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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States

f

Circular No. 3 6 "
01 1
L February IS, 1946 J

Public Notice of Offering of $1,300,000,000, or thereabouts, o f 91-Day Treasury Bills
Dated

F eb ru a ry

21, 1946

Maturing

M ay

23, 1946

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 T reasury 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.
FO R RELEASE, M ORNING N EW SPA PERS,
Friday, February 15, 1946.

TRE ASU RY D EPARTM EN T
Washington

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 February 21, 1946, and will mature May 23, 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, Monday, February 18, 1946. 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
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 February 21, 1946.
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 o f 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) o f the Internal Revenue Code, as amended by Section 115 of
the Revenue Act o f 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 o f the Treasury bills and
govern the conditions o f 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 o f this bank (9th
floor, 33 Liberty Street) New Y ork 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 Standard Time, on Monday, February 18, 1946. 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 imme­
diately available funds.
A l l a n S pro u l , President.
( Extract from Treasury Department statement released for publication February 12, 1946, announcing
results after tenders were opened for Treasury bills dated February 14, 1946 maturing May 16, 1946)
Total applied for . . . .$1,987,760,000
Total accepted

Average p r i c e ___

$1,309,003,000 (includes $51,482,000
entered on a fixed-price basis at
99.905 and accepted in full)
99.905+

Equivalent rate o f discount
approx. 0.375% per annum

Range of accepted competitive bids :
H i g h .......................

99.908

Equivalent rate of discount
approx. 0.364% per annum

L o w ......................... 99.905

Equivalent rate o f discount
approx. 0.376% per annum

(62 percent of the amount'bid for at the low price
was accepted)




Federal Reserve
District
Boston ............................
New York ..................
Philadelphia .............
Cleveland ...................
R ich m on d....................
Atlanta ........................
Chicago ......................
St. Louis ....................
Minneapolis ...............
Kansas City ...............
Dallas ..........................
San Francisco ...........
T ota l

........

Total
Accepted

Total
Applied for
$

19,525,000
1,493,098,000
39,975,000
23,765,000
17,735,000
23,445,000
274,134,000
18,305,000
3,300,000
12,963,000
10,225,000
51,290,000

$1,987 60 00
,7 ,0

$

12,913,000
967,188,000
29,221,000
17,989,000
15,303,000
17,745,000
173,320,000
12,947,000
2,920,000
11,063,000
9,264,000
39,130,000

$1,3 ,0 , 0
09 03 00

14U
IM PORTAN T— If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed “ Compe titive Bid” . If it is desired to bid on a fixedprice basis, fill in only the maturity value in paragraph headed ‘ ‘Fixed-Price B id” .

DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid.
N o..........................

TE N D E R FOR 91-DAY TREASU RY BILLS
Dated February 21, 1946.

Maturing May 23, 1946.
Dated at ..............

To

F

ederal

R

eserve

B

a n k

of

N

ew

Y

ork

1946

,

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
February 15, 1946, 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 o f the public notice on February
15, 1946, as issued by the Secretary of the Treas­
ury, 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 February 21, 1946, and aré to mature
011 May 23, 1946.

This tender will be inserted in special envelope entitled “ Tender for Treasury bills” .
Name of Bidder.
(Please print)

By

...
(Official signature required)

(T itle)

Street Address .....................................
(C ity, Town or V illage, 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)

(C ity, Town or V illage, P.O. No., and State)

Use a separate tender for each customer’s bid.

IM PO RTAN T 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 rep­
resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem­
ber of the firm, who should sign in the form “ ....................................................................................................... a copartnership, by
............................................................................................................. , a member of the firm.”
3. Tenders will be received without deposit from incorporated banks and trust companies and from respon­
sible 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 by credit through War Loan Deposit Account will not be permitted.


TENTB-816-a


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

F E D E R A L R E SE R V E BANK
O F NEW YORK
Fiscal Agent of the United States

February 15, 1946.

REDEMPTION OF UNITED STATES SAYINGS BONDS
Important Changes in Procedure for Handling Bonds
Paid by Banks and Other Financial Institutions

To Incorporated Banks and Trust Companies
and Other Financial Institutions in the Second
Federal Reserve District, except those in the territory
assigned to the Buffalo Branch, Qualified to Make
Payments in Connection with the Redemption o f
United States Savings Bonds:

The present procedure relating to payment of United States Savings Bonds of Series A, B,
C, D and E by qualified paying agents in tlie Second Federal Reserve District, outside the
territory assigned to the Buffalo Branch, will be modified effective March 1, 1946. The changes
in procedure, which should be observed carefully by each paying agent, are summarized below:
New Form of Transmittal Letter
A new form of transmittal letter (Form Sav. B. 37) should he used in connection with all shipments
of paid Savings Bonds made to us on or after March 1, 1946. Supplies of the present transmittal letter
(Form Sav. B. 28.1) in your possession on that date should be destroyed.
A completed specimen copy of the new form of transmittal letter is enclosed. A supply of blank
forms for your use is being forwarded under separate cover. The following important features of the
new form should be carefully observed:
1. Not more than 200 pieces should be listed on a single letter. It is permissible, however, to
include more than one letter in a single shipment when more than 200 paid bonds are on hand.
When a shipment contains more than one letter, each letter should be totaled separately; the totals
of two or more letters should not be combined.
2. Bonds paid by you in one month should not be intermingled, or scheduled on the same
letter, with bonds paid in a different month. W e reserve the right to return to the paying agent
for correction any transmittal letter on which bonds paid in different months are scheduled.
3. Paid bonds should be listed on the transmittal letter in the order of the redemption value
paid by you, in the manner indicated by the enclosed specimen form.
4. The section entitled “ Recapitulation ” should be completed and totaled.
5. The manner in which you wish to receive payment from us should be indicated under the
caption “ Payment Instructions” .
6. F or the purpose of identification, you should impress your payment stamp in the two
spaces provided.
7. Although the new form of transmittal letter makes no provision for listing the serial
numbers of paid bonds forwarded for redemption, you should continue to maintain a microfilm or
other record of the serial numbers of bonds included in each letter for use in event of loss or
destruction of the shipment.




(OVER)

New Form of "Paid” Stamp
W e are sending you under separate cover a supply of a new form of “ P aid” stamp for use
commencing March 1, 1946. This stamp contains your name and a new code number which has been
assigned to you for purposes of identification in connection with the payment of Savings Bonds. W ill
you please destroy your old “ P aid ” stamps on March 1, but retain the dating type supplied ivith the

old stamps for use in the new stamps on and after that date.

Change in Advice of Credit
Member banks and banks maintaining nonmember clearing accounts with us which have requested
credits to their reserve accounts or nonmember clearing accounts for paid Savings Bonds submitted by
them for redemption, have heretofore received advice of such credits on Form B K 129, our regular form
of advice of credits for cash items forwarded by member banks and others. Commencing March 1, 1946,
advice of credits for paid Savings Bonds submitted for redemption will no longer be included on
Form BK 129; a separate advice o f such credits will be furnished.
When a paying agent requests payment by credit to an account maintained with us by a corre­
spondent of the paying agent, advice o f such credit will be sent both to the paying agent and to the
correspondent.

These changes of procedure are designed to facilitate the handling of paid bonds and it is
important, therefore, that each paying agent receive notice thereof and supplies of the new
transmittal letter forms and the new paying stamps. Will you please acknowledge receipt of
this letter by signing the enclosed card and returning it to us, and communicate with us promptly
if you do not receive either the forms or the stamp within one week after receiving this letter.




A

llan

S p r o u t ,,

President.

8av B37

Savings Bond Redemption Dept.

F E D E R A L RESERVE B A N K
OF NEW Y O R K

TRANSMITTAL LETTER
PAID SAVINGS BONDS OF SERIES A, B, C, D AND E

IN S T R U C T IO N S T O P A Y IN G A G E N T S
D o n o t s ch e d u le o n th is fo r m b o n d s p a id in d ifferen t m o n th s . U se a sepa ra te fo r m fo r ea ch m o n th . D o n o t s ch ed u le m ore
th a n 200 b o n d s o n o n e tr a n s m itta l letter.
I t is e x tre m e ly im p o r t a n t t h a t p a y in g a g en ts m a in ta in in th e ir files a re co rd o f th e serial n u m b e r s o f th e savings b o n d s
in c lu d e d in e a c h s h ip m e n t.
F orw a rd th e b o n d s to g e th e r w ith th e o rig in a l co p y o f th is tr a n s m itta l le tte r t o th e F ederal R eserve B a n k o f New Y o rk ,
S a vin gs B o n d R e d e m p t io n D e p a rtm e n t, N ew Y o r k 7, N ew Y o rk . N o o th e r m a tte r s h o u ld b e in clu d e d in s u ch sh ip m e n t.

F ederal R

eserve

B ank

of

N ew Y

ork,

Savings Bond Redemption Department,
New Y ork 7, New York.

Date..._............

We are forwarding herewith for settlement..................k®_®................ United States Savings Bonds paid by us during the
(Number of Pieces)

month of............M&XP.&...1.9.4.6................. in the amount of $..........i.?.».Q.55..48.........as scheduled below.
(Total Amount Paid)

SCHEDULE OF PAID BONDS FORWARDED HEREW ITH

{Do Not Schedule m ore than 200 Bonds on One Transmittal L etter )
$10 Bonds
Units

2

2

Unit
Payment

$25 Bonds
Total
Payment

Units

15.00

Totals

25
15
18
14
5
4
6
3

15.00

7.50

90

Unit
Payment

18.75
18.8 7
19.00
19.12
19.25
19.50
19.75
20.00

468.75
283.05
342.00
267.68
96.25
78.00
118.50
60.00

Total
Payment

300.00

Units

70

2
2
2

750.00
755.00
760.00

375.00
377.50
380.00

Totals

Units

825.00
679.50
456.00
573.75
115.50

4
3
2
2

2649.7 5

11

$1,000 Bonds

Total
Payment

Unit
Payment

Total
Payment

37 . 50
37.7 5
38.00
38.2 5
3 8. 50

22
18
12
15
3

1714.2 3

Totals

Unit
Payment

Units

$100 Bonds

Units

3
2
2

750.00
755.00
760.00

Total
Payment

75.00
75.50
76.00
76.50

300.00
226.50
152.00
153.00

Totals

831.50

R e c a p it u l a t io n
Denominations Only

Total
Payment

Unit
Payment

Unit
Payment

Pieces

2250.00
1510.0 0
1520.0 0

2

| Mat. Value

10

20

90

25

225 0

70

50

3500

11

100

1100

2

2

150.00

Total
Payment

$500 Bonds

$200 Bonds
Units

Unit
Payment

$50 Bonds

200

400

6
7
2

Totals

300.00

6

Totals

2265.00

7

Totals

5280.00

These Spaces for the Use of the Federal Reserve Bank
Sequence Total (x).............................
U /C Charge D a te .............................
Amount Paid......................................
Sequence Code........................ ..........
Total P ie ce s ................................. (x)

Item Number................
Code Number................
Payment M onth..........
Date of Letter...............
County Number.»........

Sequence Range

Code Number Total (.

188

$

500
1,000
Totals

3000
7000
17270

IM P R E S S P A Y M E N T S T A M P
IN T H IS SPAC E

PAID $ .............................
1125
F i r s t N a t . Bank
U.S.A.
69
MAR
4
1946
BY.......................................
The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.

IM P R E S S P A Y M E N T S T A M P
IN T H IS SPACE_________

P A Y M E N T IN STR U C T IO N S
Issue check to our order in the amount of

Credit our Reserve Account in the amount of

$...............................

-

$........13.^05.5.48,

Credit:

PAID $ .............................
1125
F i r s t N a t . Bank
U.S.A .
69
MAH
4
1946
BY.......................................

........................ for our account the amount of $................................
Name of Bank




The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.




From

Receipt of Federal Reserve Bank of New York
printed letter dated February 15, 1946, entitled “ Redemption
of United States Savings Bonds” is hereby acknowledged.
Signature of Officer

Title
Date

Federal Reserve Bank of New York,
Savings Bond Redemption Department,




Federal Reserve P. O. Station,
New York 7, N. Y.

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