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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
f C ir c u la r N o . 3 42 8]

Fiscal Agent of the United States

L M a r c h 25,1949

J

Public Notice of Offering of $900,000,000, or thereabouts, of 91-Day Treasury Bills
Dated March 31, 1949

Maturing June 30, 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 ,
TREASURY DEPARTM ENT
Friday, March 25, 1949.
Washington
The Secretary of the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 91-day Treas­
ury bills, io r cash and in exchange for Treasury bills maturing March 31, 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 31, 1949, and will
mature June 30, 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 28, 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 recog­
nized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount
o f 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 March 31, 1949, in cash or other immediately avail­
able funds or in a like face amount of Treasury bills maturing March 31, 1949. 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 A ct 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, March 28, 1949. 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 frotn Treasury Department statement released for publication March 22, 1949, announcing
results after tenders were opened for Treasury bills dated March 24, 1949 maturing June 23, 1949)
Total applied for........... $1,529,755,000
Total accepted ............. $ 906,999,000 (includes $54,546,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Average price.......

99.706+

Equivalent rate of discount
approx. 1.162% per annum

Range o f accepted competitive bids:
High .....................

Equivalent rate of discount
approx. 1.151% per annum
L ow ....................... 99.706
Equivalent rate of discount
approx. 1.163% per annum
(87 percent o f the amount bid for at the low
price was accepted)




99.709

Federal Reserve
District
Boston ...........................
New Y o r k .....................
Philadelphia
Cleveland ......
Richmond ...... .
Atlanta ...... ......
Chicago ..........
St. Louis ........ .
Minneapolis ...
Kansas City ...
Dallas ...............
San Francisco
T otal

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

Total
Applied for
$

Total
Accept t’d

13,510,000
1,283,690,000
22.391.000
32.205.000
4.674.000
5.354.000
81.675.000
3.778.000
7.855.000
10.245.000
6.490.000
57.888.000

$ 12,717,000
730,290,000
11.278.000
30.809.000
4.635.000
5.354.000
44.755.000
3.778.000
7.459.000
8.802.000
6,481,000
40.641.000

$1,529,755,000

$906,999,000

(o v e r )

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” . D O N O T fill in both paragraphs on one form . A separate tender must be used for
each bid.
No.......... - .......... ...........

TENDER FOR 91 -DAY TREASURY BILLS
Dated March 31, 1949.

Maturing June 30, 1949.
Dated at

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

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
March 25, 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 25,
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 $.................................................

(B a te 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

By surrender of the maturing issue of

Treasury bills---------------- $_______________________
By cash or other immediately available
funds-----------------------------$________________________

Treasury bills__________ $_______________________
By cash or other immediately available
funds----------------------- — $_______________________

The Treasury bills for which tender is hereby made are to be dated March 31, 1949, and are to mature
on June 30, 1949.
This tender will be inserted in special envelope entitled “ Tender fer Treasury bills” .
Name of Bidder..
(Please print)

B y .......

(Official signature required)

(Title)

Street A d d ress............................................

(City, Town or Villuge, 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. 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 b id ..
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 o f the firm, w ho should sign in the form “ .................................................................................................... . a copartnership, by
.......................................... .............................................................. . a member o f 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 o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f pay­
ment by an incorporated bank or trust company.
4. I f the language o f 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 b y credit through W ar Loam Deposit Account will not be permitted.

http://fraser.stlouisfed.org/
TENTH—978-a
Federal Reserve Bank of St. Louis

* 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