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F E D E R A L R E SE R V E BANK OF NEW YORK Fiscal Agent of the United States [ © SiSbSVfsa 1 OFFERING OF TW O SERIES OF TR EA SU R Y BILLS $1,600,000,000 of 90-Day Bills, Dated January 2, 1959, Maturing April 2, 1959 $400,000,000 of 181-Day Bills, Dated January 2, 1959, Maturing July 2, 1959 T o all Itu orpora ted B anks and Trust 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 W ed n esday, D ecem ber 24, 1958. TREASU RY W ash in gton DEPARTM ENT T h e T re a su ry Departm ent, by this public notice, invites tenders fo r tw o series o f T rea su ry bills to the a ggregate amount o f $2,000,000,000, o r thereabouts, fo r cash and in exch a n ge f o r T reasu ry bills m aturing January 2, 1959, in the am ount o f $1,801,327,000, as fo llo w s : 90-day bills, fo r $1,600,000,000, or thereabouts, to be dated January 2, 1959, and to mature A p ril 2, 1959. 181-d a y bills, fo r $400,000,000, or thereabouts, to be dated January 2, 1959, and to mature July 2, 1959. T h e bills o f both series w ill be issued on a discou nt basis under com petitive and n oncom petitive b idd ing as h ereinafter p r o vided, and at m aturity their face am ount w ill be payable w ith ou t interest. T h ey w ill be issued in bearer form on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity va lu e). T en ders w ill be received at F ed eral R eserve B anks and Branches up to the clo s in g hour, on e-thirty o ’clo ck p.m., Eastern Standard time, M on day, D ecem ber 29, 1958. T en ders w ill not be received at the T reasu ry Departm ent, W ash ington. E ach tender must be fo r an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered m ust be expressed on the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is urged that tenders be made on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied b y F ed eral R eserve Banks or B ranches o n a pp lication th erefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders excep t fo r their ow n a ccou nt. T en ders w ill be received w ith ou t deposit from in corporated banks and trust com panies and fro m respon sible 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 am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied b y an express guaranty o f paym ent b y an in corporated bank or trust com pany. Im m ediately a fter the clo s in g h our, tenders w ill be open ed at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich pu blic announcem ent w ill be made by the T reasu ry D epartm ent o f the am ount and price range o f accepted bids. T h o se subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e S ecretary o f the T rea su ry exp ressly reserves the righ t to accep t o r reject any or a ll 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 or less fo r the 90-day bills and n oncom petitive tenders fo r $50,000 o r less fo r the 181-day bills w ithout stated price from any one b idd er w ill be accepted in full at the average price (in three d e ci m als) o f accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made o r completed at the Federal Reserve Bank on January 2, 1959, in cash o r other immediately available funds o r in a like fa ce am ount o f T reasu ry bills m aturing January 2, 1959. Cash and exch a n ge tenders w ill receive equal treatment. Cash adjust ments w ill 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 h e in com e derived from T rea su ry bills, w hether interest o r gain from the sale or oth er disp osition o f the b ills, does not have any exem ption, as such, and loss fro m the sale o r oth er d isp osition o f T rea su ry bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T h e b ills are subject to estate, inheritance, g ift or oth er e x cis e taxes, w hether Federal o r State, but are exem pt from a ll taxation n o w o r hereafter im posed on the principal or interest th ereof by a n y State, o r any o f the possessions o f the U nited States, or b y any lo ca l ta x in g authority. F o r purposes o f ta xation the am ount o f discou nt at w h ich T reasu ry bills are o rigin a lly sold by the U nited States is con sid ered to be interest. U n der S ections 45 4 (b ) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou n t at w hich bills issued hereunder are sold is n ot con sidered to a ccru e until such bills are sold, redeem ed or otherw ise disposed o f, and such bills are exclu ded fro m con sideration as capital assets. A ccord in g ly , the ow n er o f T reasu ry bills (oth er than life insurance com panies) issued hereunder need include in his incom e ta x return on ly the differen ce betw een the price paid fo r such b ills, w hether on origin a l issue o r on subsequent purchase, and the am ount actu a lly received either upon sale o r redem ption at m aturity d u rin g the ta x ab le year fo r w h ich the return is made, as ord in a ry ga in or loss. T re a su ry D epartm ent C ircu la r N o. 418, R evised, and this notice, prescribe the term s o f the T reasu ry bills and govern the conditions o f th eir issue. Copies o f the circu la r m ay be obtain ed from any F ed eral R eserve Bank o r B ranch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, December 29, 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 jor 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. This circular was printed before the results of the bidding for the two series of Treasury bills dated December 26, 1958 were available; those results will be announced after release by the Treasury Department. A lfred H ayes, President. Please note that the current offering is for 90-day and 181-day Treasury bills.