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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States 2717 [Circular No.1943 "I October 22, J Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills Dated October 28, 1943 Maturing January 27, 1944 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. FOR RELEASE, MORNING Friday, October 22, 1943. NEWSPAPERS, TREASURY DEPARTMENT Washington 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. T h e bills of this series will be dated October 28, 1943, and will mature January 27, 1944, when the face amount will be payable without interest. They will be issued in bearer f o r m 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, October 25, 1943. Tenders will not be received at the Treasury Department, Washington. Each tender must be f o r 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 f r o m incorporated banks and trust companies and f r o m responsible and recognized dealers in investment securities. Tenders f r o m 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, f o l l o w i n g 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. 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 f o r $100,000 or less f r o m 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 o r completed at the Federal Reserve Bank in cash or other immediately available funds on October 28, 1943. T h e income derived f r o m Treasury 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 Treasury bills shall not have any special treatment, as such, under Federal tax A c t s 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 n o w 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 Treasury bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 1 1 7 ( a ) ( 1 ) of the Internal Revenue Code, as amended by 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 f r o m consideration as capital assets. A c c o r d i n g l y , 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 f o r 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 f o r which the return is made, as ordinary gain o r 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 f r o m 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, October 25, 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. A L L A N SPROUL, President. (OVER) 10D 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 October 28, 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 January 27, 1944. Dated at YORK, Fiscal Agent of the United States, New York 7, N. Y . 1943 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 October 22, 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 October 22, 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 October 28, 1943, and are to mature on January 27, 1944. This tender will be inserted in special envelope entitled "Tender for Treasury bills." Name of Bidder By (Please print) (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. 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 value). A separate tender must be executed f o r each bid. of 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, w h o should sign in the f o r m " a copartnership, by a member of the firm." 3. Tenders will be received without deposit f r o m incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders f r o m others must be accompanied by payment of 2 percent o f 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 TENTB-695-a * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. permitted. (OVER) FEDERAL RESERVE BA?TK OF NK7 Y R OK Fiscal Ageait of the United States TREASURY D P R M N EAT E T WASHINGTON FOR RELEASE, M R I G NEWSPAPERS, O NN Tuesday, October 26, 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 M i l s to be dated October 28, 194-3, and to mature January 27, 1944, which were offered on October 22, were opened at the Federal Reserve Banks on October 25• The details of this issue are as follows: Total applied f o r - $1,286,529,000 Total accepted - 1,008,064,000 (includes $67,771,000 entered on a f i x e d - p r i c e basis at 99*905 and accepted in f u l l ) Range of accepted bids: High Low - 99*915 Equivalent rate of discount approx. 0.336$ per annum - 99.905 Equivalent rate of discount approx* 0,376$ per annum Average price - 99.905+ Equivalent rate of discount approx* 0,375$ per annum (82 percent of the amount bid f o r at the low price was accepted) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago S t . Louis Minneapolis Kansas City Dallas San Francisco Total Total Applied f o r & 40,655,000 744;318,000 53,310,000 57,708,000 27,780,000 18,4^5,000 135,612,000 48,835,000 26,600,000 19,789,000 15,077,000 98,370,000 $1,286,529,000 •oOo- Total Accepted $ 34,751,000 525,512,000 46,856,000 55,311,000 25,562,000 17,739,000 115,898,000 41,742,000 22,963,000 19,060,000 14,186,000 88,434,000 &1,008,064,000 ^ TREASURY DEPARTMENT WASHINGTON 25 October 19, 1943 T o Banks and Other Financial Institutions in the U n i t e d States: The Treasury has had splendid c o o p e r a t i o n from the f i n a n c i a l i n s t i t u t i o n s of the country in the census of American f o r e i g n property h o l d i n g s , which has been in progress s i n c e June 3 . Many i n s t i t u t i o n s have been c o n t a c t i n g a l l of t h e i r customers who they b e l i e v e have f o r e i g n investments, e x p l a i n i n g the n e c e s s i t y f o r f i l i n g the TFR-500 r e p o r t and seeing that they have the proper report forms. The value of the information obtained in t h i s survey, as i t a p p l i e s t o the war f r o n t s today, the peace n e g o t i a t i o n s and the postwar g l o b a l readjustments, w i l l be in p r o p o r t i o n t o the percentage o f persons who r e p o r t . The volume o f r e p o r t s t o date is g r a t i f y i n g , but, in the b e l i e f that a s u b s t a n t i a l number of p a t r i o t i c people who should report are s t i l l unaware of t h e i r duty in t h i s regard, the Treasury has extended the f i n a l date f o r f i l i n g t o December 1, 1943. Every e f f o r t i s being made t o acquaint the p u b l i c with the o b j e c t i v e s of t h i s survey. Your f u r t h e r c o o p e r a t i o n during the remaining few weeks o f t h i s e f f o r t w i l l be most h e l p f u l . Anything that you can do t o c o n t a c t your customers, p a r t i c u l a r l y those h o l d i n g f o r e i g n d o l l a r bonds, w i l l be c o n s t r u c t i v e . A number of banks have requested s u g g e s t i o n s f o r a n o t i c e which they could send t o t h e i r customers. Such a n o t i c e , which you may d e s i r e t o use, i s printed on the back of t h i s l e t t e r . Again, many bank e x e c u t i v e s are making i t a p o i n t t o d i s c u s s TFR500 and i t s o b j e c t i v e s at various trade group meetings. This has undoubtedly swelled the number of r e p o r t s r e c e i v e d in Washington. As t o the survey i t s e l f , rapid p r o g r e s s has been made in the d i g e s t of the data submitted. Information of immediate value i s being submitted t o the Army, the A l l i e d M i l i t a r y Government, and other governmental a g e n c i e s c l o s e l y r e l a t e d t o the war e f f o r t . Should you need more of the TFR-500 r e p o r t forms, your Federal Reserve Bank w i l l send them t o you at once. I t w i l l be glad t o advise you on any aspects o f Jfche survey. A ? TO OWNERS OF PROPERTY IN FOREIGN COUNTRIES The U. S. Treasury i s seeking t o a s c e r t a i n as nearly as p o s s i b l e the t o t a l American stake a l l over the world. It b e l i e v e s with t h i s information a v a i l a b l e that the government's hand w i l l be strengthened on a l l war f r o n t s , at the peace c o n f e r e n c e s and in the post-war world-wide economic readjustments. Under the law, h o l d e r s of f o r e i g n property are required t o f i l e r e p o r t s of t h e i r holdings on Form TFR-500 by December 1, 1943. I f you have any f o r e i g n investments — d o l l a r bonds, bank b a l a n c e s , r e a l e s t a t e .or other t a n g i b l e property — and have not yet f i l e d your r e p o r t , "we would be happy t o a s s i s t you in obtaining the proper forms.