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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
Fiscal Agent of the United States
Circular No. 3045 "I
January 4, 1946 J
{
Public Notice o f Offering of $1,300,000,000, or thereabouts, o f 91-Day Treasury Bills
Dated January 10, 1946
Maturing April 11, 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 RE LEASE, M ORNING NEW SPAPERS,
Friday, January 4, 1946.
TRE ASU RY D EPAR TM E N T
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
January 10, 1946, and will mature April 11, 1946, when the face amount will be payable without
issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000
The Secretary of
bills, to be issued on
series will be dated
interest.'They will be
(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, January 7, 1946. 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 othefs 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 o f the Treasury of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The 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 January 10, 1946.
The 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. The 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.
For 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) o f 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 o f the Treasury bills and
govern the conditions o f their issue. Copies o f 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 o f this bank (9th
floor, 33 Liberty Street) New Y ork 7, N. Y., or at the Buffalo Branch o f this bank (270 Main Street) Buffalo 5, N. Y.,
up to two o ’clock p.m., Eastern Standard Time, on Monday, January 7, 1946. 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 wade by credit through the War Loan Deposit Account. Payment must be made in cash or other imme
diately available funds.
A l l a n S p r o u l , President.
( Extract from Treasury Department statement released for publication December 29, 1945, announcing
results after tenders were opened for Treasury bills dated January 3, 1946maturing April 4, 1946)
Total applied for ....$2,904,956,000
Total A c ce p te d ............. $1,302,898,000 (includes $38,461,000
entered on a fixed-price basis at
99.905 and accepted in full)
r
Average price . . . . 99.906
Equivalent rate of discount
approx. 0.373% per annum
Federal Reserve
District
----------------------Boston ............................
New York .....................
Philadelphia .................
Cleveland .....................
R ich m on d .......................
Range o f accepted competitive bid s:
A lla n « ••■••••••••••••
H i g h ....................... 99.908
St. Louis .......................
M inneapolis...................
Kansas C it y ...................
Dallas ............................
San Francisco .............
10,680,000
19,360,000
10,552,000
7,490,000
69,481,000
T otal........................
$2,904,956,000
Equivalent rate of discount
approx. 0.364% per annum
Low ....................... 99.905
Equivalent rate of discount
approx. 0.376% per annum
,
...
, |
.
(22 percent of the amount bid lor at the low price
was accepted)
Total
Applied for
$ 14,110,000
1,435,063,000
25,830,000
5,490,000
12,797,000
Total
Accepted
-------------$
7,870,000
399,051,000
8,670,000
5,490,000
9,521,000
S t fffio o
4,830,000
6,880,000
8,212,000
5,930,000
25,021,000
_____________
$1,302,898,000
( over)
140
IM PORTAN T— If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed “ Competitive B id” . If it is desired to bid on a fixedprice basis, fill in only the maturity value in paragraph headed “ Fixed-Price B id“ .
DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid.
N o...........................
TE N D E R FOR 91-DAY TREASU RY BILLS
Dated J anuary 10, 1946.
Maturing A pril 11, 1946.
Dated a t ................
To
F ed era l R eserve
B ank
o f
N ew
1946
Y ork ,
Fiscal Agent of the United States.
COM PETITIVE BID
FIXED-PRICE BID
Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions o f the public notice on
January 4, 1946, as issued by the Secretary of
the Treasury, the undersigned offers to pay
Pursuant to the provisions o f Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on January
4, 1946, as issued by the Secretary of the Treas
ury, the undersigned offers to pay a fixed-price
of 99.905 (rate per 100) for a total amount of
.............................................* for a total amount of
(R ate per 100)
$ .....................................................(maturity value)
o f 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)
(N ot to exceed $200,000)
o f 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 January 10, 1946, and are to mature
on April 11, 1946.
This tender zvill be inserted in special envelope entitled “ Tender for Treasury bills.”
Name of Bidder.
(Please print)
By . . . .
(Official signature required)
(T itle)
Street Address .......................................
(C ity, Town or V illage, 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)
(C ity, T ow n or V illage, P.O. No., and State)
Use a separate tender for each customer’s bid.
IM PO R TA N T 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 rep
resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem
ber 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 respon
sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o!
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 o f 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 tvill not be permitted.
TENTB-810-a
* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
( ovek )
@FedFRASER