Full text of Federal Reserve Bank of New York Circulars : 3163. Public Notice of Offering of $1,300,000,000, or Thereabouts, of 91-Day Treasury Bills

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F E D E R A L R E S E R V E BANK O F N EW Y O R K
I Circular No. 31631
I December 13, 1946 J

Fiscal Agent of the United States

P u b lic N otice o f Offering o f $ 1 ,3 0 0 ,0 0 0 ,0 0 0 , or thereabouts, o f 91-D ay Treasury Bills
Dated December 19, 1946

Maturing March 20, 1947

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.
TRE ASU RY D EPAR TM E N T
Washington

FO R RELEASE, M ORNING N EW SPAPERS,
Friday, December 13, 1946.

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 December 19, 1946, and will mature March 20, 1947, 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, December 16, 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
recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2
face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of
incorporated bank or trust company.

responsible and
percent of the
payment by an

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 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 December 19, 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 o f 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
floor, 33 Liberty Street)
up to two o ’clock p.m.,
mitted on special form

the above announcement tenders will be received at the Securities Department of this bank (9th
New York 7, N. Y., or at the Buffalo Branch of this bank (270 Main Street) Buffalo 5, N. Y.,
Eastern Standard time, on Monday, December 16, 1946. It is requested that tenders be sub­
printed on reverse side and returned in special envelope enclosed herewith. Payment fo r the

Treasury bills cannot be made by credit through the War Loan Deposit Account.
other immediately available funds.

Payment must be made in cash or
A lla n

S p r o u l,

President.

(Extract from Treasury Department statement released for publication December 10, 1946, announcing
results after tenders were opened for Treasury bills dated December 12, 1946 maturing March 13, 1947)
Total applied for .....$1,817,059,000
Total accepted .......... $1,314,809,000 (includes $27,594,000
entered on a fixed-price basis at
99.905 and accepted in full)
Average price .......

99.9054-

Equivalent rate o f discount
approx. 0.375% per annum

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

99.908

Equivalent rate of discount
approx. 0.364% per annum

LqW ........................

99.905

Equivalent rate of discount
approx. 0.376% per annum

(70 percent of 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 City ....................
Dallas .............................
San Francisco ................
T otal

..................

Total
Applied for
$

10,190,000
1,352,270,000
51,888,000
10,020,000
10,760.000
950,000
275,515,000
13,700.000
2,246,000
10,891,000
16,935.000
61,694,000

$1,817,059,000

Total
Accepted
$

7,250,000
960.320.000
44.298.000
8.520.000
10.310.000
920,000
200.615.000
10.280.000
2.246.000
9.841.000
14.415.000
45.794.000

$1,314,809,000

(ora)

16L
IM P O R T A N T — I f it is desired to bid on a competitive basis, fill in rate per 100 and
m aturity value in paragraph headed "Com petitive Bid” . If it is desired to bid on a fixedprice basis, fill in only the m aturity value in paragraph headed "Fixed-Price Bid” .

DO N O T fill in both paragraphs on one form .

A separate tender must be used fo r each bid.

NoT E N D E R FOR 9 1 -D A Y TR E A SU R Y BILLS
Dated December 19, 1946.

Maturing March 20, 1947.

Dated at
To

.1946

F ed era l R eserve B an k o f N ew Y ork ,

Fiscal Agent of the United States.
C O M P ETITIV E BID

FIXE D -P R ICE BID

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and
to the provisions of the public notice on
December 13, 1946, as issued by the Secretary of
the Treasury, the undersigned offers to pay
___ ___________________ * for a total amount of
(Rate per 100)

Pursuant to the provisions of Treasury
Department Circular No. 418, as amended, and to
the provisions of the public notice on December
13, 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

$....................... .......... .... .................... (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 public notice.

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.

(Not to exceed $200,000)

The Treasury bills for which tender is hereby made are to be dated December 19, 1946, and are to
mature on March 20, 1947.

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

B y ......

(Official signature required)

(Title)

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

If this tender is submitted for the account of

a

(Name o f Customer)

customer, indicate the customer’s name on line below:

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

Use a separate tender for each customer’s bid.
IM P O R T A N T IN S T R U C T IO N S :
1. No 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 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 of the firm, who should sign in the form ................................................................................................t a copartnership, by
.............................................. ............................................................... a member o f 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 of 2 per­
cent o f 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 o f the Secretary of the
Treasury, is material, the tender may be disregarded.

Payment by credit through W ar Loan Deposit A ccount will not be permitted.

TENTB— S59-a


* Price must be expressed on the basis o f 100, with not more than
three decimal places. Fractions may not be used.
(o n * )

ATTEN TIO N
D ATIN G O F UNITED S T A T E S S A V IN G S B O N D S
Past ex p e rie n ce p rom p ts us to b rin g to y o u r attention the im p orta n ce o f changing the
year date in y o u r office dating stam p fr o m 1 9 4 6 to 1 9 4 7 , at the tu rn o f the year.
E xtrem e care sh ou ld also b e taken in in scrib in g the issue date on the b on d s issued on or
after January 1, 1 9 4 7 .
\ o u r p reca u tion in these respects w ill a v o id to a great extent the necessity o f recallin g
a large n u m b er o f b on d s fo r reissue becau se o f in correct dating.
FEDERAL RESERVE BANK OF NEW YORK
December 31, 1946




Fiscal Agent o f the United States