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F E D E R AL RE SE RV E B AN K O F N E W Y O R K
r Circular No. 3385 1
October 8, 1948 J

Fiscal Agent of the United States

I

Public Notice of Offering of $ 9 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 91-Day Treasury Bills
Dated October 14, 1948

Maturing January 13, 1949

To all Incorporated B anks and Trust Companies in the
Second F ederal R eserve 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.
TREASU RY DEPARTM EN T
Washington

F O R R E L E A S E , M ORNING N E W S P A P E R S ,
Friday, October 8, 1948.

The Secretary of the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 91-day Treas­
ury bills, for cash and in exchange for Treasury bills maturing October 14, 1948, to be issued on a discount basis under com­
petitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated October 14, 1948, and will
mature January 13, 1949, 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, October 11, 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 recog­
nized 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 October 14, 1948, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing October 14, 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, October 11, 1948. It is requested that tenders be submitted
on special form printed on reverse side and returned in special envelope enclosed herewith. Payment fo r 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 lla n S pro ul,

President.

(Extract from Treasury Department statement released fo r publication October 5, 1948, announcing results
after tenders were opened fo r Treasury bills dated October 7, 1948 maturing January 6, 1949)
Total applied for............$1,676,128,000
Total accepted ..............$1,101,319,000 (includes $51,397,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Average price.......

99.718+

Equivalent rate of discount
approx. 1.114% per annum

Range of accepted competitive bids:
High ......................

Equivalent rate of discount
approx. 1.092% per annum
Low ........................ 99.717
Equivalent rate of discount
approx. 1.120% per annum
(41 percent of the amount bid for at the low
price was accepted)



99.724

Federal R eserve
District

Total
Accepted

Boston .............................
New York .................... .
Philadelphia
Cleveland ......
Richmond ......
Atlanta ...........
Chicago ...........
St. Louis .........
Minneapolis ...
Kansas City ...
Dallas .............
San Francisco

Total
Applied fo r
$ 44,207,000
1,374,244,000
36.355.000
30.027.000
4.880.000
3.143.000
89.976.000
4.445.000
7.910.000
15.149.000
12.932.000
52.860.000

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

$1,676,128,000

$1,101,319,000

T o ta l

40.031.000
883,921,000
26.715.000
24.077.000
4.880.000
3.143.000
43.533.000
4.209.000
6.435.000
13.910.000
11.570.000
38.895.000

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20C

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 -DAY TREASURY BILLS
Dated October 14, 1948.
To

Maturing January 13, 1949.
Dated at

F

ed eral

R

eserv e

B ank

of

N ew Y

ork,

.1948

Fiscal Agent of the United States.
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
October 8 , 1948, as issued by the Secretary
of the Treasury, the undersigned offers
* for a total amount of

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on October 8 ,
1948, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender
for a total amount of $.................................................

$....................................................... (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

(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................... $ ____________________

(N ot to exceed $200,000)

(R a te per 100)

Treasury bills................... $ ____________________ _
By cash or other immediately available
funds ................................ $

By cash or other immediately available
funds ................................ $ ____________________

The Treasury bills for which tender is hereby made are to be dated October 14, 1948, and are to mature
on January 13, 1949.
This tender will be inserted in special envelope entitled “Tender fo r Treasury bills”.
Name of Bidder.
By .......

(P lease p rin t)

(Official sig n atu re requ ired )

(T itle )

Street A ddress...............................................
(C ity, Tow n or V illage, P.O. No., and State)

If this tender is submitted for the account of a customer, indicate the customer’s name on line below:

(N am e of C ustom er)

(C ity, Tow n or V illag e, P.O. No., and S ta te)

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 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 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
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 by credit through War Loan Deposit Account will not be permitted.

TEN TB—954-a


* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.

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