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FEDERAL RESERVE BANK OF NEW
Fiscal Agent of the United States

YORK

r Circular No. 2801
L
May 19, 1944

J

Public Notice of Offering of $1,200,000,000, or thereabouts, of 91-Day Treasury Bills
Dated May 25, 1944

Maturing August 24, 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,
TREASURY DEPARTMENT
Friday, May 19, 1944.
Washington
The Secretary of the Treasury, by this public notice, invites tenders for $1,200,000,000, 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 M a y 25, 1944, and will mature August 24, 1944, when the face amount will be payable without interest.
T h e y 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, M a y 22, 1944. 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 from 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, 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 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 or completed at the Federal Reserve Bank in cash
or other immediately available funds on May 25, 1944.
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 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 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 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 117 ( 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 from consideration as capital
assets. A c c o r d i n g l y , 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 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 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 5, N. Y.,
up to two o'clock p.m., Eastern war time, on Monday, May 22, 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 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 released for publication May 16, 1944, announcing results
after tenders were opened for Treasury bills dated May 18, 1944 maturing Augiist 17, 1944)
T o t a l applied f o r

$2,169,935,000

$1,206,012,000 (includes $59,099,000
entered on a fixed-price basis at
99.905 and accepted in full)
A
•
T • I *
*
.
T discount
A v e r a g e price . . . .- ™NNC ,
99.905+ T
Equivalent rate of aapprox. 0.375 % per annum

Federal Reserve

Total accepted

Total

Total

Boston
New York
Philadelphia
Cleveland

Applied for
$ 37,915,000
1,506,080,000
40,046,000
22,395,000

Accepted
$
20,911,000
788,942,000
24,992,000
20 906 000

Range of accepted competitive b i d s :
TT-f
oo '
. . .
,
...
,
H l g h
E q m v a l e " \ ^ e of dlscount
"-910
approx. 0.356% per annum

Atlanta
Ch cago
St. Louis
Minneapolis

18,965,000
287,265,000
15 256 000
5,400,000

16,479,000
155,659,000
12 396,000
S.^OOO

Low

Kansas City
Dallas

34,635,000
18,465,000

27,719,000
13,263,000

99.905

Equivalent rate of discount
approx. 0.376% per annum

(48 percent of the amount bid f o r at the low price




was accepted)

District

Richmond

S a n

Francisco
T q t a l

45,858,000

38,110,000

137,655,000

81,235,000

$2,169,935,000

$1,206,012,000
(OVER)

11H
IMPORTANT—If it is desired to Lid 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 May 25, 1944.

Maturing August 24, 1944.
Dated at

To

FEDERAL RESERVE B A N K

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 No. 418, as amended, and
to the provisions of the public notice on
May 19, 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 May 19,
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.

$

(Not to exceed $100,000)

(maturity value)

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 May 25, 1944, and are to mature
on August 24, 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 Viilage, 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 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 by credit through War Loan Deposit Account will not be permitted.

TENTB-725-a


* Price 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 St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102