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FEDERAL RESERVE BANK

OF NEW

YORK
r Circular No. 2833 T
L August 30, 1944 J

Fiscal A g e n t of the United States

Public Notice of Offering of $1,200,000,000, or thereabouts, of 91-Day Treasury Bills
Dated September 7, 1944

Maturing December 7, 1944

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others Concerned:
F o l l o w i n g is the text of a notice today made public by the Treasury Department with respect to a n e w offering of Treasury
bills p a y a b l e at maturity without interest to be sold on a discount basis under c o m p e t i t i v e and fixed-price bidding.
FOR RELEASE, MORNING NEWSPAPERS,
TREASURY DEPARTMENT
Wednesday, August 30, 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 September 7, 1944, and will mature December 7, 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
war time, Friday, September 1, 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 or 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 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 from 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 September 7, 1944.
The 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 from 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 now 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.
For 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 Act 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. Accordingly, 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 or on subsequent
purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 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.
I n accordance with the above announcement tenders will be received at the Securities Department of this bank (9th
f l o o r , 33 L i b e r t y Street) N e w Y o r k 7, N . Y . , o r at the B u f f a l o Branch o f this bank ( 2 7 0 M a i n Street) Buffalo 5, N . Y . ,
up t o t w o o ' c l o c k p.m., Eastern w a r time, on F r i d a y , September 1, 1944. It is requested that tenders be submitted
on special f o r m printed o n 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.
ALLAN

President.

SPROUL,

results
(Extract
from Treasury Department
statement
released for publication August 29, 1944, announcing
30, 1944)
after tenders were opened for Treasury
bills dated August 31, 1944 maturing November
Total applied for

$1,831,554,000

Total accepted

$1,210,125,000 (includes $56,965,000
entered on a fixed-price basis at
99.905 and accepted in full)

Average price

99.905+

Equivalent rate of discount
approx. 0.375% per annum

Range of accepted competitive bids :
High

99.910

Equivalent rate of discount
approx. 0.356% per annum
Low
99.905
Equivalent rate of discount
approx. 0.376% per annum
(62 percent of the amount bid for at the low price
was accepted)




Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for
$

19,430,000
1,258,179,000
27,880,000
39,405,000
20,245,000
14,810,000
307,068,000
7,705,000
5,152,000
19,722,000
8,705,000
103,253,000

$1,831,554,000

Total
Accepted
$

15,136,000
788,107,000
19,558,000
33,591,000
16,138,000
14,610,000
211,821,000
6,755,000
5,147,000
17,570,000
7,835,000
73,857,000

$1,210,125,000
(OVER)

11W
IMPORTANT—Attention is invited to the fact that tenders for this issue must reach the Federal Reserve Bank of
New York or its Buffalo Branch not later than 2 p.m., Eastern war time, Friday, September 1, 1944.
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 fixed-price 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 September 7, 1944.

Maturing December 7, 1944.
Dated at

T o FEDERAL RESERVE B A N K OF N E W Y O R K ,

1944

Fiscal A g e n t of the United States.
COMPETITIVE

FIXED-PRICE

BID

Pursuant to the p r o v i s i o n s of TreasuryD e p a r t m e n t Circular N o . 418, as amended, and
t o the p r o v i s i o n s of the public notice on
A u g u s t 30, 1944, as issued b y the Secretary
o f the T r e a s u r y , the undersigned offers to pay
* f o r a total a m o u n t o f

(Rate per 100)

$
(maturity v a l u e )
o f the T r e a s u r y bills therein described, or f o r
any less a m o u n t that m a y b e awarded, p a y m e n t
t h e r e f o r to be m a d e at y o u r bank in cash o r other
immediately available f u n d s o n the date stated
in the public notice.

BID

Pursuant to the provisions of

Treasury

Department Circular N o . 418, as amended, and to
the provisions of the public notice on A u g u s t 30,
1944, as issued b y the Secretary of the T r e a s ury, the undersigned offers to pay a

fixed-price

of 99.905 (rate per 100) f o r a total a m o u n t o f
$

(maturity v a l u e )

(Not to exceed $100,000)

of the Treasury bills therein described, payment
t h e r e f o r to be m a d e at y o u r bank in cash o r other
immediately available funds on the date stated
in the public notice.

T h e T r e a s u r y bills f o r which tender is h e r e b y made are to be dated September 7, 1944, and are to
mature on D e c e m b e r 7, 1944.
This tender

will be inserted

in special

envelope

entitled

"Tender

Name of Bidder.
By....

for Treasury

bills.

(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


TENTB-740-a


by credit

through

War Loan Deposit

Account

will not be

permitted.

* 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