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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [ ^ y 0 ] Public Notice of Offering of $1,200,000,000, or thereabouts, of 91-Day Treasury Bills Dated July 27, 1944 Maturing October 26,1944 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, July 21, 1944. Washington T h e Secretary of the Treasury, by this public notice, invites tenders f o r $1,200,000,000, o r thereabouts, o f 91-day Treasury . bills, t o be issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this series will be dated July 27, 1944, and will mature October 26, 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, July 24, 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 o f 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 b e received without deposit f r o m incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied b y 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 o f the Treasury of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance o r 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 o r completed at the Federal Reserve Bank in cash or other immediately available funds on July 27, 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 o r other disposition o f Treasury bills shall not have any special treatment, as such, under Federal tax Acts n o w o r hereafter enacted. The bills shall be subject to estate, inheritance, gift, o r other excise taxes, whether Federal o r State, but shall be exempt from all taxation now o r hereafter imposed o n the principal o r interest thereof by any State, o r any o f the possessions of the United States, o r by any local taxing authority. F o r purposes o f taxation the amount of discount at which Treasury bills are originally sold by the United States shall be considered t o be interest. Under Sections 42 and 117 ( a ) ( 1 ) o f 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 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 of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for 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 for 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 o f 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 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 t o two o'clock p.m., Eastern war time, on Monday, July 24, 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 July 18, 1944, announcing results after tenders ivere opened for Treasury bills dated July 20,1944 maturing October 19,1944) T o t a l applied f o r T o t a l accepted Av e r a g e p n• A ce . . . . $2,074,323,000 $1,206,577,000 (includes $59,701,000 entered on a fixed-price basis at 99.905 and accepted in full) • i . of r discount j. 99.905+, r> Equivalent rate approx. 0.375% per annum Federal Reserve __District Boston New York Philadelphia Cleveland Richmond Range o f accepted competitive b i d s : H,Vh oooin r^ • 4 , . , f .. H l g h " - 9 1 0 Equivale"t,J^e o f dlscount approx. 0.356% per annum Atlanta Chicago St. Louis Minneapolis Low Kansas City Dallas 99.905 Equivalent rate of discount approx. 0.376% per annum (53 percent of the amount bid f o r at the low price was accepted) S a n Francisco T q t a l Total Applied for $ 61,770,000 1,256,112,000 64,735,000 35,595,000 Total _Accepted_ $ 35,314,000 692,512,000 45,794,000 30,703,000 20,786,000 16,274,000 67,240,000 349,340,000 40,405 000 13,582,000 42,789,000 190,638,000 24 237,000 11,222,000 29,533,000 15,650,000 26,989,000 13,770,000 119,575,000 76,335,000 $2,074,323,000 $1,206,577,000 (OVER) iiq 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 July 27, 1944. Maturing October 26, 1944. Dated at T o F E D E R A L RESERVE B A N K OF N E W Y O R K , 19AA 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 July 21, 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 July 21, 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 July 27, 1944, and are to mature on October 26, 1944. This tender will be inserted in special envelope entitled "Tender for Treasury bills." Name of Bidder. By.... (Please print) (Title) (Official signature required) 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. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). A separate tender must be executed for each bid. 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, who should sign in the form " a copartnership, by a member of the firm." 3. 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 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-734-a permitted. * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (OVER)
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