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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States Circular No. 2910 j L February 23, 1945 Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated March 1, 1945 Maturing May 31, 1945 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 o n a discount basis under competitive and fixed-price bidding. FOR RELEASE, MORNING F r i d a y , F e b r u a r y 23, 1945. TREASURY DEPARTMENT Washington NEWSPAPERS, T h e Secretary o f the T r e a s u r y , b y this public notice, invites tenders f o r $1,300,000,000, o r thereabouts, o f 91-day T r e a s u r y bills, to be issued on a discount basis under competitive and fixed-price bidding as h e r e i n a f t e r p r o v i d e d T h e bills o f this series will be dated M a r c h 1, 1945, and will mature M a y 31, 1945, w h e n the f a c e a m o u n t will be payable without interest. T h e y will be issued in bearer f o r m o n l y , a n d 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 be received at Federal R e s e r v e B a n k s and Branches up to the c l o s i n g hour, t w o o ' c l o c k p.m., Eastern w a r time, M o n d a y , F e b r u a r y 26, 1945. T e n d e r s will not be received at the T r e a s u r y Department, Washington. E a c h tender must be f o r an even multiple o f $1,000, and the price o f f e r e d must be e x p r e s s e d on the basis o f 100, with not m o r e than three decimals, e. g . , 99.925. Fractions m a y n o t be used. I t is urged that tenders be m a d e on the printed f o r m s and f o r w a r d e d in the special envelopes w h i c h will be supplied b y Federal R e s e r v e Banks o r Branches on application therefor. T e n d e r s will be 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. T e n d e r s f r o m o t h e r s must be a c c o m p a n i e d 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 are accompanied b y an express guaranty o f payment b y an incorporated bank o r trust c o m p a n y . Immediately a f t e r the closing hour, tenders will be opened at the Federal R e s e r v e B a n k s and Branches, f o l l o w i n g w h i c h public announcement will be m a d e b y the Secretary o f the T r e a s u r y o f the amount and p r i c e r a n g e 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 t h e r e o f . T h e S e c r e t a r y o f the T r e a s u r y expressly reserves the r i g h t t o accept or 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 be final. S u b j e c t to these reservations, tenders f o r $200,000 o r less f r o m any one bidder at 99.905 entered o n a fixed-price basis will be accepted in f u l l . 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 be made o r completed at the Federal Reserve B a n k in cash o r other immediately available f u n d s o n M a r c h 1, 1945. T h e i n c o m e derived f r o m T r e a s u r y bills, w h e t h e r interest o r gain f r o m the sale o r other disposition o f the bills, shall n o t have any e x e m p t i o n , as such, and loss f r o m the sale o r o t h e r disposition o f T r e a s u r y bills shall not 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 be subject to estate, inheritance, g i f t , o r o t h e r e x c i s e taxes, w h e t h e r Federal o r State, but shall b e e x e m p t f r o m all taxation n o w o r hereafter imposed on the principal o r interest thereof by 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 t a x a t i o n the amount o f discount at w h i c h T r e a s u r y bills a r e originally s o l d b y the United States shall be c o n s i d e r e d t o be interest. U n d e r Sections 42 and 117 ( a ) ( 1 ) o f the Internal R e v e n u e Code, as amended by 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 are s o l d shall n o t be considered t o accrue until such bills shall be sold, redeemed o r o t h e r w i s e disposed o f , and such bills a r e e x c l u d e d 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 o n l y the difference between the price paid f o r such bills, w h e t h e r on original issue or on subsequent purchase, and the amount actually received either upon sale o r redemption at maturity during the taxable year 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 D e p a r t m e n t Circular N o . 418, g o v e r n the conditions o f their issue. Copies as amended, a n d this notice, prescribe the terms o f the T r e a s u r y bills and o f the circular m a y be obtained f r o m any Federal R e s e r v e Bank o r B r a n c h . 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, February 26, 1945. 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 az'ailable funds. ALLAN SPROUL, President. (Extract from Treasury Department statement released for publication February 20, 1945, announcing results after tenders -were opened for Treasury bills dated February 23, 1945 maturing May 24, 1945) Total Total applied accepted A v e r a g e price for $1,887,678,000 Federal $1,308,371,000 (includes $65,660,000 entered o n a fixed-price basis at 99.905 and accepted in f u l l ) 99.906+ Equivalent rate o f discount a p p r o x . 0 . 3 7 6 % per annum R a n g e o f accepted competitive bids: High 99.910 Equivalent rate o f discount 0 . 3 6 0 % per annum Low 99.906 Equivalent rate o f discount 0 . 3 7 6 % per annum ( 6 7 percent o f the amount bid f o r at the l o w accepted) was price Reserve Total District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago S t Louis Minneapolis K a n s a s City Dallas San Francisco TOTAL Applied $ Total for 28,465,000 1,376,808,000 28.238,000 34,852,0000 26,780,000 23,275,000 260,765,000 7,725,000 4,015,000 17,225,000 11.672.000 67,858,000 $1,887,678,000 Accepted $ 18,470,000 951,472,000 20,774,000 22,199,000 21,149,000 16,069,000 178,183,000 5,060.000 3,840,000 10,730.000 8,572,000 51,853,000 $1,308,371,000 (OVER) 12V 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". D O NOT fill in both paragraphs on one form, A separate tender must be used for each bid. No. T E N D E R F O R 91 - D A Y T R E A S U R Y Dated March 1, 1945. BILLS Maturing May 31, 1945. Dated at To FEDERAL RESERVE B A N K 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 February 23, 1945, as issued by the Secretary of the Treasury, the undersigned offers to pay Pursuant to the provisions of TreasureDepartment Circular No. 418, as amended, and to the provisions of the public notice on February 23, 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 $ (maturity value) (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. (Not to exceed $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 March 1, 1945, and are to mature on May 31, 1945. This tender will be inserted in special envelope entitled "Tender for Treasury bills." Name of By Bidder., (Please print) (Official signature required) (Title) Street A d d r e s s (City, T o w n or Village, P.O. No., and State) I f t h i s t e n d e r is s u b m i t t e d f o r t h e a c c o u n t o f a c u s t o m e r , i n d i c a t e t h e c u s t o m e r ' s n a m e o n line b e l o w : (Name of Customer) (City, T o w n 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. I M P O R T A N T INSTRUCTIONS: $1,000 1. N o t e n d e r f o r less t h a n $1,000 w i l l b e c o n s i d e r e d , a n d e a c h t e n d e r (maturity value). A separate tender m u s t be executed f o r each bid. must be for an even multiple of 2. I f the p e r s o n m a k i n g t h e t e n d e r is a c o r p o r a t i o n , t h e t e n d e r s h o u l d b e s i g n e d b y a n o f f i c e r o f t h e c o r poration authorized t o make the tender, and the signing o f the tender b y an officer o f the c o r p o r a t i o n will be construed as a r e p r e s e n t a t i o n b y h i m t h a t h e h a s b e e n s o a u t h o r i z e d . If t h e t e n d e r is m a d e b y a p a r t n e r s h i p , it s h o u l d b e signed b y a m e m b e r of the copartnership, firm, w h o s h o u l d s i g n in t h e f o r m " b y — f , a m e m b e r of the a firm." 3. T e n d e r s will be received without deposit f r o m i n c o r p o r a t e d b a n k s a n d t r u s t c o m p a n i e s a n d f r o m r e s p o n s i b l e a n d r e c o g n i z e d d e a l e r s in i n v e s t m e n t s e c u r i t i e s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n i e d b y p a y m e n t o f 2 p e r c e n t o f t h e f a c e a m o u n t o f T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s t h e t e n d e r s a r e a c c o m p a n i e d b y an e x p r e s s g u a r a n t y o f p a y m e n t b y an i n c o r p o r a t e d b a n k o r t r u s t c o m p a n y . 4. If t h e l a n g u a g e o f t h i s t e n d e r is c h a n g e d in a n y r e s p e c t , w h i c h , in the o p i n i o n T r e a s u r y , is m a t e r i a l , t h e t e n d e r m a y b e d i s r e g a r d e d . Payment TENTB-765-a by credit through * Price War Loan Deposit Account must be expressed on the basis cf 100, with three decimal places. Fractions may not be will not be not more used. of the Secretary of the permitted. than (OVER) FEDERAL RESERVE BANK OF NEW YORK Fiscal A g e n t of the United States February 26, 1945. UNITED STATES SAVINGS BONDS Instructions Regarding Payment of Bonds of Series A at Maturity and Issuance of Bonds of Series E in Exchange To all Incorporated Banks and Trust Companies in the Second Federal Reserve District Qualified to Make Payments in Connection with the Redemption of United States Savings Bonds: In our Circular No. 2902, dated February 12, 1945, we advised you that, beginning on March 1, 1945, individuals (natural persons) owning maturing Savings Bonds of Series A would have the option of receiving payment of the maturity value in cash, or of exchanging their bonds for Series E War Savings Bonds. The following instructions are for the guidance of qualified banks and trust companies which will pay maturing Series A bonds and issue Series E bonds purchased with the proceeds. 1. Maturing Series A Bonds Presented for Payment in Cash Series A bonds registered in the name of an individual (natural person) as owner or coowner in his own right and presented by such owner or coowner for payment in cash may be paid by a qualified bank or trust company, as provided in Treasury Department Circular No. 750, dated September 5,1944, a copy of which was contained in our Circular No. 2834 of the same date. All other maturing Series A bonds (including those registered in the names of associations, corporations, fiduciaries or deceased individual owners) should be forwarded to us for payment, with requests for payment properly executed and certified, and accompanied by any documentary evidence necessary to support the payment. 2. Maturing Series A Bonds Presented for Exchange When an individual (natural person) named as owner or coowner of maturing Series A bonds wishes to apply the proceeds of such bonds in payment for Series E bonds to be inscribed in the name of such individual, in any authorized form of registration, a qualified bank or trust company may pay the Series A bonds and issue Series E bonds in any denominations, the issue price of which is fully covered by the proceeds of the maturing bonds, or such 'lesser amount as the individual may direct. Any remaining balance should, of course, be paid to such individual. Further instructions with respect to these transactions are stated in sections 4 and 5 below. When an individual (natural person) not named as owner or coowner has succeeded to legal title in his own right to maturing Series A bonds (as a surviving designated beneficiary, as heir or legatee of the owner, or otherwise) and wishes to apply the proceeds of such bonds in payment for Series E bonds, a qualified bank or trust company is not authorized to complete the transaction but may forward the maturing bonds to us with requests for payment properly executed and certified, accompanied by documentary evidence of the change of title and by (OVER) instructions with respect to the form of registration and amount of Series E bonds desired in exchange. Any balance of the proceeds of .the Series A bonds in excess of the issue price of the Series E bonds will be remitted by us by check to the order of the owner. Owners of Series A bonds other than individuals are not eligible to purchase Series E bonds and may not exchange their maturing bonds as provided above. Such bonds should be forwarded to us with requests for payment properly executed and certified. We will make payment by check to the order of the owners in the regular course. 3. Limitation on Holdings of Series E Bonds Series E bonds, the entire issue price of which is paid with the proceeds of maturing Series A bonds during the month in which the latter mature, will be dated as of the first day of that month and will not be subject to the limitations on holdings of Series E bonds acquired on original issue. On the other hand, when proceeds of Series A bonds maturing in one month are applied to the purchase of Series E bonds in a subsequent month, the Series E bonds will be dated as of the first day of the latter month and will be taken into consideration in determining whether the owner's holdings exceed $5,000 (maturity value) of Series E bonds issued in the same calendar year. 4. Treatment of Series A Bonds Paid by Qualified Banks Maturing Series A bonds paid by a qualified bank or trust company, whether the owner receives the full maturity value in cash or Series E bonds issued in exchange, should be handled in exactly the same manner as any other savings bonds paid by it. In other words, the requests for payment should be executed by the owner presenting the bonds, the paid bonds should be stamped in the usual manner and forwarded to us for credit along with other paid bonds; paid Series A bonds should not be forwarded to us as a remittance for Series E bonds issued in exchange. 5. Treatment of Registration Stubs of Series E Bonds Issued in Exchange Where all or a part of the proceeds of Series A bonds maturing in one month are applied in payment for Series E bonds issued in the same month, the original registration stubs of the Series E bonds should be marked in the lower left corner, as follows: EX-A35 Rubber stamps to be used in imprinting this notation on the stubs are being sent to all qualified banks and trust companies in this Federal Reserve District. Stubs bearing this notation should be included in the same transmittal letter with stubs of bonds issued against regular cash payments, but should be segregated from the other stubs. The marking and segregation of stubs in this manner is necessary in order that they may be excluded in computing total holdings of Series E bonds by the owners, and may be used in compiling records of the volume of Series A bonds exchanged. When proceeds of Series A bonds maturing in one month are applied to the purchase of Series E bonds in a subsequent month, no notation should be made on the stubs of the Series E bonds issued. Additional copies of these instructions will be furnished upon request. ALLAN SPROUL, President.
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