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FEDERAL RESERVE BANK OF N E W Fiscal Agent of the United YORK r C i r c u l a r N o . 3014 "1 I O c t o b e r 12, 1945 J States Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated October 18, 1945 Maturing January 17, 1946 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: F o l l o w i n g is t h e t e x t o f a n o t i c e t o d a y m a d e p u b l i c b y t h e T r e a s u r y D e p a r t m e n t w i t h r e s p e c t t o a n e w o f f e r i n g o f T r e a s u r y b i l l s p a y a b l e at m a t u r i t y w i t h o u t i n t e r e s t t o b e s o l d o n a d i s c o u n t b a s i s u n d e r c o m p e t i t i v e a n d fixed-price bidding. FOR RELEASE, MORNING NEWSPAPERS, Friday, October 12, 1945. TREASURY DEPARTMENT Washington T h e Secretary of the Treasury, by this public notice, invites tenders f o r $1,300,000,000, or thereabouts, of 91-day T r e a s u i j bills, to be issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this series will be dated October 18, 1945, and will mature January 17, 1946, 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, October 15, 1945. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and 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 f r o m 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 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 r e a s u r y of the amount and price range of accepted bids. T h o s e submitting tenders will be advised of the acceptance or rejection thereof. T h e 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, tenders for $200,000 or less f r o m any one bidder at 99.905 entered on a fixed-price basis will be accepted in full. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds o n October 18, 1945. T h e income derived from Treasury bills, whether interest or gain f r o m the sale o r 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 Federal tax A c t s now or hereafter enacted. T h e bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt f r o m all taxation n o w 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. F o r purposes of taxation the amount of discount at which T r e a s u r y 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 c t 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. A c c o r d i n g l y , the owner of Treasury bills (other than life insurance companies) issued hereunder need include m his income tax return only the difference between the price paid f o r 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 f o r which the return is made, as ordinary gain or loss. Treasury Department Circular N o . 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions o f their issue. Copies of the circular m a y be obtained f r o m any Federal Reserve Bank or Branch. I n a c c o r d a n c e with the a b o v e a n n o u n c e m e n t tenders will b e received at the Securities D e p a r t m e n t of this b a n k (9th floor, 3 3 L i b e r t y S t r e e t ) N e w Y o r k 7, N . Y . , o r at t h e B u f f a l o B r a n c h o f t h i s b a n k ( 2 7 0 M a i n S t r e e t ) B u f f a l o 5, N . Y . , u p t o t w o o ' c l o c k p . m . , E a s t e r n S t a n d a r d T i m e , o n M o n d a y , O c t o b e r 15, 1 9 4 5 . I t is r e q u e s t e d t h a t t e n d e r s b e s u b m i t t e d o n s p e c i a l f o r m p r i n t e d o n r e v e r s e s i d e a n d r e t u r n e d i n s p e c i a l e n v e l o p e e n c l o s e d h e r e w i t h . Payment jor the Treasury bills cannot be made by credit through the War Loan Deposit Account. Payment must be made in cash or other immediately available funds. ALLAN SPROUL, President. (Extract from Treasury results after tenders were T o t a l applied f o r Department opened for statement Treasury $2,157,462,000 released for publication October 9, 1945, bills dated October 11, 1945 maturing January Federal Reserve T o , a , accepted $1,310,993,000 (includes $54*863,000 entered on a fixed-price basis at 99.905 and accepted in full) it • i «. * ( discount * A v e r a g e p r i c e . . . no o n e , 99.905+ Equivalent rate of a approx. 0.375% per annum Boston New Y o r k Philadelphia Cleveland Richmond . . Range of accepted competitive b i d s : Atlanta Chicago High 99.907 Low nnnnc 99.905 Equivalent rate approx. 0.368% T? • I * . Equivalent rate approx. 0.376% of discount per annum f A* of discount per annum (54 percent of the amount bid f o r at the low price v P accepted) w a s D "' H « St. Louis Minneapolis Kansas City D a U a s S a n F r a n c i s c o Total announcing 10, 1946) Total r ^ f i S $ ^,700,000 1,573,957,000 46,645,000 23,070,000 21,424,000 Total Z M L $ 18,534,000 939,157,000 32,385,000 17,550,000 18,664,000 $ 10,120,000 301,795,000 10,074,000 172,098,000 18,175,000 8,020,000 24,705,000 25,615,000 75,236,000 11,551,000 8,020,000 19,139,000 16,645,000 47,176,000 "77777777777 $2,157,462,000 1777771 7" $1,310,993,000 (OVER) I M P O R T A N T — I f 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 fixedprice basis, fill in only the maturity value in paragraph headed "Fixed-Price B i d " . DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. No. TENDER FOR 91-DAY TREASURY BILLS Dated October 18, 1945. Maturing January 17, 1946. Dated at 1945 T o FEDERAL RESERVE BANK OF NEW YORK, Fiscal Agent of the United States. COMPETITIVE BID FIXED-PRICE Pursuant to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on O c t o b e r 12, 1945, as issued by the Secretary of the Treasury, the undersigned offers to pay (Rate per 100) * f o r a total amount of $ (maturity value) of the Treasury bills therein described, or f o r any less amount that may be awarded, payment therefor to be made at your bank in cash or other immediately available funds on the date stated in the public notice. BID Pursuant to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on O c t o b e r 12, 1945, as issued by the Secretary of the T r e a s ury, the undersigned offers, to pay a fixed-price of 99.905 (rate per 100) f o r a total amount of $ (maturity value) (Not to exceed $200,000) o f the Treasury bills therein described, payment therefor to be made at y o u r bank in cash o r other immediately available funds on the date stated in the public notice. T h e Treasury bills for which tender is hereby made are to be dated O c t o b e r 18, 1945, and are to mature on January 17, 1946. This tender will be inserted in special envelope entitled "Tender Name of Bidder. By for Treasury bills." (Please print) (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. 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 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 member of the firm." 3. Tenders will be received without deposit from incorporated banks and tru6t 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. 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. Payment http://fraser.stlouisfed.org/ TENTB-798-a Federal Reserve Bank of St. Louis by credit through War Loan Deposit Account will not be permitted. * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (OVER) c J t i o / y FEDERAL RESERVE BANK OF NEW YORK October 13, 1945. To all Banking Institutions in the Second Federal Reserve District: We are pleased to announce that Bank of Holland, Holland, New York, lias become a member of the Federal Reserve System effective October 13,1945. ALLAN SPKOUL, President.