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FE D E R A L R E SE R V E BANK O F NEW YORK Fiscal Agent of the United States [ c t t i2 ? 3 ii? * 8 8 ] OFFERING OF TW O SERIES OF TR EA SU R Y BILLS §1,600,000,000 of 91-Day Bills, Dated January 8, 1959, Maturing April 9, 1959 §400,000,000 of 182-Day Bills, Dated January 8, 1959, Maturing July 9, 1959 To all In corporated B anks and Trust Companies, and O thers Concerned, in the Second Federal R eserve D istrict: Following is the text of 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 31, 1958. TREASURY W ash in gton DEPARTM ENT 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 $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 8, 1959, in the am ount o f $1,800,069,000, as fo llo w s : 91-day b ills, fo r $1,600,000,000, or thereabouts, to be dated January 8, 1959, and to mature A p ril 9, 1959. 182-day bills, fo r $400,000,000, o r thereabouts, to be dated January 8, 1959, and to mature July 9, 1959. T h e bills o f both series wi l l be issued on a discou n t basis under com petitive and noncom petitive b idd ing as h ereinafter p r o vid ed, and at m aturity their fa ce am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). T en ders w ill be received at Federal R eserve Banks and Branches up to the clo s in g hour, on e-thirty o ’c lo ck p.m., Eastern Standard time, M on day, January 5, 1959. Tenders w ill n ot 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 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 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 o r B ran ches on a pp lication therefor. O thers than b ank in g institutions w ill not be perm itted to subm it tenders excep t fo r their ow n account. T en ders w ill be received w ithout deposit from in corporated 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 by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied by an express guaranty o f paym ent by an in corporated bank o r trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the Federal Reserve 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 ose subm itting tenders w ill be advised o f the acceptance o r rejection thereof. T h e Secretary o f the T reasu ry exp ressly reserves the righ t to accep t o r reject any o r all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reservations, n oncom petitive tenders for $200,000 or less for the 91-day bills and noncom petitive tenders f o r $50,000 o r less fo r the 182-day bills w ithout stated price from any one bidder w ill be accepted in fu ll at the average price (in three deci m als) o f accepted com petitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made o r com pleted at the Federal R eserve Bank on January 8, 1959, in cash o r oth er im m ediately available funds o r in a like fa ce amount o f T reasu ry bills m aturing January 8, 1959. Cash and exch a n ge tenders w ill receive equal treatment. Cash a dju st ments will be made for 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 reasu ry bills, w hether interest o r gain from the sale o r oth er disp osition o f the bills, does not have any exem ption, as such, and loss fro m the sale or oth er disposition o f T reasu 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 o r oth er e x cis e taxes, w hether F ed eral o r State, but are exem pt from a ll taxation n ow or hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U nited States, or by any loca l ta x in g authority. F o r purposes o f taxation the am ount o f discou nt at w h ich T reasu ry bills are origin a lly sold by the U nited States is con sid ered to be interest. U n der S ections 4 5 4(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the amount o f discou nt at w hich bills issued hereunder are sold is n ot con sid ered to a ccru e until such bills are sold, redeem ed o r otherw ise disposed o f, and such bills are exclu ded fro m con sideration as capital assets. A cco rd in g ly , the ow n er o f T rea su ry bills (oth er than life insurance com pa n ies) issued hereunder need in clude in his incom e tax 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 ally received either upon sale o r redem ption at m aturity during the taxable yea r fo r w hich the return is made, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu la r N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con ditions o f their issue. Copies o f the circu la r may be obtain ed from any Federal R eserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, January 5, 1959, 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 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 o f the last offering of Treasury bills (90-day bills dated January 2, 1959, maturing April 2, 1959, and 181-day bills dated January 2, 1959, maturing July 2, 1959) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES DATED JANUARY 2, 1959) R a n g e o f A c c e p t e d C o m p e t itiv e B id s 90-Day Treasury Bills Maturing April 2, 1959 181-Day Treasury Bills Maturing July 2, 1959 P rice A p p ro x . equiv. annual rate High ........................ ......... 99.335 2.660% 98.542 2.900% L o w .......................... ........ 99.324 2.704% 98.528 2.928% Average .................. ........ 99.327 2.690% 98.532 2.920% (40 percent o f the amount o f 90-day bills bid for at the low price was accepted.) P r ice A p p ro x . equiv. annual rate (74 percent of the amount o f 181-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) 90-Day Treasury Bills Maturing April 2, 1959 D istrict A pplied fo r B o s t o n .......................... ........ $ 50,959,000 181-Day Treasury Bills Maturing July 2, 1959 A ccep ted $ 35,699,000 A pplied fo r $ 2,295,000 A ccep ted $ 1,245,000 New Y ork .................. ........ 1,762,688,000 1,006,896,000 567,463,000 278,063,000 Philadelphia................ ........ 28,847,000 13,547,000 7,837,000 2,837,000 Cleveland .................... ........ 54,932.000 54,882,000 20,101,000 18,101,000 Richmond .................... ........ 7,631,000 7,581,000 1,498,000 598,000 Atlanta ........................ ........ 28,290,000 23,790,000 2,928,000 1,743,000 C h ic a g o ........................ ........ 355,392,000 309,242,000 108,174,000 61,059,000 St. Louis .............................. 18,911,000 18,561,000 3,215,000 3,197,000 Minneapolis ................ ........ 15,817,000 15,217,000 4,953,000 4,953,000 Kansas City .................. 50,284,000 40,284,000 9,381,000 8,878,000 Dallas .................................... 15,237,000 15,237,000 1,762,000 1,362,000 San Francisco .............. 89.895,000 59.349,000 25,299,000 18,073,000 Totals .......... ........ $2,478,883,000 $1,600,285,000* a Includes $220,789,000 noncom petitive tenders accepted at the average price o f 99.327. b Includes $19,192,000 noncom petitive tenders accepted at the a verage price o f 98.532. $754,906,000 $400,109,000b
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