 percent of the amount bid for at the low price was accepted) ^ a!1 .sas ^ 'ty ................. ^ F r a n d s c o ' ! . '! ! ! . '! ! Total ...................... Total Accepted $ 5,319,000 837,413,000 16,900,000 ( over) 19D 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..................... TENDER FOR 91-DAY TREASURY BILLS Maturing July 22, 1948. Dated April 22, 1948. Dated a t ...................... To F e d e r a l R e se r v e B a n k o f 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 April 16, 1948, 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 April 16, 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 (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, 011 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 April 22, 1948, and are to mature on July 22, 1948. This tender will be inserted in special envelope entitled “ Tender for Treasury bills". Name of Bidder (Please print) By. ... (Official signature required) (Title) Street A d d re s s.................................... (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 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 respon sible 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. Payment by credit through War Loan Deposit Account will not be permitted. * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. TENTB 929-a (o v m ) 3 3 REGULATIONS GOVERNING SAVINGS BONDS 1948 Third Amendment to Department Circular No. 530, Sixth Revision, dated February 13, 1945 Fiscal Service Bureau of the Public Debt T reasu ry O f f ic e D epartm ent of t h e S ecretary, Washington, March 18, 1948 To Owners of United States Savings Bonds and Others Concerned: Pursuant to Section 22 (a) of the Second Liberty Bond Act, as amended (55 Stat. 7, 31 U.S.C. and Sup. 757c), Subpart C of Department Circular No. 530, Sixth Revision, dated February 13, 1945 (31 CFR 1945 Supp., 315) as amended, is hereby further amended1 and revised to read as follows: Subpart C — LIMITATION ON HOLDINGS Sec. 315.8. Amount which may be held. — As provided by Section 22 of the Second Liberty Bond Act, as added February 4, 1935 (U.S.C. 1940 Ed., title 31, section 757c), and by regulations prescribed by the Secretary of the Treasury pursuant to the authority of that section, as amended by the Public Debt Act of 1941, 55 Stat. 7, the amounts of savings bonds of the several series issued during any one calendar year that may be held by any one person at any one time are limited as follows: (a) Series A, B, C, and D. — $10,000 (maturity value) of each series for each calendar year. (b) Series E. — $5,000 (maturity value) for each calendar year up to and including the calendar year 1947, and $10,000 (maturity value) for each calendar year thereafter. (c) Series F and G.— $50,000 (issue price) for the calendar year 1941, and $100,000 (issue price) for each calendar year thereafter, of either series or of the combined aggregate of both, except that, in the case of commercial banks authorized to acquire such bonds i^ accordance with Section 315.5, the limitation shall be such as may have been or may here after be provided specifically in official circulars governing the offering of other Treasury securities, but in no event in excess of $100,000 (issue price) for any calendar year. Sec. 315.9. Calculation of Amount. — In computing the amount of savings bonds of any one series issued during any one calendar year held by any one person at any one time for the purpose of determining whether the amount is in excess of the authorized limit as set forth in the next preceding section, the following rules shall govern: (a) the term ‘ ‘ person’ ’ shall mean any legal entity, including but not limited to an individual, a partnership, a corporation (public or private), an unincorporated association or a trust estate, and the holdings of each person, individually and in a fiduciary capacity, shall be computed separately. 1 This supersedes the Second Amendment which is hereby withdrawn from circulation. The Second Amendment was issued merely to provide fo r the purchase o f savings bonds o f Series E outside o f the limitation under the conditions which are set forth in Sec. 315.9 (d ) (4 ) o f this amendment. (Over) (b) In the case of bonds of Series A, B, C, D, and E, the computation shall be based upon maturity values. In the case of bonds of Series F, and G, the computation shall be based upon issue prices. (c) Except as provided in subsection (d), there must be taken into account: (1) all bonds originally issued to and registered in the name of'that person alone; (2) all bonds originally issued to and registered in the name of that person as coowner or reissued, at the request of the original owner, to add the name of that person as coowner or to designate him as coowner instead of as beneficiary under the provisions of this circular, except that the amount of bonds of Series E held in coownership form may be applied to the holdings of either of the coowners, but will not be applied to both, or the amount may be apportioned between them; and (3) all bonds acquired by him before March 1, 1941, upon the death of another or the happening of any other event. (d) There need not be taken into account: (1) bonds of which that person is merely the designated beneficiary; (2) those in which his interest is only that of a beneficiary under a trust; or (3) those to which he is entitled as surviving designated beneficiary upon the death of the registered owner, as an heir or legatee of the deceased registered owner, or by virtue of the termination of a trust or the happening of any other event, unless he became entitled to any such bonds in his own right before March 1, 1941; or (4) with respect to bonds of Series E, those purchased with the proceeds of matured bonds of Series A and Series C-1938, where the Series A or Series C bonds were presented by an individual (natural person in his own right) owner or coowner for that purpose and the Series E bonds are registered in his name in any form of registration authorized for that series. (e) Nothing herein contained shall be construed to invalidate any holdings within or, except as provided in subsection (c) above, to validate any holdings in excess of, the author ized limits, as computed under the regulations in force at the time such holdings were acquired. Sec. 315.10 Disposition of excess. — If any person at any time acquires savings bonds issued during any one calendar year in excess of the prescribed amount, the excess must be immediately surrendered for refund of the purchase price, less (in the case of Series G bonds) r any interest which may have been paid thereon, or for such other adjustment as may be possible. JOHN W. SNYDER Secretary of the Treasury