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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [Circular No. 26931 I September 17, 1943] Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills Dated September 23, 1943 Maturing December 23, 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 under competitive and fixed-price bidding. TREASURY DEPARTMENT Washington FOR RELEASE, M O R N I N G Friday, September 17, 1943. NEWSPAPERS, T h e 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 23, 1943, and will mature December 23, 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, M o n d a y , September 20, 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 b y 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 b y an express guaranty of payment b y 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 b y 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. 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 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 23, 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. T h e 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 b y any State, or any of the possessions of the United States, or b y any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold b y the United States shall be considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal Revenue Code, as amended b y 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 from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance c o m panies) 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 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 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 7, N.Y.) or at the Buffalo Branch of this bank (270 Main Street, Buffalo 2, N . Y . ) up to two o'clock p.m., Eastern war time, on Monday, September 20, 1943. 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. (OTl«) 9Y IMPORTANT—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 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 September 23, 1943. Maturing December 23, 1943. Dated at To T H E FEDERAL RESERVE B A N K OF N E W YORK, .1943 Fiscal Agent of the United States, New York 7, N. Y . COMPETITIVE BID FIXED-PRICE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on September 17, 1943, as issued by the Secretary of the Treasury, the undersigned offers to pay Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on September 17, 1943, as issued by the Secretary of the Treasury, the undersigned offers to pay a fixed-price of 99.905 (rate per 100) for a total amount of (Rate per 100) * for a total amount of $ (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. $ (maturity value) (Not to exceed $100,000) of the Treasury 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. The Treasury bills for which tender is hereby made are to be dated September 23, 1943, and are to mature on December 23, 1943. This tender will be inserted in special envelope entitled "Tender N a m e of Bidder for Treasury bills." (Please print) By (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 tender f o r less than $1,000 will be considered, and each tender must be f o r an even multiple $1,000 (maturity v a l u e ) . A separate tender must be executed f o r each bid. of 2. If the person m a k i n g the tender is a corporation, the tender should be signed by an officer of the c o r poration authorized t o make the tender, and the signing of the tender b y an officer of the corporation will be construed as a representation b y him that he has been so authorized. If the tender is made b y a partnership, it should be signed b y a m e m b e r of the firm, w h o should sign in the f o r m " t a copartnership, b y a m e m b e r of the firm." 3. 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 r e c o g n i z e d dealers in investment securities. T e n d e r s f r o m others must be accompanied b y payment of 2 percent of the face amount of T r e a s u r y bills applied for, unless the tenders are accompanied b y an express guaranty of p a y m e n t b y an incorporated bank or trust c o m p a n y . 4. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the T r e a s u r y , is material, the tender m a y be disregarded. / Payment by credit through War Loan Deposit Account will not be permitted. TENTB-690-a * Price must be expressed on the basis of 100, with not more three decimal places. Fractions may not be used. than (over) FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, September 21, 1943* Press Service The Secretary of the Treasury announced last evening that the tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated September 23 and to mature December 23, 1943, which were offered on September 17, were opened, at the Federal Reserve Banks on September 20® The details of this issue are as follows: Total applied for - $1,498,766,000 Total accepted - 1,005,331,000 (includes $77,181,000 entered on a fixed-price basis at 99*905 and accepted*in full) Range of accepted bids: High Low - 99.924 Equivalent rate of discount approx. 0.301$ per annum - 99.905 Equivalent rate of discount approx. 0.376$ per annum Average price - 99.906 Equivalent rate of discount approx. 0,374$ per annum (65 percent of the amount bid for at the low price was accepted) Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Total Accepted Total Applied for Federal Reserve Bank $ 90,005,000 783,429,000 94-, 092,000 70,875,000 44,320,000 16,580,000 174,438,000 48,665,000 13,375,000 4^,4-47,000 17,740,000 102,800j000 $1,4-98,766,000 -oOo— $ 66,686,000 431,120,000 79,366,000 59,903,000 41,170,000 11,925,000 127,728,000 37,310,000 12,960,000 35,94.2,000 16,853,000 84,418,000 $1,005,381,000