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FEDERAL RESERVE BANK O F NEW YORK F i s c a l A g e n t of t h e U n i t e d S t a t e s J* Circular No. 2690 "1 L September 10, 1943 J Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills Dated September 16, 1943 Maturing December 16, 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 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 to a new o f f e r i n g 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 o n a d i s c o u n t b a s i s u n d e r c o m petitive and fixed-price bidding. TREASURY DEPARTMENT Washington FOR RELEASE, MORNING N E W S P A P E R S , Friday, September 10, 1943. The Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, 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 16,1943, and will mature December 16,1943, 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, September 13, 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 16, 1943. 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 billsj 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 b e 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 t h i s b a n k ( 9 t h floor, 33 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 of 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 2, N . Y . ) u p to t w o o'clock p.m., E a s t e r n w a r t i m e , on M o n d a y , S e p t e m b e r 13, 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 on s p e c i a l 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. War Attention is invited to the fact that payment for the Treasury bills cannot be made by credit through Loan Deposit Account. Payment must be made in cash or other immediately available funds. ALLAN the SPROUL, President. (OVER) 9X I M P O R T A N T — I f it is desired to b i d o n a competitive basis, fill i n rate per 100 and maturity value in paragraph h e a d e d "Competitive Bid". If it is desired to b i d on a fixedprice basis, fill i n o n l y the maturity value in paragraph h e a d e d "Fixed-Price Bid". DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. No T E N D E R FOR 91-DAY TREASURY BILLS D a t e d September 16, 1943. 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 Maturing December 16, 1943. D a t e d at YORK, F i s c a l A g e n t of t h e U n i t e d S t a t e s , N e w Y o r k City, N . Y . 1943 COMPETITIVE BID FIXED-PRICE BID P u r s u a n t to t h e p r o v i s i o n s of T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 418, as a m e n d e d , a n d to t h e p r o v i s i o n s of t h e public n o t i c e on S e p t e m b e r 10, 1943, as issued by t h e S e c r e t a r y of t h e T r e a s u r y , t h e u n d e r s i g n e d offers to p a y P u r s u a n t to t h e p r o v i s i o n s of T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 418, as a m e n d e d , a n d to the provisions of the public notice on September 10,-1943, as issued by the Secretary of the T r e a s ury, the undersigned offers to pay a fixed-price of 99.905 ( r a t e p e r 100) f o r a total a m o u n t of * f o r a t o t a l a m o u n t of (Rate per 100) (maturity value) $ of t h e T r e a s u r y bills t h e r e i n described, o r f o r a n y less a m o u n t t h a t m a y b e a w a r d e d , p a y m e n t t h e r e f o r to b e m a d e a t y o u r b a n k in cash o r o t h e r i m m e d i a t e l y a v a i l a b l e f u n d s on t h e d a t e s t a t e d in t h e p u b l i c notice. $ (maturity value) (Not to exceed $100,000) of t h e T r e a s u r y bills t h e r e i n described, p a y m e n t t h e r e f o r to b e m a d e at y o u r b a n k in cash or o t h e r i m m e d i a t e l y a v a i l a b l e f u n d s on t h e d a t e stated in t h e public notice. T h e T r e a s u r y bills f o r which t e n d e r is h e r e b y m a d e are to be d a t e d S e p t e m b e r 16, 1943, a n d a r e to m a t u r e on D e c e m b e r 16, 1943. This tender will be inserted in special envelope entitled "Tender for Treasury bills.' Name of Bidder (Please print) By (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. 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 http://fraser.stlouisfed.org/ TENTB-689-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) FEDERAL RESERVE B N OF NUT YORK AK F i s c a l Agent of the United S t a t e s TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, September 14, 194-3• Press Service The S e c r e t a r y of t h e Treasury announced l a s t evening t h a t the tenders f o r $1,000,000,000, or t h e r e a b o u t s , of 91-day Treasury b i l l s to be dated September 16 and to mature December 16, 1943, which were o f f e r e d on September 10, were opened a t t h e Federal Reserve Banks on September 13• The d e t a i l s of t h i s i s s u e are as f o l l o w s : Total applied f o r - $1,535,294,000 Total accepted - 1*008,342,000 (includes $76,164,000 entered on a f i x e d - p r i c e b a s i s a t 99*905 and accepted in f u l l ) Range of accepted b i d s : High Low - 99.911 Equivalent r a t e of discount approx» 0«352$ per annum - 99*905 Equivalent r a t e of discount approx* 0»376$ per annum Averago p r i c e - 99.905* Equivalent r a t e of discount approx« 0»374$ per annum (64 percent of the amount bid f o r a t the low p r i c e ?/as accepted) Federal Reserve Bank Boston New York Philadelphia Cleveland Richmond Atlanta Chicago S t , Louis Minneapolis Kansas C i t y Dallas San Francisco Total Total Accepted Total Applied f o r $ 88,744,000 836,017,000 94,780,000 66,905,000 50,689,000 22,165,000 147,024,000 44,226,000 11,583,000 44,585,000 20,706,000 107,865,000 ^1,535,294,000 -0O0— $ 65,068,000 476,805,000 62,732,000 59,882,000 42,273,000 17,055,000 105,666,000 31,842,000 10,062,000 38,068,000 16,440,000 82,449,000 $1,008,342,000