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F E D E R A L R E S E R V E BA N K O F N E W Y O R K
Fiscal Agent of the United States

[ S e m b S .S S }

Public Notice of Offering of $ 1 ,1 0 0 ,0 0 0 ,0 0 0 , or thereabouts, o f 91-Day Treasury B ills
Dated December 30, 1948

Maturing March 31, 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.
FO R RELEA SE, M ORNING N E W SPA PE R S,
TREASURY D EPA R TM EN T
Friday, December 24, 1948.
W ashington
The Secretary of the Treasury, by this public notice, invites tenders for $1,100,000,000, or thereabouts, of 91-day T reas­
ury bills, for cash and in exchange for T reasury bills maturing December 30, 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 December 30, 1948, and
will mature March 31, 1949, 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, $100,00U, $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., Eastern
Standard time, Monday, December 27, 1948. Tenders will not be received at the T reasury 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 tru st 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 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 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 December 30, 1948, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing December 30, 1948. Cash and exchange tenders will re­
ceive equal treatment. Cash adjustments will be made for differences between the par value of m aturing bills accepted in ex­
change and the issue price of the new bills.
The income derived from T reasury bills, whether 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 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 T reasury 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 of 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 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,
whether on original issue or on subsequent purchase, and the amount 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 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 Standard time, on Monday, December 27, 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 W ar Loan Deposit Account. Settlem ent 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.
(E xtract from Treasury Department statement released for publication December 21, 1948, announcing results
after tenders were opened for Treasury bills dated December 23,1948 maturing March 24, 1949)
Total applied fo r.. . . . $1,426,825,000
Total accepted---- . . . $1,001,008,000 (includes $52,516,000
entered on a non-competitive basis
and accepted in full at the average
price shown below)
Equivalent rate of discount
Average price---- 99.708
approx. 1.154 percent per
annum
Range of accepted competitive b id s:
Equivalent rate of discount
H ig h ..................... 99.712
approx. 1.139 percent per
annum
Equivalent rate of discount
L o w ....................... 99.707
approx. 1.159 percent per
annum
(26 percent of the amount bid for at the low
price was accepted)



Federal Reserve
District

Total
Applied for

Total
Accepted

Boston ..................... .
New York .............
Philadelphia ..........
Cleveland ...............
Richmond ...............
Atlanta ...................
Chicago ...................
St. Louis ...............
Minneapolis ............
Kansas City ..........
Dallas .....................
San F ra n c is c o ........

$ 14,302,000
1,192,550,000
21,010,000
37,088,000
5,290,000
5,455,000
79,603,000
4,295,000
3,905,000
9,262,000
6,065,000
48,000,000

$

.

$1,426,825,000

$1,001,008,000
(o v e r )

T otal ..................

14,154,000
805,381,000
8,610,000
37,088,000
5,290,000
5,455,000
53,503,000
4,295,000
3,905,000
9,262,000
6,065,000
48,000,000

IMPORTANT—If it is desired to bid on a competitive basis, fill in rate per 100 and
maturity value in paragraph headed “Competitive B id”. If it is desired to bid on a non­
competitive basis, fill in only the maturity value in paragraph headed “Non-competitive
B id”. DO NO T fill in both paragraphs on one form. A separate tender must be used for
each bid.
N o.............................

T E N D E R FOR 91-DAY TR EA SU RY BILLS
Dated December 30, 1948.

Maturing March 31, 1949.

To F ed er a l R eserv e B a n k o f N e w Y o r k ,
Fiscal Agent of the United States.

Dated a t .......................
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 24, 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 December 24,
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
(R ate 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
Treasury b ills ................... $ .........................................

Treasury b ills ................... $ .........................................

By surrender of the maturing issue of

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 December 30, 1948, and are to
mature on March 31, 1949.
This tender will be inserted in special envelope entitled “Tender for Treasury bills”.
Name of Bidder
(Please print)

B y ........

(Official signature required)

(T itle)

Street Address ............, ....................
(City, Town or Village, P. O. No., and S tate)

If th is ten d er is subm itted fo r the account of a custom er, in dicate the custom er’s nam e on line below :

(Name of Customer)

(City, Town or V illage, P.O. No., and State)

Use a separate ten d er fo r each custom er’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 (m aturity 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 tru st 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 T reasury 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 b y credit through War Loan Deposit Account w ill not be perm itted.
* Price must be expressed on the basis of 100, with not more than
three decimal places. Fractions may not be used.
TEN TB—965-a




(o v e r )

FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States

December 29, 1948

UNITED STATES SAVINGS BONDS
ARMED FORCES LEAVE BONDS
Revised Form of Transmittal Letter for Use by Paying Agents

To Incorporated Banks and Trust Companies and Other Financial Institutions
in the Second Federal Reserve District Qualified to Make Payments in
Connection with the Redemption of United States Savings Bonds and
Armed Forces Leave Bonds:

Enclosed is a supply of a revised form of tran sm ittal letter (Form Sav.
B. 178) in sets of original and duplicate copies for use by qualified paying agents
in forw arding to us for redem ption U nited States Savings Bonds and Armed
Forces Leave Bonds paid by such agents. The original form (colored) should
be sent to us, and the duplicate (white) retained for your files.
This form, which is to be used commencing Jan u a ry 3, 1949, will enable
paying agents to transm it both U nited States Savings Bonds and Arm ed Forces
Leave Bonds in a single letter. We will make a single paym ent covering all
bonds enclosed with one letter.
A dditional supplies of the revised form of tran sm ittal letter will be fu rn ­
ished upon request.




A lla n S pro ul,

President.

Savings Bond Department

Sav. B.178 600M-1-49
FED ERA L R ESER V E BANK
OF N EW YORK

TRANSMITTAL LETTER

PAID UNITED STATES SAVINGS BONDS OF SERIES A, B, C, D AND E, AND
PAID ARMED FORCES LEAVE BONDS
INSTRUCTIONS TO PAYING AGENTS
Use a separate form for each month.

D o not schedule on this form bonds paid in different months.

Do not send more than 200
bonds with one transmittal letter.
Paying agents must maintain in their files a record of the serial numbers of bonds included in each shipment.
Armed Forces Leave Bonds should not be spindled, clipped, pinned, perforated, bent, folded or otherwise mutilated.
Forward the bonds together with the original copy of this transmittal letter to the Federal Reserve Bank of New York, Savings Bond
Department, Federal Reserve P.O. Station, New York 45, N. Y.

F ederal R eserve B a n k o f N ew Y o rk ,

Savings Bond Department,
Federal Reserve P.O. Station,
New York 45, N. Y.

Date.

.pieces of United States Savings Bonds in the amount of
We enclose for settlement

< ________ pieces of Armed Forces Leave Bonds in the amount of
________

T otals

paid by us during the month o f _______________________
(Spaces betoxv are for the use of the Federal Reserve Bank o f Neva York')

Payment M onth_
_

Total Pieces _

Agent’s Number_
_

Amount Paid

Batch Number____

Date of Letter

Transaction Code

U /C D a te __

IMPRESS PAYMENT STAMP
IN THIS SPACE

Agent’s A/C Credited With:

The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.

Check Issued

PAYMENT INSTRUCTIONS
Issue check to our order in the amount of
Credit our account with you in the amount of
(Do not fill in the following line unless you desire payment by credit to your account with a correspondent bank )

IMPRESS PAYMENT STAMP
IN THIS SPACE

.for our account in the amount of

Credit.
(Name of Correspondent Bank.)

(Spaces below are for the use of the Federal Reserve Bank of N ew York)

Charge Unclassified Symbol 17-655

- 3.

(AFLB)

Charge Unclassified Symbol 17-643




( USSB )

T otal

The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.

Sav. B.178 600M-1-49
FED ERA L RESER V E BANK
OF N EW YORK

Savings Bond Department

TRANSMITTAL LETTER

PAID UNITED STATES SAVINGS BONDS OF SERIES A, B, C, D AND E, AND
PAID ARMED FORCES LEAVE BONDS
INSTRUCTIONS TO PAYING AGENTS
Do not schedule on this form bonds paid in different months. Use a separate form for each month. Do not send more than 200
bonds with one transmittal letter.
Paying agents must maintain in their files a record of the serial numbers of bonds included in each shipment.
Armed Forces Leave Bonds should not be spindled, clipped, pinned, perforated, bent, folded or otherwise mutilated.
Forward the bonds together with the original copy of this transmittal letter to the Federal Reserve Bank of New York, Savings Bond
Department, Federal Reserve P.O. Station, New York 45, N. Y.

F ederal R eserve B a n k o f N e w Y o rk ,
Savings B ond Department,

Date________

Federal Reserve P.O. Station,
New York 45, N. Y.
.pieces of United States Savings Bonds in the amount of
We enclose for settlement

.pieces of Armed Forces Leave Bonds in the amount of
T otals

paid by us during the month o f _______________________
(Spaces below are for the use of the Federal Reserve Bank of New York)

Payment Month

Total Pieces___

Agent’s Number

Amount Paid

Batch Number_

Date of Letter__

Transaction Code

U /C Date _____

IMPRESS PAYMENT STAMP
IN THIS SPACE

Agent’s A/C Credited With:
Check Issued___________________ □

The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.

PAYMENT INSTRUCTIONS
Issue check to our order in the amount of
Credit our account with you in the amount of

$___________

(Do not fill in the following line unless you desire payment by credit to your account with a correspondent bank )

Credit.

IMPRESS PAYMENT STAMP
IN THIS SPACE

.for our account in the amount of
(Name of Correspondent Bank.)
(Spaces below are for the use of the Federal Reserve Bank of New York)

Charge Unclassified Symbol 17-655

( USSB )

Charge Unclassified Symbol 17-643

... (AFLB)




T o ta l

$ __

The above impression is made for the purpose
of identification only. I t does not constitute
an acknowledgment of payment for bonds.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102