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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [. Novembe?2 1 4 ] 95 Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated November 8, 1945 To all Incorporated Banks and Trust Companies Second Federal Reserve District and Others Maturing February 7, 1946 in the Concerned: Following is the text of a notice today made public by the Treasury Department with respect to a new offering of Treasury bills payable at maturity without interest to be sold on a discount basis under competitive and fixed-price bidding. FOR RELEASE, MORNING NEWSPAPERS, Friday, N o v e m b e r 2, 1945. TREASURY DEPARTMENT Washington The Secretary of the Treasury, by this public notice, invites tenders f o r $1,300,000,000, or thereabouts, of 91-day Treasury 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 N o v e m b e r 8, 1945, and will mature February 7, 1946, when the face amount will be payable without interest. T h e y will be issued in bearer f o r m only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity v a l u e ) . Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o'clock p.m., Eastern Standard Time, Monday, N o v e m b e r 5, 1945. Tenders will not be received at the Treasury Department, Washington. Each tender must be f o r 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 R e s e r v e Banks or Branches on application therefor. T e n d e r s will be received without deposit f r o m incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders f r o m 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, f o l l o w i n g 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 f o r $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 on N o v e m b e r 8, 1945. The income derived f r o m Treasury bills, whether interest or gain f r o m the sale or other disposition of the bills, shall not have any exemption, as such, and loss f r o m the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal t a x A c t s now or hereafter enacted. T h e bills shall be subject to estate, inheritance, gift, or other e x c i s e 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. 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. U n d e r Sections 42 and 117 ( a ) (1) o f 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 f r o m 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 1 1 1 his income t a x 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. T r e a s u r y Department Circular N o . 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular m a y be obtained f r o m 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) N e w Y o r k 7, 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 5, 1945. 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. Payment must be made in cash or other immediately available funds. A L L A N SPROUL, President. (Extract from Treasury Department statement released for publication October 30, 1945, announcing results after tenders were opened for Treasury bills dated November 1, 1945 maturing January 31, 1946) T o t a l applied f o r $2,210,328,000 T o t a l accepted $1,318,006,000 (includes $51,040,000 entered on a fixed-price basis at 99.905 and accepted in f u l l ) A v e r a g e price . . 99.905+ Equivalent rate of discount approx. 0.375% per annum Range of accepted competitive bids : High 99.908 Equivalent rate of discount approx. 0.364% per annum Low 99.905 Equivalent rate of discount approx. 0.376% per annum (54 percent of the amount bid f o r at the l o w price was accepted) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTAL Total Applied for $ 25,860,000 1,619,250,000 51,775,000 55,985,000 10,772,000 9,305,000 328,588,000 21,945,000 3,445,000 14,893,000 7,790,000 60,720,000 $2,210,328,000 Total Accepted $ 15,234,000 942,020,000 30,615,000 46,785,000 9,852,000 9,305,000 183,891,000 13,941,000 3,445,000 11,888,000 7,330,000 43,700,000 $1,318,006,000 (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 Bid". 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 November 8, 1945. Maturing February 7, 1946. Dated at To FEDERAL RESERVE B A N K OF N E W 1945 YORK, Fiscal Agent of the United States. C O M P E T I T I V E BID FIXED-PRICE BID Pursuant to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on N o v e m b e r 2, 1945, as issued b y the Secretary of the Treasury, the undersigned offers to pay Pursuant to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on N o v e m b e r 2, 1945, as issued b y 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 * f o r a total amount o f (Rate per 100) $ $ (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. (maturity value) (Not to exceed $200,000) of the Treasury bills therein described, payment therefor to be made at y o u r bank in cash or other immediately available funds on the date stated in the public notice. T h e Treasury bills f o r which tender is hereby m a d e are to be dated N o v e m b e r 8, 1945, and are to mature on February 7, 1946. This tender will be inserted in special envelope Name of By entitled "Tender for Treasury Bidder .... bills." (Please print) (Official signature required) (Title) Street A d d r e s s (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 t e n d e r $1,000 ( m a t u r i t y v a l u e ) . f o r less t h a n $1,000 w i l l b e c o n s i d e r e d , a n d e a c h A s e p a r a t e t e n d e r m u s t be e x e c u t e d f o r e a c h b i d . tender must be for an e v e n multiple of 2. If the p e r s o n m a k i n g the t e n d e r is a c o r p o r a t i o n , the t e n d e r s h o u l d be s i g n e d b y an o f f i c e r o f the c o r p o r a t i o n a u t h o r i z e d t o m a k e the t e n d e r , a n d the s i g n i n g o f the t e n d e r b y an o f f i c e r o f the c o r p o r a t i o n w i l l be c o n s t r u e d as a r e p r e s e n t a t i o n b y h i m that he has b e e n s o a u t h o r i z e d . If t h e t e n d e r is m a d e b y a p a r t n e r s h i p , it s h o u l d be s i g n e d b y a m e m a c o p a r t n e r s h i p , by b e r o f the firm, w h o s h o u l d s i g n in the f o r m " a m e m b e r o f the firm." 3. T e n d e r s w i l l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k s a n d t r u s t c o m p a n i e s a n d f r o m r e s p o n s i b l e a n d r e c o g n i z e d d e a l e r s in i n v e s t m e n t s e c u r i t i e s . T e n d e r s f r o m o t h e r s m u s t be a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t o f the f a c e a m o u n t o f T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s the t e n d e r s a r e a c c o m p a n i e d by an e x p r e s s g u a r a n t y o f p a y m e n t by an i n c o r p o r a t e d b a n k o r t r u s t c o m p a n y . 4. I f the l a n g u a g e o f this t e n d e r is c h a n g e d T r e a s u r y , is m a t e r i a l , the t e n d e r m a y be d i s r e g a r d e d . Payment TENTB-801-a in any r e s p e c t , w h i c h , in the o p i n i o n by credit through War Loan Deposit Account will not be of the S e c r e t a r y of the permitted. * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (OVER)