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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States No. 2762 "1 [Circular February 4, 1944 J Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills Dated February 10, 1944 Maturing May 11, 1944 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. TREASURY DEPARTMENT Washington FOR RELEASE, MORNING Friday, February 4, 1944. NEWSPAPERS, T h e Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-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 February 10, 1944, and will mature May 11, 1944, 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, February 7, 1944. Tenders will not be received at the Treasury Department, Washington. Each tender must be f o r 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 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, f o l l o w i n g which public announcement will be made by the Secretary of the Treasury of the amount and price range of accepted bids. T h o s e submitting tenders will be advised of the acceptance or rejection thereof. T h e 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 f r o m 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 February 10, 1944. T h e income derived f r o m Treasury 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 f r o m the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal tax A c t s n o w or hereafter enacted. The bills shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt f r o m all taxation n o w o r 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 f r o m consideration as capital assets. A c c o r d i n g l y , 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, 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 o r 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 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 7, N. Y., or at the Buffalo Branch of this bank (270 Main Street) Buffalo 5, N. Y., up to two o'clock p.m., Eastern war time, on Monday, February 7. 1944. 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) 10S IMPORTANT—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 fixedprice basis, fill in only the maturity value in paragraph beaded "Fixed-Price Bid". DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. No. TENDER FOR 91-DAY TREASURY BILLS Dated February 10, 1944. Maturing May 11, 1944. Dated at 1944 T o FEDERAL RESERVE B A N K OF N E W Y O R K , Fiscal Agent of the United States. COMPETITIVE BID FIXED-PRICE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on February 4, 1944, as issued by the Secretary of the Treasury, the undersigned offers to pay Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on February 4, 1944, as issued by the Secretary of the Treasury, the undersigned offers to pay a fixed-price of 99.905 (rate per 100) for a total amount of * 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. $ (maturity value) (Not to exceed $100,000) of the Treasury bills therein described, 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 February 10, 1944, and are to mature on May 11, 1944. This tender will be inserted in special envelope entitled "Tender Name of Bidder By for Treasury bills." (Please print) (Official signature required) (Title) Street A d d r e s s (City, Town or Village, P.O. No., 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, P.O. No., 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 f o r an even multiple $1,000 (maturity v a l u e ) . A separate tender must be executed f o r each bid. of 2. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing o f the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a m e m ber of the firm, w h o should sign in the f o r m ..; a copartnership, by a member of the firm." 3. T e n d e r s will be received without deposit f r o m incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders f r o m others must be accompanied by payment of 2 percent of the face amount of T r e a s u r y bills applied f o r , unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust c o m p a n y . 4. If the language o f this tender is changed Treasury, is material, the tender may be disregarded. in any respect, which, in the opinion of the Secretary of the Payment by credit through War Loan Deposit Account ivill not be permitted. TENTB-710-a * Price must be expressed on the basis of 100, with not more three decimal places. Fractions may not be used. than (OVER) FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States TREASURY DEPARTMENT WASHINGTON FOR RELEASE, MORNING NEWSPAPERS, TUESDAY, FEBRUARY 8, 1944 Press Service The Secretary of the Treasury announced last evening that the tenders for 000,OOO,000, or thereabouts, of 91-day Treasury bills to be dated February 10 and to mature May 11, 1944, which were offered on February 4, were opened at the Federal Reserve Banks on February 7» The details of this issue are as follows: Total applied for Total-accepted - 551,503,000 1,005,560,000 (includes i?77,734,000 Range of accepted competitive bids: High - 99.910 Equivalent rate of discount approx. 0,356$ per annum Low - 99.905 Equivalent rate of discount approx* 0.376^ per annum (25 percent of the amount bid for at the low price was accepted) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St-. Louis Minneapolis Kansas City Dallas San Francisco Total Total Accented Total Applied for $ 86,955,000 $ 1,531,409,000 72,238,000 99,685,000 54,218,000 12,853,000 369,326,000 74,340,000 30,109,000 33,677,000 29,923,000 156,760,000 29,993,000 557,159,000 31,663,000 60,985,000 43,343,000 12,533,000 113,070,000 29,790,000 18,859,000 25,577,000 17,703,000 64,885,000 ^2,551,503,000 «1,005,560,000 -oOo-
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