Full text of Federal Reserve Bank of New York Circulars : 2768. Public Notice of Offering of $1,000,000,000, or Thereabouts, of 91-Day Treasury Bills

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F E D E R A L R E S E R V E BANK
OF NEW YORK
Fiscal Agent of the United States
r Circular No. 2768 "1
L February 25, 1944 J

Public Notice of Offering of $1,000,000,000, or thereabouts, of
91-Day Treasury Bills
Dated March 2, 1944

Maturing June 1, 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
F r i d a y , F e b r u a r y 25, 1944.

NEWSPAPERS,

The 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 hereina f t e r p r o v i d e d . T h e bills of this series will be dated M a r c h 2, 1944, and will mature June 1, 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., E a s t e r n w a r time, M o n d a y , F e b r u a r y 28, 1944.
T e n d e r s will not be r e c e i v e d at the T r e a s u r y
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 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 for $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 o n March 2, 1944.
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. 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 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 companies) issued hereunder need include in his income tax return only the difference between the prjce 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 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 28, 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.



ALLAN

SPROUL,

President.
(OVER)

10Y
IMPORTANT—If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph beaded "Competitive Bid". If it is desired to bid on a fixedprice basis, fill in only tbe 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 91-DAY TREASURY BILLS
Dated March 2, 1944.

Maturing June 1, 1944.
Dated at

T o FEDERAL RESERVE B A N K OF N E W

1944

YORK,

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 25, 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
25, 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

(Rate per 100)

* for a total amount of

$
(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 March 2, 1944, and are to
mature on June 1, 1944.
This tender will be inserted in special envelope entitled "Tender for Treasury bills."
Name of Bidder
By

(Please print)

(Official signature required)

(Title)

Street Address

(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 for 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 for 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, 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
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

Digitized forTFRASER
ENTB-713-a


permitted.

* 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 NET YORK
Fiscal Agent o f the United States
TREASURY DEPARTMENT
WASHINGTON
FDR RELEASE, MORNING NEWSPAPERS,
Tuesday, February 29, 1944.

Press Service

The Secretary o f the Treasury announced l a s t evening that the
tenders for &1,000,000,000, or thereabouts, o f 91-day Treasury b i l l s
to be dated March 2 and to mature June 1, 194-4, which were o f f e r e d
on February 25, were opened at the Federal Reserve Banks on February 28,
The d e t a i l s of t h i s issue are as f o l l o w s :
Total applied for - $2,151,449,000
Total accepted

-

1,002,953,000 (includes $63,985,000
entered on a f i x e d - p r i c e basis at
99.905 and accepted in f u l l )

Average
price - 99.905+ Equivalent rate o f discount approx. 0,315%
per annum
Range of accepted b i d s :
High

- 99.910

Equivalent rate o f discount approx. 0.356%
per annum

Low

- 99.905

Equivalent rate o f discount approx. 0,316%
per annum

(38 percent o f the amount bid f o r at the low price was accepted)
Federal Reserve
District

Total •
Applied for

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St f Louis
Minneapolis
Kansas City
Dallas
San Francisco




Total

•

Total
Accepted

$
12,340,000
1,415,527,000
31,469,000
39,515,000
18,845,000
5,075,000
301,990,000
119,835,000
7,755,000
25,373,000
10,835,000
162,890,000

$

$2,151,449,000

$1,002,953,000

-oOo-

7,690,000
594,531,000
15,287,000
31,409,000
16,086,000
4,453,000
148,544,000
57,463,000
3,412,000
21,405,000
9,471,000
93,202,000

FEDERAL RESERVE BANK
OF NEW YORK

F e b r u a r y 25, 1944.

To all Ranking Institutions in the
Second Federal Reserve District:

W e are pleased to announce that T h e J o h n s t o w n

Bank,

J o h n s t o w n , N e w Y o r k , has b e c o m e a m e m b e r o f the F e d e r a l
R e s e r v e S y s t e m e f f e c t i v e F e b r u a r y 25, 1944.




ALLAN

SPROUL,

President.

F E D E R A L R E S E R V E BANK
OF NEW YORK
Fiscal Agent of the United States

February 25, 1944

Dear Sir:
The Treasury Department has advised us that a preliminary review of the reports on Form TFR-500
which persons in this country were required to file concerning their foreign property indicates that some
persons owning foreign dollar bonds are still unaware of the reporting requirements or have failed to
understand that the exemptions from filing reports did not apply to such bonds.
The Treasury has informed us that "by reason of their volume and the income due therefrom,
United States holdings of foreign dollar bonds have an important place in the financial relations between
this country and many foreign countries.

They comprise a large part, sometimes the larger part, of the

total American-owned assets in certain countries.

N o t only the Treasury Department but also the Depart-

ments of State and Commerce are greatly interested in the results of the census as it relates to this field."
T o assist in obtaining this important information, the Treasury Department requests that you give
a copy of the enclosed notice to each of your customers (except another banking institution) w h o deposits
with you for collection a coupon from any foreign dollar bond or for whom you hold a foreign dollar
bond in custody.

By this means it is hoped to reach all bondholders w h o have not as yet realized their

obligation to report. As the Treasury indicated in its letter of December 22, 1943, there is no disposition
to seek the application of penalties against persons tvho file reports promptly upon becoming aware of the
requirements.
It is proposed that the distribution of notices to persons making deposits begin at once and be continued long enough to include coupons due in August of this year, so as to insure a coverage of a full half
year's payments.

Your assistance in distributing the notices will be greatly appreciated by the Treasury

Department as well as by this bank.
Although the notice contemplates that the necessary forms and instructions for reporting may be
obtained from this bank, there will, of course, be no objection to any bank assisting its customers to
obtain the requisite materials and prepare reports.
W e shall be glad to furnish you with additional copies of the notice, or with copies of the report
forms and instructions.




Very truly yours,

ALLAN

SPROUL,

President.

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