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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent o f the United States [Circular No. L January 24, 31781 1947 J Public Notice of Offering of $1 ,3 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 91-Day Treasury Bills Dated January 30, 1947 Maturing May 1, 1947 To all Incorporated Banks and Trust Companies in th* 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 iixed-price bidding. FOR RELEASE, M O RN ING N E W SP A P E R S, Friday, January 24, 1947. TR E A SU R Y D E P A R T M E N T 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 January 30, 1947, and will mature May 1, 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, $500,0U0, 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, January 27, 1947. 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 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 30, 1947. 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 thé 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, January 27, 1947. It is requested that tenders be sul> mitted on special form printed on reverse side and returned in special envelope enclosed herewith. Payment fo r the Treasury bills cannot be made by credit through the W ar Loan Deposit Account. Payment must be made in cash or other immediately available funds. A l l a n S p ro u l, President. (Extract from Treasury Department statement released fo r publication January 18, 1947, announcing results after tenders were opened fo r Treasury bills dated January 23, 1947 maturing April 24, 1947) Total applied for .... .$1,704,759,000 Total accepted ........... $1,316,103,000 (includes $23,394,000 entered on a fixed-price basis at 99.905 and accepted in full) Average price ....... 99.905+ Equivalent rate of discount approx. 0.376% per annum Range of accepted competitive bids : High ........................ 99.907 Equivalent rate of discount approx. 0.368% per annum Low .......................... 99.905 Equivalent rate of discount approx. 0.376% per annum (76 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 $ 6,440,000 1,351,984,000 11,100,000 2,475,000 16,035,000 1,395,000 244,445,000 7,990,000 790,000 5,185,000 7,620,000 49,300,000 $1,704,759,000 Total Accepted $ 5,168,000 1,038,856,000 8.676.000 2.475.000 13.083.000 1.395.000 186,845,000 6.454.000 790,000 4.561.000 7.380.000 40.420.000 $1,316,103,000 ( over) 16R } IMPORTANT— 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” . D O N O T fill in both paragraphs on one form . A separate tender must be used for each bid. No______________ TENDER FOR 91 -D A Y TREASURY BILLS Dated January 30, 1947. Maturing May 1, 1947. Dated at ________ To .1947 F e d e r a l R e s e r v e B a n k of N e w Y o r k , Fiscal Agent o f 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 January 24, 1947, 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 o f the public notice on January 24, 1947, as issued by the Secretary o f 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 (Bate per 100) $_____________________________ (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 January 30, 1947, and are to mature on May 1, 1947. This tender will be inserted in special envelope entitled “ Tender fo r Treasury bills.” Name of Bidder« (Please print) B j ------ (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 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. IM PO RTANT INSTRUCTIONS: 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 “------------------- ----------------------------------------------------------------- - 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 of 2 per cent 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 the Treasury, is material, the tender may be disregarded. Payment by credit through W ar Loan Deposit Account will not be perm itted. TENTB—8W-a * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. ( over ) FED ERAL RESERVE BANK O F NEW YORK January 25, 1947. To all Banking Institutions in the Second Federal Reserve District: W e are pleased to announce that Dobbs Ferry Bank, Dobbs Ferry, New York, has become a member of the Federal Reserve System effective January 25, 1947. A llan S proul, President.