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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States
r Circular No. 5 4 7 6 1
L
April 1, 1964
J

O F F E R IN G OF T W O S E R IE S OF T R E A S U R Y B ILLS
$1,300,000,000 of 91-D ay Bills, Additional Amount, Series Dated January 9 ,1 9 6 4 , Due July 9 ,1 9 6 4
(To Be Issued April 9, 1964)
$900,000,000 of 182-D ay Bills, Dated April 9, 1964, Due October 8, 1964
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m.,
Eastern Standard time:
The Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate
amount of $2,200,000,000, or thereabouts, for cash and in ex­
change for Treasury bills maturing April 9, 1964, in the amount
of $2,201,233,000, as follows:
91-day bills (to maturity date) to be issued April 9, 1964,
in the amount of $1,300,000,000, or thereabouts, repre­
senting an additional amount of bills dated January 9,
1964, and to mature July 9, 1964, originally issued in the
amount of $800,403,000, the additional and original bills
to be freely interchangeable.
182-day bills, for $900,000,000, or thereabouts, to be dated
April 9, 1964, and to mature October 8, 1964.
The bills of 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. They will be issued in bearer form only, and
in denominations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern
Standard time, Monday, April 6, 1964. Tenders will not be
received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of
competitive tenders the price offered must be expressed on the
basis of 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 forms and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may submit tenders for ac­
count of customers, provided the names of the customers are
set forth in such tenders. Others than banking institutions
will not be permitted to submit tenders except for their own
account. Tenders will be received without deposit from incor­
porated banks and trust companies and from responsible and
recognized dealers in investment securities.
Tenders from
others must be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an
incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Depart-

ment of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejec­
tion thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in
part, and his action in any such respect shall be final. Subject
to these reservations, noncompetitive tenders for $200,000 or
less for the additional bills dated January 9, 1964 (91 days
remaining until maturity date on July 9, 1964) and noncom­
petitive tenders for $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 decimals) of accepted competitive bids
for the respective issues. Settlement for accepted tenders in
accordance with the bids must be made or completed at the
Federal Reserve Bank on April 9, 1964, in cash or other immediately available funds or in a like face amount of Treasury
bills_ maturing April 9, 1964. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest
or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code of 1954. The
bills are subject to estate, inheritance, gift 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 of the possessions of the United
States, or by any local taxing authority. For purposes of taxa­
tion the amount of discount at which Treasury bills are
originally sold by the United States is considered to be interest.
Under Sections 454(b) and 1221(5) of the Internal Revenue
Code of 1954 the amount of 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. Accordingly,
the owner of Treasury bills (other than life insurance com­
panies) issued hereunder need include in his income tax return
only the difference between the price paid for 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 for which the return is made,
as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision)
and this notice prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may
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, Monday, April 6,
1964, at the Securities Department of 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 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 m maturing
Treasury bills.
Results of the last offering of Treasury bills (91-day bills to be issued April 2, 1964, representing an additional
amount of bills dated January 2, 1964, and maturing July 2, 1964; and 182-day bills dated April 2, 1964, maturing
October 1, 1964) are shown on the reverse side of this circular.


19 14


A lfred H a y e s ,

President.
( over)
FIFTIETH

A N N I V E R S A R Y

19 6 4

RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED
APRIL 2, 1964)

Range of Accepted Competitive Bids

91-Day Treasury Bills
Maturing July 2, 1964

182-Day Treasury Bills
Maturing October 1, 1964

Price

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

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

99.114

3.505%

98.131

3.697%

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

99.106

3.537%

98.120

3.719%

A v e ra g e ...................... ............

99.109

3.525%

98.124

3.710%

High

1

1

1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide yields
of 3.61 percent for the 91-day bills, and 3.83 percent for the 182-day bills. Interest rates on bills are quoted in terms of bank
discount, with the return related to the face amount of the bills payable at maturity rather than the amount invested, and their
length in actual number of days related to a 360-day year. In contrast, yields on certificates, notes, and bonds are computed in
terms of interest on the amount invested, and relate the number of days remaining in an interest payment period to the actual
number of days in the period, with semiannual compounding if more than one coupon period is involved.

(89 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(60 percent of the amount of 182-day bills
bid for at the low price was accepted.)

Total Tenders Applied for and Accepted (By Federal Reserve Districts)
182-Day Treasury Bills
Maturing October 1, 1964

9 1-Day Treasury Bills
Maturing July 2, 1964

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

$

44,096,000

Applied for

Accepted

Applied for

District

$

14,096,000

$

5,644,000

Accepted

$

5,644,000

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

1,404,834,000

904,334,000

1,338,009,000

704,009,000

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

23,066,000

8,066,000

7,397,000

2,397,000

Cleveland ...................... ........

28,196,000

26,996,000

19,156,000

14,024,000

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

20,338,000

20,338,000

2,321,000

2,311,000

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

37,161,000

36,699,000

9,331,000

8,291,000

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

182,514,000

125,194,000

132,433,000

67,033,000

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

42,882,000

37,772,000

9,594,000

8,094,000

Minneapolis .................. ........

20,312,000

18,592,000

4,736,000

3,736,000

Kansas C i t y .................. ........

19,482,000

19,482,000

13,552,000

11,512,000

Dallas ............................ ........

25,896,000

19,786,000

8,775,000

7,375,000

113,200,000

69,105,000

81,371,000

66,981,000

$1,632,319,000

$901,407,000

Richmond

Chicago

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

otal

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

........

$1,961,977,000

$1,300,460,000a

a Includes $211,215,000 noncompetitive tenders accepted at the average price o f 99.109.
b Includes $55,742,000 noncompetitive tenders accepted at the average price of 98.124.