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FEDERAL RESERVE BANK OF NEW YORK Fiscal A g e n t o f the United States [Circular No. 27801 L March 24, 1944 J Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills Dated March 30, 1944 Maturing June 29, 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 t o be sold, on a discount basis under competitive and fixed-price bidding. FOR RELEASE, MORNING F r i d a y , M a r c h 24, 1944. TREASURY DEPARTMENT Washington NEWSPAPERS, T h e S e c r e t a r y o f the T r e a s u r y , b y this public notice, invites tenders f o r $1,000,000,000, o r thereabouts, o f 91-day T r e a s u r y bills, t o b e issued o n a discount basis under competitive a n d fixed-price bidding as hereinafter provided. T h e bills o f this series will b e dated M a r c h 30, 1944, and will mature June 29, 1944, when the f a c e amount will b e payable without interest. T h e y will b e issued in bearer f o r m only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). T e n d e r s will b e received at Federal R e s e r v e Banks and Branches u p t o the closing hour, t w o o ' c l o c k p.m., Eastern w a r time, M o n d a y , M a r c h 27, 1944. T e n d e r s will not b e received at the T r e a s u r y Department, W a s h i n g t o n . Each tender must b e f o r an even multiple o f $1,000, and the price o f f e r e d must be expressed o n the basis o f 100, with not m o r e than three decimals, e. g . , 99.925. Fractions m a y not b e used. I t is urged that tenders b e made on the printed f o r m s and f o r w a r d e d in t h e special envelopes w h i c h will b e supplied b y Federal R e s e r v e Banks o r Branches o n application t h e r e f o r . T e n d e r s will b e received without deposit f r o m i n c o r p o r a t e d banks and trust companies and - f r o m responsible and r e c o g n i z e d dealers in investment securities. Tenders f r o m others must be accompanied b y payment o f 2 percent o f the f a c e amount o f T r e a s u r y bills applied f o r , unless the tenders a r e accompanied b y an express guaranty o f payment b y an incorporated bank o r trust company. Immediately a f t e r the closing hour, tenders will b e opened at the Federal R e s e r v e Banks and Branches, f o l l o w i n g w h i c h public announcement will b e made b y the S e c r e t a r y o f t h e T r e a s u r y o f the amount and price range o f accepted bids. Those submitting tenders will b e advised o f the acceptance o r r e j e c t i o n thereof. T h e Secretary o f the T r e a s u r y expressly reserves the right t o accept o r r e j e c t any o r all tenders, in w h o l e o r in part, and his action in any such respect shall b e final. S u b j e c t t o these reservations, tenders f o r $100,000 o r less f r o m any o n e bidder at 99.905 entered o n a fixed-price1 basis will b e accepted in full. P a y m e n t o f accepted tenders at the prices o f f e r e d m u s t b e made o r completed at the Federal R e s e r v e B a n k in cash o r other immediately available f u n d s o n M a r c h 30, 1944. T h e income derived f r o m T r e a s u r y bills, whether interest o r gain f r o m the sale o r other disposition o f the bills, shall not have any e x e m p t i o n , as such, and loss f r o m the sale o r other disposition o f T r e a s u r y bills shall n o t have any special treatment, as such, under Federal t a x A c t s n o w o r h e r e a f t e r enacted. T h e bills shall b e subject t o estate, inheritance, g i f t , o r other e x c i s e taxes, whether Federal o r State, b u t shall b e e x e m p t f r o m all taxation n o w o r h e r e a f t e r imposed o n the principal o r interest thereof b y any State, o r any o f the possessions o f the United States, o r b y any local taxing authority. F o r purposes o f taxation the amount o f discount at w h i c h T r e a s u r y bills a r e originally sold b y the United States shall b e considered t o b e interest. U n d e r Sections 4 2 and 117 ( a ) ( 1 ) o f the Internal Revenue Code, a s amended b y Section 115 o f the R e v e n u e A c t o f 1941, the amount o f discount at w h i c h bills issued hereunder a r e sold shall n o t be considered t o accrue until such bills shall b e sold, redeemed o r otherwise disposed o f , and such bills a r e excluded f r o m consideration as capital assets. A c c o r d i n g l y , the o w n e r o f T r e a s u r y bills ( o t h e r than l i f e insurance c o m p a n i e s ) issued hereunder need include in his i n c o m e t a x return only the difference between the price paid f o r such bills, whether o n original issue o r on subsequent purchase, and t h e amount actually received either upon sale o r redemption at maturity during the taxable y e a r f o r w h i c h the return is made, as o r d i n a r y gain o r loss. T r e a s u r y Department Circular N o . 418, as amended, a n d this notice, prescribe the terms o f the T r e a s u r y bills and g o v e r n the conditions o f their issue. Copies o f the circular m a y b e obtained f r o m a n y Federal R e s e r v e B a n k o r Branch. In accordance with the above announcement tenders will be received at the Securities Department o f this bank (9th floor, 33 Liberty Street) N e w Y o r k 7, N . Y . , o r at the Buffalo Branch o f this Bank (270 Main Street) Buffalo 5, N . Y „ up to two o'clock p.m.. Eastern waiJ> time, on Monday, M a r c h 27, 1944. It is requested that tenders be submitted on special f o r m 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. (Extract from Treasury Department statement after tenders were opened for Treasury T o t a l applied f o r $2,116,736,000 T o t a l accepted 1,001.105,000 (includes $63,966,000 entered o n a fixed-price basis at 99.905 and accepted in f u l l ) A v e r a g e price 99.905-f Equivalent rate o f discount a p p r o x . 0 . 3 7 5 % per annum R a n g e o f A c c e p t e d competitive b i d s : High 99.910 Equivalent rate o f discount a p p r o x . 0 . 3 5 6 % per annum Low 99.905 Equivalent rate o f discount a p p r o x . 0 . 3 7 6 % per annum (41 percent o f the amount bid f o r at the l o w price was a c c e p t e d ) released for publication March 21, 1944, announcing bills dated March 23, 1944 maturing June 22, 1944) Federal Reserve District New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San F r a n c i s c o TOTAL results Total Applied for $ 43,780,000 1,363,515,000 41,521.000 52,460(.000 13,235,000 12,005,000 344,251,000 50,423,000 14.600.000 27,220.000 26.091,000 127,635,000 $2,116,736,000 Total Accepted $ 21.124,000 588,582,000 21.815,000 34.451,000 10,256,000 11.331,000 161,416,000 23,549,000 8,700.000 21,733,000 25,973,000 72.175,000 $1,001,105,000 (OVER) 10Z 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 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 Maturing June 29, 1944. Dated March 30, 1944. Dated at. T o FEDERAL RESERVE BANK 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 X o . 418, as amended, and to the provisions of the public notice on March 24, 1944, as issued by the Secretary of the Treasury, the undersigned offers to pay Pursuant to the provisions of Treasury Department Circular X o . 418, as amended, and to the provisions of the public notice on March 24, 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 $ (maturity value) (Kate 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. (Not to exceed 9100.000) 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 30, 1944, and are-to mature on June 29, 1944. This tender will be inserted in special envelope Name of By entitled "Tender Bidder. 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 f o r the account of a customer, indicate the customer's n a m e on line b e l o w : (Name of Customer) (City, Town or Village, P.O. No., and State) U s e a separate tender f o r each c u s t o m e r ' 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 m a k i n g the tender is a corporation, the tender should be signed b y an officer of the c o r poration authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation b y him that he has been so authorized. If the tender is m a d e b y a partnership, it should be signed b y a m e m b e r of the firm, w h o should sign in the f o r m " copartnership, by a a m e m b e r of the firm." 3. Tenders will be received without deposit from incorporated banks and trust c o m p a n i e s and f r o m responsible and r e c o g n i z e d dealers in investment securities. T e n d e r s f r o m others must be a c c o m p a n i e d b y payment of 2 percent of the face a m o u n t of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of p a y m e n t b y an incorporated bank or trust c o m p a n y . 4. If the language of this tender is changed in any respect, which, ia the opinion of the Secretary T r e a s u r y , is material, the tender m a y be disregarded. of the Payment by credit through War Loan Deposit Account will not be permitted. http://fraser.stlouisfed.org/ TENTB-717-a Federal Reserve Bank of St. Louis * Price must be expressed on the basis of 100, •with not more three decimal places. Fractions may not be used. than (OTEJt)