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FEDERAL RESERVE BANK O F N E W

YORK
f Circular N o . 2896 "1
L J a n u a r y 26. 1945 J

F i s c a l A g e n t of t h e U n i t e d States

Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Dated February 1,1945

Maturing May 3, 1945

To all Incorporated Banks and Trust Companies in the
Second Federal Reserve District and Others
Concerned:
F o l l o w i n g is the t e x t o f a n o t i c e t o d a y m a d e p u b l i c b y t h e T r e a s u r y D e p a r t m e n t w i t h r e s p e c t t o a n e w o f f e r i n g o f T r e a s u r y
b i l l s p a y a b l e at m a t u r i t y w i t h o u t i n t e r e s t t o b e s o l d o n a d i s c o u n t b a s i s u n d e r c o m p e t i t i v e a n d f i x e d - p r i c e b i d d i n g .
FOR RELEASE, MORNING
Friday, January 26, 1945.

NEWSPAPERS,

TREASURY DEPARTMENT
Washington

The Secretary of the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 91-day Treasury
bills, to be issued on a discount basis under competitive and fixed-price bidding as hereinafter provided. T h e bills of this
series will be dated' February 1, 1945, and will mature M a y 3, 1945, 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, January 29, 1945. 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 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, 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
t o these reservations, tenders f o r $200,000 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 February 1, 1945.
T h e income derived f r o m 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 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 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 117 ( a ) ( 1 )
of the Internal Revenue Code, as amended by Section 115- o f
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 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 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 o f their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
I n a c c o r d a n c e w i t h the a b o v e a n n o u n c e m e n t t e n d e r s w i l l b e r e c e i v e d at t h e S e c u r i t i e s D e p a r t m e n t o f this b a n k ( 9 t h
floor, 3 3 L i b e r t y S t r e e t ) N e w Y o r k 7, N . Y . , o r at t h e B u f f a l o B r a n c h o f t h i s b a n k ( 2 7 0 M a i n S t r e e t ) B u f f a l o 5, N . Y . ,
u p t o t w o o ' c l o c k p.m., E a s t e r n w a r time, o n M o n d a y , J a n u a r y 29, 1945. It is requested that t e n d e r s b e s u b m i t t e d
o n s p e c i a l f o r m p r i n t e d o n r e v e r s e s i d e a n d r e t u r n e d i n s p e c i a l e n v e l o p e e n c l o s e d h e r e w i t h . 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
made in cash or other immediately
available
funds.
A L L A N SPROUL,
(Extract
from Treasury
Department
results
after tenders
were opened for

statement
Treasury

T o t a l , applied f o r

$2,195,034,000

Total accepted

$1,315,666,000 (includes $64,081,000
entered on a fixed -price basis at
99.905 and accepted in full)

Average price . . . .

99.905-)-

Equivalent rate of discount
approx. 0.375% per annum

Range of accepted competitive b i d s :
High

99.910

Equivalent rate of discount
approx. 0.356% per annum

Low

99.905

Equivalent rate of discount
approx. 0.376% per annum

(54 percent of the amount bid f o r at the low price

was accepted)



released
for publication
bills dated January
25,

January
23, 1945,
1945 maturing
April

Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

President.

announcing
26,
1945)

Total
Applied for
$

-

42,980,000
1,473,780,000
61,850,000
19,160,000
25,505,000
15,210,000
303,947,000
24,019,000
3,800,000
19,413,000
13,202,000
192,168,000

$2,195,034,000

Total
Accepted
$

25,408,000
854,722 000
41,196,000
16,465,000
21,825,000
10,958,000
177,048,000
16,015,000
3,790000
17,389 000
11,822 000
119,028,000

$1,315,666,000
(OVER)

12R
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.

T E N D E R FOR 91-DAY TREASURY BILLS
Dated February 1, 1945.

Maturing May 3, 1945,
Dated at

T o

FEDERAL RESERVE

BANK

OF N E W

1945

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
January 26, 1945, 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 January
26, 1945, 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
( R a t e 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 e x c e e d $200,000)

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 1, 1945, and are to mature
on May 3, 1945.
This tender will be inserted in special envelope

entitled "Tender

Name of Bidder
By

for Treasury

(Please

(Official signature

bills."

print)

required)

(Title)

Street Address

(City, T o w n or Village, P.O. No., and State)

If this tender is submitted f o r the account of a customer, indicate the customer's name on line b e l o w :
( N a m e of C u s t o m e r )

( C i t y , T o w n or V i l l a g e , P . O . N o . , a n d S t a t e )

Use a separate tender f o r 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 of
$1,000 (maturity value). A separate tender must be executed f o r 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 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 member o f the firm, w h o should sign in the form "
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 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.
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 m a y be disregarded.

Payment by credit through War Loan Deposit Account will not be permitted.

TENTB-761-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
OF NEW

BANK

YORK

January 27, 1945.

To all Banking
Second

Institutions

Federal

Reserve

in the
District:

We are pleased to announce that Hunterdon County Trust
Company, Calif on, New Jersey, has become a member of the
Federal Reserve System effective January 27, 1945.




ALLAN

SPROUL,

President.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102