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F E D E R A L R E S E R V E BANK O F N E W YORK r Circular No. 2914 t March 9. 1945 Fiscal Agent of the United States ] Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated March 15, 1945 To all Incorporated Banks and Trust Companies Second Federal Reserve District and Others Maturing June 14, 1945 in the 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, F r i d a y , M a r c h 9, 1945. TREASURY DEPARTMENT Washington T h e S e c r e t a r y o f the T r e a s u r y , by this p u b l i c n o t i c e , i n v i t e s t e n d e r s f o r $1,300,000,000, o r t h e r e a b o u t s , o f 9 1 - d a y T r e a s u r y bills, t o be i s s u e 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 fixed-price b i d d i n g 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 s e r i e s w i l l be dated M a r c h 15, 1945, a n d w i l l m a t u r e J u n e 14.. 1945, w h e n the f a c e a m o u n t w i l l be p a y a b l e w i t h o u t interest. T h e y w i l l be i s s u e d in b e a r e r f o r m o n l y , a n d in d e n o m i n a t i o n s o f $1,000, $5,000, $10,000, $100,000, $500,000, a n d $1,000,000 (maturity value). T e n d e r s w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s up t o the c l o s i n g h o u r , t w o o ' c l o c k p.m., E a s t e r n w a r time, M o n d a y , M a r c h 12, 1945. T e n d e r s w i l l n o t b e r e c e i v e d at the T r e a s u r y D e p a r t m e n t W a s h i n g t o n . E a c h t e n d e r m u s t be f o r an e v e n m u l t i p l e o f $1,000, a n d the p r i c e o f f e r e d m u s t be e x p r e s s e d o n the b a s i s o f 100, w i t h n o t m o r e t h a n t h r e e d e c i m a l s , e. g., 99.925. F r a c t i o n s m a y n o t be u s e d . I t is u r g e d that t e n d e r s be m a d e o n the p r i n t e d f o r m s a n d f o r w a r d e d in the s p e c i a l e n v e l o p e s w h i c h w i l l be s u p p l i e d by F e d e r a l R e s e r v e B a n k s o r B r a n c h e s o n a p p l i c a t i o n t h e r e f o r . T e n d e r s w i l l b e r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k s a n d trust 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 securities. T e n d e r s f r o m o t h e r s m u s t be a c c o m p a n i e d by 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 the 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 a n i n c o r p o r a t e d b a n k o r trust c o m p a n y . I m m e d i a t e l y a f t e r the c l o s i n g h o u r , t e n d e r s w i l l b e o p e n e d at the F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h i c h p u b l i c a n n o u n c e m e n t will be m a d e b y the S e c r e t a r y o f the T r e a s u r y o f the a m o u n t a n d p r i c e r a n g e o f a c c e p t e d b i d s . T h o s e s u b m i t t i n g t e n d e r s w i l l be a d v i s e d o f the a c c e p t a n c e 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 e x p r e s s l y r e s e r v e s the r i g h t t o a c c e p t o r r e j e c t a n y o r all t e n d e r s , in w h o l e o r in part, a n d his a c t i o n in a n y such r e s p e c t shall be final. S u b j e c t t o these r e s e r v a t i o n s , t e n d e r s f o r $200,000 o r less f r o m a n y o n e b i d d e r at 99.905 e n t e r e d o n a fixed-price b a s i s w i l l be a c c e p t e d in f u l l . P a y m e n t o f a c c e p t e d t e n d e r s at the p r i c e s o f f e r e d m u s t be m a d e o r c o m p l e t e d at the F e d e r a l R e s e r v e B a n k in c a s h o r o t h e r i m m e d i a t e l y a v a i l a b l e f u n d s o n M a r c h 15, 1945. T h e i n c o m e d e r i v e d f r o m T r e a s u r y bills, w h e t h e r interest o r g a i n f r o m the sale o r o t h e r d i s p o s i t i o n o f the b i l l s , shall n o t h a v e a n y e x e m p t i o n , as s u c h , a n d loss f r o m the sale o r o t h e r d i s p o s i t i o n o f T r e a s u r y b i l l s s h a l l n o t h a v e a n y s p e c i a l t r e a t m e n t , as s u c h , u n d e r F e d e r a l t a x A c t s n o w o r h e r e a f t e r e n a c t e d . T h e b i l l s shall be s u b j e c t t o estate, i n h e r i t a n c e , g i f t , o r o t h e r e x c i s e t a x e s , w h e t h e r F e d e r a l o r State, b u t shall b e e x e m p t f r o m all t a x a t i o n n o w o r h e r e a f t e r i m p o s e d o n the p r i n c i p a l o r interest t h e r e o f b y a n y State, o r a n y o f the p o s s e s s i o n s o f the U n i t e d States, o r b y a n y l o c a l t a x i n g a u t h o r i t y . F o r p u r p o s e s o f t a x a t i o n the a m o u n t o f d i s c o u n t at w h i c h T r e a s u r y b i l l s a r e o r i g i n a l l y s o l d b y the U n i t e d States shall be c o n s i d e r e d to b e interest. U n d e r S e c t i o n s 42 a n d 117 ( a ) ( 1 ) o f the I n t e r n a l R e v e n u e C o d e , as a m e n d e d b y S e c t i o n 115 o f the R e v e n u e A c t o f 1941, the a m o u n t o f d i s c o u n t at w h i c h b i l l s i s s u e d h e r e u n d e r are s o l d shall n o t be c o n s i d e r e d t o a c c r u e until s u c h b i l l s shall be s o l d , r e d e e m e d o r o t h e r w i s e d i s p o s e d o f , a n d s u c h b i l l s a r e e x c l u d e d f r o m c o n s i d e r a t i o n as c a p i t a l 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 t h a n life i n s u r a n c e c o m p a n i e s ) issued h e r e u n d e r n e e d i n c l u d e in his i n c o m e t a x r e t u r n o n l y the d i f f e r e n c e b e t w e e n the p r i c e p a i d f o r such bills, w h e t h e r o n o r i g i n a l issue o r o n s u b s e q u e n t p u r c h a s e , a n d the a m o u n t a c t u a l l y r e c e i v e d e i t h e r u p o n s a l e o r r e d e m p t i o n at m a t u r i t y d u r i n g the t a x a b l e y e a r f o r w h i c h the return is m a d e , as o r d i n a r y g a i n o r loss. T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 418, as a m e n d e d , a n d this n o t i c e , p r e s c r i b e the terms o f the T r e a s u r y b i l l s a n d g o v e r n t h e c o n d i t i o n s o f t h e i r issue. C o p i e s o f the c i r c u l a r m a y b e o b t a i n e d f r o m a n y F e d e r a l R e s e r v e B a n k 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) New 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, March 12, 1945. 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. (Extract from Treasury Department statement released for publication March 6, 1945, announcing results after tenders were opened for Treasury bills dated March 8, 1945 maturing June 7, 1945) Total Total applied f o r accepted Average price.... $2,436,231,000 $1,309,916,000 ( i n c l u d e s $60,219,000 entered on a fixed-price b a s i s at 99.905 a n d a c c e p t e d in f u l l ) 99.905+ E q u i v a l e n t rate o f d i s c o u n t a p p r o x . 0 . 3 7 5 % per a n n u m R a n g e of accepted competitive bids: High 99.915 E q u i v a l e n t rate o f d i s c o u n t A p p r o x . 0.336% per annum Low 99.905 Equivalent rate of discount a p p r o x . 0 . 3 7 6 % per a n n u m ( 4 8 p e r c e n t o f the a m o u n t b i d f o r at the l o w p r i c e accepted) was Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. L o u i s Minneapolis K a n s a s City Dallas San F r a n c i s c o TOTAL Total Applied for $ 21,830,000 1,334,162,000 35,008,000 25,960,000 35,002,000 11,265,000 447,788,000 426.356,000 3.890,000 26.820.000 10.720,000 57,430,000 $2,436,231,000 Total Accepted $ 12,418,000 677,698,000 23,984,000 23,360,000 31,986.000 11,015,000 226,539,000 220,488.000 3,890.000 25,520,000 9,160,000 43,858,000 $1,309,916,000 (OVER) 12X I M P O R T A N T — I f 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 March 15, 1945. Maturing June 14, 1945. Dated at 1945 T o FEDERAL RESERVE B A N K OF N E W Y O R K , Fiscal Agent of the United States. C O M P E T I T I V E BID F I X E D - P R I C E BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on March 9, 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 March 9, 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 (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 $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 15, 1945, and are to mature on June 14, 1945. This tender will be inserted in special envelope entitled "Tender Name of Bidder By for -Treasury bills." (Please (Official signature required) print) , (Title) Street A d d r e s s (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 : (Name of Customer) (City, T o w n or Village, P.O. No., and State) . 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 $1,000 (maturity value). A separate tender must be executed f o r each bid. tender must be f o r an even multiple 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 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 m e m ber of the firm, w h o should sign in the f o r m " , 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 o f 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 Treasury, is material, the tender may be disregarded. Payment http://fraser.stlouisfed.org/ TENTB-767-a Federal Reserve Bank of St. Louis by credit through * Price in any respect, which, in the opinion of the Secretary of the War Loan Deposit Account will not be must be expressed on the basis of 100, with not more three decimal places. Fractions may not be used. permitted. than (0VER>
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