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FEDERAL RESERVE BANK O F NEW YORK Fiscal A g e n t o f the United States r Circular No. 2 8 6 7 1 L November 17. 1944 J Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated November 24, 1944 Maturing February 23, 1945 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 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, November 17, 1944. TREASURY DEPARTMENT Washington The Secretary of the Treasury, by this public notice, invites tenders for $1,300,000,000, 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 November 24, 1944, and will mature February 23, 1945, 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, Monday, November 20, 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 November 24, 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 ol 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. In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th floor, 33 Liberty Street) N e w Y o r k 7, N . Y . , or at the Buffalo Branch o f this bank ( 2 7 0 Main Street) Buffalo 5, N . Y . , up to t w o o'clock p.m., Eastern war time, on M o n d a y , N o v e m b e r 20, 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. _ 4 A L L A N SPROUL, President. (Extract from Treasury results after tenders were Department opened for statement released for publication November 14, 1944, Treasury bills dated November 16, 1944 maturing February Total applied for . . . $1,932,075,000 Total accepted Average price . $1,300,604,000 (includes $52,926,000 entered on a fixed-price basis at 99.905 and accepted in full) 99.905-f Equivalent rate of'discount approx. 0.375% per annum Range of accepted competitive bids: Equivalent rate of discount 99.910 approx. 0.356% per annum High 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) Total Applied for Federal Reserve District $ Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTAT. announcing 15, 1945) ... 53,315,000 1,289,472,000 31,270,000 22,505,000 29,224,000 17,610,000 330,735,000 33.491.000 9.270,000 15.673,000 15,415.000 84,095,000 $1,932,075,000 Total Acceptrd $ 35,037,000 847,551,000 21,314,000 22,315,000 27,020,000 14,966,000 212,935,000 25,701,000 6,990,000 13,127,000 11.596,000 62.052,000 $1,300,604,000 (OVER ) 12H I M P O R T A N T — I t will b e n o t e d that this issue will b e dated Friday, November 24, 194*, owing to the fact that Thursday, November 23, will be Thanksgiving Day, and it will mature on Friday, February 23, 1945, owing to the fact that Thursday, February 22, 1945, will be Washington's Birthday. 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 M a t u r i n g F e b r u a r y 23, 1945. D a t e d N o v e m b e r 24, 1944. D a t e d at T o FEDERAL RESERVE B A N K OF N E W Fiscal A g e n t o f the U n i t e d COMPETITIVE 1944 YORK, States. BID FIXED-PRICE Pursuant t o the p r o v i s i o n s o f T r e a s u r y D e p a r t m e n t Circular N o . 418, as amended, and to the p r o v i s i o n s of the public notice on N o v e m b e r 17, 1944, as issued b y the Secretary o f the T r e a s u r y , the undersigned o f f e r s to pay * f o r a total a m o u n t o f (Rate per 100) $ o f the T r e a s u r y bills any less a m o u n t that t h e r e f o r t o be m a d e at immediately available in the public notice. (maturity value) therein described, o r f o r m a y be a w a r d e d , p a y m e n t y o u r bank in cash o r other f u n d s o n the date stated Pursuant to BID the provisions of Treasury D e p a r t m e n t Circular N o . 418, as amended, and to the p r o v i s i o n s o f the public notice on November 17, 1944, as issued b y the Secretary of the T r e a s u r y , the undersigned o f f e r s to pay a of 99.905 $ fixed-price (rate per 1 0 0 ) f o r a total a m o u n t (maturity (Not to exceed $100,000) o f the T r e a s u r y bills therein described, of value) payment t h e r e f o r to be m a d e at y o u r bank in cash or other immediately available f u n d s on the date stated in the public notice. T h e T r e a s u r y bills f o r w h i c h tender is hereby m a d e are to be dated N o v e m b e r 24, 1944, and are to mature o n F e b r u a r y 2 3 , 1945. This tender will be inserted in special envelope entitled "Tender Name of Bidder_ By_ for Treasury bills." (Please print) (Official signature required) (Title) 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: (City, Town or Village. P. O. No., and State) (Name of Customer) Use a separate tender for each customer's bid. IMPORTANT INSTRUCTIONS: 1. N o 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 " copartnership, by , a 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-751-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) -J
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