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F E D E R A L R E S E R V E BANK O F N E W
Fiscal

Agent

of

the United

YORK
r Circular No. 2974 "1
I
July 13, 1945
J

States

Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Dated July 19, 1945
To all Incorporated
Banks and Trust Companies
Second Federal Reserve District and Others

Maturing October 18, 1945

in the
Concerned:

F o l l o w i n g is t h e 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
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 to 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 NEWSPAPERS,
F r i d a y , July 13, 1945.

TREASURY DEPARTMENT
Washington

T h e Secretary o f the T r e a s u r y , by this public notice, invites tenders f o r $1,300,000,000, or thereabouts, o f 91-day T r e a s u r y
bills, to be issued on a discount basis under competitive and lixed-price b i d d i n g as hereinafter p r o v i d e d . T h e bills o f this
series will be dated July 19, 1945, and will mature O c t o b e r 18, 1945, when the f a c e amount will be payable without interest.
T h e y will be issued in bearer f o r m only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity v a l u e ) .
T e n d e r s will be received at Federal R e s e r v e Banks and Branches up t o the c l o s i n g hour, t w o o ' c l o c k p.m., Eastern
w a r time, M o n d a y , July 16, 1945. Tenders w i l l not be received at the T r e a s u r y Department, W a s h i n g t o n . E a c h 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 m o r e than
three decimals, e. g., 99.925. F r a c t i o n s may not be used. It is urged that tenders be made on the printed f o r m s and f o r w a r d e d
in the special envelopes w h i c h w i l l be supplied by Federal R e s e r v e Banks o r Branches o n application therefor.
T e n d e r s 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. T e n d e r s f r o m others must be a c c o m p a n i e d by payment o f 2 percent of the
face amount of T r e a s u r y bills applied f o r , unless the tenders are a c c o m p a n i e d by an express guaranty of payment by an
incorporated bank or trust company.
Immediately after the c l o s i n g hour, tenders w i l l be opened at the Federal R e s e r v e Banks and Branches, f o l l o w i n g w h i c h
public announcement will be made by the Secretary of the T r e a s u r y o f the amount and price range of accepted bids. T h o s e
submitting tenders will be advised o f the acceptance or rejection thereof. T h e S e c r e t a r y of the T r e a s u r y e x p r e s s l y reserves
the right to accept o r reject any o r all tenders, in w h o l e 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 m u s t be made or completed at the Federal R e s e r v e Bank in cash
or other immediately available funds o n July 19, 1945.
T h e income derived f r o m T r e a s u r y bills, whether interest o r gain f r o m the sale o r 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 T r e a s u r y bills shall not have any special
treatment, as such, under Federal t a x A c t s n o w o r hereafter enacted. T h e bills shall be subject t o estate, inheritance, gift,
o r other e x c i s e taxes, whether Federal o r State, but shall be exempt f r o m all taxation n o w or hereafter imposed on the
principal o r interest thereof by any State, or any of the possessions of the United States, o r by any local t a x i n g authority.
F o r purposes of taxation the amount of discount at which T r e a s u r y bills are originally sold by the U n i t e d States shall be
considered to be interest. U n d e r Sections 42 and 117 ( a ) (1) o f the Internal R e v e n u e Code, as amended by Section 115 of
the R e v e n u e A c t of 1941, the amount o f discount at which bills issued hereunder are sold shall not be cipnsidered to accrue
until such bills shall be sold, redeemed or otherwise disposed of, and such bills are e x c l u d e d f r o m consideration as capital
assets. A c c o r d i n g l y , the o w n e r of T r e a s u r y bills (other than life insurance c o m p a n i e s ) issued hereunder need include in
his income tax return only the difference between the price paid f o r such bills, whether o n o r i g i n a l issue o r on subsequent
purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year f o r w h i c h
the return is made, as o r d i n a r y gain o r loss.
T r e a s u r y Department Circular N o . 418, as amended, and this notice, prescribe the terms o f the T r e a s u r y bills and
govern the conditions o f their issue. Copies of the circular m a y be obtained f r o m any Federal R e s e r v e Bank o r 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 will 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 t i m e , o n M o n d a y , J u l y 16, 1 9 4 5 .
I t is r e q u e s t e d t h a t t e n d e r s 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,
(Extract
results

from
after

T o t a l applied f o r
T o t a l accepted

A v e r a g e price

Treasury

tenders

were

Department
opened

for

statement
Treasury

....$2,232,925,000
$1,310,619,000 (includes $57,927,000
entered on a fixed-price basis at
99.905 and accepted in f u l l )
99.905+

Equivalent rate o f discount
a p p r o x . 0.375% per annum

R a n g e o f accepted competitive b i d s :
High
Low

99.907
99.905

Equivalent rate o f discount
a p p r o x . 0.368% per annum

Equivalent rate o f discount
approx. 0.376% per annum
(52 percent of the amount bid f o r at the l o w price
w a s accepted)




released
bills

dated

for
July

publication
12,

1945

July

10,

maturing

Federal
Reserve
District

1945,
October

President.

announcing
11,

1945)

Total
Applied for

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
K a n s a s City
Dallas
San F r a n c i s c o

...

$

22,720,000
1,571,638,000
42,565,000
20,941,000
27,851,000
21,080,000
318,875,000
9,885,000
22,535,000
17,805,000
13,415,000
143,615,000

Total

...

$2,232,925,000

Total
Accepted
$

14,992,000
895,318,000
29,989,000
15,949,000
26,891,000
16,030,000
180,899,000
7,005,000
12,935,000
14,541,000
12,455,000
83,615,000

$1,310,619,000
(OVER)

13P
I M P O R T A N T — I f it is desired to b i d o n a competitive basis, fill in rate per 100 and
maturity value in paragraph headed " C o m p e t i t i v e B i d " . If it is desired to b i d o n 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-DAY TREASURY BILLS
Dated July 19, 1945.

Maturing October 18, 1945.
Dated at

To

FEDERAL RESERVE B A N K

OF N E W

1945

YORK,

Fiscal Agent of the United States.
COMPETITIVE

BID

FIXED-PRICE

Pursuant to the provisions of Treasury
Department Circular N o . 418, as amended, and
to the provisions of the public notice on
July 13, 1945, as issued by the Secretary of
the Treasury, the undersigned offers to pay
(Rate per 100)

BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on July
13, 1945, as issued by the Secretary of the Treasury, the undersigned offers to pay a fixed-price
of 99.905 (rate per 100) f o r a total amount of

. . . . * f o r a total amount of

$

$
(maturity value)
of the Treasury bills therein described, or f o r
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 y o u r bank in cash o r other
immediately available funds on the date stated
in the public notice.

T h e Treasury bills f o r which tender is hereby made are to be dated July 19, 1945, and are to mature
on October 18, 1945.
This tender will be inserted, in special envelope

entitled "Tender

for Treasury

Name of B i d d e r
By

bills."

(Please print)

(Official signature required)

(Title)

Street A d d r e s s

(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. No., and State)

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
$1,000 (maturity v a l u e ) . A separate tender must be e x e c u t e d f o r each bid.

an even multiple

of

2. If the person m a k i n g the tender is a c o r p o r a t i o n , the tender should be signed by an officer of the c o r p o r a t i o n
authorized to make the tender, and the signing of the tender by an officer of the c o r p o r a t i o n will be construed as a representation by him that he has been s o authorized. If the tender is m a d e by a partnership, it should be signed by a m e m ber o f the firm, w h o should sign in the f o r m "
, a copartnership, by
a m e m b e r of the firm."
3. T e n d e r s w i l l 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. T e n d e r s f r o m others must be a c c o m p a n i e d by payment of
2 percent of the face amount of T r e a s u r y bills applied f o r , unless the tenders are a c c o m p a n i e d by an express guaranty
o f payment by an incorporated bank or trust c o m p a n y .
4. If the language o f this tender is changed in
T r e a s u r y , is material, the tender m a y be disregarded.


TENTB-785-a


Payment

by credit
* Price

through

any respect, w h i c h , in the opinion of the Secretary o f

War Loan Deposit

Account

will not be

must be expressed on the basis of 100, with not more
three decimal places.
Fractions may not be used.

the

permitted.

than
(OVER)

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