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FEDERAL RESERVE BANK O F N E W YORK
Fiscal Agent of the United States
r Circular No. 5517~1
L

July 15, 1964

J

OFFERING OF T W O SERIES OF TR E A SU R Y BILLS
$1,200,000,000 of 91-Day Bills, Additional Amount, Series Dated April 23,1964, Due October 22,1964
(To Be Issued July 23, 1964)
$900,000,000 of 182-Day Bills, Dated July 23, 1964, Due January 21, 1965
To All Incorporated Banks and Trust Companies, and Others
Concerned3 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 Daylight Saving time:
The Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate amount
of $2,100,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing July 23, 1964, in the amount of
$2,000,693,000, as follows:
91-day bills (to maturity date) to be issued July 23, 1964,
in the amount of $1,200,000,000, or thereabouts, represent­
ing an additional amount of bills dated April 23, 1964, and
to mature October 22, 1964, originally issued in the amount
of $900,793,000, the additional and original bills to be
freely interchangeable.
182-day bills, for $900,000,000, or thereabouts, to be dated
July 23, 1964, and to mature January 21, 1965.
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 Daylight
Saving time, Monday, July 20, 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 account
of customers, provided the names of the customers are set forth
in such tenders. Others than banking institutions will not be per­
mitted to submit tenders except for their own account. Tenders
will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in invest­
ment 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 Department of the

amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The Secre­
tary 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, non­
competitive tenders for $200,000 or less for the additional bills
dated April 23, 1964 (91 days remaining until maturity date on
October 22, 1964) and noncompetitive 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 July 23, 1964, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing July 23, 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 treatment, 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 taxation 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 taxation 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. Accord­
ingly, 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 Daylight Saving time, Monday, July 20,
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 in maturing Treasury bills.
Results of the last offering of Treasury bills (91-day bills to be issued July 16, 1964, representing an additional
amount of bills dated April 16, 1964, and maturing October 15, 1964; and 182-day bills dated July 16, 1964, maturing
January 14, 1965) are shown on the reverse side of this circular.


19 14


A

lfred

H

ayes,

President.
( over )

FIFTIETH

ANNIVERSARY

19 6 4

RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED
JULY 16, 1964)

Range o f A ccepted Com petitive Bids

91-Day Treasury Bills
Maturing October 15,1964

182-Day Treasury Bills
Maturing January 14,1965

Price

Low

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

Price

99.134

High ............................ ..........

Approx. equiv.
annual rate

3.426%

98.216

3.529%

3.458%

98.198

3.564%

3.448%x

98.206

3.549%!

99.126

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

99.128

Approx. equiv.
annual rate

1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide yields of
3.53 percent for the 91-day bills, and 3.66 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.

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

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

Total T en d ers A p p lied for and A ccepted (B y Federal R eserve Districts)

91-Day Treasury Bills
Maturing October 15,1964
District

Boston

Accepted

Applied for

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

$

34,718,000

182-Day Treasury Bills
Maturing January 14,1965

$

24,718,000

Applied for

$

5,769,000

Accepted

$

5,769,000

1,495,394,000

716,664,000

1,053,080,000

615,560,000

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

41,203,000

26,203,000

10,439,000

5,439,000

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

32,655,000

32,655,000

44,489,000

39,489,000

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

13,982,000

13,982,000

4,188,000

4,188,000

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

67,448,000

63,448,000

21,826,000

21,826,000

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

217,356,000

140,936,000

146,844,000

90,844,000

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

48,236,000

42,236,000

14,456,000

13,956,000

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

20,875,000

18,665,000

8,699,000

8,199,000

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

46,602,000

46,392,000

17,102,000

17,102,000

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

28,857,000

19,647,000

12,470,000

11,470,000

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

74,957,000

55,567,000

67,815,000

66,605,000

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

Richmond

Chicago

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

$2,122,283,000

$1,201,113,000a

$1,407,177,000

a Includes $322,612,000 noncompetitive tenders accepted at the average price of 99.128.
b Includes $92,226,000 noncompetitive tenders accepted at the average price of 98.206.




$900,447,000b

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