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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States

Circular No. 2 9 2 7
April 6. 1 9 4 5

Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Dated April 12, 1945

Maturing July 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
Friday, April 6, 1945.

NEWSPAPERS,

TREASURY DEPARTMENT
Washington

The Secretary of the Treasury, by this public notice, invites tenders f o r $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 o f this
series will be dated April 12, 1945, and will mature July 12, 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, April 9, 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 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 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 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 or completed at the Federal Reserve Bank in cash
or other immediately available funds on April 12, 1945.
The 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 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 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 of their issue.
Copies of 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) N e w Y o r k 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, April 9, 1945. It is requested that i nd s be submitted
on special form printed on reverse side and returned in special envelope enclosed herewith. Pay,n *nt for the Treasury
bills cannot be made by credit through the War Loan Deposit Account.
Payment must be made in cash or othe'r immediately available funds.
ALLAN

SPROUL,

President.

(Extract
from Treasury Department
statement released for publication April 3, 1945.
announcing
results after tenders were opened for Treasury bills dated April 5, 1945 maturing July 5, 1945)
Total applied f o r

$1,842,559,000

Total accepted

$1,316,815,000 (includes $45,724,000
entered on a fixed-price basis at
99.905 and accepted in f u l l )

Average price

99.905+

Equivalent rate of discount
approx. 0.376% 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

(69 perccnt of the amount bid f o r at the low price
,
was accepted)




Federal Reserve

Total

District
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Applied
$

Total
Accepted

for

15,060,000
1,449,485,000
25,220,000
15,230,000
12,885,000
3,925.000
263.341,000
7.935,000
2.785.000
10,158,000
3,360,000
33,175,000

$1,842,559,000

$

11,309,000
1,019.081.000
18,648.000
14,486.000
11,645.000
3.925.000
186,477,000
6,540.000
2.785.000
10.034.000
3.360.000
28,525,000

$1,316,815,000
(OVER)

13 B
I M P O R T A N T — If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed "Competitive B i d " . If it is desired to bid on a fixedprice basis, fill in only the maturity value in paragraph headed "Fixed-Price B i d " .
DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid.
No.

TENDER FOR 91 - D A Y TREASURY BILLS
D a t e d A p r i l 12, 1 9 4 5 .

M a t u r i n g J u l y 12,

1945.

Dated at
To

FEDERAL RESERVE B A N K

OF N E W

.1945

YORK,

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

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 T r e a s u r y
D e p a r t m e n t Circular N o . 4 1 8 , as a m e n d e d , and
to
the p r o v i s i o n s o f the
public notice o n
A p r i l 6,
1945, 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 t o 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
a n y less a m o u n t that
t h e r e f o r to be m a d e at
immediately available
in the public notice.
T h e Treasury
o n July 12, 1945. '

(maturity value)
therein d e s c r i b e d , 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

bills f o r

w h i c h tender

This tender will be inserted

Pursuant

Treasury

the

provisions

of

the

public

notice

on

April

6, 1945, as issued by the S e c r e t a r y # o f the T r e a s u r y , the undersigned o f f e r s to pay a
of 99.905
$

( r a t e per 1 0 0 )

fixed-price

f o r a total a m o u n t

of

(maturity v a l u e )

(Not to exceed $200,000)

o f the T r e a s u r y bills therein described, p a y m e n t
t h e r e f o r to be m a d e at y o u r bank in cash o r o t h e r
immediately

available f u n d s o n the date

stated

in the public notice.

is h e r e b y m a d e are to be dated A p r i l 12, 1945, and are to mature
"

in special envelope

entitled "Tender

Name of Bidder.
By

to the p r o v i s i o n s o f

D e p a r t m e n t Circular N o . 4 1 8 , as a m e n d e d , and to

for Treasury

bills."

(Please print)

(Official signature required)

(Title)

(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:

(City, T o w n 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-771-a


by credit

through

War

Loan Deposit

Account

will not be

* Price must be expressed on the basis of 1 0 0 , unth not more than
three decimal places. Fractions may not be used.

permitted.
,
(OVER)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102