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FEDERAL RESERVE BANK

OF NEW

YORK

Fiscal Agent of the United States

r Circular No. 2 9 8 0 1
I
July 27, 1945
j

Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Dated August 2, 1945

Maturing November 1, 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 NEWSPAPERS,
Friday, July 27, 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 August 2, 1945, and will mature November 1, 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, two o'clock p.m., Eastern
war time, Monday, July 30, 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 from 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. 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 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 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 August 2, 1945.
T h e income derived f r o m Treasury bills, whether interest o r 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 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 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 b y 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 b y 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 or otherwise disposed of, and such biljs 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 9riginal 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 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.

In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th
floor, 33 Liberty Street) New York 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, July 30, 1945. It is requested that tenders be submitted
on special form printed on reverse side and returned in special envelope enclosed herewith. 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 statement released for publication July 24, 1945, announcing
results after tenders were opened for Treasury bills dated July 26, 1945 maturing October 25, 1945)
Total applied f o r . . . .$2,046,886,000
Total accepted

$1,312,071,000 (includes $60,077,000
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: (excepting one
tender of $75,000)
Equivalent rate of discount
High
99.908
approx. 0.364% per annum
Equivalent rate of discount
Low
99.905
approx. 0.376% per annum
(60 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

Total
Applied for
$

32,570,000
1,501,114,000
37,208,000
15,313,000
11,522,000
4,920,000
304,067,000
21,805,000
3,437,000
34,745,000
10,055,000
70.130,000

$2,046,886,000

Total
Accepted
$

20,530,000
933,554,000
27,048,000
15,313,000
10,722,000
4,670,000
188,462,000
15,805,000
3,437,000
31,225,000
9,575,000
51,730,000

$1,312,071,000
(OVEH)

13R
IMPORTANT — 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.
No

T E N D E R FOR 91-DAY T R E A S U R Y
Dated August 2, 1945.

BILLS

Maturing November 1, 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 BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
July 27, 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 July
27, 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 August 2, 1945, and are to mature
on November 1, 1945.
This tender will be inserted in special envelope entitled "Tender

for Treasury

Name of Bidder_
£y_

bills."

(Please print)

(Official signature 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, Town or Village, P. O. No., and State)

Use a separate tender for each customer's bid.

IMPORTANT INSTRUCTIONS:
1. N o tender f o r less than $1,000 will b e considered, and each tender must
$1,000 (maturity v a l u e ) . A separate tender m u s t b e executed f o r each bid.

be f o r an even multiple

of

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 f o r m "
copartnership, by

— , a member of the

, a
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
Treasury, is material, the tender may be disregarded.

in

any

respect, which, in the opinion of

the

Secretary

of

the

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

TENTB-787-a


* Price

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

than
(ovhO

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