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FE D E R A L R E S E R V E BAN K O F N E W Y O R K
Fiscal Agent of the United States

[

]

Public Notice of Offering of $900,000,000, or thereabouts, of 91-Day Treasury Bills
Dated March 24, 1949

Maturing June 23, 1949

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:
F ollow in g is the tex t o f a notice today m ade pu blic by the T reasu ry D epartm ent w ith respect to a new offering o f T rea s­
ury bills payable at m aturity w ithout interest to be sold on a discou n t basis under com petitive and non-com petitive bidding.
FO R RELEASE, M ORNING N EW SPAPERS,
Friday, March 18, 1949.

TRE ASU RY D EPARTM EN T
Washington

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 March 24, 1949, 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 March 24, 1949, and will
mature June 23, 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, March 21, 1949. 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 incorpo­
rated 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 o f 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 March 24, 1949, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing March 24, 1949. Cash and exchange tenders will receive equal treat­
ment. 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 o f 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 o f the Treasury bills and
govern the conditions of their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch.
In a ccorda n ce w ith the a b ove announcem ent tenders w ill be received at the Securities D epartm ent o f this bank
(9 th floor, 33 L ib erty S treet) N e w Y o r k 45, N . Y ., o r at the B u ffalo Branch o f this bank (2 7 0 M ain S treet) B u ffalo 5,
N . Y ., u p to tw o o ’c lo c k p.m ., E a stern S tan dard tim e, on M o n d a y , M a rch 21, 1949. It is requ ested that tenders be
subm itted on special form printed on reverse side and returned in special en velope enclosed herew ith. Payment for the

Treasury bills cannot be made by credit through the War Loan Deposit Account. Settlement 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 for publication March 15, 1949, announcing
results after tenders were opened for Treasury bills dated March 17, 1949 maturing June 16, 1949)
Total applied fo r ........ $1,661,354,000
Total accepted ........... $ 902,625,000 (includes $63,903,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Average price----- 99.706+ Equivalent rate of discount

annutn

U62 ^

per

t
™
Range of accepted competitive b id s:
H lSh ..................... 99709
Equivalent rate of discount
approx. 1.151 percent per
t
007^
# nn? m, .
,
t a'
*
Low ..................... 99706
Equivalent rate of discount
approx. 1.163 percent per
annum
(71 percent of the amount bid for at the low

http://fraser.stlouisfed.org/ price was accepted)

Federal Reserve Bank of St. Louis

Federal Reserve
District
Boston
New York .........
Philadelphia ........

::::::::::::

A tla n ta ..........................
C h ic a g o .........................
g
.......................
Minneapolis .................
Kansas C it y .................
DaIlas
/ ...................
s
Francisco ...........

Total
Applied for
$ 21,169,000
1,374,085,000
26,407,000

S

S

9,350,000
91,556,000
7,086,000
5,211,000
23,744,000
9,105,000
74,691,000
______ _ J _ _
T o t a l ..................... $1,661,354,000

Total
Accepted
$ 16,638,000
708,995,000
9,624,000

'$ £ 8 8

9,350,000
51,186,000
6,327,000
4,443,000
20,491,000
8,743,000
49,686,000
’
$902,625,000
( oveh)

IM PORTANT— 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.
N o...........................

TENDER FOR 91-DAY TREASURY BILLS
Maturing June 23, 1949.

Dated March 24, 1949.

Dated a t ........................................................

To F e d e r a l R e s e r v e B a n k o f N e w Y o r k ,
Fiscal Agent of the United States.

................................................................ 1949

COM PETITIVE 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
March 18, 1949, 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 March 18,
1949, 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)

(Rate 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

By surrender of the maturing issue of

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

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

By cash or other immediately available
fu n d s ................................... $ ......................................

By cash or other immediately available
fu n d s ...................................$ ..........................................

The Treasury bills for which tender is hereby made are to be dated March 24, 1949, and are to
mature on June 23, 1949.
This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name of Bidder............................................................................................................
(Please print)

By...................................................................... ,
(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)

Use

a separate

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

tender for each customer’s bid.

IM PO R TAN T INSTRUCTIONS:
1. N o 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 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 Treasury bills applied for, unless the tenders are accompanied by an express guaranty
o f 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 o f the
Treasury, is material, the tender may be disregarded.

Payment b y credit through War Loan Deposit Account will not be permitted.

TENTB—977-a


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

(ones)

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