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FEDERAL RESERVE BANK OF NEW YORK Circular No. 2874 . December 1, 1944 . Fiscal Agent of the United States Public Notice of Offering of $1,200,000,000, or thereabouts, of 91-Day Treasury Bills Dated December 7, 1944 Maturing March 8, 1945 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. Your attention is called to the fact that tenders f o r $200,000 or less from any one bidder at 99.905 will be accepted in full. FOR RELEASE, MORNING Friday, December 1, 1944. entered on a fixed-price basis TREASURY DEPARTMENT Washington NEWSPAPERS, The Secretary of the Treasury, by this public notice, invites tenders f o r $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 December 7, 1944, and will mature March 8, 1945, when the face amount will be payable without interest. They will be issued in bearer f o r m 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, December 4, 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 f r o m 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 f o r , 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 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 f o r $200,000 or less f r o m any one bidder at 99.905 entered on a fixed-price basis will be accepted in full. Payment o f accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on December 7, 1944. T h e income derived f r o m Treasury bills, whether interest or gain f r o m 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 f r o m 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. 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 o f , and such bills are excluded f r o m 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 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 No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be obtained f r o m 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, December 4, 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 November 28, 1944, announcing results after tenders were opened for Treasury bills dated November 30, 1944 maturing March 1, 1945) Total applied f o r $2,061,528,000 Total accepted $1,202,980,000 (includes $63,971,000 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 99.908 Equivalent rate of discount approx. 0.364% per annum Low 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) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTAL Total Applied for $ 39,655,000 1,350,678,000 43.480,000 23,830,000 32,260,000 11,830,000 320,457.000 18,495,000 16,540,000 19,189,000 15,699,000 169,415,000 $2,061,528,000 Total Acccpted $ 29,738,000 747.267.000 26,09(3,000 20,834,000 26,644,000 11,689,000 180>50,000 12,620,000 11,840,000 17,040,000 13,913,000 104,555,000 $1,202,980,000 . ; - I " C • }T''' / > "J (OVER) ftrgr" To Banks and Other Bidders: Your attention is called to the fact that tenders f o r $200,000 o r less from any one bidder at 99.905 will be accepted in full. FEDERAL 12J RESERVE entered on a BANK fixed-price OF N E W basis YORK 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 vn both paragraphs on one form. A separate tender must be used for each bid. No. TENDER FOR 91 -DAY TREASURY BILLS Dated December 7, 1944. Maturing March 8, 1945. Dated at. T o 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 December 1, 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 December 1, 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 §200,000) 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 December 7, 1944, and are to mature on March 8, 1945. This tender will be inserted in special envelope entitled "Tender for Treasury bills." Name of Bidder (Please print) By (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 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 b e considered, and each tender m u s t b e f o r an $1,000 (maturity v a l u e ) . A separate tender must be executed f o r each bid. even multiple 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 by him that he has been s o 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 " a copartnership, b y — , a m e m b e r of the firm." 3. Tenders will be received without deposit f r o m incorporated 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. T e n d e r s f r o m others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 percent of the face a m o u n t of T r e a s u r y bills applied f o r , unless the tenders are a c c o m p a n i e d b y 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, in 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/ rENTB-753-a Federal Reserve Bank of St. Louis * Price must be expressed on the basis of 100, with three decimal places. Fractions may not be not more used. than (OVER)