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FE D E R A L R E S E R V E BANK O F N E W YORK Fiscal Agent of the United States r C ircular No. 4 7 2 9 "I L A p ril 30, 1959 J O F F E R IN G O F T W O S E R IE S OF T R E A S U R Y B IL L S 1,000,000,000 o f 91-D ay Bills, A dditional A m ount, Series D ated Feb. 5, 1959, D ue A ug. 6, 1959 (T o B e Issued M a y 7, 1959) $400,000,000 o f 182-D ay Bills, D ated M a y 7 ,1 9 59 , D ue N ovem ber 5,1959 T o A ll In corporated B anks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: F ollow in g is the text o f a notice issued by the Treasury Department, released for publication in morning newspapers, Thursday, A pril 30, 1959: T h e T re a su ry Departm ent, b y this public notice, invites tenders fo r tw o series o f T reasu ry bills to the a ggregate amount o f $1,400,000,000, o r thereabouts, fo r cash and in exch an ge for T re a su ry bills m aturing M ay 7, 1959, in the am ount of $1,399,734,000, as f o l lo w s : 9 1-d ay bills (to m aturity date) to be issued M ay 7, 1959, in the am ount o f $1,000,000,000, or thereabouts, representing an addition al am ount o f bills dated F ebru ary 5, 1959, and to mature A u gu st 6, 1959, o rigin a lly issued in the am ount o f $399,912,000, the addition al and origin al bills to be freely interchangeable. 182-day b ills, fo r $400,000,000, or thereabouts, to be dated M ay 7, 1959, and to mature N ovem ber 5, 1959. T h e bills o f both series w ill be issued on a discou nt basis under com petitive and noncom petitive b idd ing as h ereinafter provided, and at m aturity their face am ount w ill be payable w ithout interest. T h ey w ill be issued in bearer form on ly, and in den om in ation s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity va lu e). T en ders w ill be received at F ed eral R eserve Banks and B ranches up to the clo s in g hour, on e-thirty o ’c lo ck p.m., E astern D a yligh t S a vin g time, M on day, M a y 4, 1959. Tenders 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 ca se o f com petitive tenders the price offered must 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 not 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 by F ed eral R eserve Banks o r B ran ches on application therefor. O thers than banking 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 b y 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 panied by an express guaranty o f paym ent by an in corporated bank or trust com pany. Im m ediately a fter the clo s in g hour, tenders w ill be opened at the F ed eral Reserve Banks and B ranches, fo llo w in g w hich public announcem ent w ill be made by the T reasu ry Departm ent o f the am ount and price range o f accepted bids. T h ose sub m itting tenders w ill be advised o f the acceptance or rejection thereof. T he S ecretary o f the T reasu ry exp ressly reserves the right to accept or reject any or all tenders, in w hole o r in part, and his action in any such respect shall be final. S u b ject to these reservations, n on com petitive tenders fo r $200,000 o r less for the addition al bills dated February 5, 1959 (91 days re m aining until m aturity date on A u gu st 6, 1959) and n on com petitive tenders fo r $50,000 o r less for the 182-day bills w ithout stated price from any one bidder w ill be accepted in fu ll at the a verage price (in three decim als) o f accepted com petitive bids for the respective issues. Settlem ent fo r a ccepted tenders in a ccord a n ce w ith the bids must be made or com pleted at the F ed eral R eserve Bank on M a y 7, 1959, in cash o r other im m ediately available funds or in a like face am ount o f T reasu ry bills m aturing M ay 7, 1959. Cash and exch ange tenders w ill receive equal treatment. Cash adjustm ents w ill be made fo r differences betw een the par value o f m aturing bills accepted in exch a n ge and the issue price o f the new bills. T h e incom e derived from T reasu ry b ills, w hether interest or ga in from the sale or oth er disposition o f the bills, does not have any exem ption, as such, and loss from the sale or other disp osition o f T reasu ry bills does n ot have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T he bills are subject to estate, inheritance, g ift or oth er excise taxes, w hether F ed eral or State, but are exem pt from a ll ta x a tion n ow or hereafter im posed on the principal or interest th ereof b y any State, o r any o f the possessions o f the U nited States, o r by any lo ca l taxin g authority. F o r purposes o f ta x a tion the am ount o f discou n t at w h ich T reasu ry bills are origin a lly sold b y the U nited States is con sidered to be interest. U nder S ections 454(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou nt 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 of, and such bills are exclu d ed from con sideration as capital assets. A ccord in g ly , the ow ner o f T reasu ry bills (oth er than life insurance co m pan ies) issued hereunder need include in his incom e ta x return only the difference betw een the price paid fo r such bills, w hether on origin a l issue or on subsequent purchase, and the am ount actu ally received either upon sale or redem ption at m aturity d u rin g the ta x ab le year fo r w hich the return is made, as ord in a ry gain or loss. T reasu ry D epartm ent C ircu lar N o. 418, R evised, and this notice, prescribe the terms o f the T reasu ry bills and govern the con dition s o f their issue. Copies o f the circu la r m ay be obtained from any F ed eral R eserve Bank o r Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, M ay 4, 1959, at the Securities Department o f its Head Office and at its Buffalo Branch. Tender form s 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 confirm ation; 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 of the last offering of Treasury bills (91-day bills to be issued April 30, 1959, representing an addi tional amount of bills dated January 29, 1959, and maturing July 30, 1959; and 182-day bills dated April 30, 1959, maturing October 29, 1959) are shown on the reverse side of this circular. A lfred H a y e s , President. ( over) RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES ISSUED APRIL 30, 1959) R ange o f A ccepted Com petitive Bids 91-Day Treasury Bills Maturing July 30, 1959 182-Day Treasury Bills Maturing O ctober 29, 1959 P rice A p p ro x . equiv. annual rate P r ice A p p ro x . equiv. annual rate ......................... ........ 99.292 2.801% 98.394 3.177% L ow ............................ ........ 99.283 2.836% 98.382 3.200% Average 99.284 2.831% 98.388 3.189% H igh ................... ........ (85 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (60 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-Day Treasury Bills Maturing July 30, 1959 A pplied for D istrict B o s t o n ......................... ........ $ 27,857,000 182-Day Treasury Bills Maturing October 29, 1959 A ccep ted $ 17,047,000 A pplied for $ 7,334,000 A ccepted $ 7,184,000 New Y o r k ....................... ......... 1,424,618,000 635,764,000 700,784,000 340,134,000 P h ila d e lp h ia ................... ........ 26,535,000 11,075,000 12,097,000 6,559,000 Cleveland ....................... ........ 40,866,000 33,650,000 9,310,000 3,410,000 R ic h m o n d ....................... ....... 14,151,000 13,854,000 3,464,000 3,264,000 Atlanta ........................... ......... 26,365,000 21,883,000 2,267,000 1,556,000 C h ic a g o ........................... ........ 203,742,000 145,597,000 86,069,000 16,115,000 St. L o u i s ......................... ........ 22,614,000 19,114,000 6,263,000 6,263,000 Minneapolis ................... ........ 8,671,000 7,311,000 2,506,000 2,106,000 Kansas C i t y ................ ......... 40,030,000 27,105,000 4,840,000 4,057,000 Dallas ......................... 25,422,000 18,887,000 1,930,000 1,730,000 San Francisco ............... 66,108,000 50,758,000 25,804,000 7,838,000 Totals ............. ... $1,926,979,000 $1,002,045,000* a Includes $240,478,000 noncompetitive tenders accepted at the average price of 99.284. b Includes $21,366,000 noncompetitive tenders accepted at the average price of 98.388. $862,668,000 $400,216,000b