Full text of Federal Reserve Bank of New York Circulars : 2916. Public Notice of Offering of $1,300,000,000, or Thereabouts, of 91-Day Treasury Bills

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FEDERAL RESERVE BANK OF NEW YORK
Circular No. 2 9 1 6
March 16. 1 9 4 5 .

Fiscal Agent of the United States

Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Dated March 22, 1945

Maturing June 21, 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 on a discount basis under competitive and fixed-price bidding
FOR RELEASE, MORNING
Friday, March 16, 1945.

NEWSPAPERS.

TREASURY DEPARTMENT
Washington

The Secretary of the Treasury, by this public notice, invites tenders f o r $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.
The bills of this
series will be dated March 22, 1945, and will mature June 21, 1945, when the face amount will be payable without interest.
They will be issued in bearer f o r m 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, March 19, 1945.
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be f o r 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 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 f o r , 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
to these reservations, tenders f o r $200,000 or less f r o m 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 March 22, 1945.
T h e income derived f r o m Treasury bills, whether interest or gain f r o m the sale or other disposition of the bills, shall
not have any exemption, as such, and loss f r o m the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under Federai tax Acts now or hereafter enacted.
The bills shall be subject to estate, inheritance, gift,
or other excise taxes, whether Federal or State, but shall be exempt f r o m 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 of
• 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 o f , and such bills are excluded f r o m 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 f o r which
the return is made, as ordinary gain or loss.
Treasury Department Circular N o . 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 f r o m 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) New York 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 19, 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

President.

SPROUL,

(Extract from Treasury Department statement released for publication March 13, 1945, announcing
residts after tenders "were opene'd for Treasury bills dated March 15, 1945 maturing June 14, 1945)
Total

applied f o r

Total accepted

Average price

$2,085,514,000
.$1,315,809,000 (includes $62,392,000
entered on a fixed-price basis at
99.905 and accepted in full)
99.905+

Equivalent rate of discount
approx. 0.375% per annum

Range of accepted competitive bids:

(Excepting one tender
of $2,000,000)

High

99.910

Equivalent rate of discount
approx. 0.356% per annum

Low

99.905

Equivalent rate of discount
approx. 0.376% per annum

(57 percent of the amount bid f o r at the low price
was accepted)




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

Total
Applied for
$

29,520,000
1,445.962,000
49,530,000
28,080,000
28.786,000
15.543.000
331,944,000
51.339,000
2,516.000
16,744,000
20.625,000
64,925,000

$2,085,514,000

Total
Accepted
$

22,984,000
875.242.000
37,576.000
26.790,000
24,529,000
15,500,000
193,463.000
35,193.000
2.491,000
14,336,000
19,550.000
48,155,000

$1,315,809,000
(OVEE)

12 Y
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.
T E N D E R FOR 91 - D A Y TREASURY BILLS
Dated March 22, 1945.

Maturing June 21, 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 N o . 418, as amended, and
to the provisions o f the public notice on
March 16, 1945, as issued by the Secretary
of the Treasury, the undersigned offers to pay
(Rate per 100)

$
of the Treasury bills
any less amount that
therefor to be made at
immediately available
in the public. notice.

Pursuant to the provisions of

Treasury

Department Circular N o . 418, as amended, and to
the provisions

of

the public notice on

March

16, 1945, as issued by the Secretary of the Treasury, the undersigned offers to pay a fixed-price

* f o r a total amount of

o f 99.905 (rate per 100)
$

(maturity value)
therein described, or f o r
may be awarded, payment
your bank in cash or other
funds on the date stated

f o r a total amount o f
(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.

T h e Treasury bills f o r which tender is hereby made are to be dated March 22, 1945, and are to mature
on June 21, 1945.
This tender will be inserted

in special envelope

entitled "Tender

Name of Bidder.
By

for Treasury

bills."

(Please print)

(Official signature required)

(Title)

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. N o tender f o r less than $1,000 will b e considered, and each tender
$1,000 (maturity v a l u e ) . A separate tender must be executed f o r each bid.

must

be f o r an even

multiple

of

2. If the person making 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 b e
signed by a m e m b e r of the firm, w h o should sign in the f o r m
copartnership,

by—

u

a

a m e m b e r of the

firm."

3.
Tenders will be received without deposit f r o m 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 accompanied by payment of 2 percent
of the face a m o u n t of Treasury bills applied f o r , unless the tenders are a c c o m p a n i e d b y 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 o f this tender is changed in any respect, which, in the opinion
T r e a s u r y , is material, the tender m a y be disregarded.

Payment by credit through


TENTB-768-a


* Price

War Loan Deposit Account

must be expressed on the basis of 100, with
three decimal places. Fractions may not be

-will not be
not more
used.

of the Secretary

of the

permitted.

than

(0*