Full text of Federal Reserve Bank of New York Circulars : 2988. Public Notice of Offering of $1,300,000,000, or Thereabouts, of 92-Day Treasury Bills

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FEDERAL RESERVE BANK OF NEW YORK
Fiscal A g e n t of the United States

rCircular N o . 2 9 8 8 "1
L August 17, 1945
J

Public Notice of Offering of $1,300,000,000, or thereabouts, of 92-Day Treasury Bills
Dated August 23, 1945
To all Incorporated
Banks
Second Federal Reserve

and Trust Companies
District and Others

Maturing November 23, 1945

in the
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
F r i d a y , A u g u s t 17, 1945.

NEWSPAPERS,

TREASURY
DEPARTMENT
Washington

T h e S e c r e t a r y o f t h e T r e a s u r y , b y this p u b l i c n o t i c e , i n v i t e s t e n d e r s f o r $1,300,000,000, o r t h e r e a b o u t s , o f 9 2 - d a y T r e a s u r y
bills, t o be i s s u e 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
b i d d i n g as h e r e i n a f t e r p r o v i d e d .
T h e b i l l s o f this
s e r i e s will be d a t e d A u g u s t 23, 1945, a n d w i l l m a t u r e N o v e m b e r 23, 1945, w h e n t h e f a c e a m o u n t w i l l b e p a y a b l e w i t h o u t interest.
T h e y will b e i s s u e d in b e a r e r f o r m o n l y , a n d in d e n o m i n a t i o n s o f $1,000, $5,000, $10,000, $100,000, $500,000, a n d $1,000,000
(maturity value).
T e n d e r s will b e r e c e i v e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s u p t o t h e c l o s i n g h o u r , 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 , M o n d a y , A u g u s t 20, 1945. T e n d e r s will n o t b e r e c e i v e d at t h e T r e a s u r y D e p a r t m e n t , W a s h i n g t o n .
E a c h tender
m u s t b e f o r an e v e n m u l t i p l e o f $1,000, a n d the p r i c e o f f e r e d m u s t b e e x p r e s s e d o n the b a s i s o f 100, w i t h n o t m o r e t h a n
t h r e e d e c i m a l s , e. g . , 99.925. F r a c t i o n s m a y n o t be u s e d . I t is u r g e d that t e n d e r s be m a d e o n the p r i n t e d f o r m s a n d f o r w a r d e d
in t h e s p e c i a l e n v e l o p e s w h i c h w i l l b e s u p p l i e d b y F e d e r a l R e s e r v e B a n k s o r B r a n c h e s o n a p p l i c a t i o n t h e r e f o r .
T e n d e r s w i l l b e r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k s a n d trust c o m p a n i e s a n d f r o m r e s p o n s i b l e a n d
r e c o g n i z e d d e a l e r s in i n v e s t m e n t securities.
T e n d e r s f r o m others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 percent of the
f a c e a m o u n t o f T r e a s u r y bills a p p l i e d f o r , u n l e s s t h e t e n d e r s are a c c o m p a n i e d b y an e x p r e s s g u a r a n t y o f p a y m e n t b y an
i n c o r p o r a t e d bank or trust c o m p a n y .
I m m e d i a t e l y a f t e r the c l o s i n g h o u r , t e n d e r s w i l l b e o p e n e d at t h e F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h i c h
p u b l i c a n n o u n c e m e n t w i l l b e m a d e b y the S e c r e t a r y o f t h e T r e a s u r y o f the a m o u n t a n d p r i c e r a n g e o f a c c e p t e d b i d s .
Those
submitting tenders will b e advised of the acceptance or rejection thereof. T h e Secretary of the T r e a s u r y expressly reserves
the r i g h t t o a c c e p t o r r e j e c t a n y o r all t e n d e r s , in w h o l e o r in p a r t , a n d his a c t i o n in a n y s u c h r e s p e c t shall b e final. S u b j e c t
t o t h e s e r e s e r v a t i o n s , t e n d e r s f o r $200,000 o r less f r o m a n y o n e b i d d e r at 99.905 e n t e r e d o n a fixed-price b a s i s w i l l b e a c c e p t e d
in full. P a y m e n t o f a c c e p t e d t e n d e r s at the p r i c e s o f f e r e d m u s t b e m a d e o r c o m p l e t e d at t h e F e d e r a l R e s e r v e B a n k in c a s h
o r o t h e r i m m e d i a t e l y a v a i l a b l e f u n d s o n A u g u s t 23, 1945.
T h e i n c o m e d e r i v e d f r o m T r e a s u r y bills, w h e t h e r i n t e r e s t o r g a i n f r o m the sale o r o t h e r d i s p o s i t i o n o f the bills, shall
n o t h a v e a n y e x e m p t i o n , as s u c h , a n d l o s s f r o m t h e s a l e o r o t h e r d i s p o s i t i o n o f T r e a s u r y bills shall n o t h a v e a n y s p e c i a l
t r e a t m e n t , a s s u c h , u n d e r F e d e r a l t a x A c t s n o w o r h e r e a f t e r e n a c t e d . T h e b i l l s shall b e s u b j e c t t o e s t a t e , i n h e r i t a n c e , g i f t ,
o r o t h e r e x c i s e t a x e s , w h e t h e r F e d e r a l o r State, b u t shall b e e x e m p t f r o m all t a x a t i o n n o w o r h e r e a f t e r i m p o s e d o n the
p r i n c i p a l o r i n t e r e s t t h e r e o f b y a n y S t a t e , o r a n y o f the p o s s e s s i o n s o f t h e U n i t e d S t a t e s , o r b y a n y l o c a l t a x i n g a u t h o r i t y .
F o r p u r p o s e s o f t a x a t i o n the a m o u n t o f d i s c o u n t at w h i c h T r e a s u r y bills a r e o r i g i n a l l y s o l d b y t h e U n i t e d S t a t e s shall b e
c o n s i d e r e d to be interest.
U n d e r S e c t i o n s 4 2 a n d 117 ( a ) ( 1 ) o f the I n t e r n a l R e v e n u e C o d e , a s a m e n d e d b y S e c t i o n 115 o f
t h e R e v e n u e A c t o f 1941, the a m o u n t o f d i s c o u n t at w h i c h b i l l s i s s u e d h e r e u n d e r are s o l d shall n o t b e c o n s i d e r e d t o a c c r u e
u n t i l s u c h b i l l s shall b e s o l d , r e d e e m e d o r o t h e r w i s e d i s p o s e d o f , a n d s u c h bills are e x c l u d e d f r o m c o n s i d e r a t i o n as c a p i t a l
assets.
A c c o r d i n g l y , t h e o w n e r o f T r e a s u r y bills ( o t h e r t h a n life i n s u r a n c e c o m p a n i e s ) i s s u e d h e r e u n d e r n e e d i n c l u d e in
his i n c o m e t a x r e t u r n o n l y the d i f f e r e n c e b e t w e e n t h e p r i c e p a i d f o r s u c h bills, w h e t h e r o n o r i g i n a l issue o r o n s u b s e q u e n t
p u r c h a s e , a n d t h e a m o u n t a c t u a l l y r e c e i v e d e i t h e r u p o n sale o r r e d e m p t i o n at m a t u r i t y d u r i n g t h e t a x a b l e y e a r f o r w h i c h
t h e r e t u r n is m a d e , as o r d i n a r y g a i n o r l o s s .
T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 418, as a m e n d e d , a n d t h i s n o t i c e , p r e s c r i b e the t e r m s o f t h e T r e a s u r y b i l l s a n d
g o v e r n the c o n d i t i o n s 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.

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, August 20, 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 August 14,1945, announcing results
after tenders -were opened for Treasury bills dated August 16, 1945 maturing November 15, 1945)
T o t a l applied f o r

$2,005,975,000

Total

1,314,474,000 (includes $57,077,000
entered o n a
fixed-price
basis at
99.905 and accepted in f u l l )

accepted

- ^ A v e r a g e price

....

99.905+

Equivalent rate o f discount
a p p r o x . 0 . 3 7 5 % per a n n u m

R a n g e o f accepted c m n p e t i t i v e b i d s :
High

99.908

Low

99.905

Equivalent rate o f d I S c o u n t
a p p r o x . 0 . 3 6 4 % per a n n u m

Equivalent rate o f discount
a p p r o x . 0 . 3 7 6 % per a n n u m
r ,
. u-, r
.
,
( 6 2 percent o f the amount bid f o r at the l o w
price
w
a
s
a
c
c
e
p
t
e
d
)
FRASER

Digitized for


Federal

Reserve

_District
Boston
New York
Philadelphia
Cleveland
Richmond
&

Total
Applied
for
$
22,450,000
1,489,228,000
35,295,000
16,125,000
19,733,000

Total
$

14,812,000
953.758,000
23,857,000
16,125,000
17,453,000

. . . . . . . . . . . . . . .

Minneapolis

18,130,000
13,725,000

13,418,000
9,925,000

Kansas City
Dallas
S a n
Francisco

13,595,000
21,910,000
67,840,000

12,151,000
16,476,000
48.460.000
:
$1,314,474,000

S t

L o u 5 s

TOTAL

$2,005,975,000

13U
I M P O R T A N T — I t will be noted that the offering is for 92-day Treasury bills which will mature on
Friday, November
23, 1945, owing to the fact that Thursday,
November
22, will be Thanksgiving
Day.

I M P O R T A N T — If it is desired t o b i d on a competitive basis, fill in rate p e r 100 and
maturity value in paragraph h e a d e d " C o m p e t i t i v e B i d " . If it is desired to bid o n a fixedp r i c e basis, fill in only the maturity v a l u e in paragraph headed " F i x e d - P r i c e B i d " .
DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid.
No.

TENDER FOR 92-DAY TREASURY BILLS
Dated August 23, 1945.

Maturing N o v e m b e r 23, 1945.
Dated at.

To

F E D E R A L R E S E R V E B A N K 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 N o . 418, as amended, and to
the provisions of the public notice on August 17,
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

Pursuant to the provisions of Treasury
Department Circular N o . 418, as amended, and
to the provisions of the public notice on
August 17, 1945, as issued by the Secretary
of the Treasury, the undersigned offers to pay
* for a total amount of
(Rate per 100)

$

$
(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.

T h e Treasury bills for which tender is hereby made are to be dated August 23, 1945, and are to mature
on November 23, 1945.
This tender will be inserted

in special

envelope

entitled "Tender

for Treasury

N a m e of Bidder

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)
I f t h i s t e n d e r is s u b m i t t e d f o r t h e a c c o u n t o f a c u s t o m e r , i n d i c a t e t h e c u s t o m e r ' s n a m e o n l i n e

(Name of Customer)

below:

(City, Town or Village, P.O. No., and State)

U s e a separate tender for each customer's bid.

IMPORTANT

INSTRUCTIONS:

1. N o t e n d e r f o r less t h a n $1,000 w i l l b e c o n s i d e r e d , a n d e a c h t e n d e r
$1,000 ( m a t u r i t y v a l u e ) . A s e p a r a t e t e n d e r m u s t b e e x e c u t e d f o r e a c h bid.

must

be

for

an

even

multiple

of

2. I f t h e p e r s o n m a k i n g t h e t e n d e r is a c o r p o r a t i o n , t h e t e n d e r s h o u l d b e s i g n e d b y a n o f f i c e r o f t h e c o r p o r a t i o n a u t h o r i z e d t o m a k e t h e t e n d e r , a n d t h e s i g n i n g o f t h e t e n d e r b y an o f f i c e r o f t h e c o r p o r a t i o n w i l l b e c o n s t r u e d
a s a r e p r e s e n t a t i o n b y h i m that h e h a s b e e n s o a u t h o r i z e d .
I f t h e t e n d e r is m a d e b y a p a r t n e r s h i p , it s h o u l d b e
s i g n e d b y a m e m b e r o f t h e firm, w h o s h o u l d s i g n in t h e f o r m "
J
t
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 b e r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k s a n d t r u s t c o m p a n i e s a n d f r o m r e s p o n s i b l e
a n d r e c o g n i z e d d e a l e r s in i n v e s t m e n t s e c u r i t i e s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n i e d b y p a y m e n t o f 2 p e r c e n t
o f t h e f a c e a m o u n t o f T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s t h e t e n d e r s a r e a c c o m p a n i e d b y an e x p r e s s g u a r a n t y o f
p a y m e n t b y an i n c o r p o r a t e d b a n k o r t r u s t c o m p a n y .
4. If t h e l a n g u a g e o f t h i s t e n d e r is c h a n g e d
T r e a s u r y , is m a t e r i a l , the t e n d e r m a y b e d i s r e g a r d e d .

Payment


http://fraser.stlouisfed.org/
TEXTB-790-a
Federal Reserve Bank of St. Louis

in a n y

respect, which,

by credit through War Loan Deposit
* Price

in t h e o p i n i o n o f

Account will not be

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

the Secretary

of

the

permitted.

than

(OVER)
y