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F E D E R A L R E S E R V E BANK O F NEW YO R K No. 3 4 0 3 1 I Circular December 17, 1948 J Fiscal Agent of the United States Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills D a ted D e cem b er 2 3 , 1 948 M aturing M arch 2 4 , 1 9 4 9 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 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 , TREA SU RY D EPA R TM EN T Friday, December 17, 1948. W ashington T he Secretary of the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day T reasury bills, for cash and in exchange for T reasury bills m aturing December 23, 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 December 23, 1948, and will m ature M arch 24, 1949, when the face am ount will be payable w ithout 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). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., E astern Standard time, Monday, December 20, 1948. Tenders will not be received at the T reasury Departm ent, 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 tru st companies and from responsible and recognized dealers in investment securities. T enders 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. Im mediately 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. T he 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 December 23, 1948, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing December 23, 1948. Cash and exchange tenders will receive 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. T he income derived from Treasury 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 supplem entary 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. F or purposes of taxation the am ount of discount at which T reasury bills are originally sold by the U nited 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 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,_December 20, 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 W ar Loan Deposit Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A lla n Sproul President (E xtract from Treasury Department statement released fo r publication December 14, 1948, announcing results after tenders were opened fo r Treasury bills dated December 16, 1948 maturing March 17, 1949) T otal applied for ..........$1,701,116,000 T otal accepted ..............$1,103,335,000 (includes $55,964,000 entered on a non-competitive basis and accepted in full at the average price shown below) A verage price . . 99.709 Equivalent rate of discount approx. 1.153% per annum , , i i •j . Range of accepted competitive bids. H igh .................. 99.724 Equivalent rate of discount approx. 1.092% per annum Low .................. 99.708 Equivalent rate of discount approx. 1.155% per annum , ., . , , (62 percent of the am ount bid for at the low price was accepted) Federal Reserve District Boston .............................. New Y ork ........................ Philadelphia .................... Cleveland .......................... Richmond ........................ A tlanta .............................. Chicago ............................ St Louis .......................... Minneapolis ...................... K ansas C i t y ...................... Dallas ................................ San Francisco .................. Total .......................... Total Applied for $ 22,699,000 1,387,407,000 20,535,000 21,375,000 4,988,000 6,993,000 92,895,000 18,063,000 6,406,000 42,023,000 7,450,000 70,282,000 $1,701,116,000 Total Accepted $ 22,385,000 880 407 000 8,166^000 21,375,000 4,608,000 6,233,000 46,815,000 7,487,000 6,216,000 34,347,000 7,174,000 58,122,000 - — $1,103,335,000 (ovm) 20M 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. . . ................ T E N D E R F O R 91-D A Y T R E A S U R Y B IL L S Dated December 23, 1948. Maturing March 24, 1949. 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 December 17, 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 December 17, 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: 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: By surrender of the maturing issue of Treasury bills ................... $---------------------------By cash or other immediately available Treasury bills ................... $___________________ funds .................................. $---------------------------- funds .................................. $_________ _________ By cash or other immediately available The Treasury bills for which tender is hereby made are to be dated December 23, 1948, and are to mature on March 24, 1949. This tender mill be inserted in special envelope entitled “Tender for Treasury bills”. Name of Bidder (Please print) By. (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. 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 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 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. 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. Paym ent by credit through War Loan D eposit Account w ill not be perm itted. T E N T B —964-a * Price must be expressed on the basis o f 100, with not more than three decimal places. Fractions may not be used. (ovsr) FEDERAL RESERVE BANK OF NEW YORK December 31, 1948. Semiannual Dividend Gentlem en : The board of directors of Federal Reserve Bank of New York has declared a dividend for the six-month period ending December 31, 1948, at the rate of six per centum per annum on the paid-in capital stock of the bank, payable December 31, 1948, to stockholders as shown by the books of the bank at the close of business on th at date. Paym ent of $....................... , the amount of such dividend due you, is being made at the close of business today by credit to your reserve account. V ery truly yours, President.
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