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FEDERAL RESERVE OF NEW BANK YORK Fiscal Agent of the United States r Circular No. 24741 I August 7, 1942 J Public Notice of Offering of $350,000,000, or thereabouts, of Treasury Bills Dated August 12, 1942 Maturing November 12, 1942 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 Treasury bills payable at maturity without interest to be sold on a discount basis to the highest bidders. TREASURY DEPARTMENT Washington FOR RELEASE, MORNING Friday, August 7, 1942. NEWSPAPERS, T h e Secretary of the Treasury, by this public notice, invites tenders for $350,000,000, or thereabouts, of 92-day T r e a s u r y bills, to be issued on a discount basis under competitive bidding. T h e bills of this series will be dated August 12, 1942, and will mature November 12, 1942, when the face amount will be payable without interest. T h e y 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). T e n d e r s will be received at Federal Reserve Banks and Branches up to the closing hour, t w o o'clock p.m., Eastern war time, Monday, August 10, 1942. T e n d e r s will not be received at the Treasury Department, W a s h i n g t o n . 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. I t 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. T e n d e r s will be received without deposit f r o m incorporated banks and trust companies and f r o m responsible and recognized dealers in investment securities. T e n d e r s f r o m others must be accompanied by payment of 10 percent of the face amount of T r e a s u r y bills applied for, unless the tenders are accompanied by an express g u a r a n t y 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 a m o u n t 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 T r e a s u r y 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. P a y m e n t of accepted tenders at the prices offered m u s t be made or completed at the Federal Reserve Bank in cash or other immediately available f u n d s on August 12, 1942. T h e income derived from T r e a s u r y 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 T r e a s u r y bills shall not have any special treatment, as such, under Federal tax Acts 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 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) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the a m o u n t 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 r e a s u r y bills (other than life insurance companies) 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 a m o u n t actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. T r e a s u r y D e p a r t m e n t Circular No. 418, as amended, and this notice, prescribe the terms of the T r e a s u r y bills and govern the conditions of their issue. Copies of the circular may be obtained f r o m any Federal Reserve B a n k or B r a n c h . In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th floor, 33 Liberty Street, New York City) or at the Buffalo Branch of this bank (272 Main Street, Buffalo, New York) up to two o'clock p.m., Eastern war time, on Monday, August 10, 1942. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Attention is invited to the fact that 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. ALLAN SPROUL, President. (OVXK) No. 7S TENDER FOR 92-DAY T R E A S U R Y BILLS D a t e d A u g u s t 12, 1942. M a t u r i n g N o v e m b e r 12, 1942. Dated at 1942 T o T H E F E D E R A L R E S E R V E B A N K OF N E W YORK, Fiscal A g e n t of the United States, N e w Y o r k City, N . Y . P u r s u a n t to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on August 7, 1942, as issued by the Secretary of the T r e a s u r y , the u n d e r signed o f f e r s to pay $ a m o u n t that may be awarded, payment t h e r e f o r to be made at your bank in cash or other immediately available f u n d s on the date stated in the public notice. T h e T r e a s u r y bills f o r which tender is hereby made are to be dated A u g u s t 12, 1942, and are to m a t u r e on N o v e m b e r 12, 1942. This tender will be inserted in special envelope entitled "Tender for Treasury bills." 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 (maturity value). Also, if more than one price is offered, a separate tender must be executed at each price. 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." 0 3. 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 10 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 by credit through War Loan Deposit Account will not be permitted. 1 F i l l in all required spaces before signing. Name of Subscriber. By. (Please print) (Official signature required) (Title) Street Address City, Town or Village, and State * Price must be expressed on the basis of 100, with not more than three decimal places, e. g., 99.925. Fractions may not be used. TENTB-632-A (OVER) FEDERAL RESERVE BANK OF NEW YORK August 6, 1942. To all Banking Second Institutions Federal Reserve in the District: We are pleased to announce that Tlie F a r m e r s & Merchants Bank of Spencer, N. Y., Spencer, New York, has become a member of the Federal Reserve System effective August 6,1942. ALLAN SPROUL, President.