Full text of Federal Reserve Bank of New York Circulars : 2676. Public Notice of Offering of $1,000,000,000, or Thereabouts, of 91 Day Treasury Bills

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F E D E R A L R E S E R V E BANK
OF NEW YORK
F i s c a l A g e n t of t h e U n i t e d

States
[Circular No. 26761
L August 27, 1943 J

Public Notice of Offering of $1,000,000,000. or thereabouts, of
91-Day Treasury Bills
Dated September 2, 1943
Maturing December 2, 1943
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 of a n o t i c e t o d a y m a d e public 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 new
offering of T r e a s u r y bills p a y a b l e a t 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 sold on a d i s c o u n t basis u n d e r c o m p e t i t i v e a n d fixed-price bidding.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, August 27, 1943.
The Secretary of the Treasury, by this public notice, invites tenders for 51,000,000,000, 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 September 2, 1943, and will mature December 2, 1943,
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 war time, Monday, August 30, 1943.
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 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 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, tenders for §100,000
or less from 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 September 2, 1943.
T h e 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.
I n a c c o r d a n c e w i t h t h e a b o v e a n n o u n c e m e n t t e n d e r s will be r e c e i v e d a t t h e S e c u r i t i e s D e p a r t m e n t of
this b a n k ( 9 t h floor, 3 3 L i b e r t y S t r e e t , N e w Y o r k C i t y ) o r a t t h e Buffalo B r a n c h of this b a n k ( 2 7 2 M a i n
Street, Buffalo, N e w Y o r k ) up t o two o'clock p.m., E a s t e r n w a r time, on M o n d a y , August 30,

1943.

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 special f o r m p r i n t e d on r e v e r s e side a n d r e t u r n e d in special
envelope enclosed herewith.
Attention
the War Loan

is invited
Deposit




to the fact

Account.

that

Payment

payment
must

for

be made

the Treasury

bills cannot

be made

in cash or other immediately

by credit

available

through

funds.

ALLAN SPROUL,
President.
(OTtt)

9V
I M P O R T A N T — I t will be noted that the offering is for 91-day Treasury bills.
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 fixed-price 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 September 2, 1943.

Maturing December 2, 1943.
Dated at

To

THE FEDERAL RESERVE B A N K

OF N E W

F i s c a l A g e n t of the United States,
New Y o r k City, N . Y .

YORK,

.1943

COMPETITIVE BID

FIXED-PRICE BID

P u r s u a n t to the provisions of T r e a s u r y
Department Circular No. 4 1 8 , as amended, and
to the provisions of the public notice on
August 2 7 , 1943, as issued by the S e c r e t a r y
of the T r e a s u r y , the undersigned offers to pay
( R a t e per 100)

$
of the T r e a s u r y bills
any less amount that
t h e r e f o r to be made at
immediately available
in the public notice.

* for a total amount of
(maturity value)
therein described, or f o r
may be awarded, payment
your bank in cash or other
funds on the date stated

Pursuant

to the provisions

of

Treasury

Department Circular No. 4 1 8 , as amended, and to
the provisions of the public notice on August 27,
1943, as issued by the Secretary of the Treasury,
the

undersigned

offers

to

pay

a

fixed-price

of 9 9 . 9 0 5 ( r a t e per 1 0 0 ) f o r a total amount of
$

(maturity value)

(Not to exceed $100,000)

of the T r e a s u r y bills therein described, payment
therefor to be made at your bank in cash or other
immediately available funds on the date stated
in the public notice.

T h e T r e a s u r y bills for which tender is hereby made are to be dated September 2, 1943, and are to
mature on December 2, 1943.

This tender will be inserted in special envelope entitled "Tender for Treasury
Name of Bidder.
By

bills."

(Please print)

(Official signature required)

(Title)

Street Address
(City, Town or Village, l'.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. No 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 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 of the
Treasury, is material, the tender may be disregarded.
Payment

DigitizedTENTB-G87-a
for FRASER


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)

y

FEDERAL RESERVE BANK OF NEW YORK
F i s c a l Agent of the United States
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, August 31, 1943>

Press Service

The Secretary of the Treasury announced l a s t evening that the
tenders for $1,000,000,000, or thereabouts, of 91-day Treasury
b i l l s to be dated September 2 and to mature December 2 , 1943, which
were offered on August 27, were opened a t the Federal Reserve Banks
on August 30.
The details of this issue are as follows:
Total applied for - $ 1 , 1 7 7 , 6 3 1 , 0 0 0
Total accepted

-

1 , 0 0 1 , 8 7 9 , 0 0 0 (includes $59,548,000
entered on a fixed-price basis at
99.905 and accepted in f u l l )

Range of accepted bids:
High
Low

- 99.925 Equivalent r a t e of discount approx. 0.297$
per annum
- 99.905 Equivalent r a t e of discount approx. 0»376$
per annum

Average
price - 99.905*- Equivalent r a t e of discount approx, 0.375$
per annum

(96 percent of the amount bid for at the low price was accepted)
Federal Reserve
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t . Louis
Minneapolis
Kansas City
Dallas
San Francisco




To t a l

Total
Applied for
$

29,330,000
750,119,000
31,767,000
34,732,000
16,045,000
7,354,000
183,570,000
11,210,000
6,020,000
21,270,000
6,795,000
79,419,000

fcl,177,631,000
—0O0-

Total
Accepted
&

26,785,000
607,907,000
30,494,000
30,428,000
13,907,000
6,836,000
168,455,000
10,434,000
5,624,000
17,850,000
5,994,000
77,165,000

$1,001,879,000