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FEDERAL RESERVE BANK OF NEW Fiscal Agent of the United YORK r Circular N o . 3037 "1 L D e c e m b e r 14, 1945 J States Public Notice of Offering of $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 91-Day Treasury Bills Dated December 20, 1945 To all Incorporated Banks and Trust Companies Second Federal Reserve District and Others ' Maturing March 21, 1946 in the 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 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 b i l l s p a y a b l e at m a t u r i t y w i t h o u t i n t e r e s t t o 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, Friday, December 14, 1945. T h e Secretary of bills, to be issued on series will be dated interest. They will be (maturity v a l u e ) . TREASURY DEPARTMENT Washington the Treasury, by this public notice, invites tenders for $1,300,000,000, or thereabouts, of 91-day Treasury a discount basis under competitive and fixed-price bidding as hereinafter provided. The bills of this December 20, 1945, and will mature M a r c h 21, 1946, when the face amount will be payable without 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 Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o'clock p.m.. Eastern Standard Time, Monday, December 17, 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 R e s e r v e Banks or Branches on application therefor. T e n d e r s will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders f r o m 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, f o l l o w i n g which public announcement will be made by the Secretary of the T r e a s u r y 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 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 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 December 20, 1945. T h e income derived f r o m Treasury bills, whether interest or gain from the sale or other disposition of the bills, shall not have any exemption, as such, and loss f r o m the sale or other disposition of Treasury bills shall not have any special treatment, as such, under Federal tax Acts now or hereafter enacted. The bills shall be subject to estate, inheritance, gift, or other e x c i s e taxes, whether Federal or State, but shall be exempt f r o m 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 T r e a s u r y bills are originally sold by the United States shall be considered to be interest. Under Sections 42 and 117 ( a ) (1) o f the Internal Revenue Code, as amended by Section 115 of the Revenue A c t 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 f r o m consideration as capital assets. A c c o r d i n g l y , 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 f o r 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 N o . 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. 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 w i l l b e r e c e i v e d at the 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 a t 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 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 17, 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 s p e c i a l 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 in s p e c i a l 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, (Exiract results from after Treasury tenders Department were opened for statement Treasury T o t a l applied f o r $2,085,361,000 T o t a l accepted $1,301,797,000 (includes $55,641,000 a f"l"ed fixed-price basis at 99.90o and accepted m f u l l ) A v e r a g e price . . 99.905+ s Equivalent rate of discount aDDrox 0 375% oer annum approx. per annum released bills dated for publication December 13, Federal Reserve Distnct Boston N e w York Philadelphia Cleveland Richmond R a n g e of accepted competitive b i d s : „. . ^ano „ . . t . _ Sh "-908 E q u i v a l e n t r a t e of discount approx. 0.364% per annum Atlanta Chicago Low Kansas City Dallas San Francisco Hl 99.905 Equivalent rate of discount approx. 0.376% per annum (56 percent of the amount bid f o r at the l o w price was accepted) St L o u i s Minneapolis TOTAL December 1945 11, maturing 1945, March President. announcing 14, 1946) Total Total Applied tor Accepted $ 21,650,000 1,464,285,000 $ 15,028,000 876,125,000 ^ ' S K 4/,210,000 30,457,000 57,125,000 34,010,000 29,577,000 16,365,000 276,785,000 28,423,000 15,670,000 16,365,000 165,839,000 18,523,000 10,478,000 23,956,000 7,060,000 80,535,000 18,412,000 6,180,000 54,135,GOO $2,085,361,000 $1,301,797,000 (OVER) 14L 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 T E N D E R FOR 91-DAY TREASURY BILLS Maturing March 21, 1946. Dated December 20, 1945. Dated at T o FEDERAL RESERVE BANK 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 December 14, 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 December 14, 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) * for 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 December 20, 1945, and are to mature on March 21, 1946. This tender will be inserted in special envelope entitled "Tender for Treasury bills." Name of Bidder By (Please print) (Official signature required) (Title) Street A d d r e s s (City, T o w n 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 below: (Name of Customer) ( C i t y , T o w n or V i l l a g e , P.O. No., and State) Use a separate tender f o r each customer's bid. IMPORTANT $1,000 INSTRUCTIONS: 1. N o t e n d e r (maturity value). f o r less t h a n $ 1 , 0 0 0 w i l l be c o n s i d e r e d , a n d each A s e p a r a t e t e n d e r m u s t be e x e c u t e d f o r e a c h bid. tender must be for an even multiple of 2. I f the p e r s o n m a k i n g the 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 be s i g n e d b y an officer of the corporation a u t h o r i z e d t o m a k e the tender, and the s i g n i n g of the t e n d e r by a n officer of the c o r p o r a t i o n w i l l be c o n s t r u e d as a repr e s e n t a t i o n b y h i m that he h a s been so 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 be s i g n e d by a m e m b e r of the firm, w h o s h o u l d s i g n in the f o r m " . . ' a copartnership, by a member of the firm." 3. Tenders will be r e c e i v e d without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders f r o m 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 Treasury, is material, the tender may be disregarded. Payment TENTB-807-a by credit through * Price War Loan Deposit Account icill not be the permitted. must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (OVER)
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