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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
F iscal A g e n t o f the U nited States
r C ircular No. 4 8 4 4 T

L January 14, 1960

J

O F F E R I N G O F T W O S E R I E S O F T R E A S U R Y BILLS
$1,000,000,000 of 91-Day Bills, Additional Amount, Series Dated Oct. 22, 1959, Due April 21, 1960
(To Be Issued January 21, 1960)
$400,000,000 of 182-Day Bills, Dated January 21, 1960, Due July 21, 1960
T o A ll In corporated Batiks and T rust Companies, and O thers
Concerned, in the Second Federal R eserv e D istrict:

F ollow ing is the text o f a notice issued by the Treasury Department, released for publication in morning
new spapers, Th ursday, January 14, 1960:
T h e T reasu ry D epartm ent, b y this pu blic notice, invites
tenders fo r tw o series o f T reasu ry bills to the a ggregate amount
o f $1,400,000,000, o r thereabouts, fo r cash and in exch ange for
T re a su ry bills m aturing January 21, 1960, in the am ount o f
$1,400,400,000, as f o l lo w s :
91-day b ills (to m aturity date) to be issued January 21,
1960, in the am ount o f $1,000,000,000, o r thereabouts,
representing an addition al amount o f bills dated O ctober
22, 1959, and to mature A p ril 21, 1960, o rigin a lly issued
in the am ount o f $400,123,000, the addition al and origin a l
b ills to be fre e ly interchangeable.
182-day b ills, fo r $400,000,000, o r thereabouts, to be dated
January 21, 1960, and to mature July 21, 1960.
T h e bills o f b oth series w ill be issued on a discou nt basis
u nder com petitive and noncom petitive bid d in g as h ereinafter
provided , and at m aturity their fa ce am ount w ill be payable
w ith ou t interest. T h e y w ill be issued in bearer fo rm only, and
in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000
and $1,000,000 (m aturity v a lu e).
T en d ers w ill be received at F ed eral R eserve Banks and
B ranches up to the closin g hour, on e-thirty o ’c lo ck p.m.,
E astern Standard time, M on day, January 18, 1960. Tenders
w ill n ot be received at the T reasu ry Departm ent, W ash ington.
E a ch tender must be fo r an even m ultiple o f $1,000, and in the
ca se o f com petitive tenders the price offered must be expressed
on the basis o f 100, w ith n ot m ore than three decim als, e.g.,
99.925. F raction s m ay not be used. It is urged that tenders
be m ade on the printed form s and forw a rd ed in the special
envelopes w hich w ill be supplied b y F ed era l R eserve Banks
o r B ran ches o n application th erefor.
O thers than banking institutions w ill n ot be perm itted to
subm it tenders e xcep t fo r th eir ow n account. T en ders w ill be
received w ith ou t deposit from in corpora ted banks and trust
com panies and from responsible and recogn ized dealers in in­
vestm ent securities. T en ders from others must be accom panied
b y paym ent o f 2 percent o f the fa ce amount o f T rea su ry bills
applied fo r, unless the tenders are accom panied by an express
gu aranty o f paym ent b y an in corporated bank or trust com pany.
Im m ediately a fter the clo s in g hour, tenders w ill be opened
at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich
p u blic announcem ent w ill be m ade b y the T reasu ry Departm ent
o f the am ou nt and price range o f accepted bids. T h ose sub­
m itting tenders w ill be advised o f the acceptance o r rejection

thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the
right to accep t o r reject any or all tenders, in w hole o r in part,
and his action in any such respect shall be final. S u bject to
these reservations, noncom petitive tenders fo r $200,000 o r less
for the addition al bills dated O ctober 22, 1959, (91 days re­
m aining until m aturity date on A p ril 21, 1960) and n on com ­
petitive tenders for $100,000 or less for the 182-day bills w ithout
stated p rice from any one bidder w ill be a ccepted in fu ll at the
average p rice (in three decim a ls) o f a ccepted com petitive bids
fo r the respective issues. Settlem ent fo r a ccepted tenders in
a ccord a n ce w ith the bids must be made o r com pleted at the
Fed eral R eserve B ank on January 21, 1960, in cash o r other
im m ediately available funds o r in a like fa ce am ount o f
Treasu ry bills m aturing January 21, 1960. Cash and exchange
tenders w ill receive equal treatment. Cash adjustm ents w ill be
made f o r differences betw een the par value o f m aturing bills
accepted in exch an ge and the issue price o f the new bills.
T h e incom e derived from T reasu ry b ills, w hether interest
or gain from the sale o r oth er d isp osition o f the bills, does not
have a n y exem ption, as such, and loss from the sale or other
disp osition o f T reasu ry bills does n ot have any special treat­
ment, as such, under the Internal R evenue C ode o f 1954. T he
bills are subject to estate, inheritance, g ift o r other excise
taxes, w hether F ed eral o r State, but are exem pt fro m all ta x a ­
tion n ow o r hereafter im posed on the principal or interest
th ereof b y any State, or any o f the possessions o f the United
States, o r by any lo ca l ta x in g authority. F o r purposes o f ta x a ­
tion the am ount o f discou nt at w hich T rea su ry bills are
o rig in a lly sold by the U n ited States is con sidered to be interest.
U nder S ections 454(b) and 1221(5) o f the Internal Revenue
C ode o f 1954 the am ount o f discou nt at w hich bills issued
hereunder are sold is n ot con sidered to a ccru e until such bills
are sold , redeem ed o r otherw ise disp osed of, and such bills are
exclu d ed from con sidera tion as capital assets. A cco rd in g ly ,
the ow ner o f T rea su ry bills (oth er than life insurance co m ­
panies) issued hereunder need include in his in com e ta x return
on ly the difference betw een the price pa id fo r such bills,
w hether on orig in a l issue or on subsequent purchase, and the
am ount actu ally received either upon sale o r redem ption at
m aturity du rin g the ta xab le year fo r w h ich the return is made,
as ord in a ry gain or loss.
T reasu ry D epartm ent C ircu lar N o. 418, R evised , and this
n otice, prescribe the terms o f the T reasu ry bills and govern
the con dition s o f their issue. Copies o f the circu la r m ay be
obtained from any F ed eral R eserve Bank o r Branch.

T h is Bank w ill receive tenders for both series up to 1 :30 p.m., Eastern Standard time, M on day, January
18, 1960, at the Securities D epartm ent o f its H ead O ffice and at its B uffalo Branch. T e n d e r form s
fo r the respective series are enclosed. Please use the appropriate form s to subm it tenders and return them in
an envelope m arked “ T en d er fo r T reasu ry B ills.” Ten ders m ay be subm itted b y telegraph, su bject to w ritten
confirmation; they may not be submitted by telephone. Paym ent for 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
futids or in maturing Treasury bills.
R esults o f the last offerin g o f T reasu ry bills (91-day bills to be issued January 14, 1960, representing
an additional am ount o f bills dated O ctob er 15, 1959, and m aturing A p ril 14, 1960; and 182-day bills dated
January 14, 1960, m aturing July 14, 1960) are show n on the reverse side o f this circular.




A

lfred

H

ayes,

President.

(

over)

RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES ISSUED JANUARY 14, 1960)

Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing April 14, 1960
P r ice

H igh

........

182-Day Treasury Bills
Maturing July 14, 1960

A p p ro x . equtv.
annual rate

P r ice

A p p ro x . equiv.
annual rate

98.850*

4.549%

97.484

4.977%

L o w .......................... ........

98.835

4.609%

97.477

4.991%

................. ........

98.840

4.590% 1

97.478

4.989% 1

A verage

a E x cep tin g one tender o f $4,000.
1 A vera ge rate on a cou pon issue equivalent yield basis is 4.72% fo r the 91-day bills and 5.20% fo r the 182-day bills.
Interest rates on bills are quoted on the basis o f bank discount, w ith their length in actual num ber o f days related to a
360-day year. In contrast, yields on certificates, notes, and bonds are com puted on the basis o f interest on the investment,
w ith the num ber o f days rem aining in a sem iannual interest paym ent period related to the actual num ber o f days in the
period, and w ith sem iannual com pou n din g if m ore than one cou pon period is involved.

(66 percent o f the am ount o f 91-day bills
bid fo r at the low price w as accep ted .)

(77 percent o f the am ount o f 182-day bills
bid for at the lo w price w as accepted.)

Total Tenders A pplied for and Accepted (By Federal Reserve Districts)
91-Day Treasury Bills
Maturing A pril 14, 1960
A pplied for

D istrict

B oston .......................... ...........

$

37,046,000

182-Day Treasury Bills
Maturing July 14, 1960

A ccepted

$

27,046,000

A pplied fo r

$

7,172,000

A ccepted

$

3,458,000

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

1,479,293,000

729,843,000

773,492,000

297,957,000

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

29,216,000

14,121,000

10,198,000

2,398,000

................... ...........

45,601,000

44,983,000

28,498,000

19,398,000

R ich m on d ................... ...........

22,959,000

20,959,000

3,506,000

2,988,000

A t la n t a .......................... ...........

33,219,000

26,245,000

7,406,000

5,704,000

C h icago ....................... ...........

226,461,000

152,434,000

84,162,000

29,293,000

St. L o u i s ..................... ...........

31,903,000

26,238,000

8,349,000

7,849,000

............... ..........

16,039,000

13,939,000

3,735,000

3,272,000
10,675,000

Cleveland

M inneapolis

Kansas C ity ............... ...........

39,641,000

35,181,000

12,865,000

D a l l a s ............................ ...........

25,213,000

24,963,000

5,963,000

5,963,000

San F r a n c is c o .............

92,889,000

84,202,000

62,589,000

12,269,000

T otal

........... ..........

$2,079,480,000

$1,200,154,000b

$1,007,935,000

b Includes $286,325,000 noncom petitive tenders a ccepted at the a verage price o f 98.840.
c Includes $89,111,000 n on com petitive tenders a ccepted at the average price o f 97.478.




$401,224,000c

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