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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [ g ^ eu^abre^g; ffg ] Public Notice of Offering of $900,000,000, or thereabouts, of 90-Day Treasury Bills Dated November 12, 1948 Maturing February 10, 1949 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. 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 , TREA SU RY D EPA R TM EN T Friday, November 5, 1948. W ashington The Secretary of the Treasury, by this public notice, invites tenders for $900,000,000, or thereabouts, of 90-day T reas ury bills, for cash and in exchange for T reasury bills m aturing November 12, 1948, to be issued on a discount basis under com petitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated November 12, 1948, and will m ature February 10, 1949, when the face am ount 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 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., E astern Standard time, Monday, November 8, 1948. Tenders will not be received at the T reasury Department, W ashington. Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust 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 w ithout deposit from incorporated banks and trust companies and from responsible and recog nized dealers in investment securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent 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 announcem ent will be made by the Secretary of the T reasury of the am ount and price range of accepted bids. Those subm itting tenders will be advised of the acceptance or rejection thereof. The Secretary of the T reasury 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 w ithout stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on November 12, 1948, in cash or other immediately available funds or in a like face amount of T reasury bills m aturing November 12, 1948. Cash and exchange tenders will re ceive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. The income derived from T reasury bills, w hether 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 T reasury bills shall not have any special treatm ent, as such, under the Internal Revenue Code, or laws am endatory or supplementary thereto. The bills shall be subject to estate, inheritance, gift or other excise taxes, w hether 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 U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount at which T reasury bills are originally sold by the United States shall be considered to be interest. U nder Sections 42 and 117 (a)(1 ) of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the am ount 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 T reasury 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, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418, as amended, and this notice, prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular m ay 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, November 8, 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 imme diately available funds or in maturing Treasury bills. A l l a n S pr o u l , President. (Extract from Treasury Department statement released for publication October 30, 1948, announcing results after tenders were opened for 91-day Treasury bills dated November 4, 1948 maturing February 3, 1949) Total applied for........... $1,312,532,000 T otal accepted ............. $ 801,197,000 (includes $47,178,000 entered on a non-competitive basis and accepted in full at the average price shown below) Average price....... 99.715 Equivalent rate of discount approx. 1.129% per annum Range of accepted competitive bids: (excepting one tender totaling $100,000) •tqrijyV, no 710 Hlgh ..................... Low ....................... " 719 99.713 Frmivalent rate n f Hisrnnnt aoorox 1112% oer annum a p p ro x . l . i i 6 /0 p e r a n n u m Equivalent rate of discount approx. 1.135% per annum (31 percent of the am ount bid for at the low price was accepted) FederalFederal ReserveReserve TotalTotal District Applied District Appliedfor for Boston ........................... .... $ 15,348,000 ..................... 996,799,000 New York ................. 996,799,000 Philadelphia ................. 27,380,000 ............. 27,380,000 ................. Cleveland ..................... 42,685,000 42,685,000 Richmond ..................... ................. 5,720,000 5,720,000 7,547,000 A tlanta ......................... 7,547,000 Chicago .......................... ..................... 85,888,000 Chicago^ 85,888,000 St. -^o Louis ................... 7,200,000 u *s ............................. 7,200,000 Minneapolis .................. ............. 9,255,000 Minneapolis 9,255,000 iC ancoc City ............. 91 q q a nnn Kansas 21,884,000 8,197,000 San Francisco ......... 84,629,000 ..................... T otal ............ ......... .... $1,312,532,000 Total Accepted $ 15 348 000 520 144000 20,430’,000 42,685,000 5,720,000 7,547,000 59,158,000 7,200,000 9,255 000 20 884 000 8,197,000 84,629,000 $801,197,000 Please note that the current offering is for 90-day Treasury Bills (o v e r) 9 0 -DAY TREASURY BILLS 20G IMPORTANT— It will be noted that the offering is for 9 0-day Treasury bills which w ill mature on Thursday, February 10, 1949, b u t w ill be dated N ovem ber 12, 1948, owing to the fa c t th at Thursday, Novem ber 11, w ill be Arm istice Day. IMPORTANT— If it is desired to bid on a competitive basis, fill in rate per 100 and m aturity 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”. D O N O T fill in both paragraphs on one form . A separate tender m ust be used for each bid. No.......................................... ..... TENDER FOR 90-DAY TREASURY BILLS Dated November 12, 1948. Maturing February 10, 1949. Dated at .......................................................... To F ed er a l R ese r v e B a n k of N e w Y o r k , Fiscal Agent of the United States. .................................................................... ^ 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 November 5, 1948, as issued by the Secretary of the Treasury, the undersigned offers .................................................* for a total amount of Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on November 5, 1948, as issued by the Secretary of the Treasury, the undersigned offers a non-competitive tender for a total amount of $................................................. (N ot to exceed $200,000) (R a te p er 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: By surrender of the maturing issue of (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 follow s: Treasury bills................... $ ____________________ Treasury bills................... $ ____________________ By cash or other immediately available funds ................................ $____________________ By surrender of the maturing issue of By cash or other immediately available funds ................................ $ ____________________ The Treasury bills for which tender is hereby made are to be dated November 12, 1948, and are to mature on February 10, 1949. This tender will be inserted in special envelope entitled “Tender fo r Treasury bills”. Name of Bidder. By ....... (P lease p r in t) (Official sig n a tu re re q u ire d ) (T itle) Street A d d re ss............................................ (C ity, T ow n or V illage, P.O. No., a n d S tate) If this tender is submitted for the account of a customer, indicate the customer’s name on line below: (N am e of C ustom er) (C ity, T ow n or V illage, P.O. No., an d S tate) Use a separate tender for each customer’s bid. IMPORTANT INSTRUCTIONS: 1. No tender for less than $1,000 will be considered, and each tender m ust be for an even multiple of $1,000 (m aturity value). A separate tender m ust 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 b y 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 m ember of the firm”. 3. Tenders will be received without deposit from incorporated banks and tru st companies and from respon sible and recognized dealers in investment securities. T enders from others m ust be accompanied by paym ent of 2 per cent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent 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 m aterial, the tender may be disregarded. Paym ent b y credit through W ar Loan Deposit Account w ill not be perm itted. T E N T B —958-a * Price must be expressed on the basis o f 100, with not more than three decimal places. Fractions may not be used. (o v e r)
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