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FEDERAL RESERVE BANK

OF NEW

YORK
r Circular No. 2 9 5 0 1
I
May 25, 1945 J

Fiscal A g e n t o f the U n i t e d States

Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Dated May 31, 1945

Maturing August 30, 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 the T r e a s u r y D e p a r t m e n t w i t h respect t o a n e w o f f e r i n g o f T r e a s u r y
bills p a y a b l e at maturity w i t h o u t interest t o be 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 f i x e d - p r i c e b i d d i n g .
FOR RELEASE, MORNING NEWSPAPERS,
Friday, M a y 25, 1945.

TREASURY DEPARTMENT
Washington

T h e 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 May 31, 1945, and will mature August 30, 1945, when the face amount will be payable without interest.
T h e y 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, t w o o'clock p.m., Eastern
war time, Monday, May 28, 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 f r o m incorporated banks and trust companies and f r o m responsible and
recognized dealers in investment securities. Tenders from others must be accompanied b y payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders are accompanied b y an express guaranty of payment b y 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 b y the Secretary of the Treasury of the amount and price range of accepted bids. T h o s e
submitting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves
the right to accept or reject any o r 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 o r 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
o r other immediately available funds on May 31, 1945.
T h e income derived from 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 o r other disposition of Treasury bills shall not have any special
treatment, as such, under Federal tax A c t s now o r hereafter enacted. T h e bills shall be subject to estate, inheritance, gift,
o r other excise taxes, whether Federal o r State, but shall be exempt f r o m all taxation now or hereafter imposed on the
principal or interest thereof by any State, o r 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 b y 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 o r otherwise disposed of, 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 for such bills, whether on original issue or on subseauent
purchase, and the amount actually received either upon sale o r redemption at maturity during the taxable year for which
the return is made, as ordinary gain o r loss.
Treasury Department Circular N o . 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 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 the Securities 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 the 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 , M a y 2 8 , 1945.
It is requested that tenders b e s u b m i t t e d
o n special f o r m p r i n t e d o n r e v e r s e side a n d r e t u r n e d in special e n v e l o p e e n c l o s e d h e r e w i t h . 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
results after tenders were opened for

statement
Treasury

T o t a l applied f o r ...$2,067,910,000
T o t a l accepted

A v e r a g e price

$1,313,084,000 (includes $50,991,000
entered on a fixed-price basis at
99.905 and accepted in full)
99.905+

Equivalent rate of discount
approx. 0.375% per annum

Range of accepted competitive bids:
High
99.910
Equivalent rate of discount
approx. 0.356% per annum
L

o w

99.905

Equivalent rate of discount
approx. 0.376% per annum

(59 percent of the amount bid for at the l o w price


was accepted)


released
for publication
bills dated May 24, 1945

May 22, 1945,
maturing
August
Total
Applied for

Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

announcing
23,
1945)

...

$

98,015,000
1,434,527,000
57,925,000
20,995,000
16,775,000
15,885,000
291,420,000
16,990.000
8.705,000
13,491,000
18,572,000
74,610,000

$2,067,910,000

Total
Accepted
$

60.746,000
886,894,000
41,402,000
19,355,000
14,725,000
12,605,000
180,167,000
11,865,000
6,245,000
11,933.000
17,137,000
50,010,000

$1,313,084,000
(<JVE»)

131

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 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.
N O -

TENDER FOR

91-DAY TREASURY

Dated May 31, 1945.

BILLS

Maturing August 30, 1945.

Dated at
T o

FEDERAL

RESERVE

BANK

OF N E W

YORK,

Fiscal Agent of the United States.
C O M P E T I T I V E 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
May 25, 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 May
25, 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

(Rate 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.

(maturity value)

(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 May 31, 1945, and are to mature
on August 30, 1945.
This tender will be inserted in special envelope entitled "Tender
Name of Bidder.
By

for Treasury bills."
(Please print)

(Official signature required)

(Tide)

Street Address
(City. Town 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 :

(Name of Customer)

(City, Town or Village, P. O. NcT~and State)

U s e 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 ot
$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
erf 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
Treasury, is material, the tender may be disregarded.

Payment

by credit through

War Loan Deposit

Account

will not be

the Secretary of

the

permitted.

* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
TENTB-778-a




(OVER)

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