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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

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