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FEDERAL RESERVE BANK O F NEW YORK
Fiscal Agent of the United States

[ ^ ^ o . aoio j

Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills
Dated October 11, 1945

Maturing January 10, 1946

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, October 5, 1945.

TREASURY DEPARTMENT
Washington

T h e Secretary of the Treasury, by this public notice, invites tenders for $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 October 11, 1945, and will mature January 10, 1946, 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, two o'clock p.m., Eastern
standard time, Monday, October 8, 1945. Tenders will not be received at the Treasury Department, Washington. Each tender
must be for 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 from incorporated banks and trust companies and from responsible and
recognized dealers in investment securities. Tenders from 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. T h e 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 for $200,000 or less from 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 October 11, 1945.
T h e income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall
not have any exemption, as such, and loss from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under Federal tax Acts now 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 from 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 Act 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 of, 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 only the difference between the price paid for 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 for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 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 from 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 standard time, on Monday, October 8, 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 October 2, 1945, announcing
results after tenders were opened for Treasury bills dated October 4, 1945 maturing January 3, 1946)
Total applied f o r . . . .$2,159,025,000
Total accepted

Average price

$1,310,368,000 (includes $47,020,000
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

99.909

Equivalent rate of discount
0.360% per annum

Low

99.905

Equivalent rate of discount
approx. 0.376% per annum

(55 percent of the amount bid for at the low price
was accepted)




Federal Reserve
District
Boston
New Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for
$

34,470,000
1,555,900,000
48,585,000
30,685,000
19,905,000
3,140,000
259,640,000
6,300.000
12,820,000
47,210.000
9,675,000
130.695,000

$2,159,025,000

Total
Accepted
$

22.590,000
924.730,000
37,560,000
19,345,000
18,780,000
2,890,000
147,523,000
5,175,000
8.320,000
37,310.000
8,550,000
77,595,000

$1,310,368,000
(ora)

14 B
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
Dated October 11, 1945.

Maturing January 10, 1946.
Dated at

To

FEDERAL RESERVE B A N K

OF N E W

.1945

YORK,

Fiscal Agent of the United States.
C O M P E T I T I V E 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
October 5, 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 October
5, 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

(Rate per 100)

._* f o r 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 October 11, 1945, and are to mature
on January 10, 1946.
This tender will be inserted in special envelope entitled "Tender

for Treasury

Name of BidderBy

bills."

(Please print)

(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.

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 of
$1,000 (maturity v a l u e ) . A separate tender must b e executed f o r each bid.
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, w h o should sign in the f o r m "
copartnership, by

a member of the

a
firm."

3. Tenders will be received without deposit from incorporated banks and trust companies and from responsible
and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent
of the face amount o f Treasury bills applied f o r , unless the tenders are accompanied by an express guaranty of
payment by an incorporated bank or trust company.
4. If the language of this tender is changed
Treasury, is material, the tender may be disregarded.

in any respect, which, in the opinion of

the

Secretary of

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

TENTB-797-a


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

the

So/o

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

October 8,1945

VICTORY LOAN
Limitations To Be Placed on Subscriptions From
Insurance Companies and Savings Institutions

To all Insurance Companies and Savings Institutions
in the Second Federal Reserve
District:

The following statement for the press was today made public:
Secretary of the Treasury Vinson today made public the limitations to be placed on subcriptions,
including deferred payment subscriptions, from insurance companies and savings institutions during
the Victory Loan Drive. These decisions were reached after consultations with representatives of the
two groups affected.
All insurance companies will be permitted to subscribe to the marketable securities in aggregate
amounts not in excess of an amount equal to 15 percent of the total amount of United States Government
securities held by the subscribing company on December 31, 1944, or 6 percent of that company's total
admitted assets as of that date, whichever figure is larger.
Savings institutions, which are defined for this purpose as savings banks that do not accept demand
deposits, savings and loan associations, building and loan associations, cooperative banks and credit
unions, will be permitted to subscribe to the marketable securities in aggregate amounts not in excess of
an amount equal to twice the amount of the net increase in assets (total assets less borrowed funds) of
the subscriber during the period from July 1, 1945, through September 30, 1945, plus 7 percent of the
amount of United States Government securities held by the subscriber on June 30, 1945. The formula
set for this group was reached in recognition of the difficulty in meeting a consistent interpretation of
normal portfolio adjustments and the disparity in growth of assets among individual institutions falling within this group.
Insurance companies and savings institutions are requested not to use these formulae to circumvent
the Treasury's request that non-bank investors refrain from selling securities heretofore acquired in
order to obtain the funds to subscribe for securities offered in the Victory Loan Drive, except for normal
portfolio adjustments.
It will facilitate handling of these subscriptions if each institution planning to subscribe under these
formulae will furnish the Federal Reserve Bank of its district, prior to entering subscriptions, with the
figures applicable to it under its formula.

For your convenience in furnishing us this information, we enclose a form which should be
filled in and returned to us before entering a subscription. Your cooperation in this respect will
be appreciated.




ALT,AN"

SPROUL,

President.

IC

VICTORY LOAN
FOR

Note:

USE

BY

INSURANCE

COMPANIES

It is only necessary to fill in below the larger of the two figures.

(Date)
To:

FEDERAL RESERVE B A N K OF N E W YORK,

Fiscal Agent of the United States,
Federal Reserve P. 0 . Station,
New York 7, N. Y .
Attention:

Securities Department

As suggested by the Secretary of the Treasury in his statement f o r the press dated October 8,
1945, a copy of which appeared in your letter dated October 8, 1945, the following information is
furnished for your use in considering subscriptions by us during the Victory Loan Drive:
1. Fifteen per cent of our total holdings of United States Government securities on December 31, 1944, is
$
2. Six per cent of our total admitted assets on December 31, 1944, is $

Name of Company
By

(Official signature required)

Address

F o r use by the Federal Reserve Bank of New York
Date




Issue

Amount

SI

VICTORY
FOR

USE

BY

LOAN

SAVINGS

INSTITUTIONS

(Savings banks that do not accept demand deposits, Savings and Loan Associations,
Building and Loan Associations, Cooperative Banks and Credit Unions)

(Date)
To:

FEDERAL RESERVE B A N K OF N E W YORK,

Fiscal Agent of the United States,
Federal Reserve P. 0 . Station,
New York 7, N. Y .
Attention:

Securities Department

As suggested by the Secretary of the Treasury in his statement for the press dated October 8,
1945, a copy of which appeared in your letter dated October 8, 1945, the following information is
furnished for your use in considering subscriptions by us during the Victory Loan Drive:
1. Twice the amount of the net increase in our assets (total assets less
borrowed funds) during the period from July 1 through
September 30, 1945, is
$
2. Seven percent of the amount of United States Government securities held by us on June 30,1945, is
$
Maximum Subscription Line (No. 1 plus No. 2)

$

Name of Institution
By

:
(Official signature required)

Address
F o r use by the Federal Reserve Bank of New York
Vate




Issue

Amount

$


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102