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FEDERAL RESERVE BANK O F NEW

YORK
[Circular No. 3 0 4 1 1
L December 18. 1 9 4 5 J

Fiscal A g e n t of the United States

Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Maturing March 28, 1946

Dated December 27, 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 text o f a notice today made public by the Treasury Department with respect to a new offering o f T r e a s ury bills payable at maturity without interest to be sold o n a discount basis under competitive and fixed-price bidding.
TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, December 18, 1945.

The 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. The bills of this
series will be dated December 27, 1945, and will mature March 28, 1946, when the face amount will be payable without interest.
They 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
Standard Time, Friday, December 21, 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 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.
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. Those
submitting tenders will be advised of the acceptance or rejection thereof. The 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 from any one bidder at 99.905 entered on a fixed-price basis will be accepted
m 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 December 27, 1945.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not have any exemption* as such, and loss from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift,
or other excise taxes, whether Federal or State, but shall be exempt from 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 by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury bills are originally sold by 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 Act 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 bills are excluded from 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 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 No. 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 accordance with the a b o v e announcement tenders will be received at the Securities Department o f this bank (9th
floor, 33 Liberty Street) N e w Y o r k 7, N . Y . , o r at the B u f f a l o Branch o f this bank ( 2 7 0 M a i n Street) Buffalo 5, N . Y . ,
up to t w o o ' c l o c k p.m., Eastern Standard T i m e , o n F r i d a y , December 21, 1945.

It is requested that tenders be submitted

o n special f o r m printed o n reverse side and returned in special envelope enclosed herewith.
bills cannot
mediately

be made

available

by credit

through

the War

Loan

Deposit

Account.

Payment

Payment

for

the

Treasury

must be made in cash or other

im-

funds.




ALLAN

SPROUL,

President.

(OVER)

Tenders f o r this issue m u s t reach the Federal Reserve B a n k o f N e w Y o r k or its B u f f a l o B r a n c h not
later than 2 p.m., Eastern Standard time, Friday,

December

21,

1945.

14M
I M P O R T A N T — I f it is desired t o bid o n a c o m p e t i t i v e basis, fill in rate p e r 100 and
m a t u r i t y v a l u e in p a r a g r a p h headed " C o m p e t i t i v e B i d " . I f it is desired t o b i d on a fixedprice basis, fill in only the m a t u r i t y v a l u e in p a r a g r a p h headed " F i x e d - P r i c e Bid".
DO NOT fill in both paragraphs
on one form. A separate tender must be used for each bid.
No.

TENDER FOR 91 - D A Y TREASURY BILLS
Dated December 27, 1945.

M a t u r i n g M a r c h 2 8 , 1946.
Dated at.

To

F E D E R A L R E S E R V E B A N K OF N E W

.1945

YORK,

Fiscal A g e n t o f the United States.
COMPETITIVE

FIXED-PRICE BID

BID

Pursuant

to the provisions

of

Treasury

Pursuant to the provisions o f Treasury
Department Circular N o . 418, as amended, and
to the provisions o f
the public notice
on
D e c e m b e r 18, 1945, as issued by the Secretary o f
the Treasury, the undersigned o f f e r s to pay

the provisions of the public notice on December

* f o r a total amount o f

o f 99.905 (rate per 1 0 0 ) f o r a total amount o f

(Rate per 100)

Department Circular N o . 418, as amended, and to
18, 1945, as issued by the Secretary o f the T r e a s ury, the undersigned o f f e r s to pay a
$...

$
(maturity value)
o f the Treasury bills therein described, o r f o r
any less amount that may be awarded, payment
t h e r e f o r to be made at your bank in cash o r other
immediately available f u n d s o n the date stated
in the public notice.

fixed-price

(maturity value)

(Not to exceed 5200,000)

o f the Treasury bills therein described, payment
therefor to be made at y o u r bank in cash o r other
immediately available f u n d s

o n the date stated

in the public notice.

T h e Treasury bills f o r which tender is hereby made are to be dated December 27, 1945, and are to mature
o n M a r c h 28, 1946.
This

tender

will bd inserted

in special

envelope

entitled

"Tender

Name of Bidder.
By

for

Treasury

bills."

(Please print)

(Official signature required)

(Title)

Street Address
(City, T o w n or Village, P. O. No., a n d State)

If this tender is submitted for the account of a customer, indicate the customer's name on. line below:

(Name of Customer)

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

Use a separate tender for each customer's bid.
IMPORTANT

INSTRUCTIONS:

1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of
$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
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 in any respect, which, in the opinion of the Secretary of the
Treasury, is material, the tender may be disregarded.
Payment


http://fraser.stlouisfed.org/
TENTB-808-a
Federal Reserve Bank of St. Louis

by

credit

through

War

Loan

Deposit

Account

will not be

permitted.

* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
(OVER)

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