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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
T Circular No. 2885 -j
°
L January 5, 1945
J
P u b l i c Notice of Offering of $ 1 , 2 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 91-Day Treasury Bills
Dated January 11, 1945
Maturing April 12, 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.
FOR RELEASE, MORNING NEWSPAPERS,
Friday, January 5, 1945.
TREASURY DEPARTMENT
Washington
T h e Secretary o f the Treasury, by this public notice, invites tenders f o r $1,200,000,000, o r 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 January 11, 1945, and will mature April 12, 1945, when the face amount will be payable without interest.
T h e y will b e issued in bearer form only, and in denominations o f $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 t o the closing hour, two o'clock p.m., Eastern
w a r time, M o n d a y , January 8, 1945. 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 o n the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used. I t is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal Reserve Banks o r 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 b y payment of 2 percent of the
f a c e amount o f 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, f o l l o w i n g which
public announcement will be made by the Secretary of the Treasury of the amount and price range o f accepted bids. Those
submitting tenders will be advised o f the acceptance o r rejection thereof. The Secretary o f 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 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 January 11, 1945.
T h e income derived f r o m Treasury bills, whether interest o r gain f r o m 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 now o r hereafter enacted. The bills shall be subject to estate, inheritance, gift,
or other excise taxes, whether Federal o r State, but shall b e 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 of taxation the amount o f 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 )
of the Internal Revenue Code, as amended by Section 115 o f
the Revenue A c t o f 1941, the amount o f 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 f r o m consideration as capital
assets. A c c o r d i n g l y , the owner o f 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 o n original issue o r on subsequent
purchase, and the amount actually received either upon sale o r redemption at maturity during the taxable year f o r which
the return is made, as ordinary gain o r loss.
T r e a s u r y Department Circular N o . 418, as amended, and this notice, prescribe the terms o f 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 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 Y o r k 7, N. Y., or at the Buffalo Branch o f this bank (270 Main Street) Buffalo 5, N. Y.,
up to two o'clock p.m., Eastern war time, on Monday, January 8, 1945. 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
made in cash or other immediately available funds.
A L L A N SPROUL,
President.
(Extract from Treasury Department statement released for publication December 30, 1944, announcing
results after tenders were opened for Treasury bills dated January 4, 1945 maturing April 5, 1945)
T o t a l applied f o r
$2,464,903,000
T o t a l accepted
$1,204,847,000 (includes $51,393,000
entered o n a fixed - p r i c e basis at
99.905 and accepted in full)
A v e r a g e price . . . .
99.906
Equivalent rate o f discount
approx. 0.373% per annum
R a n g e of accepted competitive b i d s :
High
99.908
Low .
99.905
Equivalent rate o f discount
approx. 0.364% per annum
Equivalent rate o f discount
approx. 0.376% per annum
(26 percent o f the amount bid f o r at the l o w 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
Total
Accepted
$ 45,245,000
1,211,240,000
40,468,000
28,192,000
17,155,000
5,920,000
957,631,000
22,530,000
29,555,000
15,263,000
4,000,000
87,704,000
$
$2,464,903,000
$1,204,847,000
14,091,000
362,208,000
21,228,000
23,752,000
12,419,000
5,347,000
694,450,000
9.580,000
10,305,000
11,563,000
4,000,000
35,904,000
(OVER)
120
I M P O R T A N T — I f 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 January 11, 1945.
Maturing April 12, 1945.
Dated at
T o F E D E R A L R E S E R V E B A N K OF N E W Y O R K ,
Fiscal A g e n t of the United States.
COMPETITIVE
FIXED-PRICE BID
BID
Pursuant to the provisions of Treasury
Department Circular N o . 418, as amended, and
to the provisions of the public notice on
January 5, 1945, as issued by the Secretary
of the Treasury, the undersigned offers to pay
(Rate per 100)
Pursuant to the provisions of Treasury
Department Circular N o . 418, as amended, and to
the provisions of the public notice on January
5, 1945, as issued by 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 amount of
. . * f o r a total amount o f
$
$_
(maturity value)
o f the Treasury bills therein described, or f o r
any less amount that may be awarded, payment
therefor to be made at y o u r bank in cash or other
immediately available funds on the date stated
in the public notice.
(maturity value)
( N o t to e x c e e d $200,000)
of the Treasury bills therein described, payment
therefor to be made 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 Treasury bills f o r which tender is hereby made are to be dated January 11, 1945. and are to
mature on A p r i l 12, 1945.
This tender will be inserted
in special envelope
Name
of
entitled "Tender
for Treasury
Bidder.
(Please
By . . . .
bills.'
(Official signature
print)
required)
(Title)
Street A d d r e s s
(City, T o w n or Village, P.O. No., and State)
I f this t e n d e r is s u b m i t t e d f o r the a c c o u n t o f a c u s t o m e r , i n d i c a t e the c u s t o m e r ' s n a m e o n line b e l o w :
(Name of Customer)
'
(City.ToWn'oir'Vi'liage/P.O.'Xo", and State)
Use a separate tender f o r each customer's bid.
IMPORTANT
INSTRUCTIONS:
N o
te,nd^r
o , n™ ,
f o r I e s s t h a n S 1 - 0 0 0 w i I 1 be c o n s i d e r e d , a n d e a c h
$1,000 ( m a t u r i t y v a l u e ) . A s e p a r a t e t e n d e r m u s t b e e x e c u t e d f o r e a c h b i d .
2. If the p e r s o n m a k i n g the
a u t h o r i z e d to m a k e the tender, a n d the
r e s e n t a t i o n b y h i m that he has b e e n s o
ber o f the firm, w h o s h o u l d s i g n in the
tender
must
be
for
an
even
multiple
of
t e n d e r is a c o r p o r a t i o n , the t e n d e r s h o u l d be s i g n e d b y an o f f i c e r o f the c o r p o r a t i o n
s i g n i n g o f the t e n d e r b y an o f f i c e r o f the c o r p o r a t i o n w i l l b e c o n s t r u e d as a r e p a u t h o r i z e d . I f the t e n d e r is m a d e b y a p a r t n e r s h i p , it s h o u l d be s i g n e d b y a m e m form "
f a copartnership, by
a m e m b e r o f the firm."
3. T e n d e r s w i l l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k s a n d trust c o m p a n i e s a n d f r o m r e s p o n sible a n d r e c o g n i z e d d e a l e r s in i n v e s t m e n t s e c u r i t i e s . T e n d e r s f r o m o t h e r s m u s t be a c c o m p a n i e d by p a y m e n t o f
2 p e r c e n t o f the f a c e a m o u n t o f T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s the t e n d e r s are a c c o m p a n i e d b y an e x p r e s s g u a r a n t y
o f p a y m e n t by an i n c o r p o r a t e d b a n k o r trust c o m p a n y .
4. If the l a n g u a g e o f this t e n d e r is c h a n g e d
T r e a s u r y , is m a t e r i a l , the t e n d e r m a y be d i s r e g a r d e d .
in a n y r e s p e c t , w h i c h , in the o p i n i o n o f the S e c r e t a r y o f the
Payment by credit through War Loan Deposit Account trill not be
TENTB-758-a
permitted.
* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
( { j v e r )
@FedFRASER