Full text of Federal Reserve Bank of New York Circulars : 2966. Public Notice of Offering of $1,300,000,000, or Thereabouts, of 91-Day Treasury Bills

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FEDERAL RESERVE BANK OF N E W

YORK
Circular No. 2966
June 29, 1945 .

Fiscal Agent of the United States

Public Notice of Offering of $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 91-Day Treasury Bills
Dated July 5, 1945

Maturing October 4, 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, June 29, 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 July 5, 1945, and will mature October 4, 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, July 2, 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 f r o m 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.
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 July 5, 1945.
The 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 Federal tax Acts now or hereafter enacted.
The bills shall be subject to estate, inheritance, gift,
o r 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
govern the conditions o f

Circular No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and
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, July 2, 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.
A L L A N S P R O U L , President.
(Extract from Treasury Department statement released for publication June 26, 1945, announcing
results after tende'rs were opened for Treasury bills dated June 28, 1945 maturing September 27, 1945)
Total

applied f o r

Total accepted

Average price

$2,256,345,000
$1,317,766,000 (includes $63,855,000
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

(51 percent of the amount bid f o r at the low 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
$

51,210,000
1,570,715,000
76,215,000
41,470,000
23,365,000
9,290,000
290,295,000
33,850,000
29,595,000
36,980,000
14,950,000
78,410,000

$2,256,345,000

Total
Accepted
$

30,287,000
873,245,000
56,321.000
35,100.000
19,935,000
9,040.000
162.675,000
20,571.000
17,345,000
28,846.000
12,451,000
51,950,000

$1,317,766,000
(OVER)

13N

IMPORTANT—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 - D A Y TREASURY BILLS
Dated July 5, 1945.

Maturing October 4, 1945.
Dated at

y

T o FEDERAL RESERVE B A N K OF N E W Y O R K ,

^45

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 29, 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
29, 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
$
(maturity value)

(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.

(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 July 5, 1945, and are to mature
on October 4, 1945.
This tender will be inserted in special envelope e\

ititled "Tender

Name of Bidder

for Treasury

bills."

(Please print)

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

be f o r

an even multiple

of

2. If the person making the tender is a corporation, the tender should b e signed b y an officer of the c o r poration authorized t o make the tender, and the signing of the tender b y an officer of the corporation will be construed
as a representation b y him that he has been s o authorized.
If the tender is m a d e b y a partnership, it should b e
signed b y a m e m b e r of the firm, w h o should sign in the f o r m "
copartnership,

by

, a
a m e m b e r of the

firm."

3. 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 m u s t be accompanied b y p a y m e n t of 2 percent
of the f a c e a m o u n t of T r e a s u r y bills applied f o r , unless the tenders are accompanied 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 of this tender is c h a n g e d in any respect, which, in the opinion of
T r e a s u r y , is material, the tender m a y be disregarded.

the Secretary of

the

Vayment by credit through War Loan Deposit Account will not be permitted.


TENTB-783-a


* Price

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

than

(OVER)

F E D E R A L R E S E R V E BANK
OF NEW

YORK

June 30, 1945.

Semiannual Dividend

GENTLEMEN :

The board of directors of Federal Reserve Bank of New York has
declared a dividend for the six-month period ending June 30, 1945, at
the rate of six per centum per annum on the paid-in capital stock of
the bank, payable June 30, 1945, to stockholders as shown by the books
of the bank at the close of business on that date.

Payment of $

, the amount of such dividend due you, is

being made at the close of business today by credit to your reserve
account.




Very truly yours,