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FEDERAL RESERVE BANK OF NEW YORK r Circular N o . 3 0 3 5 1 I December 7, 1945 J F i s c a l A g e n t o f the U n i t e d S t a t e s Public Notice of Offering of 81,300,000,000, or thereabouts, of 91-Day Treasury Bills Dated December 13, 1945 Maturing March 14, 1946 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: F o l l o w i n g is the 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 the 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 a t m a t u r i t y w i t h o u t interest t o b e s o l d o n a d i s c o u n t basis 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 . FOR RELEASE, MORNING Friday, D e c e m b e r 7, 1945. NEWSPAPERS, TREASURY DEPARTMENT Washington T h e Secretary o f the Treasury, b y this public notice, invites tenders for $1,300,000,000, or thereabouts, of 91-day Treasury 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 13, 1945, and will mature March 14, 1946, when the face amount will be payable without interest. T h e y will b e 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 value). T e n d e r s will b e received at Federal Reserve Banks and Branches up t o the closing hour, t w o o'clock p.m.. Eastern Each Standard T i m e , M o n d a y , D e c e m b e r 10, 1945. T e n d e r s will not be received at the T r e a s u r y Department, W a s h i n g t o n . tender must be f o r an even multiple o f $1,000, and the price offered must be expressed on the basis o f 100, with not m o r e than three decimals, e. g., 99.925. Fractions m a y not be used. It is urged that tenders be made on the printed f o r m s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Blanches on application therefor. Tenders will b e 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 o t h e r s - m u s t b e accompanied b y payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied b y an express guaranty o f payment b y an incorporated bank o r trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, f o l l o w i n g which public announcement will be made b y the Secretary of the Treasury of the amount and price range of accepted bids. T h o s e submitting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves the'fight t o accept or reject any or all tenders, in w h o l e or in part, and his action in any Such respect shall be final. Subject t o these reservations, tenders for $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 o r other immediately available funds on D e c e m b e r 13, 1945. T h e i n c o m e derived from Treasury bills, whether interest o r gain from the sale o r bfher disposition o f the bills, shall not have any exemption, as such, and loss f r o m the sale o r other disposition o f Treasury bills shall not have any special treatment, as such, under Federal tax A c t s n o w or hereafter enacted. T h e bills shall b e subject t o estate, inheritance, gift, o r other excise taxes, whether Federal o r State, but shall b e exempt f r o m all taxation n o w o r hereafter imposed o n the principal o r interest thereof by any State, or any o f the possessions of the United States, o r b y any local taxing authority. F o r purposes o f taxation the amount o f discount at which Treasury bills are originally sold b y the United States shall b e considered t o be interest. Under Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue C o d e , 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 which bills issued hereunder are sold shall not be considered t o accrue until such bills shall be sold, redeemed o r otherwise disposed of, and such bills a r e ^ x c l u d e d f r o m consideration a s 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 (other than life insurance c o m p a n i e s ) issued hereunder need include in his i n c o m e tax return only the difference between the price paid f o r such bills, whether on original issue o r on subsequent purchase, and the amount actually received either upon sale o r redemption at maturity during the taxable year f o r which the return is made, as ordinary gain or loss. Treasury Department Circular N o . 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern the conditions of their issue. Copies o f the circular m a y b e 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 t h e 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 a t 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 this b a n k (270 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 S t a n d a r d T i m e , o n M o n d a y , D e c e m b e r 1 0 , 1 9 4 5 . I t is r e q u e s t e d that 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 s i d e a n d r e t u r n e d i n 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. .v ' . A L L A N SPROUL, President. (Extract from Treasury results after tenders were Department statement opened for Treasury T o t a l applied for....$2,163,314,000 T o t a l accepted $1,303,377,000 (includes $48,699,000 entered o n a fixed-price basis at 99.905 and accepted in full) A v e r a g e price ooorv;_L 99.90^+ P"nnivalf>nt rate n e discount ^ i ^ I e n t rate nf r a n n u m approx. 0 . 3 / 5 % per annum R a n g e o f accepted competitive bids: High 99.908 Equivalent rate o f discount approx. 0.364% per a n n u m Low 99.905 Equivalent rate o f discount approx. 0.376% per annum ' (55 percent o f the amount bid f o r at the l o w price w a s accepted) released for publication December 4, 1945, bills dated December 6, 1945 maturing March Federtitisen*. AppUedfor $ 54,515,000 1,527,646.000 ^ J a Chicago^ v..:...... Kansas City Dallas Sah F r a n c i s c o TOTAL 39,190.000 25,415,000 25,655,000 2%S$>$& 2 / 2 1 1 0 000 Philadelphia Cleveland Richmond A T°1?1J Accepted $ 32,510,000 893,271.000 59,890,000 36,665,000 29,975,000 Boston New York Minneapolis announcing 7, 1946) IfiliS'OGO 161 43 000 U^OOO S^OOO 27,638,000 11,980,000 86,890,000 22,688,000 10,180,000 58,540.000 $2,163,314,000 $1,303,377,000 (OVM) 14K 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 B i d " . If it is desired to bid on 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 Dated December 13, 1945. BILLS Maturing March 14, 1946. D a t e d at T o FEDERAL RESERVE B A N K OF N E W 1945 YORK, Fiscal A g e n t of the U n i t e d States. COMPETITIVE BID FIXED-PRICE P u r s u a n t t o the p r o v i s i o n s o f T r e a s u r y D e p a r t m e n t Circular N o . 4 1 8 , as a m e n d e d , and to the p r o v i s i o n s o f the public notice on D e c e m b e r 7, 1945, as issued b y the S e c r e t a r y of the T r e a s u r y , the undersigned o f f e r s t o pay * f o r a total a m o u n t o f (Rate per 100) $ o f the T r e a s u r y bills a n y less a m o u n t that t h e r e f o r t o b e m a d e at immediately available in the public notice. (maturity value) therein described, o r f o r may be awarded, payment y o u r b a n k in cash o r other f u n d s o n the date stated BID P u r s u a n t to the p r o v i s i o n s o f T r e a s u r y D e p a r t m e n t Circular N o . 418, as amended, and t o the provisions o f the public notice o n D e c e m b e r 7, 1945, as issued b y the Secretary o f the T r e a s u r y , the undersigned o f f e r s to pay a fixed-price o f 99.905 ( r a t e per 1 0 0 ) f o r a total a m o u n t o f $ (maturity v a l u e ) (Not to exceed $200,000) of the T r e a s u r y bills therein described, payment t h e r e f o r t o b e m a d e at y o u r bank in cash o r other immediately available f u n d s o n the date stated in the public notice. T h e T r e a s u r y bills f o r w h i c h tender is h e r e b y m a d e are to be dated D e c e m b e r 13, 1945, and are to mature o n M a r c h 14, 1946. This tender will be inserted in special Name of By envelope entitled "Tender Bidder. for Treasury 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 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 for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). A separate tender must be executed for 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 b y a member of the firm, who should sign in the form " a copartnership, by , a member of the 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 of Treasury bills applied for, 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 in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Payment by credit through War Loan Deposit Account will not be permitted. * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. TENTB-806-a (OVER)
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