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FED ER A L RESERVE BANK O F NEW YORK No. 3 3 0 0 1 ( Circular January 13, 1948 J Fiscal Agent of the United States Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills Dated January 22, 1948 Maturing April 22, 1948 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 non-competitive 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 , Tuesday, January 13, 1948. TREASU RY DEPARTM EN T W ashington T h e Secretary o f the Treasury, b y this public notice, invites tenders for $1,000,000,000, or thereabouts, o f 91-day Treasu ry bills, fo r cash and in exchange for Treasury bills m aturing January 22, 1948, to be issued on a discount basis under com peti tive and non-com petitive bidding as hereinafter provided. T he bills o f this series will be dated January 22, 1948, and will mature A pril 22, 1948, when the face amount will be payable w ithout interest. T h ey will be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (m aturity value). T en ders w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’clock p.m., Eastern Standard time, Friday, January 16, 1948. Tenders will not be received at the Treasury Departm ent, W ash ington. E ach tender m ust be for an even multiple o f $1,000, and in the case of com petitive tenders the price offered must be expressed on the basis o f 100, w ith not m ore 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 w ill be supplied b y Federal Reserve 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 recognized dealers in investm ent securities. Tenders from others must be accom panied by paym ent o f 2 percent o f the face am ount o f Treasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an incorporated bank o r trust com pany. Im m ediately after the closin g hour, tenders will be opened at the Federal R eserve Banks and Branches, follow in g w hich public announcem ent w ill be made by the Secretary o f the Treasury o f the am ount and price range o f accepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reservations, non-com petitive tenders for $200,000 or less w ithout stated price from any one bidder w ill be accepted in full at the average price (in three decim als) o f accepted com petitive bids. Settlem ent for accepted tenders in a ccordance with the bids must be made or com pleted at the Federal Reserve Bank on January 22, 1948, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing January 22, 1948. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents w ill be made for differences betw een the par value o f m aturing bills accepted in exchange and the issue price o f the new bills. T h e incom e derived from Treasu ry bills, whether 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 Treasury bills shall not have any special treatment, as such, under the Internal Revenue Code, or laws am endatory or supplem entary thereto. T h e bills shall be subject to estate, inheritance, g ift or other excise taxes, w hether Federal or State, but shall be exem pt from all taxation n ow o r hereafter im posed on the principal or interest thereof b y any State, or any o f the possessions of the United States, or b y any local taxing authority. F or purposes o f taxation the am ount o f discount at which Treasury bills are originally sold by 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 o f the Revenue A c t o f 1941, the am ount o f discount at w h ic b bills issued hereunder are 's o ld 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 (oth er than life insurance c o m panies) issued hereunder need include in his incom e tax return on ly the difference betw een the price paid for such bills, w hether 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 T reasu ry bills and govern the con ditions o f their issue. Copies o f the circular may 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 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 Friday, January 16, 1948. 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. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A llan S p r o u l , President. (PLEASE NOTE CHANGE IN THE CLOSING D A Y ON THIS OFFERING.) ( o ver) 9W " PLEASE NOTE CHANGE IN THE CLOSING D A Y ON THIS OFFERING. Tenders for this issue must reach the Federal Reserve Bank of New York or its Buffalo Branch not later than 2 p.m., Eastern Standard time, Friday, January 16, 1948. 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 non competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive Bid” . DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. No............................... TEN D ER FOR 9 1 -D A Y T R E A S U R Y BILLS Dated January 22, 1948. Maturing April 22, 1948. Dated at 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. 1948 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on January 13, 1948, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on January 13, 1948, as issued by the Secretary of the Treasury, the undersigned offers a non-competitive tender .............................................. * for a total amount of for a total amount of $ .............................................. (Rate per 100) (Not to exceed $200,000) $ ....................................................... (maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your bank, on the date stated in the public notice, as follows: (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your bank, on the date stated in the public notice, as follows: By surrender of the maturing issue of By surrender of the maturing issue of Treasury bills .................... $ ..................................... Treasury b ills ....................$ ........................................ By cash or other immediately available By cash or other immediately available funds ................................... $ ..................................... funds $ The Treasury bills for which tender is hereby made are to be dated January 22, 1948, and are to mature on April 22, 1948. This tender will be inserted in special envelope entitled “ Tender for Treasury bills” . Name o f Bidder (Please print) B y ......... (Official signature required) Street Address (Title) ............................ (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. N o 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 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 o f the firm, who should sign in the form “ ..................................................................................................... , a copartnership, by ................................... .............................................................................. . a member o f 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 o f 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 War Loan Deposit Account will not be permitted. http://fraser.stlouisfed.org/ TENTB— 916-a Federal Reserve Bank of St. Louis * P rice must be expressed on the basis o f 100, with not m ore than three decimal places. Fractions may not be used. (OVE*)
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