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F E D E R A L R E S E R V E BANK O F N E W Y O R K [Circular No. 3 0 3 3 1 L November 3 0 . 1 9 4 5 J Fiscal Agent of the United States Public Notice of Offering of $1,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated December 6, 1945 To all Incorporated Banks Second Federal Reserve and Trust Companies District and Others Maturing March 7, 1946 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 NEWSPAPERS, F r i d a y , N o v e m b e r 30, 1945. TREASURY DEPARTMENT Washington T h e S e c r e t a r y o f the T r e a s u r y , by this public notice, invites tenders f o r $1,300,000,000, o r thereabouts, o f 91-day T r e a s u r y bills, t o 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 D e c e m b e r 6, 1945, and will mature M a r c h 7, 1940, 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, a n d in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). T e n d e r s will be received at Federal R e s e r v e Banks and Branches up to the c l o s i n g hour, t w o o ' c l o c k p.m., Eastern S t a n d a r d T i m e , M o n d a y , D e c e m b e r 3, 1945. T e n d e r s will n o t 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 m u s t be f o r an even multiple o f $1,000, and the price o f f e r e d must be expressed o n the basis o f 100, w i t h not m o r e than three decimals, e. g., 99.925. Fractions m a y n o t be used. I t is urged that tenders be m a d e 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 will be supplied by Federal R e s e r v e Banks o r Branches o n application t h e r e f o r . Tenders will be received without deposit from 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. Tenders f r o m others must be accompanied by payment o f 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 applied f o r , unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank o r trust company. I m m e d i a t e l y a f t e r the closing hour, tenders will 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 m a d e b y the Secretary o f the T r e a s u r y o f the amount and price range o f accepted bids. Those submitting tenders will be advised o f the acceptance o r rejection t h e r e o f . T h e Secretary o f the T r e a s u r y expressly reserves the right to accept o r r e j e c t any o r all tenders, in w h o l e o r in part, and his action in any such respect shall be final. Subject t o these reservations, tenders f o r $200,000 o r 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 o f accepted tenders at the prices o f f e r e d m u s t be m a d e or completed at the Federal R e s e r v e B a n k in cash o r other immediately available f u n d s on D e c e m b e r 6, 1945. T h e i n c o m e derived f r o m T r e a s u r y bills, w h e t h e r interest or gain f r o m the sale or other disposition o f the bills, shall n o t have any exemption,, as such, and loss f r o m the sale o r other disposition o f T r e a s u r y bills shall n o t 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 to estate, inheritance, g i f t , o r other e x c i s e taxes, whether Federal o r State, but shall be e x e m p t f r o m all taxation n o w o r hereafter imposed on the principal o f interest thereof by a n y State, or any o f the possessions o f the United States, o r b y any local taxing authority. ~ F o r purposes o f taxation the amount o f discount at w h i c h T r e a s u r y bills are originally sold by the United States shall be considered to be interest. U n d e r Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue Code, as amended b y Section 115 o f the R e v e n u e A c t o f 1941, the amount o f discount at w h i c h bills issued hereunder are sold shall not be considered to a c c r u e until such bills shall be sold, redeemed o r o t h e r w i s e disposed o f , 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 o f T r e a s u r y bills ( o t h e r than l i f e insurance c o m p a n i e s ) issued hereunder need include in his i n c o m e t a x return only the difference between the price paid f o r such bills, whether on original issue o r on subsequent purchase, a n d t h e . amount actually received either upon sale o r redemption at maturity during the taxable year f o r w h i c h the return is m a d e , as o r d i n a r y gain o r loss. Treasury Department g o v e r n the conditions o f Circular N o . 418, their issue. Copies as of amended, a n d this notice, prescribe the circular m a y be obtained f r o m the terms o f the T r e a s u r y bills and any Federal R e s e r v e B a n k 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) N e w 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, December 3, 1945. It is requested that tenders be submitted on special f o r m 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 November 27, 1945, announcing results after tenders were opened for Treasury bills dated November 29,1945 maturing February 28,1946) Total applied Total accepted A v e r a g e price for $2,154,745,000 $1,316,013,000 (includes $46,172,000 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 . 3 7 5 % per annum R a n g e o f accepted competitive b i d s : High 99.908 Equivalent rate o f discount a p p r o x . 0 . 3 6 4 % per annum Low 99.905 Equivalent rate o f discount a p p r o x 0 . 3 7 6 % per annum ( 5 5 percent o f the amount bid f o r at the l o w price was accepted) Federal Reserve District New York Philadelphia Cleveland Richmond Atlanta Total Applied for . . $ .. $2,154,745,000 St. L o u i s Minneapolis K a n s a s City Dallas San F r a n c i s c o TOTAL 61,460,000 1,529,766.000 47,885,000 21.525,000 15,698,000 10,600,000 297,455,000 36,531,000 3.175,000 11,385.000 15,280,000 103,985,000 Total Accepted $ 36,530,000 916,146,000 37,760,000 14.775,000 12,998,000 10,600,000 172,288,000 21,861,000 3,175,000 9.585.000 13,210.000 67,085,000 $1,316,013,000 (OVER) I M P O R T A N T — I f 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 March 7, 1946. Dated December 6, 1945. Dated at To FEDERAL RESERVE B A N K OF N E W .1945 YORK, Fiscal Agent o f the United States. FIXED-PRICE BID COMPETITIVE BID Pursuant Pursuant to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions o f the public notice on November 30, 1945, as issued by the Secretary o f the Treasury, the undersigned offers to pay (Rate per 100) to the provisions of Treasury Department Circular N o . 418, as amended, and to the provisions of the public notice on November 30, 1945, as issued by the Secretary of the Treasury, the undersigned offers to pay a * f o r a total amount of fixed-price of 99.905 (rate per 100) f o r a total amount of $ $ (maturity value) of the Treasury bills therein described, o r f o r any less amount that may be awarded, payment therefor t o 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 December 6, 1945, and are to mature on March 7, 1946. This tender will bc; inserted in special envelope N a m e of By entitled "Tender for Treasury Bidder. bills." (Please print) (Official signature required) (Title) Street Address (City, T o w n or Village, P. O. No., and State) If this tender is submitted for the account of a customer, indicate the customer's n a m e on line b e l o w : (Name of Customer) (City, T o w n 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 l e s s 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 $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 b i d . tender must be for an even multiple of 2. If 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 , the t e n d e r s h o u l d b e s i g n e d b y an o f f i c e r o f the 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 the 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 . If 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 signed b y a m e m b e r of the firm, w h o should copartnership, sign in t h e form " by a a m e m b e r o f the firm." 3. T e n d e r s w i l l be 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 the 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 are a c c o m p a n i e d b y a n 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 the l a n g u a g e o f this t e n d e r is c h a n g e d in a n y r e s p e c t , w h i c h , in t h e o p i n i o n 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 TENTB-805-a by credit * Price through War Loan Deposit Account -will not be must be expressed on the basis three decimal places. Fractions of 100, with may not be not more used. of the Secretary of the permitted. than (OVER)
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