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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)