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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States C Circular No. 2669 "1 August 20, 1943 J Public Notice of Offering of $1,000,000,000, or thereabouts, of 92-Day Treasury Bills Dated August 26, 1943 Maturing November 26, 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 under competitive and fixed-price bidding. FOR RELEASE, MORNING Friday, August 20, 1943. NEWSPAPERS, TREASURY DEPARTMENT Washington T h e Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 92-day Treasury bills, to be issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this series will be dated August 26, 1943, and will mature November 26, 1943, when the 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 to the closing hour, two o'clock p. m., Eastern war time, Monday, August 23, 1943. 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 f r o m 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. 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 f o r $100,000 or less from any one bidder at 99.905 entered on a fixed-price basis will be accepted in full. 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 August 26, 1943. T h e 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. F o r 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 1 1 7 ( a ) ( 1 ) of the Internal Revenue Code, as amended by Section 115 of the Revenue A c t 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 c o m panies) issued hereunder need include in his income tax return only the difference between the price paid f o r such bills 1 whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year f o r which the return is made, as ordinary gain or loss. Treasury Department Circular N o . 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 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 Y o r k City) or at the Buffalo Branch of this bank (272 Main Street, Buffalo, New Y o r k ) up to two o'clock p.m., Eastern war time, on Monday, August 23, 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. A L L A N SPROUL, President. (OVER) IMPORTANT—It will be noted that the offering is for 92-day Treasury bills which will mature on Friday, ber 26, 1943, owing to the fact that Thursday, November 25, icill be Thanksgiving Day. Novem- If it is desired to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed "Competitive Bid". If it is desired to bid on a fixed-price basis, fill in only the maturity value in paragraph headed "Fixed-Price Bid". DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. No TENDER FOR 92-DAY TREASURY BILLS D a t e d A u g u s t 2 6 , 1943. M a t u r i n g N o v e m b e r 2 6 , 1943. T o T H E FEDERAL RESERVE B A N K OF N E W Y O R K , Dated at Fiscal A g e n t o f the U n i t e d States, 1943 N e w Y o r k City, N. Y . COMPETITIVE BID . Pursuant to the provisions of T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 418, as a m e n d e d , a n d to the provisions of the public notice on A u g u s t 20, 1943, as issued b y the S e c r e t a r y of the T r e a s u r y , the undersigned offers to p a y * f o r a total a m o u n t (Rate per 100) $ of Pursuant The Treasury This tender will provisions of Treasury the p r o v i s i o n s o f the p u b l i c notice on A u g u s t 20, the undersigned of 99.905 $ offers (rate per 100) to pay a fixed-price f o r a total a m o u n t of (maturity value) (Not to exceed $100,000) of the T r e a s u r y bills therein described, p a y m e n t t h e r e f o r t o b e m a d e at y o u r b a n k in c a s h o r o t h e r immediately available in t h e p u b l i c bills f o r w h i c h the 1943, as issued b y the S e c r e t a r y o f the T r e a s u r y , therein described, o r f o r may be awarded, payment y o u r b a n k in c a s h o r o t h e r f u n d s o n the date stated m a t u r e o n N o v e m b e r 26, to BID D e p a r t m e n t C i r c u l a r N o . 418, as a m e n d e d , and t o (maturity value) of the T r e a s u r y bills a n y less a m o u n t that t h e r e f o r t o b e m a d e at immediately available in t h e p u b l i c n o t i c e . FIXED-PRICE f u n d s on the date stated notice. t e n d e r is h e r e b y m a d e a r e t o b e d a t e d A u g u s t 2 6 , 1 9 4 3 , a n d a r e to 1943. be inserted in special envelope entitled "Tender Name of Bidder By for Treasury bills." (Please print) (Official signature required) (Title) Street Address City, T o w n or Village, and State If this tender is submitted for the account of a customer, indicate the customer's name on line below: (Name of Customer) (City, Town or Village, and State) Use a separate tender for each customer's bid. IMPORTANT INSTRUCTIONS: 1. N o tender f o r less than $1,000 will be considered, and each tender must be for an even multiple $1,000 (maturity value). A separate tender must be executed f o r each bid. of 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, w h o should sign in the f o r m " a copartnership, by a member of the firm." 3. Tenders will be received without deposit f r o m 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. TENTB-686-a * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (OVER) FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States TREASURY DEPARTMENT Washington FOR RELEASE, MORNING NEWSPAPERS, Tuesday, August 24, 1943 Press Service The Secretary of the Treasury announced l a s t evening that the tenders f o r $1,000,000,000, or thereabouts, of 92-day Treasury b i l l s to be dated August 26 and to mature November 26, 1943, which were offered on August 20, were opened at the Federal Reserve Banks on August 23. The details of this issue are as follows: Total applied f o r - $1,277,910,000 Total accepted - 1,002,333,000 (includes $68,329,000 entered on a fixed-price basis at 99.905 and accepted in f u l l ) Range of accepted bids: High Low - 99.911 Equivalent rate of discount approx. 0.348£ per annum - 99.904 Equivalent rate of discount approx. 0.316% per annum Average price - 9 9 . 9 0 E q u i v a l e n t rate of discount approx. 0.374* per annum (90 percent of the amount bid f o r at the low price was accepted) Federal Reserve Bank Boston New York Philadelphia Cleveland Richmond Atlanta Chicago S t , Louis Minneapolis Kansas City Dallas San Francisco Total Total Applied f o r Z 14,434-, 000 794,979,000 31,190,000 53,541,000 28,295,000 7,690,000 134,277,000 41,207,000 9,130,000 30,123,000 18,580,000 114,414,000 $1,277,910,000 -oQo- Total Accepted $ 13,899,000 544,367,000 28,808,000 52,231,000 27,789,000 7,310,000 126,105,000 38,157,000 9,077,000 29,741,000 18,480,000 106,369,000 $1,002,333,000
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