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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 Fiscal Agent of the United States r Circular N o . 2 9 6 1 1 L June IS, 1945 J Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated June 21, 1945 Maturing September 20, 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 NEWSPAPERS. Friday, June 15, 1945. TREASURY DEPARTMENT Washington T h e Secretary of the Treasury, b y this public notice, invites tenders for $1,300,000,000, o r 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 June 21, 1945, and will mature September 20, 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 value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, t w o o'clock p.m., Eastern war time, Monday, June 18, 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 o r Branches on application therefor. Tenders will b e 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 b y payment of 2 percent of the face amount of Treasury bills applied f o r , unless the tenders are accompanied b y an express guaranty of payment b y an incorporated bank o r 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 b y the Secretary of the Treasury of the amount and price range of accepted bids. T h o s e submitting tenders will be advised of the acceptance o r rejection thereof. T h e Secretary of the Treasury expressly reserves the right to accept or reject any o r all tenders, in whole or 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 one bidder at 99.905 entered on a fixed-price basis will be accepted in full. P a y m e n t of accepted tenders at the prices offered must be made o r completed at the Federal Reserve Bank in cash o r other immediately available funds on June 21, 1945. T h e income derived f r o m Treasury 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 o r other disposition of Treasury 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 be subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but shall be exempt f r o m all taxation n o w or hereafter imposed on the principal o r interest thereof by any State, or any of the possessions of the United States, o r by any local taxing authority. F o r purposes of taxation the amount of discount at which Treasury bills are originally sold b y the United States shall be considered to b e interest. Under Sections 42 and 117 ( a ) ( 1 ) of the Internal Revenue Code, as amended b y 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 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 o n l y 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 o r redemption at maturity during the taxable year for 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, June 18, 1945. It is requested that tenders be submitted on special form printed on reverse side and returned in special envelope enclosed herewith. 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 June 12, 1945, announcing results after tenders were opened for Treasury bills dated June 14, 1945 maturing September 13, 1945) T o t a l applied f o r . . .$2,111,747,000 T o t a l accepted A v e r a g e price $1,308,742,000 (includes $57,587,000 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: High 99.908 Equivalent rate of discount approx. 0.364% per annum Low 99.905 Equivalent rate of discount approx. 0.376% per annum (57 percent of the amount bid for at the l o w price was accepted) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTAL Total Applied for $ 56,265,000 1,480.288,000 73,505,000 20,610,000 23,055,000 12,270,000 296,669,000 44,085,000 11,010,000 19,520,000 8,635,000 65,835.000 $2,111,747,000 Total Accepted $ 35,238,000 885,703,000 54,499,000 19,320,000 21,765,000 12,270,000 175,345,000 27,079,000 8,860,000 16.295,000 8,033.000 44,335,000 $1,308,742,000 (cma) 13L 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._ TENDER FOR 91-DAY TREASURY BILLS Maturing September 20, 1945. Dated June 21,1945. 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 June 15, 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 June 15, 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 ( R a t e per 1 0 0 ) * 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 June 21, 1945, and are to mature on September 20, 1945. This tender will be inserted in special envelope entitled "Tender Name of Bidder By for Treasury bills." (Please print) (Official s i g n a t u r e r e q u i r e d ) (Title) Street Address ( C i t y . T o w n o r V i l l a g e , P . O. N o . , and S t a t e ) If this tender is submitted f o r the account o f a customer, indicate the customer's name o n line b e l o w : ( N a m e of Customer) ( C i t y , T o w n or V i l l a g e , P . O . N o . , and S t a t e ) U s e a separate tender f o r each customer's bid. I M P O R T A N T 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 $1,000 (maturity v a l u e ) . A separate tender must be executed f o r each bid. 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 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 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 o f this tender is changed in any respect, which, in the opinion o f Treasury, is material, the tender may be disregarded. the Secretary o f the Payment by credit through War Loan Deposit Account will not be permitted. TENTB-781-a * Pricc must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (OVEB)