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FEDERAL RESERVE BANK O F N E W YORK f Circular N o . 2896 "1 L J a n u a r y 26. 1945 J F i s c a l A g e n t of t h e U n i t e d States Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated February 1,1945 Maturing May 3, 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 t e x t o f a n o t i c e t o d a y m a d e p u b l i c b y t h e T r e a s u r y D e p a r t m e n t w i t h r e s p e c t t o a n e w o f f e r i n g o f T r e a s u r y b i l l s p a y a b l e at m a t u r i t y w i t h o u t i n t e r e s t t o b e s o l d o n a d i s c o u n t b a s i s u n d e r c o m p e t i t i v e a n d f i x e d - p r i c e b i d d i n g . FOR RELEASE, MORNING Friday, January 26, 1945. NEWSPAPERS, 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. T h e bills of this series will be dated' February 1, 1945, and will mature M a y 3, 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, January 29, 1945. 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 f r o m 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 t o these reservations, tenders f o r $200,000 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 February 1, 1945. T h e income derived f r o m 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 n o w 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. 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- o f 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 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 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 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 o f their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. I n a c c o r d a n c e w i t h the a b o v e a n n o u n c e m e n t t e n d e r s w i l l b e r e c e i v e d at t h e S e c u r i t i e s D e p a r t m e n t o f this b a n k ( 9 t h floor, 3 3 L i b e r t y S t r e e t ) N e w Y o r k 7, N . Y . , o r at t h e B u f f a l o B r a n c h o f t h i s b a n k ( 2 7 0 M a i n S t r e e t ) B u f f a l o 5, N . Y . , u p t o t w o o ' c l o c k p.m., E a s t e r n w a r time, o n M o n d a y , J a n u a r y 29, 1945. It is requested that t e n d e r s b e s u b m i t t e d o n s p e c i a l f o r m p r i n t e d o n r e v e r s e s i d e a n d r e t u r n e d i n s p e c i a l e n v e l o p e e n c l o s e d h e r e w i t h . 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, (Extract from Treasury Department results after tenders were opened for statement Treasury T o t a l , applied f o r $2,195,034,000 Total accepted $1,315,666,000 (includes $64,081,000 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 b i d s : High 99.910 Equivalent rate of discount approx. 0.356% per annum Low 99.905 Equivalent rate of discount approx. 0.376% per annum (54 percent of the amount bid f o r at the low price was accepted) released for publication bills dated January 25, January 23, 1945, 1945 maturing April Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTAL President. announcing 26, 1945) Total Applied for $ - 42,980,000 1,473,780,000 61,850,000 19,160,000 25,505,000 15,210,000 303,947,000 24,019,000 3,800,000 19,413,000 13,202,000 192,168,000 $2,195,034,000 Total Accepted $ 25,408,000 854,722 000 41,196,000 16,465,000 21,825,000 10,958,000 177,048,000 16,015,000 3,790000 17,389 000 11,822 000 119,028,000 $1,315,666,000 (OVER) 12R 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. T E N D E R FOR 91-DAY TREASURY BILLS Dated February 1, 1945. Maturing May 3, 1945, Dated at T o FEDERAL RESERVE BANK OF N E W 1945 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 January 26, 1945, 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 January 26, 1945, 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 * for a total amount of ( R a t e per 100) $ $ (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 e x c e e d $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 February 1, 1945, and are to mature on May 3, 1945. This tender will be inserted in special envelope entitled "Tender Name of Bidder By for Treasury (Please (Official signature bills." print) required) (Title) Street Address (City, T o w n or Village, P.O. No., and State) If this tender is submitted f o r the account of a customer, indicate the customer's name on line b e l o w : ( N a m e of C u s t o m e r ) ( C i t y , T o w n or V i l l a g e , P . O . N o . , a n d S t a t e ) Use a separate tender f o r each customer's bid. IMPORTANT INSTRUCTIONS: 1. N o tender f o r less than $1,000 will be considered, and each tender must be f o r an even multiple of $1,000 (maturity value). A separate tender must be executed f o r 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 o f 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 o f the firm, w h o should sign in the form " a copartnership, by a member of the firm." 3. Tenders will be received without deposit f r o m incorporated banks and trust companies and from 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 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 m a y be disregarded. Payment by credit through War Loan Deposit Account will not be permitted. TENTB-761-a * Price must be expressed on the basis of 100, with not more three decimal places. Fractions may not be used. than (OVER) FEDERAL RESERVE OF NEW BANK YORK January 27, 1945. To all Banking Second Institutions Federal Reserve in the District: We are pleased to announce that Hunterdon County Trust Company, Calif on, New Jersey, has become a member of the Federal Reserve System effective January 27, 1945. ALLAN SPROUL, President.
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