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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
'

A

rC lar N 4822 1
ircu
o.

- I December la, ISM' J

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,200,000,000 o f 91-Day Bills, Additional Amount, Series Dated Sept. 17, 1959, Due March 17,1960
(To Be Issued December 17, 1959)
$500,000,000 o f 182-Day Bills, Dated December 17, 1959, Due June 16, 1960
To A ll Incorporated Banks and Trust Companies, and O thers
Concerned, in th e Second Federal Resen>e D istrict:

Following is the text o f a notice issued by the Treasury Department, released for publication i morning
in
newspapers, Thursday. December 10. 1959 :
irsoaoers. Thursday,
10, 1959
T he Treasury Department, by this public notice, invites
tenders f o r tw o series o f Treasury bills to the aggregate amount
o f $1,700,000,000, o r thereabouts, fo r cash and in exchange for
Treasury bills maturing December 17, 1959, in the amount o f
$1,700,381,000, as fo llo w s :
91-day bills ( t o maturity date) to be issued December 17,
1959, in the amount o f $1,200,000,000, or thereabouts,
representing an additional amount o f bills dated Sep­
tember 17, 1959, and to mature M arch 17, 1960, originally
issued in the amount o f $399,911,000, the additional and
original bills to be freely interchangeable.
182-day bills, fo r $500,000,000, or thereabouts, to be dated
December 17, 1959, and to mature June 16, 1960.
T he bills o f both series will be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable
without interest. Th 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 value).
Tenders w ill be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o ’clock p.m., Eastern Standard
time, M onday, December 14, 1959. Tenders will not be received
at the Treasury Department, W ashington. Each tender must
be fo r an even multiple o f $1,000, and in the case o f competitive
tenders the price offered must be expressed on the basis o f 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
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 w ill not be permitted to
submit tenders except fo r their ow n account. Tenders will be
received without deposit from 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 will 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. Those sub­
mitting tenders will be advised o f the acceptance or rejection
thereof. T h e Secretary o f the Treasury expressly reserves the

right to accept o r reject any or all tenders, in w hole or in part,
and his action in any such respect shall be filial. Subject to
these reservations, noncompetitive tenders fo r $200,000 o r less
fo r the additional bills dated September. 17, 1959, (91 days re­
maining until maturity date on M arch 17, 1960) and noncom ­
petitive tenders fo r $100,000 or less for the 182-day bills without
stated price from any one bidder will be accepted in full at the
average price (in three decim als) o f accepted com petitive bids
for the respective issues. Settlement fo r accepted tenders in
accordance with the bids must be made or completed at the
Federal Reserve Bank on December 17, 1959, in cash or other
immediately available funds o f in a like face amount o f
Treasury bills maturing December 17, 1959. Cash and exchange
tenders will receive equal treatment. Cash adjustments will be
made fo r differences between the par value o f maturing bills
accepted in exchange and the issue price o f the new bills.
T he income deriyed from Treasury bills, whether interest
o r gain from the sale o r 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 from all taxa­
tion now or hereafter imposed on the principal or interest
thereof by any State,., or any o f the possessions o f the Urnted
States, or by any local taxing authority. F or purposes o f taxa­
tion the amount o f discount- a t which T reasu ry 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 o f , 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 income ta x return
only the difference between the price paid fo r such bills, whether
on original issue o r on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity
during the taxable year fo r w hich 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 m ay be
obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m ., Eastern Standard time, M onday, December 14,
1959, at the Securities Department o f its H ead 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 fo r Treasury Bills.” Tenders may be submitted by telegraph, subject To written confirmation; they may
not be submitted by telephone. Payment for 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 of the last offering of Treasury bills (91-dav bills to be issued December 10; 1959, representing an
additional amount of bills dated September 10, 1959, and maturing March 10, 1960; and 182-day bills dated
December 10, 1959, maturing June 9, 1960) are shown on the reverse side of this circular.




A

lfred

H

ayes,

President.
(o v e b )

RESULTS OF LAST OFFERING OF TREASURY RILLS (TWO SERIES ISSUED DECEMBER 10, 1959)

Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing March 10, 1960

182-Day Treasury Bills
Maturing June 9, 1960

A pprox. equiv.
annual rate

A p p ro x . equiv.
annual rate

97.502

4 .9 4 1 %

4 .6 5 2 %

H i g h ................................ .............

P rice

4 .6 0 5 %

9 7.478

4 .9 8 9 %

4 .6 3 8 % 1

P rice

97.488

4 .9 6 9 % 1

9 8 .8 3 6 *

L ow ................................ .
A v e r a g e ......................... ............

98.828

* E xcepting three tenders totaling $5,290,000.
1 A verage rate on a coupon issue equivalent yield basis is 4.77%. fo r the 91-day bills and 5.18% fo r the 182-day
bills. Interest rates on bills are quoted on the basis o f bank discount, with their length in actual number o f days related
to a 360-day year. In contrast, yields on certificates, notes, and bonds are computed cm the basis o f interest on the
investment, with the number o f days remaining in a semiannual interest payment period related to the actual number
o f days in the period, and with semiannual com pounding if more than one coupon period is involved.

(8 9 percent o f the amount o f 91-day bills
bid for at the low price was accepted.)

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

Total Tenders Applied for and Accepted (By Federal Reserve Districts)
91-Day Treasury Bills
Maturing March 10, 1960
A pplied for

District
Boston ........................... .............

$

28 ,9 4 3 ,0 0 0

Accepted

Applied for

Accepted

$ 11,501,000

$ 11,501,000

8 39,226,000

697 ,1 2 6 ,0 0 0

3 69,646,000

9 ,288,000

2 ,2 8 8 ,0 0 0

33,759,000

27 ,1 7 1 ,0 0 0

2 7,17 1,000

18,545,000

3 6,406,000

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

26,343,000

14,158,000

1,510,874,000

N ew Y o r k ..................................

$

182-Day Treasury Bills
Maturing June 9, 1960

7,104,000

2 ,024,000

A tla n ta ...... .................. .............

32,162,000

25,961,000

3,443,000

3 ,033,000

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

182,415,000

83,060,000

72,842,000

35,447,000

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

23,870,000

22,370,000

5,426,000

4 ,926,000

12,564,000

11,564,000

2,2 7 4 ,0 0 0

1,774,000

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

42,462,000

34,962,000

6 ,942,000

5,842,00

D a lla s ...........................................

2 0 ,703,000

20,703,000

4 ,428,000

4 ,428,000

77,260,000

69,873,000

40,954,000

32,004,000

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

-

-?v •
San F ra n cisco ............. .............

vadl
i

T o t a l............

$ 2 ,017,240,000

$ 1 ,2 0 0 ,5 2 4 ,0 0 0 b

v .i'i

b Includes $254,818,000 noncompetitive tenders accepted at the average price o f 98.828.
c Includes $52,993,000 noncompetitive tenders accepted at the average price o f 97.488.

1**73;




$888 ,499 ,00 0

$ 5 0 0 ,0 8 4 ,0 0 0 1

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