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F E D E R A L R E S E R V E BANK O F N E W YORK
Fiscal Agent of the United States
C ir cu la r N o. 4 7 2 3
A p r i l 2, 1 9 5 9

O FFER IN G O F T W O SERIES OF T R E A S U R Y BILLS
$1,200,000,000 o f 91-Day Bills, Additional Am ount, Series Dated Jan. 8, 1959, Due July 9, 1959
(T o B e Issued A p ril 9, 1959)
$400,000,000 o f 182-Day Bills, Dated A pril 9, 1959, Due O ctober 8, 1959
T o all Incorporated Banks and Trust Companies, and O thers
Concerned, in the Second Federal R eserve D istrict:

Following is the text o f a notice issued by the Treasury Department, released for publication in morning
newspapers, Thursday, April 2, 1959:
T h e Treasury Department, by this public notice, invites
tenders fo r tw o series o f Treasury bills to the aggregate amount
o f $1,600,000,000, or thereabouts, fo r cash and in exchange fo r
Treasury bills maturing A pril 9, 1959, in the amount o f
$1,599,337,000, as fo llo w s :
91-day bills (to maturity date) fo r $1,200,000,000, or there­
abouts, representing an additional amount o f bills dated
January 8, 1959, and to mature July 9, 1959, and to
be freely interchangeable therewith.
182-day bills, f o r $400,000,000, or thereabouts, to be dated
A p ril 9, 1959, and to mature O ctober 8, 1959.
The bills o f both series w ill be issued on a discount basis
under com petitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable
without interest. T h ey w ill be issued in bearer form only, and
in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000
and $1,000,000 (m aturity valu e).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty o ’clock p.m.,
Eastern Standard time, Monday, A pril 6, 1959. Tenders will
not be received at the Treasury Department, W ashington. Each
tender must be f o r an even multiple o f $1,000, and in the
case o f com petitive tenders the price offered must be expressed
on the basis o f 100, with not m ore than three decimals, e.g.,
99.925. Fractions m ay not be used. It is urged that tenders
be made on the printed form s and forw arded in the special
envelopes which w ill be supplied by Federal Reserve Banks
or Branches on application therefor.
Others than banking institutions will not be permitted to
submit tenders except fo r their own account. Tenders w ill be
received without deposit fro m incorporated banks and trust
companies and from responsible and recognized dealers in in­
vestment securities. Tenders from others must be accompanied
by payment o f 2 percent o f the face amount o f Treasury bills
applied for, unless the tenders are accompanied by an express
guaranty o f payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders w ill be opened
at the Federal Reserve Banks and Branches, follow in g which
public announcement will be made by the Treasury Department
o f the amount and price range o f accepted bids. T h ose sub­
mitting tenders w ill be advised o f the acceptance or rejection
thereof. T he Secretary o f the Treasury expressly reserves the
right to accept or reject any or all tenders, in w hole or in part,

and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders fo r $200,000 or less
fo r the additional bills dated January 8, 1959 (91 days re­
maining until maturity date on July 9, 1959) and noncom­
petitive tenders fo r $50,000 or less fo r the 182-day bills without
stated price from any one bidder w ill be accepted in full at the
average price (in three decim als) o f accepted competitive bids
fo r the respective issues. Settlement fo r accepted tenders in
accordance with the bids must be made or completed at the
Federal Reserve Bank on A pril 9, 1959, in cash or other
immediately available funds or in a like face amount o f
Treasury bills maturing A pril 9, 1959. Cash and exchange
tenders w ill receive equal treatment. Cash adjustments w ill be
made for differences between the par value o f maturing bills
accepted in exchange and the issue price o f the new bills.
The income derived from Treasury bills, whether interest
o r gain from the sale or other disposition o f the bills, does not
have any exemption, as such, and loss from the sale or other
disposition o f Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code o f 1954. The
bills are subject to estate, inheritance, g ift or other excise
taxes, whether Federal or State, but are exempt fro m all taxa­
tion n ow or hereafter imposed on the principal or interest
thereof by any State, or any o f the possessions o f the United
States, or by any local taxing authority. F o r purposes o f taxa­
tion the amount o f discount at which Treasury bills are
originally sold by the United States is considered to be interest.
Under Sections 4 5 4 (b ) and 1221(5) o f the Internal Revenue
Code o f 1954 the amount o f discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. A ccordingly,
the ow ner o f Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his incom e tax return
only the difference between the price paid fo r such bills, whether
on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity
during the taxable year fo r which the return is made, as
ordinary gain or loss.
Treasury Department Circular N o. 418, Revised, and this
notice, prescribe the terms o f the Treasury bills and govern
the conditions o f their issue. Copies o f the circular may be
obtained from any Federal Reserve Bank or Branch.

The $1,200,000,000, or thereabouts, o f 91-day bills maturing July 9, 1959, offered by the above notice, are
in addition to $400,038,000 o f bills dated and issued January 8 , 1959, and maturing July 9, 1959.
This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, April 6,
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 offerin g o f T reasu ry bills (9 1 -d a y bills to be issued A pril 2, 1959, representing an addi­
tional amount o f bills dated January 2, 1959, and m aturing July 2, 1959; and 182-day bills dated A pril 2,
1959, maturing O ctober 1, 1959) are show n on the reverse side o f this circular.




A

lfred

H

a y e s

,

President.
( over)

RESULTS OF LAST O FFER IN G OF TREASU R Y BILLS

(TWO SERIES ISSUED A P R IL 2, 1959)

R ange o f A ccepted C om petitive Bids
182-Day Treasury Bills
Maturing October 1, 1959

91-D ay Treasury Bills
Maturing July 2, 1959

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

H ig h ........................................

99.292

2.801 %

98.398b

3.169%

Low ......... .............................

99.265

2.908%

98.354

3.256%

Average .... .............................

99.282

2.841%

98.364

3.236%

Price

b Excepting two tenders totaling $200,000.

a Excepting one tender of $100,000.
(16 percent o f the amount o f 91-day bills
bid for at the low price was accepted.)

(1 percent o f the amount o f 182-day bills
bid for at the low price was accepted.)

Total Tenders Applied for and Accepted (B y Federal Reserve Districts)
91-Day Treasury Bills
Maturing July 2, 1959
Applied fo r

District

Boston ..................... ..............

$

27,824,000

Applied fo r

Accepted

17,824,000

$ 13,457,000

$ 13,457,000

Accepted

$

182-D ay Treasury Bills
Maturing October 1, 1959

New Y o r k .............. ..............

1,251,852,000

801,602,000

492,307,000

239,487,000

Philadelphia .......... ..............

27,304,000

17,304,000

10,341,000

5,341,000

C leveland................ ..............

35,307,000

35,307,000

44,119,000

39,119,000

Richmond .............. ..............

7,682,000

7,682,000

1,638,000

1,638,000

Atlanta .................. ..............

20,668,000

20,668,000

2,482,000

2,432,000

Chicago .................. ..............

207,962,000

161,562,000

92,805,000

67,875,000

St. Louis ................ ..............

14,156,000

14,156,000

1,557,000

1,557,000

M inneapolis............ ..............

11,590,000

11,590,000

2,085,000

1,285,000

Kansas City .......... ..............

34,334,000

34,334,000

4,170,000

2,570,000

D a llas....................... ..............

12,324,000

12,324,000

1,601,000

1,601,000

San F ran cisco........ ..............

65,767,000

65,767,000

30,245,000

23,795,000

T o ta ls ...... ..............

$1,716,770,000

$1,200,120,000c

c Includes $182,713,000 noncompetitive tenders accepted at the average price of 99.282.
d Includes $16,293,000 noncompetitive tenders accepted at the average price of 98.364.




$696,807,000

$400,157,000 d

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