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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 [C ir c u la r N o . 4 7 4 8 [ J u n e 11, 1959 J O FFER IN G OF T W O SERIES OF T R E A S U R Y BILLS $1,200,000,000 o f 91-Day Bills, Additional Am ount, Series Dated March 1 9,1 9 5 9 , Due Sept. 17, 1959 (To B e Issued June 18, 1959) $500,000,000 o f 182-Day Bills, Dated June 18, 1959, Due D ecem ber 17, 1959 T o A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text o f a notice issued by the Treasury Department, released fo r publication in morning newspapers, Thursday, June 11, 1959: T he Treasury Department, by this public notice, invites tenders f o r tw o series o f Treasury bills to the aggregate amount o f $1,700,000,000, o r thereabouts, for cash and in exchange for Treasury bills maturing June 18, 1959, in the amount o f $1,700,688,000, as fo llo w s : 91-day bills (to maturity date) to be issued June 18, 1959, in the amount o f $1,200,000,000, o r thereabouts, representing an additional amount o f bills dated M arch 19, 1959, and to mature September 17, 1959, originally issued in the the amount o f $400,017,000, the additional and original bills to be freely interchangeable. 182-day bills, fo r $500,000,000, or thereabouts, to be dated June 18, 1959, and to mature Decem ber 17, 1959. The bills o f both series w ill be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o ’clock p.m., Eastern Daylight Saving time, Monday, June 15, 1959. Tenders will not be received at the Treasury Department, W ashington. Each tender must be fo r an even multiple o f $1,000, and in the case o f competitive tenders the price offered must be expressed on the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied by Federal Reserve Banks o r Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except fo r their own account. Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcement will be made by the Treasury Department o f the amount and price range o f accepted bids. Those sub mitting tenders will be advised o f the acceptance or rejection thereof. T he Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders fo r $200,000 o r less for the additional bills dated M arch 19, 1959, (91 days re maining until maturity date on September 17, 1959) and noncom petitive tenders fo r $100,000 or less fo r the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decim als) o f accepted competitive bids for the respective issues. Settlement fo r accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 18, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 18, 1959. Cash and exchange tenders will receive equal treatment. Cash adjustments 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 he income derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exemption, as such, and loss from the sale o r other disposition o f Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code o f 1954. The bills are subject to estate, inheritance, g ift or other excise taxes, whether Federal or State, but are exempt from all taxa tion now or hereafter imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. F or purposes o f taxa tion the amount o f discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 4 5 4 (b ) and 1221(5) o f the Internal Revenue Code o f 1954 the amount o f discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid f o r such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year fo r which the return is made, as ordinary gain or loss. Treasury Department Circular N o. 418, Revised, and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 15, 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 of the last offering of Treasury bills (91-day bills to be issued June 11, 1959, representing an addi tional amount of bills dated March 12, 1959, and maturing September 10, 1959; and 182-day bills dated June 11, 1959, maturing December 10, 1959) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES ISSUED JUNE 11, 1959) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing December 10,1959 91-Day Treasury Bills Maturing September 10,1959 A p p rox. equiv. annual rate P rice P rice A p p rox. equiv. annual rate H ig h ........................................ 99.200 3.165% 98.220 b 3.521% Low ........................................ 99.162 3.315% 98.186 3.588% Average .................................. 99.170 3.283% 98.198 3.565% b Excepting one tender o f $100,000. a Excepting two tenders totaling $375,000. (16 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (80 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 September 10,1959 D istrict A pplied fo r Boston .................................... New Y o r k .............. .............. $ 24,007,000 1,436,441,000 A ccepted $ 14,007,000 182-Day Treasury Bills Maturing December 10,1959 A pplied fo r $ 5,933,000 A ccepted $ 5,933,000 774,341,000 665,519,000 392,319,000 2,755,000 Philadelphia .......... .............. 32,372,000 22,372,000 7,755,000 Cleveland................ .............. 32,248,000 27,248,000 18,117,000 12,117,000 Richmond .............. .............. 10,906,000 10,906,000 1,415,000 1,415,000 A tlan ta..................... .............. 35,152,000 34,852,000 2,770,000 2,770,000 Chicago .................. .............. 205,461,000 138,621,000 72,689,000 48,089,000 St. Louis ................ .............. 21,258,000 21,258,000 4,131,000 4,131,000 M inneapolis............ .............. 11,416,000 10,816,000 3,485,000 2,645,000 Kansas City .......... .............. 43,860,000 40,860,000 8,075,000 7,475,000 D a llas....................... .............. 14,144,000 14,144,000 2,625,000 2,625,000 San F ra n cisco ........ .............. 91,016,000 90,596,000 18,748,000 17,748,000 T o ta ls ..... .............. $1,958,281,000 $1,200,021,000' c Includes $221,363,000 noncompetitive tenders accepted at the average price of 99.170. * Includes $40,793,000 noncompetitive tenders accepted at the average price of 98.198. $811,262,000 $500,022,000 d
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