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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 26191 I April 30, 1943 J Public Notice of Offering of $900,000,000, or thereabouts, of 9 1 - D a y Treasury Bills Dated May 5, 1943 Maturing August 4 , 1943 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 Friday, April 30, 1943. NEWSPAPERS, The Secretary of the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 91-day Treasury bills, t o be issued on a discount basis under competitive bidding. T h e bills of this series will be dated May 5, 1943, and will mature August 4, 1943, when t h e face amount will be payable without interest. They will" be issued in bearer f o r m 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, Monday, May 3, 1943. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a n 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. T e n d e r s will be received without deposit from incorporated banks and trust companies and f r o m responsible and recognized dealers in investment securities. Tenders f r o m 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 T r e a s u r y of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the T r e a s u r y 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. P a y m e n t of accepted tenders at the prices offered m u s t be made or completed a t the Federal Reserve Bank in cash or other immediately available funds on May 5, 1943. T h e income derived f r o m T r e a s u r y bills, whether interest or gain f r o m the sale or other disposition of the bills, shall not have any exemption, as such, and loss from the sale or other disposition of T r e a s u r y bills shall not have any special treatment, 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 o r State, but shall be exempt f r o m 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. F o r purposes of taxation the amount of discount at which T r e a s u r y 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 a t which bills issued hereunder are sold shall not be considered t o accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded f r o m consideration as capital assets. Accordingly, the owner of T r e a s u r y 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 a t maturity during the taxable year for which the return is made, a s 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 the terms of the T r e a s u r y bills and govern the conditions of their issue. Copies of the circular m a y be obtained f r o m 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, May 3, 1943. 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. (ovnt) I 9E No.— TENDER FOR 9 1 - D A Y T R E A S U R Y BILLS D a t e d May 5, 1943. M a t u r i n g A u g u s t 4, 1943. » D a t e d at .1943 T o THE FEDERAL RESERVE BANK OF NEW YORK, Fiscal A g e n t of the U n i t e d States, N e w Y o r k City, N . Y . P u r s u a n t to the provisions of Treasury Department Circular N o . 418, as amended, a n d t o the provisions of the public notice on April 30, 1943, as issued by the Secretary of the T r e a s u r y , the undersigned o f f e r s t o pay * f o r a total a m o u n t of (Rate per 100) $ ( m a t u r i t y value) of the T r e a s u r y bills therein described, or f o r any less a m o u n t that m a y be a w a r d e d , payment t h e r e f o r to be m a d e at y o u r bank in cash or other immediately available f u n d s on the date stated in the public notice. T h e T r e a s u r y bills f o r which tender is hereby m a d e are to be dated M a y 5, 1943, a n d are to m a t u r e on A u g u s t 4, 1943. 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 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 f 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 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. Fill in all required spaces before signing. Name of Subscriber (Please print) By (Official signature required) (Title) Street Address City, Town or Village, and State * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. TENTB-670-a (ovs>) FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, May 4, 1943* Press Service The Secretary of the Treasury announced last evening that the tenders for $900,000,000, or thereabouts, of 91-day Treasury bills to be dated May 5 and to mature August 4, 1943, which were offered on April 30, 1943, were opened at the Federal Reserve Banks on May 3. The details of this issue are as follows: Total applied for - $1,388,528,000 Total accepted - 901,706,000 Range of accepted bids: - 99.935 Eauivalent rate of discount approx. 0.251% per annum Low - 99.905 Equivalent rate of discount approx. 0.316% per annum Average - 99.906 Equivalent rate of discount approx. 0.313% price per annum High (49 percent of the amount bid for at the low price was accepted.) Federal Reserve District $ Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. j-.ouis Minneapolis Kansas City Dallas San Francisco Total Applied for Total Total accepted 46,461,000 810,224,000 50,372,000 34,505,000 20,390,000 16,330,000 184,790,000 58,125,000 60,042,000 29,383,000 7,015,000 70,841,000 $ 36,677,000 416,287,000 38,311,000 23,110,000 20,161,000 13,779,000 157,152,000 35,615,000 59,846,000 26,178,000 6,118,000 63,472,000 $1,388,528,000 $901,706,000 -oOo-
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