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F E D E R A L R E S E R V E BA N K O F N E W Y O R K Fiscal Agent of the United States [ S e m b S .S S } Public Notice of Offering of $ 1 ,1 0 0 ,0 0 0 ,0 0 0 , or thereabouts, o f 91-Day Treasury B ills Dated December 30, 1948 Maturing March 31, 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. FO R RELEA SE, M ORNING N E W SPA PE R S, TREASURY D EPA R TM EN T Friday, December 24, 1948. W ashington The Secretary of the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day T reas ury bills, for cash and in exchange for T reasury bills maturing December 30, 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 30, 1948, and will mature March 31, 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, $100,00U, $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, December 27, 1948. Tenders will not be received at the T reasury 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 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 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 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 December 30, 1948, in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 30, 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 ex change and the issue price of the new bills. The income derived from T reasury 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 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 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, 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. T reasury 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, December 27, 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 W ar Loan Deposit Account. Settlem ent 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. (E xtract from Treasury Department statement released for publication December 21, 1948, announcing results after tenders were opened for Treasury bills dated December 23,1948 maturing March 24, 1949) Total applied fo r.. . . . $1,426,825,000 Total accepted---- . . . $1,001,008,000 (includes $52,516,000 entered on a non-competitive basis and accepted in full at the average price shown below) Equivalent rate of discount Average price---- 99.708 approx. 1.154 percent per annum Range of accepted competitive b id s: Equivalent rate of discount H ig h ..................... 99.712 approx. 1.139 percent per annum Equivalent rate of discount L o w ....................... 99.707 approx. 1.159 percent per annum (26 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Total Accepted Boston ..................... . New York ............. Philadelphia .......... Cleveland ............... Richmond ............... Atlanta ................... Chicago ................... St. Louis ............... Minneapolis ............ Kansas City .......... Dallas ..................... San F ra n c is c o ........ $ 14,302,000 1,192,550,000 21,010,000 37,088,000 5,290,000 5,455,000 79,603,000 4,295,000 3,905,000 9,262,000 6,065,000 48,000,000 $ . $1,426,825,000 $1,001,008,000 (o v e r ) T otal .................. 14,154,000 805,381,000 8,610,000 37,088,000 5,290,000 5,455,000 53,503,000 4,295,000 3,905,000 9,262,000 6,065,000 48,000,000 IMPORTANT—If it is desired to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed “Competitive B id”. If it is desired to bid on a non competitive basis, fill in only the maturity value in paragraph headed “Non-competitive B id”. DO NO T fill in both paragraphs on one form. A separate tender must be used for each bid. N o............................. T E N D E R FOR 91-DAY TR EA SU RY BILLS Dated December 30, 1948. Maturing March 31, 1949. To F ed er a l R eserv e B a n k o f N e w Y o r k , Fiscal Agent of the United States. Dated a t ....................... 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 December 24, 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 December 24, 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 (R ate 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) 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 ................... $ ......................................... Treasury b ills ................... $ ......................................... By surrender of the maturing issue of 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 December 30, 1948, and are to mature on March 31, 1949. This tender will be inserted in special envelope entitled “Tender for Treasury bills”. Name of Bidder (Please print) B y ........ (Official signature required) (T itle) Street Address ............, .................... (City, Town or Village, P. O. No., and S tate) If th is ten d er is subm itted fo r the account of a custom er, in dicate the custom er’s nam e on line below : (Name of Customer) (City, Town or V illage, P.O. No., and State) Use a separate ten d er fo r each custom er’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 tru st 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 material, the tender may be disregarded. Paym ent b y credit through War Loan Deposit 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. TEN TB—965-a (o v e r ) FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States December 29, 1948 UNITED STATES SAVINGS BONDS ARMED FORCES LEAVE BONDS Revised Form of Transmittal Letter for Use by Paying Agents To Incorporated Banks and Trust Companies and Other Financial Institutions in the Second Federal Reserve District Qualified to Make Payments in Connection with the Redemption of United States Savings Bonds and Armed Forces Leave Bonds: Enclosed is a supply of a revised form of tran sm ittal letter (Form Sav. B. 178) in sets of original and duplicate copies for use by qualified paying agents in forw arding to us for redem ption U nited States Savings Bonds and Armed Forces Leave Bonds paid by such agents. The original form (colored) should be sent to us, and the duplicate (white) retained for your files. This form, which is to be used commencing Jan u a ry 3, 1949, will enable paying agents to transm it both U nited States Savings Bonds and Arm ed Forces Leave Bonds in a single letter. We will make a single paym ent covering all bonds enclosed with one letter. A dditional supplies of the revised form of tran sm ittal letter will be fu rn ished upon request. A lla n S pro ul, President. Savings Bond Department Sav. B.178 600M-1-49 FED ERA L R ESER V E BANK OF N EW YORK TRANSMITTAL LETTER PAID UNITED STATES SAVINGS BONDS OF SERIES A, B, C, D AND E, AND PAID ARMED FORCES LEAVE BONDS INSTRUCTIONS TO PAYING AGENTS Use a separate form for each month. D o not schedule on this form bonds paid in different months. Do not send more than 200 bonds with one transmittal letter. Paying agents must maintain in their files a record of the serial numbers of bonds included in each shipment. Armed Forces Leave Bonds should not be spindled, clipped, pinned, perforated, bent, folded or otherwise mutilated. Forward the bonds together with the original copy of this transmittal letter to the Federal Reserve Bank of New York, Savings Bond Department, Federal Reserve P.O. Station, New York 45, N. Y. F ederal R eserve B a n k o f N ew Y o rk , Savings Bond Department, Federal Reserve P.O. Station, New York 45, N. Y. Date. .pieces of United States Savings Bonds in the amount of We enclose for settlement < ________ pieces of Armed Forces Leave Bonds in the amount of ________ T otals paid by us during the month o f _______________________ (Spaces betoxv are for the use of the Federal Reserve Bank o f Neva York') Payment M onth__ Total Pieces _ Agent’s Number__ Amount Paid Batch Number____ Date of Letter Transaction Code U /C D a te __ IMPRESS PAYMENT STAMP IN THIS SPACE Agent’s A/C Credited With: The above impression is made for the purpose of identification only. It does not constitute an acknowledgment of payment for bonds. Check Issued PAYMENT INSTRUCTIONS Issue check to our order in the amount of Credit our account with you in the amount of (Do not fill in the following line unless you desire payment by credit to your account with a correspondent bank ) IMPRESS PAYMENT STAMP IN THIS SPACE .for our account in the amount of Credit. (Name of Correspondent Bank.) (Spaces below are for the use of the Federal Reserve Bank of N ew York) Charge Unclassified Symbol 17-655 - 3. (AFLB) Charge Unclassified Symbol 17-643 ( USSB ) T otal The above impression is made for the purpose of identification only. It does not constitute an acknowledgment of payment for bonds. Sav. B.178 600M-1-49 FED ERA L RESER V E BANK OF N EW YORK Savings Bond Department TRANSMITTAL LETTER PAID UNITED STATES SAVINGS BONDS OF SERIES A, B, C, D AND E, AND PAID ARMED FORCES LEAVE BONDS INSTRUCTIONS TO PAYING AGENTS Do not schedule on this form bonds paid in different months. Use a separate form for each month. Do not send more than 200 bonds with one transmittal letter. Paying agents must maintain in their files a record of the serial numbers of bonds included in each shipment. Armed Forces Leave Bonds should not be spindled, clipped, pinned, perforated, bent, folded or otherwise mutilated. Forward the bonds together with the original copy of this transmittal letter to the Federal Reserve Bank of New York, Savings Bond Department, Federal Reserve P.O. Station, New York 45, N. Y. F ederal R eserve B a n k o f N e w Y o rk , Savings B ond Department, Date________ Federal Reserve P.O. Station, New York 45, N. Y. .pieces of United States Savings Bonds in the amount of We enclose for settlement .pieces of Armed Forces Leave Bonds in the amount of T otals paid by us during the month o f _______________________ (Spaces below are for the use of the Federal Reserve Bank of New York) Payment Month Total Pieces___ Agent’s Number Amount Paid Batch Number_ Date of Letter__ Transaction Code U /C Date _____ IMPRESS PAYMENT STAMP IN THIS SPACE Agent’s A/C Credited With: Check Issued___________________ □ The above impression is made for the purpose of identification only. It does not constitute an acknowledgment of payment for bonds. PAYMENT INSTRUCTIONS Issue check to our order in the amount of Credit our account with you in the amount of $___________ (Do not fill in the following line unless you desire payment by credit to your account with a correspondent bank ) Credit. IMPRESS PAYMENT STAMP IN THIS SPACE .for our account in the amount of (Name of Correspondent Bank.) (Spaces below are for the use of the Federal Reserve Bank of New York) Charge Unclassified Symbol 17-655 ( USSB ) Charge Unclassified Symbol 17-643 ... (AFLB) T o ta l $ __ The above impression is made for the purpose of identification only. I t does not constitute an acknowledgment of payment for bonds.
@FedFRASER