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F E D E R A L R E SE R V E BANK O F N E W YORK
[ Novembe?1 1X ]
V

Fiscal Agent of the United States

P u b lic N o tic e o f O ffe rin g o f $ 8 0 0 ,0 0 0 ,0 0 0 , o r th e r e a b o u ts , o f 9 1 -D a y T r e a s u r y B ills
D a te d N o v e m b e r 18, 1948

M a tu rin g F e b ru a ry 17, 1949

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:
F o llo w in g is th e te x t of a n o tice to d a y m ad e p ublic by th e T re a s u ry D e p a rtm e n t w ith resp e ct to a new offerin g of T re a s ­
u ry bills pay ab le a t m a tu rity w ith o u t in te re s t to be sold on a d is c o u n t basis u n d e r co m p etitiv e a n d n o n -co m p etitiv e b id d in g .
FO R RELEA SE, M ORNING N E W SPA PE R S,
TREA SU RY D EPA R T M E N T
Friday, November 12, 1948.
W ashington
The Secretary of the Treasury, by this public notice, invites tenders for $800,000,000, or thereabouts, of 91-day T reas­
ury bills, for cash and in exchange for Treasury bills maturing November 18, 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 November 18, 1948, and
will mature February 17, 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 (m aturity 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, November 15, 1948. Tenders will not be received at the Treasury Department, W ashington. 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 tru st 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 T reasury 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 T reasury 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 T reasury 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 November 18, 1948, in cash or other immediately
available funds or in a like face amount of T reasury bills m aturing November 18, 1948. Cash and exchange tenders will re­
ceive equal treatment. Cash adjustments will be made for differences between the par value of m aturing 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 T reasury 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 T reasury 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
m aturity during the taxable year for which the return is made, as ordinary gain or loss.
Treasury D epartm ent 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.
I n ac co rd an ce w ith th e above an n o u n c em en t te n d e rs w ill be received a t th e S ecu rities D e p a rtm e n t of th is b an k
(9 th floor, 33 L ib e rty S tre e t) N ew Y o rk 45, N . Y ., o r a t th e B uffalo B ran c h of th is b an k (2 7 0 M a in S tre e t) B uffalo 5,
N . Y ., u p to tw o o ’clo c k p.m ., E a s te r n S ta n d a rd tim e, o n M o n d a y , N o v e m b e r 15, 1948. I t is re q u e ste d th a t te n d e rs
be su b m itte d on special fo rm p rin te d on re v e rse side an d r e tu rn e d in special envelope enclosed h ere w ith . Payment for the

Treasury bills cannot be made by credit through the W ar Loan Deposit Account. Settlem ent m ust 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 for publication Novem ber 9, 1948, announcing results
after tenders were opened for 90-day Treasury bills dated Novem ber 12, 1948 maturing February 10, 1949)
Total applied fo r........$1,361,183,000
Total accepted........... $ 901,333,000 (includes $67,751,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Average p rice___ 99.715
Equivalent rate of discount
approx. 1.138 percent per
annum
t
-,
,
j
,- j
Range of accepted competitive bids:
H ig h ..................... 99.720
Equivalent rate of discount
1.120 percent per annum
L o w ....................... 99.714
Equivalent rate of discount
1.144 percent per annum
(50 percent of the amount bid for at the low
price was accepted)




Federal Reserve
District
---------------------B o s to n ...........................
New York ...................
Philadelphia ...............
Cleveland .....................
Richmond ...................
A tlanta .........................
Chicago .......................
St. Louis .....................
Minneapolis ...............
Kansas City ...............
Dallas ...........................
San Francisco ............
T otal ...................

Total
Applied for
$

17,515,000
1,070,392,000
20,916,000
29,817,000
7,648,000
13,557,000
109,878,000
14,559,000
4,595,000
15,684,000
11,059,000
45,563,000
-----------------$1,361,183,000

Total
Accepted
---------------- $ 13,015,000
666,892,000
8,416,000
24,667,000
7,348,000
13,557,000
93,378,000
14,559,000
3,995,000
15,184,000
10,759,000
29,563,000
--------------$901,333,000
(o v e r)

20H
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.
N o .............................

TENDER FOR 91-DAY TREASURY BILLS
Dated November 18, 1948.

Maturing February 17, 1949.
Dated a t ........................

To F e d er al R eserv e B a n k of N e w Y o rk ,
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
November 12, 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 November 12,
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)

(R ate 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, on the date
stated in the public notice, as follows:

By surrender of the maturing issue of
Treasury b ills............. $--------------------------------

By surrender of the maturing issue of
Treasury b ills.............

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 November 18, 1948, and are to
mature on February 17, 1949.
This tender will be inserted in special envelope entitled “Tender for Treasury bills”.
Name of Bidder
(Please print)

B y.......

(Official signature required)

(Title)

Street Address ..................................
(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.

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 (m aturity 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 T reasury 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 m aterial, the tender may be disregarded.

 T B —959-a
TEN


Paym ent b y credit through W ar Loan D eposit Account w ill not be perm itted.
* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
(o v e r)

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