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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States
fCircular No. 25501
I November 27, 1942 J

Public Notice of Offering of $500,000,000, or thereabouts, of
9 1 - D a y T r e a s u r y Bills
Dated December 2, 1942
Maturing March 3, 1943
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 D E P A R T M E N T
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Friday, November 27, 1942.
The Secretary of the Treasury, by this public notice, invites tenders for $500,000,000, or thereabouts, of
91-day Treasury bills, to be issued on a discount basis under competitive bidding. The bills of this series
will be dated December 2, 1942, and will mature March 3, 1943, when the face amount will be payable
without interest.
They will be issued in bearer form only, and in denominations of SI,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 war time, Monday, November 30, 1942.
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 from incorporated banks and trust companies and from responsible and recognised 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 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. 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
December 2, 1942.1
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 Federal tax Acts now or hereafter enacted.
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 of Treasury 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 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 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, November 30, 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 S P R O U L ,

President.

No

TENDER FOR 91-DAY TREASURY
Dated December 2, 1942.

BILLS

Maturing March 3, 1943.
Dated at

To

THE FEDERAL

RESERVE

BANK

OF N E W

YORK,

1942

Fiscal Agent of the United States,
New York City, N. Y.
Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to
the

provisions

of

the

public notice on November 27, 1942, as issued by

Treasury, the undersigned offers to pay
of $

the Secretary of the
* for a total amount

(Rate per 100)

(maturity value) of the Treasury bills therein described, or for 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.
The Treasury bills for which tender is hereby made are to be dated December 2, 1942, and
are to mature on March 3, 1943.
This tender will be inserted in special envelope entitled "Tender for Treasury bills."
IMPORTANT INSTRUCTIONS i
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
poration authorized to make the tender, and the
construed as a representation by him that he has
should be signed by a member of the firm, who should
copartnership, by

corporation, the tender should be signed by an officer of the corsigning of the tender by an officer of the corporation will be
been so authorized. If the tender is made by a partnership, it
sign in the form "
a
a member of the firm."

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 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
Treasury, is material, the tender may be disregarded.

of

the

Payment by credit through War Loan Deposit Account will not be permitted.
J^Zif~ Fill in all required spaces before signing.
Name of Subscriber

By

(Please print)

(Official signature required)

(TiUe)

Street AddressCity, Town or Village, and State.

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

TENTB-64S-0




(OVER)

FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, December 1, 194-2

Press'Service
No. 34-36

The Secretary of the Treasury announced last evening that
the tenders for $500,000,000, or thereabouts, of 91-day Treasury
bills to be dated December 2, 194-2, and to mature March 3, 1943*
which were offered on November 27, were opened at the Federal
Reserve Banks on November 30
The details of this issue are as follows:
Total applied for - $1,220,276,000
Total accepted
503,206,000
Range of accepted bids:
High - 99.925 Equivalent rate of discount approx. 0.297$
per annum
Low - 99.906 Equivalent rate of discount approx. 0.372$
per annum
Average - 99.907 Equivalent rate of discount approx. 0.368$
price
per annum

(22 percent of the amount bid for at the loir price was accepted.)




-oOo-

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