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F E D E R A L R E S E R V E B A NK O F N EW YORK Fiscal A gent o f the United States T C ir c u l a r N o . 4 6 8 0 " ! L J January 8, 1959 OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 o f 91-D a y Bills, D ated January 15, 1959, M aturing April 16, 1959 $400,000,000 o f 182-D ay Bills, D ated January 15, 1959, M aturing July 16, 1959 T o all Incorporated. B anks and Tru st Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice published to d a y : 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, January 8, 1959. TREASURY W ash ington DEPARTM ENT T h e T reasu ry Departm ent, by this pu blic notice, invites tenders fo r tw o series o f T reasu ry bills to the a ggreg ate amount o f $2,000,000,000, o r thereabouts, fo r cash and in exch a n ge fo r T reasu ry bills m aturing January 15, 1959, in the am ou nt o f $1,803,037,000, as' f o llo w s : 9 1-d ay b ills, f o r $1,600,000,000, or thereabouts, to be dated January 15, 1959, and to mature A p r il 16, 1959. 182-day bills, fo r $400,000,000, or thereabouts, to be dated January 15, 1959, and t o mature July 16, 1959. T h e bills o f both series w ill 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 ith ou t 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 va lu e). T en ders w ill be received at F ed eral R eserve Banks and Branches up to the clo s in g hour, on e-thirty o ’c lo ck p.m., Eastern S tandard tim e, M on day, January 12, 1959. T en ders w ill not be received at the T reasu ry Departm ent, W a sh in gton . 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 exp ressed 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 m ade on the printed form s and forw a rd ed in the special envelopes w h ich w ill be supplied b y F ed eral R eserve Banks or B ran ches on a pp lication therefor. O th ers 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 from responsible and recogn ized dealers in in vestm ent securities. T en ders from others m ust be accom pa n ied by paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are accom pa n ied b y an express guaranty o f paym ent by an in corporated bank or trust com pany. Im m ediately a fter the closin g hour, tenders w ill be opened 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 m ade by the T reasu ry D epartm ent o f the am ount and price range o f a ccepted bids. T h ose subm itting tenders w ill be advised o f the acceptance or rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the righ t to accep t o r reject any o r a ll tenders, in w h ole or in part, and his action in any such respect shall be final. S ubject to these reservations, noncom petitive tenders fo r $200,000 or less fo r the 91-day bills and noncom petitive tenders fo r $50,000 or less fo r the 182-day bills w ith ou t stated price fro m any on e bidder w ill be a ccepted in fu ll a t 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 m ade o r com pleted at the F ed eral R eserve Bank on January 15, 1959, in cash or oth er im m ediately availa b le funds o r in a like fa c e am ount o f T reasu ry bills m aturing January 15, 1959. Cash and exch an ge tenders w ill receive equal treatment. Cash a dju st 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 incom e derived from T reasu ry b ills, w hether interest o r gain from the sale o r oth er disp osition o f the b ills, does not have any exem ption, as such, and loss fro m the sale or oth er disp osition o f T rea su ry bills does not have any special treat m ent, as such, under the Internal Revenue C ode o f 1954. T h e bills are subject to estate, inheritance, g ift o r oth er e x cis e taxes, w hether Federal o r State, but are exem pt from all taxation n ow or hereafter im posed on the principal o r interest th ereof by any State, o r any o f the possessions o f the U n ited States, o r by any lo ca 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 rea su ry bills are o rigin a lly sold by the U n ited States is con sidered to be interest. U nder S ection s 454(b) and 1221(5) o f the Internal R evenue C ode o f 1954 the am ount o f discou n t at w h ich bills issued hereunder are so ld is not con sid ered to a ccru e until such bills are sold, redeem ed or otherw ise disp osed of, and such bills are exclu ded from con sideration as capital assets. A cco r d in g ly , the ow ner o f T reasu ry bills (oth er than life insurance com pan ies) issued h ereun der need in clude in his incom e ta x return on ly the differen ce betw een the price paid fo r such bills, whether on origin a l issue o r o n subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity du rin g the ta x ab le yea r fo r w hich the return is made, as ord in a ry gain or loss. T re a su ry D epartm ent C ircu la r N o. 418, R evised , and this notice, p rescrib e the term s o f the T reasu ry bills and govern the con ditions 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 or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, January 12, 1959, at the Securities Department o f its H ead Office and at its Buffalo Branch. Tender form s fo r the respective series are enclosed. Please use the appropriate form s 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 T ax and Loan Account. Settlem ent must be made in cash or other immediately available funds or in maturing Treasury bills. Results o f the last offering o f Treasury bills (91-day bills dated January 8, 1959, maturing A pril 9, 1959, and 182-day bills dated January 8, 1959, maturing July 9, 1959) are shown on the reverse side o f this circular. A lfred H a y e s , President. ( over) R ESULTS OF L A S T O F FE R IN G OF T R E A S U R Y BILLS (T W O SERIES D A T E D JA N U A R Y 8, 1959) Range o f A ccepted C om petitive Bids 91-Day Treasury Bills Maturing A pril 9, 1959 P rice 182-Day Treasury Bills Maturing July 9, 1959 A p p ro x . equiv. annual rate P r ice A p p ro x . equiv. annual rate H igh ......................... ........ 99.331 2.647% 98.537 2.894% L ow 99.319 2.694% 98.494 2.979% 99.323 2.678% 98.504 2.959% ......................... ........ A verage ................... ........ (58 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (27 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-D ay Treasury Bills Maturing A pril 9, 1959 D istrict B oston A pplied for ........................... ......... N ew Y o rk ..................... ........ $ 33,971,000 182-Day Treasury Bills Maturing July 9, 1959 A ccep ted $ 23,721,000 A pplied fo r $ 5,392,000 A ccep ted $ 2,892,000 1,835,317,000 1,061,677,000 474,986,000 219,001,000 ................. ......... 33,832,000 18,032,000 6,486,000 1,486,000 Cleveland ....................... ........ 49,872,000 44,522,000 27,488,000 22,488,000 R ichm ond ..................... ........ 22,390,000 22,386,000 2,304,000 2,304,000 Atlanta ........................... ........ 35,428,000 32,108,000 9,013,000 9,013,000 ......................... ........ 259,894,000 197,654,000 121,111,000 112,001,000 26,537,000 2,559,000 2,559,000 Philadelphia Chicago St. Louis ....................... ......... 26,537,000 Minneapolis ................... ........ 17,315,000 14,747,000 2,476,000 2,476,000 Kansas C i t y ................... ......... 56,710,000 40,891,000 6,380,000 6,011,000 Dallas .............................. ........ 17,878,000 17,478,000 2,863,000 2,863,000 120,084,000 100,584,000 18,994,000 16,994,000 San F r a n c is c o ............... Totals ............. ........ $2,509,228,000 $1,600,337,000a a Includes $264,846,000 n on com petitive tenders a ccepted at the average price o f 99.323. b In cludes $22,294,000 n on com petitive tenders accepted at the average p rice o f 98.504. $680,052,000 $400,088,000b
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