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FEDERAL RESERVE BANK
OF N E W YORK
Fiscal Agent of the United States
No. 2418 T
[ Circular
April 17, 1942
J
Public Notice of Offering of $150,000,000, or thereabouts, of Treasury Bills
Dated April 22,1942
Maturing July 22, 1942
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 Treasury Department with respect to a new
offering of Treasury bills payable at maturity without interest to be sold on a discount basis to the highest
bidders.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, April 17, 1942.
The Secretary of the Treasury, by this public notice, invites tenders for $150,000,000, or thereabouts, of
91-day Treasury bills, to be issued on a discount basis under competitive bidding. The bills of this series
will be dated April 22, 1942, and will mature July 22, 1942, 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 war time, Monday, April 20, 1942. 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 10 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. 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
April 22, 1942.
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 fa)(l) 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.
In accordance with the above announcement tenders will be received at the Securities Department of
this bank (9th floor, 33 Liberty Street, New York City) or at the Buffalo Branch of this bank (272 Main
Street, Buffalo. New York) up to two o'clock p.m., Eastern war time, on Monday, April 20, 1942.
It is requested that tenders be submitted on special form printed on reverse side and returned in special
envelope enclosed herewith.
Attention is invited to the fact that 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 SPROUL,
President.
(OVER)
7C
No..
TENDER FOR 91-DAY TREASURY BILLS
Dated April 22, 1942.
Maturing July 22, 1942.
Dated at
To THE FEDERAL RESERVE BANK OF NEW YORK,
1942
Fiscal Agent of the United States,
New York City, N. Y.
Pursuant to the provisions of Treasury Department Circular Xo. 418, as amended, and to the
provisions of the public notice on April 17, 1942, as issued by the Secretary of the Treasury, the undersigned offers to pay
-
* 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.
The Treasury bills for which tender is hereby made are to be dated April 22, 1942, and are to mature
on July 22, 1942.
This tender will be inserted in special envelope entitled "Tender for Treasury bills."
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). Also, if more than one price is offered, a separate tender must be executed at each price.
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 t>e 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."
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
10 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.
Fill in all required spaces before signing.
Name of Subscriber
(Please print)
By
(Official lifnatore required)
Street Address
City, Town or Village, and State
* Price must be expressed on the basis of 100, with not more than
three decimal places, e. g.r 99.925. Fractions may not be used.
TEXTB-616-a
(Title)
FEDERAL RESERVE B A N K
OF N E W YORK
April 10,
LETTER S 3 I T TO ALL MSffiER BANKS
Gentlemen:
The Board of Governors and the Federal Reserve Banks have undertaken
to make a survey of commercial and industrial losns made by member banks between
April 16 and Llay 15 (both d&tes inclusive), Copies of ttirra to be filled out aid
of instructions are enclosed. The purpose of this survey is to provide information, now unavailable, concerning the kinds of loans that are currently being
made by banks. This TH.11 be of particular value at the present tine. In view of
the importance of the natter, the scarcity of data on this subject, and the fact
that this is a one-time inquiry rather than a series of regular reports, the
information called for is in somewhat more detail than ia customary in Federal
Reserve statistical inquiries. The infomation obtained will be published only
in the form of aggregates so as not to reveal operations of individual brmks.
As you will note from the form and the instructions, information is to
be entered on the form for each commercial and industrial loan above a specified
size made during the period covered. Commercial and industrial loans are defined
in the same way as fcr reporting item 1 in schedule A of the call report of condition. Names of individual borrowers are not requested; the perforated stub
attached to the form, which provides space for names, is for the convenience of
banks that may wish to use it in filling out the report, and should be detached
before forwarding the report to the Federal Reserve Bank. Data are requested
as to the anount of each loan, the business and size of the borrower, the maturity
of the loan, the interest rate charged, and whether the loan is for defense purposes* 'There precise information on any of these items is not readily available
to your bank, please give us the benefit of your best estimate.
Information may be entered as each loan is made, or may be taken from
the records later, in accordance with your preference or convenience. In the
case of branch banks, separate reports may be submitted for each branch, or the
reports for all branches in any one city or county may be consolidated. In case
more than one lorn is made to a single borrower in the period, they may be reported separately or combined. Information is requested for loans that are
renewed, in whole or in part, within the period covered by the report, as well
as for new loans made. Details are not requested for individual loans which are
on the books on April 15 but are not renewed during the reporting period,
The total of all commercial and industrial loans outstanding as of the
beginning and end of the period should be reported in the upper ri^ht-hand corner
of the form. This is to provide a measure of the net change in the totd of
such loans during the period. While detailed information concerning loans below
the specified size need not be listed, the total amount of such loans made during
the period is also requested.
The Board of Governors and the Federal Reserve Banks fully appreciate
the trouble and cost to member banks of submitting reports and are considering
how this may be diminished. On the other hand they are under the necessity of
making important decisions that may affect not only the welfare of banks and
their customers but the economy as a whole, and need as full and accurate information as possible, on which to base these decisions. It is expected that
the information obtained froin the reports now requested will be very helpful
in meeting this responsibility. Your cooperation in supplying this information,
therefore, will be much appreciated. If, however, by reason of the circumstances
of your present situation, you feel that the recording of the information requested would involve an unreasonable degree of interference with your operations,
it will be understood if you will advise me to that effect. Completed reports
should be forwarded to this Federal Reserve Bank, if practicable, by May 22.
Very truly yours,
Allan Sproul,
President.
Note: In case the number of copies of the report form enclosed is not sufficient,
please indicate on the attached card the number of additional copies desired, and mail the card to this Federal Reserve Bank.
Enclosures
INSTRUCTIONS FOR PREPARATION OF
Oil RflM F.R. 574 COVSfilNQ
COMMERCIAL AND INDUSTRIAL LOANS" WJM FBOH
APRIL 16, 1942 TO ISkY 15, 1942, laJLUSIva
The following report form, F. R. 574, calls for certain data on
commercial and industrial loans made from April 16 to May 15, inclusive.
"Conmercinl and industrial loans" are to be defined as directed in the
following excerpt ft ecu the Call Report Instructions:
Iteui 1, "Commercial) and industrial loans .(do not include
open market paper and loans on real estate)*" This item should
include all buplness loans to individuals, partnerships, and
corporations, except paper purchased in the open market and
loans secured by real estate. Accordingly, the item will include g.:iy business loan secured by stocks and bonds, as well
as business loans otherwise secured and unsecured. It will
also include loans (not secured by real estate mortgages) for
the purpose of financing capital expenditures as well as loans
to finance current operations. Direct loans to companies engaged in financing the sale of consumers' goods and durable
goods should be included, but finance company paper purchased
in the open market should be considered "Open market paper"
and not reported on this form*
The term "business" as used herein should be construed
to include mining, oil and gas producing, and quarrying industries; manufacturing of all kinds; construction industries;
transportation, communicabion, and other public utilities;
wholesale and retail trade enterprises; service industries
such as hotels, laundries, and automobile service stations;
amusement enterprises; -real estate companies^ etc.
Loans to building and loan associations, insurance companies, credit unions, and similar organizations not engaged
directly in financing the sale of consumers' or durable goods,
loans to hospitals, educational institutions, etc., and personal or instalment loans to individuals other than for business purposes, should not be reported as "commercial and
industrial loans."
The form may be filled out as loans are made, and the data for
the month are, if practicable, to be mailed to your Federal Reserve Bank
not later than May 22• In no case is the name of the borrower to be
jiven. Information on individual loans and for individual banks vail
be treated as strictly confidential, and the data will be published only
in the form of aggregates which will not reveal the operations of any
individual bank. Branches may report separately, as if they were separate banks* if this is more convenient. In such cases branches will
use the minimum reporting loan size limit applicable to individual
banks of that size.
In answering question 1 at the top of the report form, report
the total amount of commercial and industrial loans outstanding at the
close of business on April 15 and the amount outstanding at the close
of business on May 15* In answering question 2, report against item
(a) the total amount of commercial and industrial loans (including renewals) made during the reported month which are reported individually
in the spaces below, and report against item (b) the total amount o£
commercial and industrial loans (including renewals) made during the
reported month which are not reported individually. The sum of these
two items reported for question 2 should equal the total amount off commercial and industrial loans made during the reported month*
Column It For each commercial and industrial loan made or
renewed during the month of or above the minimum reporting size indicated in the column heading, the amount advanced or renewed is to be
indicated in this column. Only loans actually made are to be listedj
commitments are not to be included. If the reporting bank is participating with other banks in a loan, it should report only its own participation. If several loans are made to the same borrower during the
reporting period, these may be reported as one loan or listed separately. Receivables discounted for the same borrower should be reported
as one loan each day or each monthly reporting period, whichever is
more convenient. Receivables arising out of consumer credit are not
to be reported, even though later discounted by the business firm receiving them, since such paper is included as "All other loans" in the
Call Report,
If you have made less than 10 loans larger than the minimum
reporting limit during the month, list the 10 largest commercial and
industrial loans (including renewals) which you made during the month.
Column 2. In this column insert for each loan the number
from 1 to 13 from the classification code in the upper left-hand corner
of the form which best describes the business of the borrower. In case
the borrower is engaged in more than one of these businesses, make the
best possible judgment as to which phase of his business the loan is
intended for. If you wish to make any special comments on the classification of particular loans, they should be written on the back of
the report form.
Columns3 to 6, inclusive. The size of the borrowing firm,
as measured by approximate total assets on some recent date, should be
shown by a check in the appropriate column. Estimate assets if no
balance sheet is available.
Column 7. A check should be placed in this column if the
maturity ox the loan is one year or over.
Column 8. This column should be checked only if the transaction is entirely a renewal of outstanding loans. If any portion of
the transaction constitutes an addition to the amount already outstanding to the' borrower, this column should not be checked.
Column 9. Indicate in this column the interest or discount
rate charged on this loan.
Columns 10 and 11. In drawing the distinction between "defense" and ""non-defense" loans use the following method. Include as
defense loans all loans made di.rectly or indirectly for national defense purposes, whether made to prime contractors or to subscontractors
and whether or not secured by assigned Government contracts. In the
absence of information to the contrary, it may be assumed that if a
borrower is engaged to a substantial extent directly or indirectly in
providinc facilities, supplies or equipment for national defense, new
loans to such a borrower may be considered as defense loans. All loans
not so classifiable are to be considered non-defense loans. Check both
sub-columns only in case the proceeds of the loan are to be used to a
substantial extent partly for defense and partly for non-defense purposes*
COMMERCIAL AND INDUSTRIAL LOANS MADE FROM APRIL 1 6 , 19*2 TO MAY 15, 1912, INCLUSIVE
Form J-. R. 574-
CONFIDENTIAL
Name of Bank
Code
Jl,0002
{Do not include commitments)
(fait cents)
1
2
2.
Total amount of "commercial and industrial"
loans and renewals made during month: 1
a. Loans separately listed
$.
b. Loans not listed
$
Approximate t o t a l
assets of borrower
(Check one)
3
$5,000,000
and over
NAME OF
BORROWER
(Detach before
mall Ing to Federal
Reserve Bank)
Business of
borrower
(Insert code
number from
above which
best describes
business of
borrower] 3
Total amount of "commercial and industrial"
loans outstanding, close of business: 1
a. April 15, 1942
$.
b. May 15, 1942
$_
$500,000
to
$5,000,000
List amount of each commercial or
industrial loan ^
or renewal of or over
1.
to
13-
Fill out this box on first sheet only
Wholesale aad retail trade, including commodity dealers.
Sales finance and personal loan companies.
Services: Hotels, restaurants, amusements, repair shops,
professional services, etc.
Manufacturing and mining;
Metal mining, refining, and smelting.
Metal products, including transportation equipment, shipbuilding, ordnance and munitions.
Petroleum and petroleum products.
Chemicals, drugs, rubber and products.
Textiles, apparel, leather and products.
Food, liquor and tobacco.
All other manufacturing and mining.
Public utilities, transportation and communication.
Building and construction operations.
All other.
$50,000
11.
12.
Business of Borrower
$500,000
910.
State
Under
$60,000
6.
78.
City
Check
if
loan
maturity
is
over
one
year
5
6
7
Check appropriate
column ^
Check
if
loan
is
a
renewal
Rate
of
interest
or
discount
charged
Nondefense
loan
Defense
loan
6
9
10
II
1.
2.
3^
5.
6.
7.
a.
9.
lOll12.
13.
1*.
15.
16.
17.
IS19.
20.
21.
22.
"Commercial and industrial" loans are to be defined as for call report purposes — for details see the accompanying instructions.
If you have made less than 10 commercial and industrial loans or renewals over this size, report the 10 largest such loans or renewals you have made during the
month. If several loans are made to the same borrower during the reporting period, these may be reported as one loan pr separately, Bill-or-iaiiing araits,
cotton drafts, and similar receivables, discounted for the same borrower, should be reported as one loan each day, or each reporting period, depending on which
is iuore convenient.
3
In case loan appears to be p a r t i a l l y in more than one of these categories, use your best judgment as to which one best represents the major use of the funds.
^ Do not check both columns unless the loan is substantially for both defense and non-defense purposes.
2
@FedFRASER