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FEDERAL RESERVE BANK OF N EW YORK
Fiscal Agent of the United States

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Public Notice of Offering of $900,000,000, or thereabouts, of 91-Day Treasury Bills
Dated May 6, 1948

Maturing August 5, 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 T reasury
bills payable at maturity without interest to be sold on a discount basis under competitive and non-competitive bidding.
FO 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, April 30, 1948.

TREASURY DEPARTM ENT
Washington

The Secretary of the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing May 6, 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 May 6, 1948, and will
mature August 5, 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
Daylight Saving time, Monday, May 3, 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 May 6, 1948, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing May 6, 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 A ct 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 Daylight Saving time, on Monday, May 3, 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. Settlemetit 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 fo r publication April 27, 1948, announcing results
after tenders were opened fo r Treasury bills dated April 29, 1948 maturing July 29, 1948)
Total applied for . . .$1,655,442,000
Total accepted ........$1,005,649,000 (includes $40,422,000
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. 0.997 percent per
annum
Range of accepted competitive bids:
High
.................. 99.752 Equivalent rate of discount
approx. 0.981 percent per
annum
Low ...................... 99.747 Equivalent rate of discount
approx. 1.001 percent per
annum
(48 percent of the amount bid for at the low
price was accepted)




Federal Reserve
Total
District______ Applied for
Boston ....................
New York ..............
Philadelphia ..........
Cleveland ................
Richmond ..............
Atlanta ....................
Chicago ..................
St. Louis ................
Minneapolis ..........
Kansas City ..........
Dallas ......................
San Francisco .
T ota l..........

$

18,055,000
1,395,560,000
25,030,000
37,908,000
3,687,000
2,444,000
65,242,000
2,215,000
2,105,000
17,357,000
9,047,000
76,792,000

$1,655,442,000

Total
Accepted
$

14,755,000
832,980,000
5,798,000
25,056,000
3,687,000
2,444,000
42,962,000
2,059,000
1,637,000
17,188,000
8,891,000
48,192,000

$1,005,649,000
(OVER)

19F

Tenders will be received up to two o’clock p. m., Eastern Daylight Saving time, Monday, May 3, 1948.
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 NOT 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 May 6, 1948.
To

Maturing August 5, 1948.
Dated at

F ed eral 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 o f Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
April 30, 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 the public notice on April 30,
1948, as issued by the Secretary o f the Treasury,
the undersigned offers a non-competitive tender

........................................... * for a total amount of

for a total amount o f $ ...........................................

(Kate 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) o f the Treasury bills therein
described, at the average price (in three deci­
mals) o f 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 o f the maturing issue of

Treasury b ills ..................... $-----------------------------

Treasury b il ls .................... $___________________

By cash or other immediately available

By cash or other immediately available

fu n d s ................................... $-------------------------------

funds . .. ............................. $___________________

The Treasury bills for which tender is hereby made are to be dated May 6, 1948, and are to mature
on August 5, 1948.
This tender unll be inserted in special envelope entitled “ Tender for Treasury bills’*.
Name of Bidder
(Please print)

By

...

(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 Cuatomer)

(City, Town or Village, P. O. No., and State)

Use a separate tender for each customer’s bid.

IMPORTANT INSTRUCTIONS:
1. No tender for less than $1,000 will be considered, and each tender must be for an even
$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
poration authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be
a representation by him that he has been so authorized. If the tender is made by a partnership, it should be

multiple of
of the cor­
construed as
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
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.
TENTB—931-a



* Price must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.
(OVER)

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