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F E D E R A L R E S E R V E BANK O F N E W Fiscal Agent of the United YORK r Circular No. 2974 "1 I July 13, 1945 J States Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated July 19, 1945 To all Incorporated Banks and Trust Companies Second Federal Reserve District and Others Maturing October 18, 1945 in the 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 y bills p a y a b l e at m a t u r i t y w i t h o u t interest to 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 f i x e d - p r i c e b i d d i n g . FOR RELEASE, MORNING NEWSPAPERS, F r i d a y , July 13, 1945. TREASURY DEPARTMENT Washington T h e Secretary o f the T r e a s u r y , by this public notice, invites tenders f o r $1,300,000,000, or thereabouts, o f 91-day T r e a s u r y bills, to be issued on a discount basis under competitive and lixed-price b i d d i n g as hereinafter p r o v i d e d . T h e bills o f this series will be dated July 19, 1945, and will mature O c t o b e r 18, 1945, when the f a c e amount will be payable without interest. T h e y will be issued in bearer f o r m only, and in denominations o f $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 be received at Federal R e s e r v e Banks and Branches up t o the c l o s i n g hour, t w o o ' c l o c k p.m., Eastern w a r time, M o n d a y , July 16, 1945. Tenders w i l l not be received at the T r e a s u r y 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 offered 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 may not be used. It is urged that tenders be made on the printed f o r m s and f o r w a r d e d in the special envelopes w h i c h w i l l be supplied by Federal R e s e r v e Banks o r 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 recognized dealers in investment securities. T e n d e r s f r o m others must be a c c o m p a n i e d by payment o f 2 percent of the face amount of T r e a s u r y bills applied f o r , unless the tenders are a c c o m p a n i e d by an express guaranty of payment by an incorporated bank or trust company. Immediately after the c l o s i n g hour, tenders w i l l be opened at the Federal R e s e r v e Banks and Branches, f o l l o w i n g w h i c h public announcement will be made by the Secretary of the T r e a s u r y o f the amount and price range of accepted bids. T h o s e submitting tenders will be advised o f the acceptance or rejection thereof. T h e S e c r e t a r y of the T r e a s u r y e x p r e s s l y reserves the right to accept o r reject any o r all tenders, in w h o l e 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 m u s t be made or completed at the Federal R e s e r v e Bank in cash or other immediately available funds o n July 19, 1945. T h e income derived f r o m T r e a s u r y bills, whether interest o r 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 T r e a s u r y bills shall not have any special treatment, as such, under Federal t a x A c t s n o w o r hereafter enacted. T h e bills shall be subject t o estate, inheritance, gift, o r other e x c i s e taxes, whether Federal o r 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 t a x i n g authority. F o r purposes of taxation the amount of discount at which T r e a s u r y bills are originally sold by the U n i t e d States shall be considered to be interest. U n d e r Sections 42 and 117 ( a ) (1) o f the Internal R e v e n u e Code, as amended by Section 115 of the R e v e n u e A c t of 1941, the amount o f discount at which bills issued hereunder are sold shall not be cipnsidered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are e x c l u d e d 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 T r e a s u r y bills (other than life insurance c o m p a n i e s ) issued hereunder need include in his income tax return only the difference between the price paid f o r such bills, whether o n o r i g i n a l issue o r on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year f o r w h i c h the return is made, as o r d i n a r y 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 o f the T r e a s u r y bills and govern the conditions o f 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 o r Branch. I n a c c o r d a n c e w i t h the a b o v e a n n o u n c e m e n t t e n d e r s will 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 this 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 at t h e B u f f a l o B r a n c h o f t h i s 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 , J u l y 16, 1 9 4 5 . I t is r e q u e s t e d t h a t t e n d e r s b e s u b m i t t e d o n special f o r m p r i n t e d o n r e v e r s e side a n d r e t u r n e d in special 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, (Extract results from after T o t a l applied f o r T o t a l accepted A v e r a g e price Treasury tenders were Department opened for statement Treasury ....$2,232,925,000 $1,310,619,000 (includes $57,927,000 entered on a fixed-price basis at 99.905 and accepted in f u l l ) 99.905+ Equivalent rate o f discount a p p r o x . 0.375% per annum R a n g e o f accepted competitive b i d s : High Low 99.907 99.905 Equivalent rate o f discount a p p r o x . 0.368% per annum Equivalent rate o f discount approx. 0.376% per annum (52 percent of the amount bid f o r at the l o w price w a s accepted) released bills dated for July publication 12, 1945 July 10, maturing Federal Reserve District 1945, October President. announcing 11, 1945) Total Applied for Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis K a n s a s City Dallas San F r a n c i s c o ... $ 22,720,000 1,571,638,000 42,565,000 20,941,000 27,851,000 21,080,000 318,875,000 9,885,000 22,535,000 17,805,000 13,415,000 143,615,000 Total ... $2,232,925,000 Total Accepted $ 14,992,000 895,318,000 29,989,000 15,949,000 26,891,000 16,030,000 180,899,000 7,005,000 12,935,000 14,541,000 12,455,000 83,615,000 $1,310,619,000 (OVER) 13P I M P O R T A N T — I f it is desired to b i d o n a competitive basis, fill in rate per 100 and maturity value in paragraph headed " C o m p e t i t i v e B i d " . If it is desired to b i d o n a fixedprice basis, fill in only the maturity value in paragraph headed "Fixed-Price B i d " . 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 Dated July 19, 1945. Maturing October 18, 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 Pursuant to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on July 13, 1945, as issued by the Secretary of the Treasury, the undersigned offers to pay (Rate per 100) BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on July 13, 1945, as issued by the Secretary of the Treasury, the undersigned offers to pay a fixed-price of 99.905 (rate per 100) f o r a total amount of . . . . * f o r a total amount of $ $ (maturity value) of the Treasury bills therein described, or f o r 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 y o u r bank in cash o r 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 July 19, 1945, and are to mature on October 18, 1945. This tender will be inserted, in special envelope entitled "Tender for Treasury Name of B i d d e r By bills." (Please print) (Official signature required) (Title) Street A d d r e s s (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 customer's bid. IMPORTANT INSTRUCTIONS: 1. N o tender f o r less than $1,000 will be considered, and each tender must be f o r $1,000 (maturity v a l u e ) . A separate tender must be e x e c u t e d f o r each bid. an even multiple of 2. If the person m a k i n g the tender is a c o r p o r a t i o n , the tender should be signed by an officer of the c o r p o r a t i o n authorized to make the tender, and the signing of the tender by an officer of the c o r p o r a t i o n will be construed as a representation by him that he has been s o authorized. If the tender is m a d e by a partnership, it should be signed by a m e m ber o f the firm, w h o should sign in the f o r m " , a copartnership, by a m e m b e r of the firm." 3. T e n d e r s w i l l 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. T e n d e r s f r o m others must be a c c o m p a n i e d by payment of 2 percent of the face amount of T r e a s u r y bills applied f o r , unless the tenders are a c c o m p a n i e d by an express guaranty o f payment by an incorporated bank or trust c o m p a n y . 4. If the language o f this tender is changed in T r e a s u r y , is material, the tender m a y be disregarded. TENTB-785-a Payment by credit * Price through any respect, w h i c h , in the opinion of the Secretary o f War Loan Deposit Account will not be must be expressed on the basis of 100, with not more three decimal places. Fractions may not be used. the permitted. than (OVER)
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