The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF DALLAS
F IS C A L . A G E N T O F T H E U N I T E D S T A T E S
Dallas, Texas, April 24,1947
WEEKLY TREASURY BILL OFFERINGS
To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:
There is quoted below press statement issued by the Treasury Department
announcing that beginning with the issue of Treasury Bills to be dated May 1 the
Treasury will invite tenders for bills in exchange for maturing bills as well as for
cash:
“ Secretary of the Treasury Snyder announced today that beginning with the
issue of Treasury bills to be dated May 1, 1947, and until further notice, the
Treasury will invite tenders for bills in exchange for maturing bills as well
as for cash, with equal treatment accorded all tenders, whether the bidders
offer to exchange maturing bills or to pay cash for the new bills bid for.
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 bills to be dated May 1 will be in the amount of $1.1 billion, about $200,
000,000 less than the amount maturing on that date.
“ The procedure for accepting exchange as well as cash tenders is being
adopted to facilitate weekly refunding operations in bills. The bill holdings
of the Federal Reserve banks recently were $15 billion out of a total of
$17 billion outstanding. Under existing procedure, the Federal Reserve
banks replace their weekly maturing bill issues, in large part, by purchas
ing new issues from security dealers, who ordinarily bid for amounts greatly
in excess of market needs. This is done solely to facilitate the bill operation,
as the dealers charge no commission for this service, and obtain only the
nominal profit from the transaction which is available to anyone. Under the
new procedure the Federal Reserve banks will be in a position to bid directly
on an exchange basis for new issues in amounts not in excess of those
required to replace maturing issues of bills originally acquired in the
market.
“ Any addition to Federal Reserve holdings of bills would be purchased in the
open market as at present.”
Yours very truly,
R. R. GILBERT,
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, April 24, 1947.
To Be Dated May 1, 1947
NEW OFFERING—TREASURY BILLS
91 DAYS
$1,100,000,000
Maturing July 31, 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 $1,100,000,000, or thereabouts,
of ninety-one-day Treasury bills, for cash and in exchange for Treasury bills maturing May 1, 1947, to be
issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this
series will be dated May 1, 1947, and will mature July 31, 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, April 28, 1947. Tenders will not be received at the Treasury Depart
ment, 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 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, tenders for $200,000 or
less from any one bidder at 99.905 entered on a fixed-price basis will be accepted in full. Settlement for
accepted tenders in accordance with the bids must be made or completed at the Federal Reserve bank on
May 1, 1947, in cash or other immediately available funds or in a like face amount of Treasury bills maturing
May 1, 1947. Equal treatment will be accorded all tenders, whether the bidders offer to exchange maturing
bills or to pay cash for the new bills bid for. 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, April 28, 1947, Central Standard
Time.
Yours very truly,
R. R. GILBERT
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
91 Days
Dated April 24, 1947
Due July 24, 1947
Total applied for.......................................... ^
.............................................$1,665,272,000.00
Total accepted ............... ......................................................................... — 1,100,390,000.00*
.
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.
(65 percent of the amount bid for at the low price was accepted.)
*Includes $17,557,000.00 entered on a fixed price basis of 99.905 and
accepted in full.
(Over)
BID PRICES ON THE BASIS OP 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 Dated May 1, 1947
91 DAYS
Maturing July 31, 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
.........................
< ate)
D
Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the pro
visions of the public announcement on April 25, 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
May 1, 1947, on or before the issue date at the rate indicated below:
FIXED PRICE TENDER f ....................................@ 99.905 $................ ...... ,............
Tenders for $200,000 or less from any one bidder at the fixed-price rate of 99.905 will be accepted in full.
Prices should be ex
( $ ................ ............... @ ...... .... $-------------- ............... pressed on the basis of
100, with not more than
$-........ -..... ............... @ ...... .... $................. ............. three decimal places,
COMPETITIVE TENDERS
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
@ ?
1,000
@ $
5,000
□ By draft enclosed (collectible by date of issue)
□ By charge to our reserve account
□ By Treasury bills maturing May 1,
1947, submitted in exchange
□ Payment to be made by.........................
$-
$
@ $ 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
By...............................................................
□ Pledge, to Secure War Loan Deposits
(Authorized official signature and title)
□ Ship to........................................-......................
(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.
