Full text of Federal Reserve Bank of New York Circulars : 2986. Public Notice of Offering of $1,300,000,000, or Thereabouts, of 91-Day Treasury Bills

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FEDERAL RESERVE BANK O F N E W YORK
Circular No. 2986
August 10, 1945 .

Fiscal Agent of the United States

Public Notice of Offering of

$1,300,000,000, or thereabouts, of 91-Day Treasury Bills

Dated August 16, 1945
To all Incorporated
Second
Federal

Banks
Reserve

and Trust Companies
District and Others

Maturing November 15, 1945

in the
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
F r i d a y , A u g u s t 10, 1945.

NEWSPAPERS,

TREASURY DEPARTMENT
Washington

T h e S e c r e t a r y o f the T r e a s u r y , b y 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 hxed-price bidding as hereinafter provided.
T h e bills o f this
series will be dated A u g u s t 16, 1945, and will mature N o v e m b e r 15, 1945, when the face amount will be payable without interest.
T h e y will be issued in bearer f o r m only, a n d in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
T e n d e r s will be received at Federal R e s e r v e Banks and Branches up to the closing hour, t w o o ' c l o c k p.m., Eastern
w a r time, M o n d a y , A u g u s t 13, 1945.
T e n d e r s will 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 o f $1,000, and the price o f f e r e d must be expressed o n the basis o f 100, with not m o r e than
three decimals, e. g., 99.925. F r a c t i o n s m a y 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 will be supplied b y Federal R e s e r v e Banks o r Branches on application t h e r e f o r .
Tenders
will be received
without
deposit
from
incorporated banks and trust companies and f r o m responsible and
r e c o g n i z e d dealers in investment securities.
T e n d e r s f r o m others must be accompanied by payment o f 2 percent o f the
f a c e a m o u n t o f T r e a s u r y bills applied f o r , unless the tenders are accompanied by an express guaranty o f payment by an
incorporated bank o r trust company.
I m m e d i a t e l y a f t e r the closing h o u r , tenders will 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 o f the T r e a s u r y o f the amount and price range o f accepted bids.
Those
submitting tenders will be advised o f the acceptance or rejection t h e r e o f .
T h e Secretary o f the T r e a s u r y expressly reserves
the right to accept o r r e j e c t any or all tenders, in w h o l e o r in part, and his action in any such respect shall be final.
Subject
to these reservations, tenders f o r $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 f u l l .
P a y m e n t o f accepted tenders at the prices o f f e r e d must be made or completed at the Federal R e s e r v e B a n k in cash
o r other immediately available f u n d s on A u g u s t 16, 1945.
T h e i n c o m e derived f r o m T r e a s u r y bills, whether interest or gain f r o m the sale or other disposition o f the bills, shall
not have any e x e m p t i o n , as such, and loss f r o m the sale or other disposition o f 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 to estate, inheritance, g i f t ,
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 o r hereafter imposed on the
principal o r interest thereof by a n y State, or any o f the possessions o f the United States, o r by any local taxing authority.
F o r purposes o f taxation the amount o f discount at w h i c h T r e a s u r y bills are originally sold by the United States shall be
c o n s i d e r e d to be interest. U n d e r Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue C o d e , as amended by Section 115 o f
the R e v e n u e A c t o f 1941, the amount o f discount at w h i c h bills issued hereunder are sold shall not be considered to accrue
until such bills shall be sold, redeemed o r o t h e r w i s e disposed o f , and such bills are excluded 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 o f T r e a s u r y bills ( o t h e r than life insurance c o m p a n i e s ) issued hereunder need include in
his i n c o m e t a x return o n l y the d i f f e r e n c e between the price paid f o r such bills, whether on original issue o r on subsequent
purchase, and the amount actually received either upon sale o r redemption at maturity d u r i n g 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.
Treasury Department
g o v e r n the conditions o f

Circular
N o . 418,
their issue.
Copies

as
of

amended, a n d this notice, prescribe the
the circular may be obtained f r o m any

terms o f the T r e a s u r y bills and
Federal R e s e r v e B a n k o r 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, August 13, 1945. It is requested that tenders be submitted
o n 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.
ALLAN

(Extract
from Treasury Department
results after tenders were opened for
Total

applied

Total

accepted

for

A v e r a g e price

$2,007,689,000

Equivalent rate o f discount
a p p r o x . 0 . 3 7 5 % per annum

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

99.908

Equivalent rate o f discount
a p p r o x . 0 . 3 6 4 % per annum

Low

99.905

Equivalent rate o f discount
a p p r o x . 0 . 3 7 6 % per annum

( 6 2 percent o f

the amount bid f o r at the l o w price
was accepted)




President.

statement released for publication August 7, 1945, announcing
Treasury bills dated August 9, 1945 maturing November 8, 1945)

$1,317,735,000 (includes $52,114,000
entered on a f i x e d - p r i c e basis at
99.905 and accepted in f u l l )
99.905+

SPROUL,

Federal

Reserve

Total

District

Applied
$

Philadelphia ...
Cleveland
Richmond
Atlanta
Chicago
St. L o u i s
Minneapolis ...
K a n s a s City ...
Dallas
San F r a n c i s c o

Total
for

15,215,000
1,460,652.000
40,757,000
22,145,000
15,297.000
9.925,000
301.072,000
12,925,000
12,690.000
13,976,000
13,665,000
89,370,000

$2,007,689,000

Accepted
$

10,237,000
937,918,000
31,257,000
19,750,000
11.497,000
9,925,000
192,677,000
10,113,000
8,890,000
12,076,000
11,005,000
62,390,000

.$1,317,735,000
(OVER)

13T
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 BILLS
Maturing November 15, 1945.

Dated August 16, 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
August 10, 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 August
10, 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

* for a total amount of

(Rate per 100)

$

$
(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 16, 1945, and are to mature
on November 15, 1945.
This tender will be inserted in special envelope
Name

of

By

entitled "Tender

for Treasury

Bidder..

bills."

(Please print)

(Official signature required)

(Title)

Street A d d r e s s
(City, T o w n or Village, P. O. No., and State)
If t h i s t e n d e r is s u b m i t t e d f o r t h e a c c o u n t o f a c u s t o m e r , i n d i c a t e t h e c u s t o m e r ' s n a m e o n l i n e b e l o w :

(City, T o w n or Village, P. O. No., and State)

(Name of Customer)
U s e a separate tender for each customer's

IMPORTANT

bid.

INSTRUCTIONS:

1. N o t e n d e r f o r l e s s t h a n $1,000 w i l l b e c o n s i d e r e d , a n d e a c h
$1,000 ( m a t u r i t y v a l u e ) . A s e p a r a t e t e n d e r m u s t be e x e c u t e d f o r e a c h b i d .

tender

must

be

for

an

even

multiple

of

2. If t h e p e r s o n m a k i n g t h e t e n d e r is a c o r p o r a t i o n , the t e n d e r s h o u l d b e s i g n e d b y an o f f i c e r o f t h e c o r p o r a t i o n a u t h o r i z e d t o m a k e t h e t e n d e r , a n d the s i g n i n g o f the t e n d e r b y an o f f i c e r o f the c o r p o r a t i o n w i l l b e c o n s t r u e d
a s a r e p r e s e n t a t i o n b y h i m that he h a s b e e n s o a u t h o r i z e d .
If t h e t e n d e r is m a d e b y a p a r t n e r s h i p , it s h o u l d b e
signed b y a m e m b e r of the
copartnership,

firm,

w h o should

sign

in t h e

form "

by

a
a m e m b e r of the

firm."

3. T e n d e r s w i l l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k s a n d trust c o m p a n i e s a n d f r o m r e s p o n s i b l e
a n d r e c o g n i z e d d e a l e r s in i n v e s t m e n t s e c u r i t i e s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n i e d b y p a y m e n t o f 2 p e r c e n t
o f t h e f a c e a m o u n t o f T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s the t e n d e r s are a c c o m p a n i e d b y an e x p r e s s g u a r a n t y o f
p a y m e n t b y an i n c o r p o r a t e d b a n k o r t r u s t c o m p a n y .
4. If t h e l a n g u a g e o f this t e n d e r is c h a n g e d in a n y r e s p e c t , w h i c h , in t h e o p i n i o n
T r e a s u r y , is m a t e r i a l , the t e n d e r m a y b e d i s r e g a r d e d .

Payment


TENTB-7S9-a


of

the Secretary of

the

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

Price

must be expressed
on the basis
Fractions
three decimal places.

of 100, with
may not be

not more
used.

than

(OVER)