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FE D E R A L RE SE R V E BANK O F NEW YORK Fiscal Agent o f the United States OFFERING OF TW O SERIES OF T R E A SU R Y BILLS $1,600,000,000 of 91-Day Bills, Dated December 18, 1958, Maturing March 19, 1959 $400,000,000 of 182-Day Bills, Dated December 18, 1958, Maturing June 18, 1959 T o all In corporated Banks and T rust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published today: R E L E A S E , A .M . N E W S P A P E R S T h u rsd a y , D e c e m b e r 11, 1958. TREASURY W a sh in g to n DEPARTM ENT T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites ten ders fo r tw o series o f T rea su ry bills to the a g g re g a te a m o u n t o f $2,000,000,000, or th ereabouts, f o r ca sh and in ex ch a n g e fo r T r e a s u ry b ills m a tu rin g D e ce m b e r 18, 1958, in the a m ou n t o f $1,800,120,000, as f o llo w s : 91 -d a y bills, fo r $1,600,000,000, o r th erea b ou ts, t o be dated D e ce m b e r 18, 1958, and to m atu re M a rch 19, 1959. 182-day b ills, fo r $400,000,000, o r th erea b ou ts, to be dated D e ce m b e r 18, 1958, and to m ature June 18, 1959. T h e bills o f b o th series w ill be issu ed on a d iscou n t basis under com p etitive and n on com p etitiv e b id d in g as h ereinafter p ro v id e d , a n d at m atu rity th eir face a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo r m o n ly , and in d e n o m in a tio n s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill b e receiv ed at F ed eral R e serv e B anks and B ran ch es up to the clo s in g h our, on e-th irty o ’ c lo ck p.m ., E astern Standard tim e, M on d a y , D e ce m b e r 15, 1958. T e n d e rs w ill n ot b e receiv ed at the T r e a s u ry D epa rtm en t, W a s h in g to n . E a ch ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the p rice o ffe re d m u st b e ex p re sse d o n the basis o f 100, w ith n ot m o re than three decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be m ade o n the printed fo rm s and forw a rd ed in the special en v elop es w h ich w ill be sup plied b y F ed era l R eserve B an k s o r B ra n ch es o n a pp lica tion th erefor. O th ers than b a n k in g in stitu tions w ill n o t b e perm itted to subm it ten ders e x c e p t fo r th eir o w n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fro m resp on sib le and re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o m oth ers m u st b e a ccom p a n ied b y p a ym en t o f 2 p ercen t o f the face a m ou n t o f T re a su ry bills applied fo r, unless the tenders are a cco m p a n ie d b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely a fter the clo s in g h our, ten ders w ill be op en ed at the F ed eral R eserve B anks and B ran ches, fo llo w in g w h ich p u b lic an n ou n cem en t w ill be m ade b y the T r e a s u ry D epa rtm en t o f the a m ou n t and p rice ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill b e advised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f th e T rea su ry ex p re s sly reserves the righ t t o a cce p t o r re je ct a n y o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall be final. S u b je ct t o these reservations, n on com p etitiv e tenders fo r $200,000 o r less fo r the 9 1-d ay bills and n on com p etitiv e tenders f o r $50,000 o r less f o r the 182-day bills w ith ou t stated price fro m a n y on e b id d er w ill be a ccep ted in full at th e a vera ge price (in three d e cim a ls) o f a ccep ted com p etitiv e bids fo r the respective issues. S ettlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade o r co m p le te d at the F ed era l R e serv e B a n k on D e ce m b e r 18, 1958, in cash o r oth er im m ed iately available funds o r in a lik e fa ce a m ou n t o f T rea su ry b ills m a tu rin g D e c e m b e r 18, 1958. Cash and ex ch a n g e ten ders w ill receiv e equal treat m en t. C ash ad ju stm en ts w ill be m ade fo r d ifferen ces betw een the par value o f m a tu rin g bills a ccep ted in ex ch a n g e and th e issue p rice o f the n ew bills. T h e in co m e derived fr o m T rea su ry bills, w h eth er interest o r gain fr o m the sale o r oth er d isp osition o f th e bills, d oes n ot have a n y e x e m p tion , as such, and lo s s fr o m th e sale or oth er d isp osition o f T rea su ry bills d oes n ot have a n y special treatm ent, as such, u n d er the In tern al R even u e C o d e o f 1954. T h e bills are s u b je ct to estate, inheritance, g ift o r oth er e x cis e taxes, w h eth er F ed eral o r State, but are ex em p t fr o m all taxation n o w o r hereafter im p osed on the principal o r interest th e re o f b y a n y State, o r a n y o f the p ossession s o f the U n ited States, o r b y any lo ca l ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are o rig in a lly sold b y the U n ited States is con sid ered to be interest. U n d e r S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R ev en u e C o d e o f 1954 the a m ou n t o f d is co u n t at w h ich bills issued hereun der are so ld is n ot con sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise d isp osed of, and such bills are exclu d e d fr o m con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance co m p a n ie s) issued h ereun der need in clude in his in co m e ta x return o n ly the differen ce b etw een the p rice paid f o r such bills, w h eth er o n o rigin a l issue o r on subsequen t pu rch ase, and the a m ou n t actu ally receiv ed either u p on sale o r red em p tion at m atu rity d u rin g the ta x ab le year fo r w h ich the return is m ade, as ord in a ry gain or loss. T re a su ry D ep a rtm en t Circular N o . 418, R evised , and this n otice, p rescrib e the term s o f the T r e a s u ry bills and gov ern the co n d itio n s o f th eir issue. C op ies o f the circu la r m a y be obtain ed fr o m a n y F ed eral R eserve B ank o r Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, December 15, 1958, 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 fiends or in maturing Treasury bills. Results of the last offering o f Treasury bills (91-day bills dated December 11, 1958, maturing March 12, 1959, and 182-day bills dated December 11, 1958, maturing June 11, 1959) are shown on the reverse side of this circular. A lfred H a y e s , President. ( over) RESULTS OF L A ST O FFE R IN G OF T R E A S U R Y BILLS (T W O SERIES D A T E D D E C E M B E R 11, 1958) Range o f A ccepted Com petitive Bids 91-Day Bills Maturing March 12,1959 182-Day Bills Maturing June 11, 1959 A pprox. equiv. A p p ro x . equiv. annual rale P r ice annual rale 99.305 2.749% 98.450a 3.066% .. 99.287 2.821% 98.437 3.092% Average 99.291 2.805% 98.442 3.082% High Low .. P r ice a E xcepting tw o tenders totaling $350,000 (78 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (89 percent o f the amount o f 182-day bills bid for at the low price was accepted.) T otal Tenders A p p lied fo r and A ccepted (B y Federal Reserve Districts) 91-Day Bills Maturing March 12, 1959 A pplied fo r D istrict Boston .......................... $ 36,594,000 New York .................... 1,667,074,000 182-Day Bills Maturing June 11, 1959 A ccep ted $ 23,189,000 1,007,064,000 A pplied f o r $ 6,783,000 885,253,000 A ccep ted $ 4,718,000 296,770,000 Philadelphia .................. 37,251,000 20,591,000 10,336,000 3,186,000 Cleveland ...................... 50,457,000 48,157,000 11,342,000 4,522,000 Richmond ...................... 23,076,000 22,944,000 6,388,000 4,508,000 .......................... 54,664,000 46,449,000 6,399,000 4,439,000 Chicago .......................... 258,316,000 178,456,000 77,373,000 22,291,000 St. Louis ........................ 33,760,000 28,428,000 7,878,000 6,828,000 Minneapolis .................. 22,293,000 21,439,000 5,216,000 3,491,000 Kansas City .................... 53,443,000 40,357,000 16,647,000 15,929,000 .............................. 29,808,000 29,612,000 3,507,000 3,307,000 San Francisco ................ 141,442,000 133,884,000 35,600,000 30,165,000 Totals .............. $2,408,178,000 Atlanta Dallas $1,600,570,000b k Includes $337,266,000 noncom petitive tenders accepted at the average price o f 99.291. c Includes $46,170,000 noncom petitive tenders accepted at the average price o f 98.442. $1,072,722,000 $400,154,000c
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