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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal A g e n t o f the United States
[Circular No. 27801
L March 24, 1944 J

Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills
Dated March 30, 1944

Maturing June 29, 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 t o be sold, on a discount basis under competitive and fixed-price bidding.
FOR RELEASE, MORNING
F r i d a y , M a r c h 24, 1944.

TREASURY DEPARTMENT
Washington

NEWSPAPERS,

T h e S e c r e t a r y o f the T r e a s u r y , b y this public notice, invites tenders f o r $1,000,000,000, o r thereabouts, o f 91-day T r e a s u r y
bills, t o b e issued o n a discount basis under competitive a n d fixed-price bidding as hereinafter provided.
T h e bills o f this
series will b e dated M a r c h 30, 1944, and will mature June 29, 1944, when the f a c e amount will b e payable without interest.
T h e y will b e issued in bearer f o r m only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
T e n d e r s will b e received at Federal R e s e r v e Banks and Branches u p t o the closing hour, t w o o ' c l o c k p.m., Eastern
w a r time, M o n d a y , M a r c h 27, 1944.
T e n d e r s will not b e received at the T r e a s u r y Department, W a s h i n g t o n .
Each tender
must b e f o r an even multiple o f $1,000, and the price o f f e r e d must be expressed o n the basis o f 100, with not m o r e than
three decimals, e. g . , 99.925. Fractions m a y not b e used. I t is urged that tenders b e made on the printed f o r m s and f o r w a r d e d
in t h e special envelopes w h i c h will b e supplied b y Federal R e s e r v e Banks o r Branches o n application t h e r e f o r .
T e n d e r s will
b e received
without deposit f r o m i n c o r p o r a t e d 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.
Tenders
f r o m others must be accompanied b y payment o f 2 percent o f the
f a c e amount o f T r e a s u r y bills applied f o r , unless the tenders a r e accompanied b y an express guaranty o f payment b y an
incorporated bank o r trust company.
Immediately a f t e r the closing hour, tenders will b e opened at the Federal R e s e r v e Banks and Branches, f o l l o w i n g w h i c h
public announcement will b e made b y the S e c r e t a r y o f t h e T r e a s u r y o f the amount and price range o f accepted bids.
Those
submitting tenders will b e advised o f the acceptance o r r e j e c t i o n thereof.
T h e Secretary o f the T r e a s u r y expressly reserves
the right t o accept o r r e j e c t any o r all tenders, in w h o l e o r in part, and his action in any such respect shall b e final. S u b j e c t
t o these reservations, tenders f o r $100,000 o r less f r o m any o n e bidder at 99.905 entered o n a fixed-price1 basis will b e accepted
in full.
P a y m e n t o f accepted tenders at the prices o f f e r e d m u s t b e made o r completed at the Federal R e s e r v e B a n k in cash
o r other immediately available f u n d s o n M a r c h 30, 1944.
T h e income derived f r o m T r e a s u r y bills, whether interest o r gain f r o m the sale o r other disposition o f the bills, shall
not have any e x e m p t i o n , as such, and loss f r o m the sale o r other disposition o f T r e a s u r y bills shall n o t have any special
treatment, as such, under Federal t a x A c t s n o w o r h e r e a f t e r enacted.
T h e bills shall b e subject t o estate, inheritance, g i f t ,
o r other e x c i s e taxes, whether Federal o r State, b u t shall b e e x e m p t f r o m all taxation n o w o r h e r e a f t e r imposed o n the
principal o r interest thereof b y any State, o r any o f the possessions o f the United States, o r b y any local taxing authority.
F o r purposes o f taxation the amount o f discount at w h i c h T r e a s u r y bills a r e originally sold b y the United States shall b e
considered t o b e interest.
U n d e r Sections 4 2 and 117 ( a ) ( 1 ) o f the Internal Revenue Code, a s amended b y Section 115 o f
the R e v e n u e A c t o f 1941, the amount o f discount at w h i c h bills issued hereunder a r e sold shall n o t be considered t o accrue
until such bills shall b e sold, redeemed o r otherwise disposed o f , and such bills a r e excluded f r o m consideration as capital
assets.
A c c o r d i n g l y , the o w n e r o f T r e a s u r y bills ( o t h e r than l i f e insurance c o m p a n i e s ) issued hereunder need include in
his i n c o m e t a x return only the difference between the price paid f o r such bills, whether o n original issue o r on subsequent
purchase, and t h e amount actually received either upon sale o r redemption at maturity during the taxable y e a r f o r w h i c h
the return is made, as o r d i n a r y gain o r loss.
T r e a s u r y Department Circular N o . 418, as amended, a n d this notice, prescribe the terms o f the T r e a s u r y bills and
g o v e r n the conditions o f their issue.
Copies o f the circular m a y b e obtained f r o m a n y Federal R e s e r v e B a n k 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) N e w Y o r k 7, N . Y . , o r at the Buffalo Branch o f this Bank (270 Main Street) Buffalo 5, N . Y „
up to two o'clock p.m.. Eastern waiJ> time, on Monday, M a r c h 27, 1944. It is requested that tenders be submitted
on special f o r m 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.
(Extract

from Treasury Department
statement
after tenders were opened for Treasury

T o t a l applied f o r

$2,116,736,000

T o t a l accepted

1,001.105,000 (includes $63,966,000
entered o n a
fixed-price
basis at
99.905 and accepted in f u l l )

A v e r a g e price

99.905-f

Equivalent rate o f discount
a p p r o x . 0 . 3 7 5 % per annum

R a n g e o f A c c e p t e d competitive b i d s :
High

99.910

Equivalent rate o f discount
a p p r o x . 0 . 3 5 6 % per annum

Low

99.905

Equivalent rate o f discount
a p p r o x . 0 . 3 7 6 % per annum

(41 percent o f the amount bid f o r at the l o w price
was a c c e p t e d )




released for publication March 21, 1944, announcing
bills dated March 23, 1944 maturing June 22, 1944)
Federal Reserve
District
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San F r a n c i s c o
TOTAL

results

Total
Applied for
$

43,780,000
1,363,515,000
41,521.000
52,460(.000
13,235,000
12,005,000
344,251,000
50,423,000
14.600.000
27,220.000
26.091,000
127,635,000

$2,116,736,000

Total
Accepted
$

21.124,000
588,582,000
21.815,000
34.451,000
10,256,000
11.331,000
161,416,000
23,549,000
8,700.000
21,733,000
25,973,000
72.175,000

$1,001,105,000
(OVER)

10Z
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
Maturing June 29, 1944.

Dated March 30, 1944.

Dated at.
T o

FEDERAL

RESERVE

BANK

OF N E W

.1944

YORK,

Fiscal Agent of the United States.
COMPETITIVE BID

FIXED-PRICE BID

Pursuant to the provisions of Treasury
Department Circular X o . 418, as amended, and
to the provisions of the public notice on
March 24, 1944, as issued by the Secretary
of the Treasury, the undersigned offers to pay

Pursuant to the provisions of Treasury
Department Circular X o . 418, as amended, and to
the provisions of the public notice on March 24,
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
$
(maturity value)

(Kate 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.

(Not to exceed 9100.000)

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 March 30, 1944, and are-to mature
on June 29, 1944.
This tender will be inserted

in special envelope
Name

of

By

entitled "Tender

Bidder.

for Treasury

bills."

(Please print)

(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 f o r the account of a customer, indicate the customer's n a m e on line b e l o w :

(Name of Customer)

(City, Town or Village, P.O. No., and State)

U s e a separate tender f o r each c u s t o m e r ' 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 b y an officer of the c o r poration authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed
as a representation b y him that he has been so authorized.
If the tender is m a d e 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 "
copartnership,

by

a
a m e m b e r of the

firm."

3.
Tenders will be received without deposit from incorporated banks and trust c o m p a n i e s 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 a c c o m p a n i e d b y payment of 2 percent
of the face a m o u n t of Treasury bills applied for, unless the tenders are accompanied by 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, ia the opinion of the Secretary
T r e a s u r y , is material, the tender m a y be disregarded.

of

the

Payment by credit through War Loan Deposit Account will not be permitted.

http://fraser.stlouisfed.org/
TENTB-717-a
Federal Reserve Bank of St. Louis

* Price

must be expressed on the basis of 100, •with not more
three decimal places. Fractions may not be used.

than

(OTEJt)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102