The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E B ANK O F N E W Y O R K Fiscal Agent o f the United States ° TCitTJ la', L A p ril 9 ,1 9 5 9 OFFERING OF TW O SERIES OF TREASURY BILLS $1,200,000,000 of 91-Day Bills, Additional Amount, Series Dated Jan. 15, 1959, Due July 16, 1959 (To Be Issued April 16, 1959) $400,000,000 of 182-Day Bills, Dated April 16, 1959, Due October 15, 1959 T o all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text o f a notice issued by the Treasury Department, released for publication in morning newspapers, Thursday, April 9, 1959: T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites tenders fo r tw o series o f T rea su ry bills to th e a g g reg a te am ou nt o f $1,600,000,000, o r thereabouts, fo r cash and in ex ch a n g e fo r T r e a s u ry bills m atu rin g A p ril 16, 1959, in th e a m ou n t o f $1,599,657,000, as fo llo w s : 91 -d a y bills, ( t o m aturity da te) fo r $1,200,000,000, o r th ere a b ou ts, re p re se n tin g an add ition a l a m ou n t o f bills dated January 15, 1959, and to m atu re Ju ly 16, 1959, and to b e fre e ly in terch a n gea b le therew ith. 182-day bills, f o r $400,000,000, o r th ereabou ts, to be dated A p r il 16, 1959, and to m ature O c t o b e r 15, 1959. T h e bills o f b o th series w ill be issued on a d iscou n t basis under co m p e titiv e and n o n com p etitive b id d in g as h ereinafter p r o vid ed , and at m atu rity th eir fa ce a m ou n t w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo r m on ly, and in d e n om in ation 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 e serv e B anks and B ra n ch es up to the clo s in g h ou r, o n e-th irty o ’c lo c k p.m ., E astern Sta n da rd tim e, M o n d a y , A p r il 13, 1959. T e n d e rs w ill n ot be rece iv e d at the T re a su ry D epa rtm en t, W a s h in g to n . E ach tender m u st be fo r an even m ultiple o f $1,000, and in th e case o f c o m petitive ten ders the p rice offered m u st be exp ressed on the basis o f 100, w ith n o t m ore than th ree decim als, e.g., 99.925. F raction s m ay n o t be used. It is u rged that ten ders be m ade on the printed fo rm s and fo rw a rd e d in the special en v elop es w h ich w ill be su p plied b y F ed eral R e se rve B anks or B ran ch es on application th erefor. O th e rs than b ank in g in stitu tions w ill n o t be perm itted to subm it ten ders e x ce p t fo r their o w n a ccou nt. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in co rp o ra te d banks and trust c o m pan ies and fr o m respon sib le and recog n ized dealers in investm ent securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f the fa ce a m ou n t o f T rea su ry bills applied for, u nless the tenders are a ccom p a n ied b y an exp ress guaranty o f pa ym en t b y an in co rp o ra ted bank o r trust com p a n y . Im m ed ia tely after the clo s in g hour, tenders w ill be op en ed at the F ed era l R e se rve B anks and B ra n ch es, fo llo w in g w h ich public a n n ou n cem en t w ill be m ade b y th e T r e a s u ry D epa rtm en t o f the a m ou n t and price ra n ge o f a ccep ted bids. T h o s e subm itting ten ders w ill b e advised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves th e righ t to a cce p t o r re je c t any or all ten ders, in w h ole o r in part, and his action 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 the a d d i tional bills dated January 15, 1959 (91 d a ys rem ain in g until m atu rity date on J u ly 16, 1959) and n o n co m p e titiv e ten ders fo r $50,000 o r less fo r the 182-day b ills w ith ou t stated p rice fro m a n y o n e b id d er w ill be a ccep ted in fu ll at the a vera ge price (in th ree d ecim a ls) o f a ccep ted co m p e titiv e bids fo r the respective issues. S ettlem en t for a ccep ted ten ders in a cco rd a n ce w ith the bids m u st be m ade o r c o m p le te d at the F ed era l R e se rv e Bank on A p ril 16, 1959, in cash or oth er im m ed ia tely available funds o r in a like fa ce a m o u n t o f T rea su ry bills m a tu rin g A p r il 16, 1959. Cash and e x ch a n g e tenders w ill receiv e equal treatm ent. Cash a d ju stm en ts w ill be m ade f o r d iffe re n ce s b etw ee n 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 ew bills. T h e in co m e derived fro m T rea su ry bills, w h eth er interest o r ga in fr o m the sale o r oth er d isp osition o f the bills, d oes n o t have a n y ex em p tion , as such, and loss fro m th e sale o r oth e r d isp osi tion o f T r e a s u ry bills d oes n o t have a n y special treatm ent, as such, u nder the In tern al R even u e C o d e o f 1954. T h e bills are su b ject to estate, inheritance, g ift o r o th e r e x cis e taxes, w hether F ed era l o r State, but are exem p t fr o m all ta xation n o w o r h ere after im p osed on the principal or in terest 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 a n y loca l ta x in g authority. F o r pu rposes o f ta xation th e a m ou n t o f dis cou n t at w h ich T r e a s u ry bills are o rig in a lly sold b y th e U nited States is con sid ered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C o d e o f 1954 the a m ou n t o f dis cou n t at w hich bills issued h ereun der are s o ld is n ot con sid ered to a ccru e until such bills are sold , red eem ed o r oth erw ise dis p osed of, and such bills are ex clu d ed fr o m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (oth er than life insurance co m p a n ie s ) issu ed h ereun der n eed in clude in his in com e tax return o n ly the differen ce betw een the p rice paid fo r su ch b ills, w h eth er on origin al issue o r o n subsequen t p u r chase, and th e 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 th e ta x ab le yea r fo r w h ich the return is m ade, as ord in a ry gain o r loss. T rea su ry D epa rtm en t C ircu lar N o. 418, R e v is e d , and this n otice, p rescrib e the term s o f th e T rea su ry bills and g o v e r n the co n d itio n s o f their issue. C opies o f the circu la r m a y be obtain ed fr o m a n y F ed eral R e serv e B a n k o r Branch. The $1,200,000,000, or thereabouts, o f 91-day bills maturing July 16, 1959, offered by the above notice, are in addi tion to $400,576,000 o f bills dated and issued January 15, 1959, and maturing July 16, 1959. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, April 13, 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 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 fo r the Treasury bills cannot be made by credit through the Treasury T a x and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. Results o f the last offerin g o f T reasury bills (9 1 -d a y bills to be issued A pril 9, 1959, representing an additional amount o f bills dated January 8, 1959, and m aturing July 9, 1 959; and 182-day bills dated A p ril 9, 1959, maturing O ctober 8, 1959) are shown on the reverse side o f this circular. A lfred H ayes, President. (o v e r ) RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES ISSUED APRIL 9, 1959) Range of Accepted Competitive Bids 91-D ay Treasury Bills Maturing July 9,1959 Price 182-Day Treasury Bills Maturing October 8,1959 A pprox. equiv. annual rate Price A pprox. equiv. annual rate H igh .................................. 99.260a 2.927% 98.370b 3.224% L ow .................................. 99.251 2.963% 98.350 3.264% 99.255 2.948% 98.357 3.249% Average ............................ a E xcepting tw o tenders totaling $458,000. b Excepting one tender o f $250,000. (55 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (67 percent o f the amount o f 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing July 9,1959 District Boston Accepted Applied for ............................ $ 22,187,000 182-D ay Treasury Bills Maturing October 8,1959 $ 11,187,000 Accepted Applied fo r $ 8,927,000 $ 8,677,000 1,532,019,000 791,894,000 574,731,000 261,611,000 ................. 33,927,000 12,377,000 7,796,000 2,796,000 Cleveland ........................ 36,931,000 30,649,000 22,639,000 12,639,000 ..................... 17,501,000 17,456,000 569,000 569,000 Atlanta ............................ 31,462,000 30,062,000 2,286,000 2,286,000 230,532,000 163,947,000 95,490,000 66,160,000 St. Louis ....................... 20,100,000 19,600,000 4,953,000 1,953,000 Minneapolis ................... 11,524,000 10,224,000 3,327,000 2,027,000 Kansas C i t y ................... 39,392,000 22,421,000 6,335,000 6,235,000 12,851,000 2,070,000 2,070,000 77,437,000 35,999,000 32,999,000 N ew Y ork ..................... Philadelphia Richmond Chicago Dallas .......................... ............................ San Francisco ............... Totals ............. 12,851,000 85,737,000 $2,074,163,000 $1,200,105,000c c Includes $211,103,000 noncompetitive tenders accepted at the average price o f 99.255. d Includes $22,450,000 noncompetitive tenders accepted at the average price of 98.357. $765,122,000 $400,022,000d
@FedFRASER