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F E D E R A L R E SE R V E BANK O F NEW YORK
f Circular No. 3074 1
I
April 5. 1946
J

Fiscal Agent o f the United States

Public iNotice o i Offering o f $1,300,000,000, or thereabouts, o f 91-Day Treasury Bills
Dated April 11, 1946

Maturing July 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 Treas­
ury bills payable at maturity without interest to be sold on a discount basis under competitive and fixed-price bidding.
FOR RELEASE, MORNING N EW SPAPERS,
Friday, April 5, 1946.

TREASU RY D EPARTM ENT
Washington

The 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 April 11, 1946, and will mature July 11, 1946, when the face amount will be payable without interest.
They will be issued in bearer form 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, April 8, 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 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 o f 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 April 11, 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 tiie
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 ) 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 o f 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, April 8, 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 made by credit through the War Loan Deposit Account. Payment must be made in cash or other im­
mediately available funds.
A l l a n S proul , President.
(Extract from Treasury Department statement released for publication April 2, 1946, announcing
results after tenders were opened for Treasury bills dated April 4, 1946 maturing July 5, 1946)
Total applied for .....$1,863,398,000
Total accepted .......... $1,311,768,000 (includes $34,061,000
entered on a fixed-price basis at
99.905 and accepted in full)
Average price .......

99.904-f-

Equivalent rate of discount
approx. 0.375% per annum

Range of accepted competitive bids :
High ......................

99.908

Equivalent rate of discount
0.360% per annum

Low ........................

99.904

Equivalent rate of discount
approx 0.376% per annum

(67 percent o f the amount bid for at the low price



was accepted)

Federal Reserve
______ District
Boston .............................
New York ......................
Philadelphia ....................
Cleveland .........................
Richmond..........................
Atlanta .............................
Chicago ...........................
St. Louis...........................
Minneapolis ......................
Kansas C ity......................
Dallas ...............................
San Francisco ................
T ota l

........

Total
Applied for
$

11,505,000
1,473,924,000
16,077,000
6,319,000
5,820,000
3,096,000
273,050,000
16,075,000
1,650,000
9,682,000
2,635,000
43,565,000

$1 63,398,000
,8

Total
Accepted
$

9,525,000
1,024,759,000
12,447,000
6,319,000
5,160,000
3.096,000
188,240,000
15,250,000
1,650,000
9,682,000
2,635,000
33,005,000

$1 31
, 1,768,000
( o ver )

15B

i
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 Bid” . If it is desired to bid on a fixed price basis, fill in only the maturity value in paragraph headed "Fixed-Price Bid” .
DO N O T fill in both paragraphs on one form . A separate tender must be used for each bid.
No..

T E N D E R FO R 9 1-D A Y T R E A SU R Y BILLS
Maturing July 11, 1946.

Dated April 11, 1946.

Dated at.
.1946

To F e d e r a l R e s e rv e B a n k o f N e w Y o r k ,
Fiscal Agent of the United States.
COMPETITIVE 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
April 5, 1946, as issued by the Secretary of
the Treasury, the undersigned offers to pay

Pursuant to the provisions, ol i ti.lmj
Department Circular No. 418. as amendt-d ind !■
the provisions o f the public notice on April
5, 1946, as issued by the Secretary of the Treas­
ury, the undersigned oilers to pay a hxed-price
of 99.905 (rate per 100) for a total amount of

............................................ * for a total amount of
(Bate 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.

$....................................................
(Not to exceed $200,000)

( maturity value )

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 April 11, 1946, and are to mature on
July 11, 1946.

This tender will be inserted in special envelope entitled “ Tender for Treasury bills.”
Name of Bidder..
(Please print)

By..........

(Official signature required)

(Title)

Street Address ...........................................
(City, Town or ViUage, P. O. No., and 8tate)

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. No tender for less than $1,000 will be considered, and each
$1,000 (maturity value). A separate tender must be executed for each bid.

tender

must be

for

an even

multiple

of

2. If the person making the tender is a corporation, the tender should be signed by an officer of the cor­
poration 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 o f 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 o f 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 W ar Loan Deposit A ccoun t 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-823-a


( over)

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