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F E D E R A L R E S E R V E B A NK O F N E W YORK Fiscal Agent o f the United States V r Circular No. 4 6 8 6 1 L J a n u a r y 15,1959 J OFFERING OF TW O SERIES OF TREASURY BILLS $1,400,000,000 of 91-Day Bills, Dated January 22, 1959, Maturing April 23, 1959 $400,000,000 of 182-Day Bills, Dated January 22, 1959, Maturing July 23, 1959 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published today: R E L E A S E , A .M . N E W S P A P E R S , T h u rsd a y, January 15, 1959. TREASURY DEPARTM ENT W ashington T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites ten ders for tw o series o f T rea su ry bills to the a ggreg ate am ou nt o f $1,800,000,000, o r thereabouts, fo r cash and in exch a n ge fo r T reasu ry bills m atu rin g January 22, 1959, in the am ou nt o f $1,799,712,000, as fo llo w s : 91-day bills, for $1,400,000,000, o r th ereabouts, to be dated January 22, 1959, and to mature A p ril 23, 1959. 182-day bills, fo r $400,000,000, o r thereabouts, to be dated January 22, 1959, and to m ature Ju ly 23, 1959. T h e bills o f b o th series w ill be issued on a d iscou n t basis under com petitive and n on com p etitive b id d in g as hereinafter provid ed , and at m aturity their face a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo r m o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e). T e n d e rs w ill be received at Federal R eserve Banks and B ra n ch es up to the clo s in g hour, on e-th irty o ’ c lo c k p.m ., Eastern S tandard tim e, M on d a y, January 19, 1959. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . E ach ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m u st be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e. g., 99.925. F ra ction s m a y n ot be used. It is u rged that ten ders be m ade o n the printed fo rm s and forw a rd ed in th e special en velop es w hich w ill be supplied b y F ed eral R eserve B anks or B ra n ch es on application therefor. O th e rs than b ankin g institutions w ill n ot be perm itted to subm it tenders ex cep t fo r their ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit from in corpora ted banks and trust com panies and fr o m respon sib le and recog n ized dealers in in vest m e n t securities. T e n d ers fro m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f the face a m ou n t o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted ba n k or trust com pan y. Im m ed ia tely a fter the closin g hour, ten ders w ill be op en ed at th e F ed eral R eserve B anks and B ran ches, fo llo w in g w hich p u b lic a nn oun cem ent w ill be made b y the T rea su ry D ep a rtm en t o f the a m ou n t and p rice range o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be advised o f the a ccep ta n ce o r rejection th ereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves the righ t to a ccep t o r reject any or all tenders, in w h ole o r in part, and his a ction in any such resp ect shall be final. S u b ject to these reservations, n on com p etitive tenders fo r $200,000 or le s s fo r the 91 -d a y bills and n on com p etitive tenders fo r $50,000 o r less fo r the 182-day bills w ith ou t stated price fro m a n y on e b id d er w ill be a ccep ted in fu ll at the a vera ge price (in three deci m a ls) o f a ccep ted com p etitive bids fo r the respective issues. S ettlem en t fo r a ccep ted tenders in a ccord a n ce w ith the bids m ust be m ade o r com p leted at the Federal R eserve B ank on January 22, 1959, in cash o r oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m aturing January 22, 1959. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash adju stm en ts w ill be m ade fo r differences betw een the par va lu e o f m a tu rin g bills a ccep ted in exch a n ge and the issue price o f the n ew bills. T h e in com e derived fr o m T rea su ry bills, w hether interest o r gain fro m the sale or oth er d isp osition o f the bills, d oes not have any exem ption , as such, and loss fro m the sale o r oth er disp osition o f T rea su ry bills does n ot have a n y special treat m en t, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er e x cis e taxes, w h eth er Federal o r State, but are exem pt fr o m all ta xation n o w or hereafter im p o s e d on the principal o r in terest th ere o f b y a n y State, o r a n y o f the possession s o f the U n ited States, o r b y a n y loca l ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f discou n t at w hich T reasu ry bills are origin a lly sold b y the U n ited States is con sidered t o be interest. U n d er S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the am ou nt o f discou n t at w hich bills issued hereunder are so ld is n o t con sidered to accru e until such bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu ded fr o m con sideration as capital assets. A c c o r d in g ly , the ow n er o f T r e a s u ry bills (oth er than life insurance com p a n ies) issued hereun der need include in his in com e tax return on ly the differen ce betw een the price paid fo r such bills, w hether on origin al issue o r o n subsequent purchase, and the a m ou n t actu ally received either u pon sale or redem ption at m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, as ordinary gain or loss. T re a su ry D epa rtm en t Circular N o . 418, R evised , and this n otice, prescribe the term s o f the T rea su ry bills and go v e rn the con d ition s o f their issue. C opies o f the circular m ay be obtain ed fro m a n y Federal R eserve Bank o r B ranch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, January 19, 1959, at the Securities Department o f its Head Office and at its Buffalo Branch. Tender forms for the respective series are enclosed. Please use the appropriate forms to submit tenders and return them in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. Results o f the last offering o f Treasury bills (91-day bills dated January 15, 1959, maturing April 16, 1959, and 182-day bills dated January 15, 1959, maturing July 16, 1959) are shown on the reverse side o f this circular. A lfred H ay e s , President. ( over ) RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES DATED JANUARY 15, 1959) Range of Accepted Competitive Bids 9 1-D a y T rea su ry B ills Maturing April 16, 1959 182-Day Treasury Bills Maturing July 16, 1959 P r ice A p p ro x . equiv. annual rate A p p ro x . equiv. annual rate High .... 99.325 2.670% 98.4 80 3.007% Low .... 99.280 2.848% 98.458 3.050% Average 99.290 2.808% 98.466 3.034% P rice » Excepting three tenders totaling $2,450,000. (22 percent o f the amount o f 91-day bills (3 4 percent o f the amount o f 182-day bills bid fo r at the low price was accepted.) bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) D istrict Boston ................................ ....... 91-D ay T rea su ry B ills 182-Day Treasury Bills Maturing A pril 16, 1959 Maturing July 16, 1959 A ccep ted A pplied f o r $ 36,702,000 $ 26,702,000 A pplied f o r $ 7,318,000 A ccepted $ 7,318,000 New Y ork .......................... 1,518,191,000 1,006,521,000 542,725,000 265,359,000 Philadelphia........................ 42,679,000 27,679,000 7,140,000 2,140,000 Cleveland ............................ 54,567,000 54,567,000 28,254,000 24,954,000 R ich m on d............................ 14,211,000 14,211,000 2,480,000 2,480,000 Atlanta ................................ 34,030,000 33,406,000 27,484,000 19,964,000 Chicago .............................. 243,481,000 204,481,000 70,867,000 40,227,000 St. Louis ............................ 29,106,000 29,106,000 4,160,000 4,160,000 Minneapolis ........................ 15,429,000 15,429,000 4,345,000 4,345,000 Kansas C it y ........................ 47,401,000 44,905,000 6,771,000 5,821,000 Dallas ................................... 26,901,000 26,901,000 1,981,000 1,981,000 San Francisco .................... 116,099,000 116,099,000 30,257,000 21,777,000 $733,782,000 $400,526,000 T o t a ls ................ ...... $2,178797,000 $1,600,007,000“ *>Includes $300,325,000 noncompetitive tenders accepted at the average price of 99.290. e Includes $30,851,000 noncompetitive tenders accepted at the average price of 98.466. A t U686 FEDERAL RESERVE BANK OF NEW YORK January 14, 1959. To A ll Banks and Trust Companies in the Second Federal R eserve D istrict: It is with deep regret that we announce the death today o f G. M o rg a n B ro w n e , M anager o f the E m ergency Planning D epartm ent o f this Bank. A l fr e d H a y e s , President.
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