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F E D E R A L R E S E R V E BA N K O F N EW YORK Fiscal Agent o f the United States „ r C ir c u la r N o . 4 6 9 2 , 1 -• : L J a n u a ry 22, 195$ ' J OFFERING OF TW O SERIES OF TREASURY BILLS $1,400,000,000 of 91-Day Bills, Dated January 29, 1959, Maturing April 30, 1959 $400,000,000 of 182-Day Bills, Dated January 29, 1959, Maturing July 30, 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 22, 1959. TREASURY DEPARTM ENT W ashington ............... r f g i f T h e T rea su ry D epartm ent, b y this pu b lic n otice, invites tenders 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, or thereabouts, fo r cash and in exch ange fo r T rea su ry bills m aturing January 29, 1959, in the am ou nt o f $1,802,702,000, as fo llo w s : _ ........ JHKi-j'U 91-day bills, fo r $1,400,000,000, o r thereabouts, to be dated January 29, 1959, and to m ature A p ril 30, 1959. 182-day bills, fo r $400,000,000, or thereabouts, to be dated January 29, 1959, and to m ature July 30, 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 p ro v id e d , and at m atu rity 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 on 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 h our, on e-th irty o ’ c lo c k p.m ., Eastern Standard tim e, M o n d a y , January 26, 1959. T en d ers w ill n ot be received at the T rea su ry D epa rtm 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 o re 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 on the printed fo rm s a n d forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed eral R eserve B anks or B ra n ch es on a pp lication therefor. O th e rs than b ank in g institutions w ill n ot be perm itted to subm it tenders e x ce p t fo r their ow n a ccou n t. T en d ers w ill be received w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fro m resp on sib le and recog n ized dealers in invest m e n t securities. T e n d ers fr o m oth ers m u st be a ccom p a n ied b y p a ym 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 fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in corp ora ted bank or trust com p a n y . Im m ed ia tely a fter the clo s in g h our, tenders w ill be op en ed at th e F ed eral R eserve Banks and B ran ches, fo llo w in g w h ich pu blic a nn oun cem ent w ill be m ade b y the T rea su ry D ep a rtm en t o f the am ou nt and price ran ge o f a ccep ted b ids. 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 re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry ex p ressly reserves the righ t to a ccep t o r re je ct any or all tenders, in w h ole o r in part, and his a ction in a n y such resp ect shall b e final. S u b ject to these reservations, n on com p etitive tenders fo r $200,000 or less fo r the 9 1-d ay bills and n on com p etitive tenders f o r $50,000 o r less fo r the 182-day bills w ith ou t stated price fr o m any on e b id d er w ill be a ccep ted in fu ll at the average price (in th ree deci m a ls) o f a ccep ted com p etitive bids fo r the respective issues. S ettlem ent fo r a ccep ted tenders in a ccord a n ce w ith the b id s m ust be m ade o r com p leted at the F ed eral R eserve B a n k on January 29, 1959, in cash or oth er im m ediately available funds or in a like face am ou nt o f T rea su ry bills m aturing January 29, 1959. Cash and exch a n ge ten ders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade fo r differences betw een the par valu e o f m atu 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 co m e derived fr o m T rea su ry b ills, w hether interest or ga in fr o m the sale or oth er disposition o f th e bills, d oes n ot have any exem ption , as such, and loss fr o m the sale or oth er disposition o f T rea su ry bills d oes 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 a re su b ject to estate, inheritance, g ift or_other excise taxes, w h eth er Federal o r State, but are exem pt fro m all taxation n ow or h ereafter im p osed on the principal or interest th ereo 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 h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sid ered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C od e o f 1954 the a m ou n t o f discou n t at w h ich bills issued hereunder are s o ld is n ot con sidered to a ccru e until such bills are sold , redeem ed or oth erw ise disp osed of, and such bills are exclu d e d fr o m con sidera tion 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 (o th e r than life insurance com p a n ies) issued hereunder need in clude in his in com e ta x return on ly the differen ce betw een the p rice pa id fo r such bills, w hether on origin a l 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 year fo r w hich the return is m ade, as ord in a ry gain o r loss. T re a su ry D epa rtm en t C ircu lar N o . 418, R evised , a n d this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e r n the con d ition s o f their issue. C opies o f the circular m a y be obtain ed fr o m a n y Federal R eserve B ank o r B ranch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, January 26, 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 f o r the Treasury bills cannot be made by credit through the Treasury T ax 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, 22, 1959, maturing April 23, 1959, and 182-day bills dated January 22, 1959, maturing July 23, 1959) are shown on the reverse side o f this circular. A lfred H a y e s , President. ( o ver) RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES DATED JANUARY 22, 1959) Range of Accepted Competitive Bids V OI \f~:0 182-Day Treasury Bills Maturing July 23,1959 91-D ay T rea su ry Bills Maturing April 23, 1959 A p p ro x . equiv. annual rate P rice A p p rox. equiv. annual rate H igh ................. ......... .......... 99.300 2.769% 98.458* 3.050% L ow ...................................... 99.230 3.046% 98.330 3.303% Average ................................ 99.233 3.035% 98.366 3.233% P r ice a E x ce p tin g one tender o f $200,000. (94 percent o f the amount o f 91-day bills (6 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) 91-D ay T rea su ry B ills 182-Day Treasury Bills Maturing July 23, 1959 Maturing April 23, 1959 District Boston ............................ . Applied for ...... $ 44,745,000 Accepted $ 34,745,000 Accepted Applied for $ 3,716,000 $ 3,716,000 New Y ork .......................... 1,747,429,000 924,637,000 450,856,000 285,756,000 Philadelphia......................... 32,638,000 17,638,000 10,748,000 5,868,000 Cleveland ............................. 56,267,000 51,267,000 13,181,000 13,181,000 R ich m on d ............................. 17,572,000 17,572,000 3,777,000 3,777,000 Atlanta ................................. 24,655,000 24,355,000 7,130,000 7,130,000 Chicago .............................. . 219,673,000 147,674,000 58,839,000 35,839,000 St. Louis .............. .............. 31,885,000 29,885,000 3,604,000 3,604,000 Minneapolis ........................ 19,349,000 16,319,000 2,955,000 2,955,000 Kansas C it y ........................ 54,636,000 41,516,000 6,213,000 6,213,000 21,748,000 1,820,000 1,820,000 73,048,000 30,214,000 30,214,000 Dallas .................... .............. San Francisco .................... T o t a ls ................ ...... 103,872,000 $2,374,669,000 $1,400,404,000b r-'di b In clu d es $298,145,000 n on com p etitive tenders a ccep ted at the average price o f 99.233. c In clu d es $26,848,000 n on com p etitiv e tenders a ccep ted at th e a vera ge price o f 98.366. $593,053,000 $400,073,000*
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