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F E D E R A L R E S E R V E BANK O F N EW YORK fCircular No. 4 0 9 8 1 Fiscal Agent o f the United States I F eb ru ary 5, 1959 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,400,000,000 of 90-Day Bills, Dated February 13, 1959, Maturing May 14, 1959 §400,000,000 of 181-Day Bills, Dated February 13, 1959, Maturing August 13, 1959 T o all In corporated Banks and T rust Com panies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice published tod ay: 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, F eb ru a ry 5, 1959. TREASURY DEPARTM EN T W a s h in g to n 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 for tw o series o f T rea su ry bills to the a g g re g a te a m ou n t o f $1,800,000,000, o r th ereabouts, fo r cash and in ex ch a n g e fo r T rea su ry bills m a tu rin g F eb ru a ry 13, 1959, in the a m ou n t o f $1,800,617,000, as fo llo w s : 90 -d a y bills, fo r $1,400,000,000, o r th erea b ou ts, to be dated F eb ru a ry 13, 1959, a n d to m ature M a y 14, 1959. 181-day bills, fo r $400,000,000, o r th ereabouts, to be dated F eb ru a ry 13, 1959, and to m ature A u g u st 13, 1959. T h e bills o f b o th series w ill be issued 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 provid ed , and at m aturity their fa ce a m ou n t w ill b e p ayable 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 be receiv ed at F ed eral R es e rv e B anks and B ran ch es up to the clo s in g hour, on e -th irty o ’ c lo c k p.m ., E astern S tandard tim e, M on d a y , F eb ru a ry 9. 1959. T en d ers w ill not be received at the T rea su ry D epa rtm en t, W a sh in g to n . E a ch ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive ten ders the price offered m u st b e ex p re sse d o n the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is urged that ten ders 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 s u p p lied b y F ed eral R es e rv e B ank s or B ran ch es o n a pp lica tion th erefor. O th e rs than b a n k in g institutions w ill n ot be perm itted to subm it tenders e x c e p t fo r their o w n a ccou n t. T e n d e rs w ill be received w ith ou t d ep o sit fro m in corp ora ted banks and trust com p a n ies and fr o m respon sib le and recog n ized dealers in in vestm ent securities. T e n d e rs fro m oth ers m u st be 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 rea 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 p a ym en t b y an in corp ora ted bank o r trust co m p a n y . Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at the F ed eral R e serv e B anks and B ranches, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill be m ade b y the T rea su ry D epartm en t o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be advised o f the a ccep ta n ce or re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry e x p re s sly reserves the righ t to a ccep t o r re je ct a n y or 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 ject to these reserva tion s, n o n co m p e titiv e tenders fo r $200,000 o r less fo r th e 9 0-d ay bills and n on com p etitiv e ten ders fo r $50,000 o r less fo r the 181-day bills w ith ou t stated p rice fro m any o n e b idd er w ill be a ccep ted in full at the a vera ge p rice (in three d e cim a ls) o f a ccep ted co m p etitive bids fo r the respective issues. S ettlem ent fo r a ccep ted tenders in a cco rd a n ce w ith the bids m ust be m ade o r co m p le te d at the F ed eral R eserve Bank on F eb ru a ry 13, 1959, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T rea su ry bills m atu rin g F eb ru a ry 13, 1959. Cash and ex ch a n g e tenders w ill receive equal treat m en t. Cash adju stm en ts w ill b e 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 the issue price o f the n e w bills. T h e in co m e derived fro m T rea su ry bills, w hether interest o r gain fr o m th e sale o r oth er disp osition o f the bills, d oes n o t have a n y e x e m p tion , as such, and lo s s fr o m the sale o r 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 nder the In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r oth er excise taxes, w h eth er Federal o r State, b u t are ex em p t fro m all taxation n o w o r hereafter im p osed on th e principal o r interest th ereof b y a n y State, o r a n y o f th e 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 rigin a lly sold b y th e 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 even u e C od 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 disp osed of, and such bills are e x clu d e d fr o m con sidera tion as capital assets. A c c o r d in g ly , the o w n e r o f T r e a s u ry bills (o th e r than life insurance co m p a n ie s ) issued hereun der need in clude in his in com e tax return o n ly th e differen ce betw een the p rice paid fo r such bills, w hether o n o rigin a l issue o r on subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em p tion at m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, as o rd in a ry gain o r loss. T re a su ry D epa rtm en t C ircu lar N o . 418, R evised , and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f the circu la r m ay b e ob ta in ed fr o m a n y F ed eral R e serv e B ank o r B ranch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, February 9, 1959. at the Securities Department o f its Head 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 f o r the Treasury bills cannot be made by credit through the Treasury T ax 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 o f Treasury bills (9 1 -day bills dated February 5, 1959, maturing May 7, 1959, and 182-day bills dated February 5, 1959, maturing August 6 , 1959) are shown on the reverse side o f this circular. A lfred H a y e s , President. Please n ote that th e current offering is fo r 90-day and 181-day Treasury bills. ( 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 F E B R U A R Y 5, 1959) Range o f A ccepted Com petitive Bids 91 -Day Treasury Bills Maturing M ay 7,1959 182-Day Treasury Bills Maturing August 6,1959 P r ice A p p ro x . equiv. annual rate P r ice A p p ro x . equiv. annual rate H igh .................................. 99.333 2.639% 98.468 3.030% L ow .................................. 99.309 2.734% 98.408 3.149% Average ............................ 99.312 2.721% 98.429 3.107% (88 percent o f the amount o f 91-day bills bid for at the low price was accepted.) * (5 6 percent o f the amount o f 182-day bills bid for at the low price was accepted.) T otal Tenders A pp lied fo r and A ccepted (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing May 7,1959 Boston A ccepted Applied fo r D istrict ............................ $ 40,886,000 182-Day Treasury Bills Maturing August 6,1959 $ 30,886,000 A pplied f o r $ 6,488,000 A ccepted $ 6,488,000 1,657,036,000 878,036,000 518,774,000 244,174,000 ................. 31,634,000 13,784,000 10,623,000 5,623,000 Cleveland ........................ 42,045,000 31,107,000 14,648,000 14,648,000 ..................... 11,591,000 11,591,000 878,000 878,000 8,525,000 New Y ork ..................... Philadelphia Richmond 29,794,000 29,794,000 8,525,000 .......................... 238,856,000 184,836,000 85,576,000 59,576,000 ........................ 26,017,000 25,864,000 8,844,000 8,644,000 Minneapolis ................... 17,812,000 13,206,000 3,970,000 3,970,000 Kansas C i t y ................... 43,962,000 30,847,000 7,651,000 7,651,000 Dallas .............................. 25,491,000 25,091,000 3,524,000 3,124,000 San Francisco ............... 135,152,000 125,092,000 46,764,000 36,764,000 Totals ............. $2,300,276,000 Atlanta ............................ Chicago St. Louis $1,400,134,000a a In clu d es $265,967,000 n on com p etitiv e ten ders a ccep ted at the a vera ge price o f 99.312. b In clu d es $28,380,000 n on com p etitiv e tenders a ccep ted at the a vera ge p rice o f 98.429. $716,265,000 $400,065,000b
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