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FE D E R A L R E SE R V E BANK O F N EW Y O R K
f Circular No. 31121
I July 26, 1946 J

Fiscal Agent of the United States

Public Notice of Offering of $ 1 ,3 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 91-Day Treasury Bills

Dated August 1, 1946

Maturing October 31, 1946

To all Incorporated Banks and Trust Companies in the
Second Federal R eserve 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.
F O R R E L E A S E , M O R N IN G N E W S P A P E R S ,
Friday, July 26, 1946.

TREASURY DEPARTM ENT
W ash ington
T h e Secretary o f the Treasury, b y this public notice, invites tenders for $1,300,000,000, or thereabouts, o f 91-day Treasury
bills, to be issued on a discount basis under com petitive and fixed-price bidding as hereinafter provided. T h e bills o f this
series w ill be dated A u gu st 1, 1946, and will m ature O ctob er 31, 1946, when the face am ount will be payable without interest.
T h e y w ill be issued in bearer fo rm only, and in denom inations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000
(m aturity value).
T en ders will be received at Federal R eserve Banks and Branches up to the closin g hour, tw o o ’clock p.m., Eastern
Standard time, M on day, July 29, 1946. T enders w ill not be received at the Treasury Departm ent, W ashington. Each tender
must be fo r an even multiple o f $1,000, and the price offered must be expressed on the basis o f 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 form s and forw arded
in the special envelopes w hich will be supplied b y Federal R eserve Banks or Branches on application therefor.

Ten ders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and
recogn ized dealers in investm ent securities. T en ders from others must be accom panied b y paym ent of 2 percent of the
face am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an
incorporated bank o r trust com pany.
Im m ediately after the closin g hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which
public announcem ent w ill be made b y the Secretary o f the^ Treasury o f the am ount and price range o f accepted bids. T h ose
subm itting tenders will be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves
the righ t to accept or reject any or all tenders, in w hole 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 w ill be accepted
in full. P aym ent o f accepted tenders at the prices offered must be made or com pleted at the Federal Reserve Bank in cash
or other im m ediately available funds on A u gu st 1, 1946.
T h e in com e derived from Treasury bills, w hether interest or gain from the sale or other disposition o f the bills, shall
not have any exem ption, as such, and loss from the sale or other disposition o f Treasu ry bills shall not have any special
treatment, as such, under Federal tax A cts n ow or hereafter enacted. T h e bills shall be subject to estate, inheritance, gift,
or other excise taxes, whether Federal or State, but shall be exem pt from all taxation now or hereafter im posed on the
principal o r interest thereof b y any State, or any o f the possessions o f the United States, or b y any local taxing authority.
F o r purposes of taxation the am ount of discount at w hich Treasu ry bills are originally sold b y the U nited States shall be
considered to be interest. U nder Sections 42 and 117 ( a ) ( 1 ) o f the Internal Revenue Code, as am ended b y Section 115 of
the R evenue A ct o f 1941, the am ount of discount at w hich bills issued hereunder are sold shall not be considered to accrue
until such bills shall be sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital
assets. A ccord in gly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need include in
his in com e tax return on ly the difference betw een the price paid for such bills, whether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which
the return is made, as ordinary gain or loss.
T reasu ry D epartm ent Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and
go v e rn the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch.

In accordance with the above announcement tenders will be received at the Securities Department of 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 (three o’clock p.m., “ Daylight Saving time” ), on Monday, July 29,
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 immediately available funds.
A lla n

S p r o u l,

President.

( Extract from Treasury Department statement released for publication July 23, 1946, announcing
results after tenders were opened for Treasury bills dated July 25, 1946 maturing October 24, 1946)
Total applied fo r .. $1,767,751,000
T otal a cce p te d ............ $1,305,129,000 (includes $35,286,000
entered on a fixed-price basis at
99.905 and accepted in fu ll)
A verage price . . . . 99.905-f- Equivalent rate o f discount
approx. 0.375% per annum
7 ..
v
Range o f accepted competitive bids:
H igh ....................... 99.907
Equivalent rate o f discount
approx. 0.368% per annum
nnnnr
_
. .
. ,.
L ow
....................... 99.905
Equivalent rate o f discount
approx. 0.376% per annum
, ,
, ., ,
.
.
•
(71 percent o f the am ount bid for at the lo w price
w as a ccep ted)




Federal R eserve
Total
--------- D istrict-------Applied f o r
Boston
.......................... $
9,425,000
N ew Y ork ....................
1,357,799,000
Philadelphia ................
13,210,000
Cleveland ......................
8,82o,000
Richmond ......................
18,895,000
Atlanta ............................
7,270,000
Chicago ...........................
252,480,000
St. Louis ........................
13,23d,000
Minneapolis ..................
2,357,000
Kansas City ..................
27,120,000
Dallas .............................
3,535,000
San Francisco ..............
53,600,000
--------------------T otal .............. $1,767,751,000

Total
A ccepted
$
7,424,000
991,384,000
10,136,000
7,375,000
15,053,000
7,270,000
183,750,000
9,900,000
2,357,000
23,785,000
3,535,000
43,160,000
—---------------$1,305,129,000
( o ver)

15R
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 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 FO R 9 1 -D A Y T R E A S U R Y BILLS
Maturing October 31, 1946.

Dated August 1, 1946.

Dated at
To F e d e ra l R eserve B a n k o f N ew Y o rk ,
Fiscal Agent of the United States.

1946

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
July 26, 1946, 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 July
26, 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 oi
(Rate per 100)

$ ..................................................... (maturity value)

$ ....................................................(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 pubHc notice.

(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 August 1, 1946, and are to mature on
October 31, 1946.

This tender will be inserted in special envelope entitled “ Tender for Treasury bills”
N am e o f B idder.
B y ....

(Please print)

(Official signature required)

Street Address

(Tide)

...................................
(City, Town or Village, P. O. No., and State)

I f 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 fo r less than $1,000 will be considered, and each tender must be
$1,000 (maturity value). A separate tender must be executed for each bid.

fo r

an even multiple o f

2. I f the person making the tender is a corporation, the tender should be signed by an officer o f the cor­
poration authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed
as a representation by him that he has been so authorized. I f the tender is made by a partnership, it should be
signed by a member of the firm, who should sign in the form “ .............................................................................................................. f a
copartnership, b y .................................................................................................... . 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 o f 2 percent
o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f
payment by an incorporated bank or trust company.
4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f
Treasury, is material, the tender may be disregarded.

Payment by credit through War Loan Deposit Account will not be permitted.
* P rice must be expressed on the basis o f 100, with not m ore than
three decimal places. Fractions may not be used.
T E N T B 839-a




(o v m )

the

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