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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)