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F E D E R A L RESERVE B A N K O F N E W YORK Fiscal Agent of the United States C i r c u l a r No_ 2 8 3 8 L September IS, 1944 J Public Notice of Offering of $1,200,000,000, or thereabouts, of 91-Day Treasury Bills Dated September 21, 1944 Maturing December 21, 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. FOR RELEASE, MORNING NEWSPAPERS, Friday, September 15, 1944. TREASURY DEPARTMENT Washington The Secretary of the Treasury, by this public notice, invites tenders for $1,200,000,000, 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 September 21, 1944, and will mature December 21, 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, September 18, 1944. 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 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 c f e i n g 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 on September 21, 1944. The 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, inheritancei 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 117 (a)(1) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act 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 price 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) N e w Y o r k 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, September 18, 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. ALLAN SPROUL, President. (Extract from Treasury Department statement released for publication September 12, 1944, announcing results after tenders were opened for Treasury bills dated September 14,1944 maturing December 14, 1944) Total applied for . . . .$2,005,263,000 Total accepted $1,214,825,000 (includes $63,353,000 entered on a fixed-price basis at 99.905 and accepted in full) • , , . nn o n . . t Average price 99.905+ Equivalent rate of discount approx. 0.375% per annum Ran^e of acceptcd competitive bids: High 99.910 t a l e n t rate of d i s ^ a t approx. 0.356% per annum Low . 99.905 Equivalent rate of discount approx. 0.376% per annum , . . .. ( „«. w x (56 percent of the amount bid for at the low price v was accepted) Federal Reserve DistrJCt Boston New York Philadelphia Cleveland Richmond Atlanta Chicago Minneapolis Kansas City Dallas San Francisco Total '- Total Total Appliedfor $ 28.540,000 1,404,981,000 44,620,000 37,515,000 24,227,000 9,155,000 291 8100W 5,655,000 Accepted $ 18,451,000 803,013,000 33,378,000 35 093,000 21,653,000 8,861,000 170 815 000 5,655,000 20,723,000 7,965,000 99,785,000 17.731,000 7,283,000 72,505,000 — $1,214,825,000 $2,005,263,000 (OVER) ill I M P O R T A N T — 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 Dated September 21, 1944. Maturing December 21, 1944. Dated at T o FEDERAL RESERVE BANK OF N E W 1944 YORK, Fiscal Agent of the United States. C O M P E T I T I V E BID FIXED-PRICE BID Pursuant to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on September 15, 1944, as issued by the Secretary of the Treasury, the undersigned offers to pay Pursuant to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on September 15, 1944, as issued by the Secretary of the Treasury, the undersigned offers to pay a fixed-price of 99.905 (rate per 100) f o r a total amount of (Rate per 100) $ of the Treasury bills any less amount that therefor to be made at immediately available in the public notice. * for a total amount of (maturity value) therein described, or f o r may be awarded, payment your bank in cash or other funds on the date stated $ (maturity (Not to exceed $100,000) value) of the Treasury bills therein described, payment therefor to be made at yCur bank in cash or other immediately available funds on the date stated in the public notice. T h e Treasury bills f o r which tender is hereby made are to be dated Septembo^ 21, 1944, and are to mature on December 21, 1944. This tender will be inserted in special envelope entitled "Tender Name of Bidder. By_ for Treasury bills." (Please print) (Tide) (Official signature required) 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. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). A separate tender must be executed for each bid. 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 " copartnership, by a 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. http://fraser.stlouisfed.org/ TENTB-742-a Federal Reserve Bank of St. Louis * 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 September 14,1944. To all Banking Institutions in the Second Federal Reserve District: We are pleased to announce that the following banks have become members of the Federal Reserve System effective September 14,1944: The Bridgeport-City Trust Company, Bridgeport, Connecticut The South Shore Bank of Staten Island, Great Kills, New York. ALLAN SPROUL, President.
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