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F E D E R A L R E SE R V E BANK O F N E W YORK r Circular No. 3334 ~1 L May 7, 1948 J Fiscal Agent of the United States Public Notice of Offering of $>1,000,000,000, or thereabouts, o f 91-Day Treasury Bills Dated May 13, 1948 Maturing August 12, 1948 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 non-competitive bidding. FO R RELEASE, M ORNING NEW SPAPERS, TR E A SU R Y D EPAR TM E N T Friday, May 7, 1948. Washington The Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing M ay 13, 1948, to be issued on a discount basis under competi tive and non-competitive bidding as hereinafter provided. The bills of this series will be dated May 13, 1948, and will mature August 12, 1948, 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 Daylight Saving time, Monday, May 10, 1948. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders 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, non-competitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on May 13, 1948, in cash or other immediately available funds or in a like face amount of Treasury bills maturing May 13, 1948. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price o f the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition o f 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 the Internal Revenue Code, or laws amendatory or supplementary thereto. 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 o f 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 com panies) 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 Daylight Saving time, on Monday, May 10, 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 l l a n S p r o u l , President. (Extract from Treasury Department statement released for publication May 4, 1948, announcing results after tenders were opened for Treasury bills dated M ay 6,1948 maturing August 5, 1948) Total applied fo r ........$1,491,549,000 Total accepted........... $905,450,000 (includes $44,438,000 entered on a non-competitive basis and accepted in full at the average price shown below) Average p r ic e ... 99.748 Equivalent rate of discount approx. 0.998 percent per annum Range o f accepted competitive bids : Equivalent rate of discount H igh..................... 99.752 approx. 0.981 percent per annum Equivalent rate of discount L ow ....................... 99.747 approx. 1.001 percent per annum (57 percent of the amount bid for at the lo w ' price was accepted) Federal Reserve District B o s to n ................................ New York ........................ Philadelphia ..................... Cleveland .......................... R ich m on d.......................... Atlanta .............................. C h ica g o .............................. St. Louis .......................... M inneapolis...................... Kansas C it y ...................... Dallas ................................ San Francisco ................. Total ...................... Total Applied for Total Accepted $ 9,190,000 1,199,366,000 43,300,000 48,458,000 3,350,000 7,392,000 82,462,000 3,275,000 1,675,000 24,127,000 6,130,000 62,824,000 $ 8,975,000 681,781,000 36.248.000 34.105.000 3.350.000 7.349.000 64.660.000 3.146.000 1.460.000 19.072.000 6.130.000 39.174.000 $1,491,549,000 $905,450,000 ( over) 19G Tenders will be received up to two o’clock p.m., Eastern Daylight Saving time, Monday, May 10, 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 beaded “Non-competitive Bid”. DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. No. TENDER FOR 91-DAY TREASURY BILLS Maturing August 12, 1948. Dated May 13, 1948. Dated a t ...................... T o F ederal R eserve B a n k of 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 May 7, 1948, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions of the public notice on May 7, 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 (Not to exceed $200,000) (Rate per 100) $ ..................................................... (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 b ills.............. $________________________ 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 May 13, 1948, and are to mature on August 12, 1948. This tender will be inserted in special envelope entitled “ Tender for Treasury bills” . Name of Bidder (Please print) B y .... (Title) (Official signature required) 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. IMPORTANT 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 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. * Price must be expressed on the basis of 100, with not more than three decimal places. Fractiotus may not be used. TENTB—932-a (OVE*)
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