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FEDERAL RESERVE BANK OF N EW YORK

[

Fiscal Agent of the United States

Circular No. 3196 T
March 21. 1947 J

P u b l i c N o t ic e o f O f fe r in g o f $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t s , o f 9 1 - D a y T r e a s u r y B i lls
D a te d M a rch 2 7 , 1947

M atu rin g June 2 6

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 T reasury 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.
FO R RELEASE, M ORNING NEW SPAPERS,
Friday, March 21, 1947.

TRE ASU 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 March 27, 1947, and will ntature June 26, 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, March 24, 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 March 27, 1947.
The income derived from Treasury bills, whether interest or gain from the sale or other disposition o f th^ 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 ) of the Internal Revenue Code, as amended by Section 115 of
the Revenue A ct 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 of this bank (9th
floor, 33 Liberty Street) New York 45, 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, March 24, 1947. 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 imme­
diately available funds.
A llan S proul, President.
(Extract from Treasury Department >
statement released for publication March 18, 1947, announcing
residts after tenders were opened for Treasury bills dated March 20, 1947 maturing June 19, 1947)
Total applied f o r ........ $1,858,761,000

■ , ,

m1

Total accepted ........... $1,312,9/5,000 (includes $21,011,000
entered on a fixed-price basis at
99.905 and accepted in full)
Average price . . . .
t ,
Range of accepted
H ig h .......................
Low .......................

99.905+

Equivalent rate of discount
approx. 0.376% per annum
....
... .
competitive b id s.
99.907
Equivalent rate of discount
approx. 0.368% per annum
nftOA,
nnnt
99.905
Equivalent rate of discount
approx. 0.376% per annum

(69 percent of the amount bid for at the low price




Federal Reserve
District

------------Boston ............................
New York .....................
Philadelphia .................
Cleveland .......................
Richmond .......................
Atlanta ..........................
C h ic a g o ..........................
St Louis .......................
Minneapolis ..................
Kansas City ..................
DaUas
J ...................
San Francisco ..............
T o ta l

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

Applied for

---------------$
7,270,000
1,441,420,000
20,770,000
8,895,000
11,505,000
920,000
267,145,000
12,560,000
1,695,000
29,941,000
6,255,000
50,385,000
$1,858,761,000

7 °^ ,
Accepted

$
5,224,000
1,002,677,000
15,686,000
7,345,000
11,040,000
920,000
192,590,000
9,026,000
1,695,000
23,028,000
5,759,000
37,985,000
$1,312,975,000

(O V E R )

16Z
IM PORTANT—-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.
TEN DER FOR 91-DAY TREASURY BILLS
Dated March 27, 1947.

Maturing June 26, 1947.
Dated at

1947

To F e d e r a l R e s e r v 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
March 21, 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 of the public notice on March
21, 1947, 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)

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

(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.

Thei Treasury bills for which tender is hereby made are to be dated March 27, 1947, and are to
mature on June 26, 1947.
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 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 PORTANT 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 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 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.

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 War Loan Deposit Account will not be permitted.
te n th
 —873-a


*
t^
iree decimal places.

Price must be expressed on the basis of 100, with not more than
Fractions may not be used.
(o v e b )

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