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FEDERAL RESERVE BANK OF NEW YORK
[ ^ m b e S , 1948 ]

Fiscal Agent of the United States

Public Notice of Offering of $900,000,000, or thereabouts, of 91-Day Treasury Bills
Dated December 2, 1948

Maturing March 3, 1949

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.
F O R R E L E A S E , M O R N IN G N E W S P A P E R S ,
TREA SU RY D EPA R T M E N T
Friday, November 26, 1948.
W ashington
The Secretary of the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 91-day T reas­
ury bills, for cash and in exchange for T reasury bills m aturing December 2, 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 December 2, 1948, and will
m ature M arch 3, 1949, when the face am ount will be payable w ithout 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., E astern
Standard time, Monday, November 29, 1948. Tenders will not be received at the T reasury Department, W ashington. Each
tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on
the basis of 100, w ith not more than three decimals, e. g., 99.925. Fractions may not be used. I t 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 w ithout deposit from incorporated banks and tru st companies and from responsible and recog­
nized dealers in investment securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount
of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent 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 announcem ent will be made by the Secretary of the T reasury of the am ount and price range of accepted bids. Those
subm itting 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 w ithout stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids. Settlem ent for accepted tenders in accordance
with the bids m ust be made or completed at the Federal Reserve Bank on December 2, 1948, in cash or other immediately
available funds or in a like face am ount of T reasury bills m aturing December 2, 1948. Cash and exchange tenders will re­
ceive equal treatm ent. Cash adjustm ents 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 T reasury bills, w hether 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
treatm ent, as such, under the Internal Revenue Code, or laws am endatory or supplementary thereto. The bills shall be
subject to estate, inheritance, gift or other excise taxes, w hether 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 U nited States,
or by any local taxing authority. F or purposes of taxation the am ount of discount at which T reasury bills are originally
sold by the United States shall be considered to be interest. U nder Sections 42 and 117 (a)(1) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the am ount 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 T reasury 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,
w hether on original issue or on subsequent purchase, and the am ount 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.
T reasury D epartm ent Circular No. 418, as amended, and this notice, prescribe the term s of the T reasury 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, November 29, 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 imme­
diately 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 November 23, 1948, announcing results
after tenders were opened for 90-day Treasury bills dated November 26, 1948 maturing February 24, 1949)
T otal applied for........... $1,349,202,000
T otal accepted ............. $ 900,244,000 (includes $54,488,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
A verage price....... 99.713
Equivalent rate of discount
approx. 1.147% per annum
Range of accepted competitive bids:
H igh ..................... 99.720
Equivalent rate of discount
1.120% per annum
Low ....................... 99.712
Equivalent rate of discount
1.152% per annum

Federal Reserve
District
....
New York ................. ....
Philadelphia .............
Cleveland .................
Richmond .................
Chicago .....................
St. Louis ...................
Minneapolis .............
Kansas City .............
San Francisco .........

(56 percent of the am ount bid for at the low
price was accepted)



T otal ..................... ....

Total
Applied for
$ 14,943,000
1,103,008,000
13,975,000
19,990,000
4,545,000
2,833.000
84,735,000
21,535,000
3,655,000
6,020,000
7,940,000
66,023,000

Total
Accepted
$ 14,899,000
686,966,000
11.735.000
19.306.000
4.545.000
2.613.000
62.117.000
21.413.000
3.479.000
5.928.000
7.424.000
59.819.000

$1,349,202,000

$900,244,000

(o v e r )

20J
IMPORTANT— If it is desired to bid on a competitive basis, £111 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 m aturity value in paragraph headed "Non-competitive
Bid”. DO N O T fill in both paragraphs on one form . A separate tender m ust be used for
each bid.
No..................................

TENDER FOR 9 1-DAY TREASURY BILLS
Dated December 2, 1948.

Maturing March 3, 1949.
Dated at ..........................

To F ed er al R ese 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
November 26, 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 November 26,
1948, as issued by the Secretary of the Treasury,
the undersigned offers a non-competitive tender
for a total amount of $..... .... ...................... ...............
(N ot to exceed $200,000)

(R ate p er 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:
By surrender of the maturing issue of
Treasury bills................... $____________________
By cash or other immediately available
funds ................................ $ ________ ___________

(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................... $ _ _____ ______________
By cash or other immediately available
funds ................................ $ ____________________

The Treasury bills for which tender is hereby made are to be dated December 2, 1948, and are to mature
on March 3, 1949.
This tender will be inserted in special envelope entitled “Tender for Treasury bills”.
Name of Bidder.,
(P le ase p r in t)

By ......

(Official s ig n a tu re req u ire d )

(T itle)

Street A d d re ss ............. ...............................
(C ity, T ow n or V illage, P.O. No., a n d S tate)

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, T ow n or V illage, P.O. No., a n d S tate)

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 m ust be for an even multiple of
$1,000 (m aturity value). A separate tender m ust 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 m ember of the firm”.
3. Tenders will be received without deposit from incorporated banks and tru st companies and from respon­
sible and recognized dealers in investment securities. T enders from others m ust be accompanied by paym ent of 2 per­
cent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of
paym ent 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
T reasury, is material, the tender may be disregarded.

Paym ent b y credit through W ar Loan Deposit A ccount 1
ivill not be perm itted.
 —961-a
TENTB


* 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