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FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N IT E D S T A T E S Dallas, Texas, July 2, 1947 D ISC O N TIN U AN CE OF F IX E D -P R IC E T R E A S U R Y B ILL TE N D E R S To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: Effective with the offering of Treasury bills to be dated July 10, 1947, the acceptance of tenders at the fixed-price of 99.905 up to the amount of $200,000 will be discontinued by the Treasury Department. In lieu of fixed-price tenders, non competitive tenders from any one bidder for $200,000 or less, will be accepted in full at the average price (in three decimals) of the accepted competitive bids. The enclosed official circular contains complete details re garding the bidding procedure. Yours very truly, R. R. G ILBER T President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE BANK OF DALLAS F I S C A L A G E N T O F T H E U N IT E D S T A T E S Dallas, Texas, July 3, 1947 To Be Dated July 10, 1947 N E W O FFER IN G — T R E A S U R Y BILLS 91 D A Y S $1,300,000,000 Maturing October 9, 1947 To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of a new issue of Treasury Bills: “ The Secretary of the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of ninety-one-day Treasury bills, for cash and in exchange for Treasury bills maturing July 10, 1947, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated July 10, 1947, and will mature October 9, 1947, 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, July 7, 1947. Tenders will not be received at the Treasury Depart ment, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders 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 per cent 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, non-competitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve bank on July 10, 1947, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 10, 1947. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. “ 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 considera tion 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 Treas ury 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 this bank and its branches at El Paso, Houston and San Antonio, up to one o’clock p. m., Monday, July 7, 1947, Central Standard Time. Yours very truly, R. R. G ILBERT President LAST PREVIOUS OFFERING OF TREASURY BILLS 91 Days Dated July 3, 1947 Due October 2, 1947 Total applied for................................................................................................ $1,841,142,000 Total accepted ...................... :.................... .................... .................... ............ 1,302,515,000* Range of accepted bids: High . . . 99.907 Equivalent rate approximately 0.368 percent per annum. Low . . . 99.905 Equivalent rate approximately 0.376 percent per annum. Average . . 99.905 plus Equivalent rate approximately 0.376 percent per annum. (70 percent of the amount bid for at the low price was accepted.) *Includes $13,707,000 entered on a fixed price basis of 99.905 and accepted in full. (Over) BID PRICES ON THE BASIS OF 100 CALCULATED TO YIELD RATES SHOWN IN FIRST AND LAST COLUMNS— 360 DAY BASIS Dis count Rates 89 days 90 days 91 days 92 days 93 days Dis count Rates .01 .02 .03 .04 .05 99.998 99.995 99.993 99.990 99.988 99.998 99.995 99.993 99.990 99.988 99.997 99.995 99.992 99.990 99.987 99.997 99.995 99.992 99.990 99.987 99.997 99.995 99.992 99.990 99.987 .01 .02 .03 .04 .05 .06 .07 .08 .09 .10 99.985 99.983 99.980 99.978 99.975 99.985 99.983 99.980 99.978 99.975 99.985 99.982 99.980 99.977 99.975 99.985 99.982 99.980 99.977 99.974 99.985 99.982 99.979 99.977 99.974 .06 .07 .08 .09 .10 .11 .12 .13 .14 .15 99.973 99.970 99.968 99.965 99.963 99.973 99.970 99.968 99.965 99.963 99.972 99.970 99.967 99.965 99.962 99.972 99.969 99.967 99.964 99.962 99.972 99.969 99.966 99.964 99.961 .11 .12 .13 .14 .15 .16 .17 .18 .19 .20 99.960 99.958 99.956 99.953 99.951 99.960 99.958 99.955 99.953 99.950 99.960 99.957 99.955 99.952 99.949 99.959 99.957 99.954 99.951 99.949 99.959 99.956 99.954 99.951 99.948 .16 .17 .18 .19 .20 .21 .22 .23 .24 .25 99.948 99.946 99.943 99.941 99.938 99.948 99.945 99.943 99.940 99.938 99.947 99.944 99.942 99.939 99.937 99.946 99.944 99.941 99.939 99.936 99.946 99.943 99.941 99.938 99.935 .21 .22 .23 .24 .25 .26 .27 .28 .29 .30 99.936 99.933 99.931 99.928 99.926 99.935 99.933 99.930 99.928 99.925 99.934 99.932 99.929 99.927 99.924 99.934 99.931 99.928 99.926 99.923 99.933 99.930 99.928 99.925 99.923 .26 .27 .28 .29 .30 .31 .32 .33 .34 .35 99.923 99.921 99.918 99.916 99.913 99.923 99.920 99.918 99.915 99.913 99.922 99.919 99.917 99.914 99.912 99.921 99.918 99.916 99.913 99.911 99.920 99.917 99.915 99.912 99.910 .31 .32 .33 .34 .35 .36 .37 .38 .39 .40 99.911 99.909 99.906 99.904 99.901 99.910 99.908 99.905 99.903 99.900 99.909 99.906 99.904 99.901 99.899 99.908 99.905 99.903 99.900 99.898 99.907 99.904 99.902 99.899 99.897 .36 .37 .38 .39 .40 .41 .42 .43 .44 .45 99.899 99.896 99.894 99.891 99.889 99.898 99.895 99.893 99.890 99.888 99.896 99.894 99.891 99.889 99.886 99.895 99.893 99.890 99.888 99.885 99.894 99.892 99.889 99.886 99.884 .41 .42 .43 .44 .45 .46 .47 .48 .49 .50 99.886 99.884 99.881 99.879 99.876 99.885 99.883 99.880 99.878 99.875 99.884 99.881 99.879 99.876 99.874 99.882 99.880 99.877 99.875 99.872 99.881 99.879 99.876 99.873 99.871 .46 .47 .48 .49 .50 Dis count Rates 89 days 90 days 91 days 92 days 93 days Dis count Rates TENDER FOR TREASURY BILLS To Be Bated July 10, 1947 91 D A Y S Maturing October 9, 1947 To: □ Federal Reserve Bank, Dallas 13, Texas □ Federal Reserve Bank Branch, El Paso, Texas □ Federal Reserve Bank Branch, Houston 1, Texas □ Federal Reserve Bank Branch, San Antonio 6, Texas ...... ....................... <Dat®> Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the pro visions of the public announcement on July 3, 1947, by the Secretary of the Treasury, the under signed offers to purchase Treasury bills of the above described issue, and agrees to pay for the amount allotted in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 10, 1947, on or before the issue date at the rate indicated below: NON-COMPETITIVE TENDER $ ______ _________ Non-competitive tenders for $200,009 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be ex $ --------------- ............ ? --------------- .... -----.....@ ...... pressed on the basis of 100, with not more than $ --------------- -...... - - ..... @ ....... - - $ ---------------- ........ ...... COMPETITIVE TENDERS three decimal places, e. g., 99.925. Fractions $— ....... -...... — @ ----- ? ........ — — ......... must not be used. Payment for Amount Allotted to Be Made as Follows: Denominations Desired Number of Pieces Maturity Value @ ? @ ? | 1 By draft enclosed (collectible by date of issue) □ By charge to our reserve account □ By Treasury bills maturing July 10, 1947, submitted in exchange □ Payment to be made by.......................... 1,000 $ 5,000 1 10,000 $ @ ? 100,000 ? @ ? 500,000 ? @ $1.,000,000 $ @ $ It is requested that delivery of the Treasury bills allotted to the undersigned be made as follows: □ .................................................................... (Name of Bank) Payment for this issue of bills cannot be made by credit to War Loan Deposit Account. (Subscriber's full name or corporate title) □ Hold in Custody Account— Allotted to member banks for own account only □ Pledge to Secure War Loan Deposits □ Ship t o .................................... ........................ B ............. - ....... - ........- ....... - .............. (A uthorized official signature and title) (Address) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “ TENDER FOR TREASURY BILLS.” Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, com munications relating to other matters should not be enclosed. Envelopes for submitting tenders are mailed with the announcing circulars. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender the form should be signed by an officer of the corporation authorized to make the ten der and the signing of the form 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 “ ....................................................................... , a copartnership, by......................................................................... , a member of the firm.” 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 per cent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6. If the language of this form is changed in any respect which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded.
@FedFRASER