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FEDERAL RESERVE BANK OF N E W

YORK

F i s c a l A g e n t of t h e U n i t e d States

r Circular No. 2903 "I
L February 16, 1945 J

Public Notice of Offering of $1,300,000,000, or thereabouts, of 90-Day Treasury Bills
Dated February 23,1945

Maturing May 24, 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 of a notice today m a d e p u b l i c b y the T r e a s u r y D e p a r t m e n t with respect to a n e w o f f e r i n g of T r e a s u r y
bills p a y a b l e at m a t u r i t y w i t h o u t interest t o b e s o l d o n a d i s c o u n t basis u n d e r c o m p e t i t i v e a n d fixed-price b i d d i n g .
FOR RELEASE, MORNING NEWSPAPERS,
Friday, February 16, 1945.

TREASURY DEPARTMENT
Washington
The Secretary of the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 90-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 February 23, 1945, and will mature May 24, 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, February 19, 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 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 $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 23, 1945.
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.
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 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 a c c o r d a n c e with 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 will b e received at the Securities D e p a r t m e n t of this bank ( 9 t h
floor, 33 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 this 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 t i m e , o n M o n d a y , F e b r u a r y 19, 1945. It is r e q u e s t e d that tenders b e s u b m i t t e d
o n special f o r m printed o n reverse side and returned in special e n v e l o p e e n c l o s e d 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 SPROUL,
(Extract
from Treasury
Department
statement
released for publication
February
10, 1945,
results after tenders were opened for Treasury
bills dated February
15, 1945 maturing May
Total applied for

$1,891,825,000

Total accepted

$1,300,100,000 (includes $50,292,000
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

99.911

Low

99.905

Equivalent rate of discount
approx. 0.352% per annum

Equivalent rate of discount
approx. 0.376% per annum
(64 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

President.

announcing
17,
1945)

Total
Applied for
$

36,575,000
1,355,828,000
26,195,000
21,870,000
24,405,000
5,675,000
287,291,000
17,340,000
3,011,000
14,674,000
9,911,000
89,050,000

$1,891,825,000

Total
Accepted
$

24,443,000
914,972,000
18,635,000
21,770,000
21,885,000
5,675,000
191,333,000
12,604,000
2,996,000
13,106,000
8,111,000
64,570,000

$1,300,100,000
(OVER)

12U
IMPORTANT—It will be noted that the offering is f o r 90-day Treasury bills which will mature on Thursday, May 24,
1945, but will be dated February 23, 1945, owing to the fact that Thursday, February 22, 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 90-DAY TREASURY BILLS
Dated February 23, 1945.

Maturing M a y 24, 1945.
D a t e d at

T o

F E D E R A L RESERVE B A N K OF N E W

1945

YORK,

F i s c a l A g e n t o f t h e U n i t e d States.
COMPETITIVE

FIXED-PRICE

BID

P u r s u a n t t o the p r o v i s i o n s o f

Pursuant to the provisions of Treasury
D e p a r t m e n t C i r c u l a r N o . 418, as a m e n d e d , and
t o t h e p r o v i s i o n s o f the p u b l i c n o t i c e o n
F e b r u a r y 16, 1945, as issued by the S e c r e t a r y
of the Treasury, the undersigned offers to pay
(Rate per 100)

BID
Treasury

D e p a r t m e n t C i r c u l a r N o . 4 1 8 , as a m e n d e d , a n d to
the p r o v i s i o n s of the p u b l i c notice o n

February-

16, 1945, as issued b y the Secretary of the T r e a s u r y , the u n d e r s i g n e d o f f e r s t o p a y a

* f o r a total a m o u n t o f

fixed-price

o f 99.905 ( r a t e p e r 1 0 0 ) f o r a t o t a l a m o u n t of
$.

$
(maturity value)
o f t h e T r e a s u r y b i l l s therein d e s c r i b e d , o r f o r
a n y less a m o u n t that m a y b e a w a r d e d , p a y m e n t
t h e r e f o r t o b e m a d e at y o u r b a n k in c a s h o r o t h e r
i m m e d i a t e l y a v a i l a b l e f u n d s o n t h e d a t e stated
in t h e p u b l i c n o t i c e .

(maturity value)

(Not to e x c e e d $200,000)

of t h e T r e a s u r y bills t h e r e i n d e s c r i b e d , p a y m e n t
t h e r e f o r t o b e m a d e at y o u r b a n k in cash o r o t h e r
i m m e d i a t e l y a v a i l a b l e f u n d s o n the date stated
in the p u b l i c n o t i c e .

T h e T r e a s u r y bills f o r w h i c h tender is h e r e b y m a d e are to b e dated F e b r u a r y 23, 1945, and are to mature
o n M a y 24, 1945.
This

tender

will be inserted

in special

envelope

entitled

"Tender

for

Treasury

bills."

Name of Bidder.
(Please

By....

(Official signature

print)

required)

(Title)

Street Address
(City, T o w n 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, T o w n or V i l l a g e , P.O. No., and State)

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 "
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 by credit through War Loan Deposit Account will not be permitted.

TENTB-764-a


* 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