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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 2753 "I L January 14, 1944 J Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills D a t e d January 20, 1 9 4 4 Maturing April 20, 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 NEWSPAPERS, Friday, January 14; 1944. TREASURY DEPARTMENT Washington T h e Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, o r 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 January 20, 1944, and will mature April 20, 1944, 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 w a r time, Monday, January 17, 1944. 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 o r 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 o f 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. T h o s e submitting tenders will be advised o f the acceptance o r rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept o r reject any o r 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 f r o m any one bidder at 99.905 entered o n 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 January 20, 1944. T h e income derived f r o m Treasury bills, whether interest o r gain from the sale o r 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 Acts now o r hereafter enacted. The bills shall be subject t o estate, inheritance, gift, o r other excise taxes, whether Federal o r State, but shall be exempt f r o m all taxation n o w or hereafter imposed on the principal o r interest thereof by any State, o r 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 ) o f the Internal Revenue Code, as amended by Section 115 of the Revenue A c t o f 1941, the amount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed o r otherwise disposed of, and such bills are excluded from consideration as capital assets. A c c o r d i n g l y , the owner o f Treasury bills (other than life insurance c o m panies) issued hereunder need include in his income tax return only the difference between the prjce paid f o r such bills, whether on original issue o r on subsequent purchase, and the amount actually received either upon sale o r 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 o f the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank o r Branch. In accordance with the above announcement tenders will be received at the Securities Department o f this bank (9th floor, 33 Liberty Street) New Y o r k 7, N. Y . , or at the Buffalo Branch of this bank (270 Main Street) Buffalo 5, N. Y., up to two o'clock p.m., Eastern war time, on Monday, January 17, 1944. 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 War Loan Deposit Account. Payment must be made in cash or other immediately available funds. the A L L A N SPROUL, President. (OVER) 10P I M P O R T A N T — I f 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 Dated January 20, 1944. BILLS Maturing April 20, 1944. Dated at T o FEDERAL RESERVE B A N K OF N E W Y O R K , 1944 Fiscal Agent of the United States. C O M P E T I T I V E 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 January 14, 1944, 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 January 14, 1944, 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 January 20, 1944, and are to mature on April 20, 1944. This tender zvill be inserted in special envelope entitled "Tender Name of Bidder By for Treasury bills." (Please print) (Title) (Official signature required) Street A d d r e s s (City, Town or Village, P.O. No., and State) If this tender is submitted f o r the account of a customer, indicate the customer's name on line b e l o w : (Name of Customer) (City, Town or Village, P.O. No., and State) Use a separate tender f o r each customer's bid. IMPORTANT INSTRUCTIONS: 1. N o tender f o r less than $1,000 will be considered, and each $1,000 (maturity value). A separate tender must be executed f o r each bid. tender must be f o r an even multiple 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 m e m ber 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 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 c o m p a n y . 4. If the language of this tender is changed Treasury, is material, the tender may be disregarded. Payment TENTB-707-a by credit through * Price in any respect, which, in the opinion of the Secretary of the War Loan Deposit Account will not be permitted. must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (OVER) FEDERAL RESERVE BANK OF OAT YORK F i s c a l Agent of the United S t a t e s TREASURY DEPARTMENT WASHINGTON FOR RELEASE, MORNING NEWSPAPERS, Tuesday, January 1 8 , 1944. Press S e r v i c e The Secretary of the Treasury announced l a s t evening that the tenders f o r $1,000,000,000, or thereabouts, of 91~day Treasury b i l l s to be dated January 20 and to mature A p r i l 20, 1944, which were o f f e r e d on January 1 4 , were opened at the Federal Reserve Banks on January 1 7 . The d e t a i l s of t h i s i s s u e are as f o l l o w s ; Total applied f o r ~ 0 2 , 2 7 3 , 5 3 7 , 0 0 0 Total accepted • 0 1 7 , 1 3 0 , 0 0 0 (includes #59,463*000 entered on a f i x e d - p r i c e basis at 99o905 and accepted i n f u l l ) Average p r i c e - 99.905+ Equivalent r a t e of discount approx» 0.374$ per annum Range of accepted competitive b i d s : High - 99.925 Equivalent r a t e of discount approx. 0*291% per annum Low - 99.905 Equivalent r a t e of discount appro::. 0*3%% per annum (33 percent of the amount bid f o r a t the low p r i c e was accepted) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St* Louis Minneapolis Kansas C i t y Dallas San Francisco Total Applied f o r $ Total 74j340,000 1,443,962,000 66 152.,000 47,220^000 26^962,000 23>095*000 309*459.000 60^455'. 000 23*628,000 33^544,000 10;865,000 148,855., 000 $2,273,537,000 -oOo— Total Accepted $ 43*102,000 572 y 222,000 34*227,000 30,336,000 21,234*000 16,194,000 113,371^000 28 9 9559000 13*578-000 34,393,000 9,458,000 99,610,000 $1,017,180,000