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FEDERAL RESERVE
OF NEW
"N
BANK
YORK
Fiscal Agent of the United States
("Circular No. 24651
I July 24, 1942
J
Public Notice of Offering of $350,000,000, or thereabouts, of Treasury Bills
Dated July 29, 1942
Maturing October 28, 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, M O R N I N G
Friday, J u l y 24, 1942.
NEWSPAPERS,
T h e Secretary of t h e Treasury, by this public notice, invites tenders for $350,000,000, or thereabouts, of
91-day Treasury bills, to be issued on a discount basis under competitive bidding. T h e bills of this series
will be dated J u l y 29, 1942, and will m a t u r e "Octobcr 28, 1942, when t h e face a m o u n t will be payable
without interest.
T h e y 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 t o the closing hour, two o'clock
p. m., Eastern war time, M o n d a y , J u l y 27, 1942.
Tenders will not be received a t the Treasury
D e p a r t m e n t , Washington. Each tender must be for an even multiple of $1,000, and t h e price offered must
be expressed on t h e basis of 100, with not more than three decimals, e. g., 99.925. Fractions m a y not be used.
It is urged t h a t tenders be made on t h e printed forms a n d forwarded in t h e special envelopes which will
be supplied b y Federal Reserve Banks or Branches on application therefor.
T e n d e r s will be received without deposit from incorporated banks a n d 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 a m o u n t of Treasury bills applied for, unless the tenders are accompanied
by an express g u a r a n t y of p a y m e n t by an incorporated bank or trust company.
Immediately a f t e r the closing hour, tenders will be opened at t h e Federal Reserve Banks and Branches,
following which public announcement will be made by the Secretary of the Treasury of the a m o u n t and
price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof.
T h e Secretary of t h e Treasury expressly reserves the right to accept or reject any or all tenders, in whole
or in part, a n d his action in any such respect shall be final. P a y m e n t of accepted tenders a t the prices offered
must be m a d e or completed a t t h e Federal Reserve Bank in cash or other immediately available f u n d s on
July 29, 1942.
T h e income derived from T r e a s u r y bills, whether interest or gain from the sale or other disposition of
t h e bills, shall not have a n y exemption, as such, a n d loss from the sale or other disposition of Treasury bills
shall not have a n y special t r e a t m e n t , as such, under Federal tax Acts now or hereafter enacted.
T h e bills
shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, b u t 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 a n y local taxing authority. For purposes of taxation the a m o u n t
of discount a t which Treasury bills are originally sold by the United States shall be considered to be interest.
Under Sections 42 a n d 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the Revenue
Act of 1941, the a m o u n t of discount a t which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, a n d such bills are excluded from
consideration as capital assets. Accordingly, the owner of Treasury bills (other t h a n 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 a m o u n t actually received either
upon sale or redemption at m a t u r i t y during the taxable year for which t h e return is made, as ordinary
gain or loss.
T r e a s u r y D e p a r t m e n t Circular No. 418, as amended, and this notice, prescribe t h e terms of t h e Treasury
bills a n d govern the conditions of their issue. Copies of the circular m a y 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, July 27, 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.
(OVEI-)
7Q
No...
TENDER
FOR 91-DAY T R E A S U R Y
Dated July 29, 1942.
BILLS
Maturing October 28, 1942.
Dated a t
T o THE FEDERAL R E S E R V E BANK OF N E W YORK,
1942
Fiscal Agent of the United States,
New York City, N. Y.
Pursuant
the
provisions
to the provisions of Treasury Department Circular No. 418, as amended, and to
of
the
public notice
on
July
24,
Treasury, the undersigned offers to pay
of $
1942,
as
(Rate per 100)
issued
by
—
the Secretary of
the
* for a total amount
(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 July 29, 1942, and
are to mature on October 28, 1942.
This tender will be inserted in special envelope entitled "lender
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
poration authorized to make the tender, and the
construed as a representation by him that he has
should be signed by a member of the firm, who should
copartnership, by
corporation, the tender should be signed by an officer of the corsigning of the tender by an officer of the corporation will be
been so authorized. If the tender is made by a partnership, it
sign in the form "
a
, a member of the firm."
3. Tenders will be received without deposit from incorporated banks and trust companies and from
responsible a n d 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 g u a r a n t y of p a y m e n t 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
Treasury, is material, the tender may be disregarded.
Payment
by credit through War Loan Deposit Account will not be
of
the
permitted.
Fill in all required spaccs before signing.
N a m e of Subscriber^
(Please print)
By
(Official signature required)
(TiUe)
Street Address—
City, Town or Village, a n d State
* Price must be expressed on the basis of 100, with' not more than
three decimal places, e. g., 99.925. Fractions may not be used.
f
TENTB-630-a
(oveb)
@FedFRASER