The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF N EW YORK rr<Circular No. SS47 I June 25 ,194 8 Fiscal Agent of the United States Public Notice of Offering of $1,100,000,000, or thereabouts, of 91-Day Treasury Bills Dated July 1, 1948 Maturing September 30, 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 o f Treas ury 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 , Friday, June 25, 1948. TREASU RY DEPARTM EN T W ashington T h e Secretary o f the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange for Treasury bills maturing July 1, 1948, to be issued on a discount basis under com peti tive and non-com petitive bidding as hereinafter provided. T h e bills o f this series w ill be dated July 1, 1948, and will mature Septem ber 30, 1948, when the face amount w ill be payable without interest. T h ey will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). T enders w ill be received at Federal Reserve Banks and Branches up to the closing hour, tw o o ’ clock p.m., Eastern D ay light Saving time, M onday, June 28, 1948. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of com petitive tenders the price offered must be expressed on the basis o f 100, with not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which w ill be supplied b y Federal Reserve Banks or Branches on application therefor. Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accom panied by paym ent o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an incorporated bank or trust com pany. Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcem ent will be made by the Secretary of the Treasury o f the amount and price range of accepted bids. T h ose subm itting tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reservations, non-com petitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids. Settlement for accepted tenders in accordance w ith the bids must be made or com pleted at the Federal Reserve Bank on July 1, 1948, in cash or other im mediately available funds or in a like face amount o f Treasury bills maturing July 1, 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. T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of 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 supplementary thereto. T he bills shall be subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but shall be exem pt from all taxation n ow or hereafter im posed on the principal or interest thereof by any State, or any of the possessions of the United States, or b y any local taxing authority. F or purposes o f taxation the amount o f discount at which Treasury bills are originally sold b y the United States shall be considered to be interest. U nder Sections 42 and 117 (a ) ( 1 ) o f the Internal Revenue Code, as amended b y Section 115 of the Revenue A ct of 1941, the am ount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return on ly 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 redem ption at maturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury Departm ent Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern the conditions of their issue. Copies o f the circular m ay 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 tw o o ’clock p.m., Eastern Daylight Saving time, on Monday, June 28, 1948. It is requested that tenders be submitted 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 War Loan Deposit Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A llan S proul, President. (Extract from Treasury Department statement released fo r publication June 22, 1948, announcing results after tenders were opened fo r Treasury bills dated June 24, 1948 maturing September 23, 1948) T ota l applied fo r............$1,468,036,000 T ota l accepted .............. $1,005,745,000 (includes $39,217,000 entered on a non-com petitive basis and accepted in full at the average price show n below ) A vera ge price........ 99.748 Equivalent rate o f discount approx. 0.998% per annum R ange o f accepted com petitive bids: H igh ....................... 99.752 Equivalent rate approx. 0.981% L o w ......................... 99.747 Equivalent rate approx. 1.001% o f discount per annum o f discount per annum Federal Reserve District Boston ....................... ..... N ew Y ork .............. ..... Philadelphia ............ Cleveland ................ R ichm ond ................ Atlanta .................... C hicago .................... St. Louis .................. Minneapolis ............ Kansas City ............ San Francisco ....... Total Applied for $ 13,112,000 1,301,285,000 4,720,000 20,205,000 5.605,000 4,720,000 56,735,000 1,945,000 1,675,000 10,720,000 4,949,000 42,365,000 Total Accepted $ 12.886,000 869,009,000 3,982,000 16,605,000 5,605,000 4,684,000 45,205,000 1,765,000 1,585,000 9,820,000 4.834.000 29,765,000 (6 4 percent o f the amount bid for at the low price was accepted) T ota l .................. $1,468,036,000 $1,005,745,000 ( over) 19N 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” . I f it is desired to bid on a non competitive basis, fill in only the maturity value in paragraph headed "Non-com petitive Bid” . DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. N o- tender FOR 91-DAY TREASURY BILLS Dated July 1, 1948. Maturing September 30, 1948. Dated at To F ed eral R eserve B a n k of N e w Y o r k , .1948 Fiscal Agent of the United States. C O M PETITIVE BID N O N -C O M P E T IT IV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on June 25, 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 June 25, 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 follow s: (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 o f the maturing issue of By surrender of the maturing issue of Treasury bills__________ $______________________ Treasury bills_____ ___ _ $______________________ 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 July 1, 1948, and are to mature on September 30, 1948. This tender will be inserted in special envelope entitled “ Tender fo r Treasury bills” . Name of Bidder......................................... By (Please print) (Official signature required) (Title) Street A ddress........................................... (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 o f Customer) (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. 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 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 War Loan Deposit Account will not be permitted. T E X T E —939 a * Price must be expressed on the basis o f 100, with not more than three decimal places. Fractions may not be used. ( ov e r )
@FedFRASER