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FEDERAL RESERVE BANK O F NEW Fiscal A g e n t o f the United YORK r Circular No. 2 9 3 0 ^ L April 13, 1945 J States Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated April 19, 1945 Maturing July 19, 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 t h e 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 ) bills p a y a b l e a t 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 fixed-price bidding FOR RELEASE, MORNING Friday, April 13, 1945. NEWSPAPERS, TREASURY DEPARTMENT Washington T h e 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 April 19, 1945, and will mature July 19, 1945, when the face amount will be payable without interest. T h e y 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 v a l u e ) . T e n d e r s will b e received at Federal R e s e r v e B a n k s and Branches up to the closing hour, t w o o ' c l o c k p.m., Eastern war time, M o n d a y , April 16, 1945. T e n d e r s will not be received at the Treasury Department, W a s h i n g t o n . E a c h tender must be f o r an even multiple of $1,000, and the price o f f e r e d must be expressed on the basis of 100, with not m o r e than three decimals, e. g., 99.925. F r a c t i o n s m a y not be used. It 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 which will be supplied b y Federal R e s e r v e Banks or Branches o n application therefor. T e n d e r s will be received without deposit f r o m incorporated 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 others must be accompanied b y payment of 2 pcrcent of the lace a m o u n t of T r e a s u r y bills applied for, unless the tenders are a c c o m p a n i e d b y an express guaranty of payment b y an incorporated bank or trust c o m p a n y . I m m e d i a t e l y after the closing hour, tenders will b e o p e n e d at the Federal R e s e r v e Banks and Branches, f o l l o w i n g which public announcement will be m a d e b y the Secretary of the T r e a s u r y of the amount and price range of accepted bids. T h o s e submitting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the T r e a s u r y expressly reserves the right t o accept or reject any or all tenders, in w h o l e o r in part, and his action in any such respect shall be final. Subject to these reservations, tenders for $200,000 or less f r o m any o n e bidder at 99.905 entered o n a fixed-price basis will be accepted in full. P a y m e n t of accepted tenders at the prices o f f e r e d m u s t be made o r c o m p l e t e d at the Federal Reserve Bank in cash or other immediately available funds on April 19, 1945. T h e i n c o m e derived f r o m T r e a s u r y bills, whether interest or gain f r o m the sale o r other disposition of the bills, shall not have any exemption, as such, and loss f r o m the sale or other disposition of T r e a s u r y bills shall not have any special treatment, as such, under Federal tax A c t s n o w or hereafter enacted. T h e bills shall b e subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be e x e m p t f r o m all taxation n o w or hereafter imposed on the principal o r interest thereof b y any State, or any of the possessions of the United States, or b y any local taxing authority. F o r purposes of taxation the a m o u n t of discount at w h i c h T r e a s u r y bills are originally sold by the United States shall be considered to be interest. U n d e r Sections 42 and 117 ( a ) ( 1 ) of the Internal R e v e n u e C o d e , as amended b y Section 115 ol the R e v e n u e A c t of 1941, the amount of discount at which bills issued hereunder are sold shall not b e 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. A c c o r d i n g l y , the o w n e r of Treasury bills (other than life insurance c o m p a n i e s ) issued hereunder need include in his i n c o m e tax return o n l y the difference between the price paid f o r such bills, whether on original issue or on subseauent purchase, and the a m o u n t actually received either u p o n sale or redemption at maturity during the taxable year f o r which the return is made, as ordinary gain o r loss. T r e a s u r y Department Circular N o . 418, as amended, and this notice, prescribe the terms of the Treasury bills and g o v e r n the conditions of their issue. Copies of the circular m a y be obtained f r o m any Federal R e s e r v e Bank or Branch. I n a c c o r d a n c e w i t h t h e 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 t h i s 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 a t t h e B u f f a l o R r a n c h o f this 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 t i m e , o n M o n d a y , A p r i l 16, 1 9 4 5 . It i s r e q u e s t e d 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 . 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. A L L A N SPROUL, President. (Extract results from after Treasury tenders Department were opened statement for Treasury T o t a l applied f o r . . .$2,163,982,000 T o t a l accepted , . . . . $1,303,940,000 (includes $60,784,000 entered on a fixed-price basis at 99.905 and accepted in f u l l ) A v e r a g e price . . 9 9 . 9 0 5 + Equivalent rate of discount approx. 0.375% per annum R a n g e of accepted competitive b i d s : High 99.908 Equivalent rate of discount approx. 0.364% per annum Low 99.905 Equivalent rate of discount a p p r o x . 0.376% per annum (55 percent of the amount bid for at the l o w price was a c c e p t e d ) released bills for dated publication April 12, April 1945 10, maturing Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago S t Louis Minneapolis Kansas City Dallas San Francisco TOTAL 1945, July announcing 12, 1945) Total Applied for $ 31,625,000 1,554,076,000 48,230,000 23,905,000 16,437,000 9,215,000 326,929,000 19,887,000 13,360,000 18,748,000 17,860,000 83,710,000 $2,163,982,000 Total Accepted $ 18,980,000 901,801,000 36,710,000 20,305,000 15,537,000 8,965,000 194,742,000 12,912,000 8,860,000 14,698,000 14,170,000 56,260,000 $1,303,940,000 (OVER) 13 C 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. NOT E N D E R FOR 9 1 - D A Y T R E A S U R Y BILLS Dated April 19, 1945. Maturing July 19, 1945. Dated at To FEDERAL RESERVE B A N K OF N E W .1945 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 No. 418, as amended, and to the provisions of the public notice on April 13, 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 April 13, 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 April 19, 1945, and are to mature on July 19, 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 f o r the account of a customer, indicate the customer's name on line b e l o w : (Name of Customer) (City. Town or Village, P.O. No., and State) Use a separate tender f o r each c u s t o m e r ' ! bid. IMPORTANT INSTRUCTIONS: 1. N o 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 o f this tender is changed in any respect, which, in the opinion of Treasury, is material, the tender may be disregarded. Payment TENTB-772-a by credit through War Loan Deposit Account will not be * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. the Secretary of the permitted. (QVEB)