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F E D E R A L R E S E R V E BA N K O F N E W Y O RK
Fiscal Agent of the United States

r Circular N o. 4 7 4 9 I
L
June 18,1959
J

OFFERIN 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 26, 1959, Due Sept. 24, 1959
(T o Be Issued June 25, 1959)
$500,000,000 o f 182-Day Bills, Dated June 25, 1959, Due Decem ber 24, 1959
T o A ll Incorporated B anks and T ru st 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 for publication in morning newspapers,
Thursday, June 18, 1959:
T h e T r e a s u ry D epartm en t, b y this pu blic n otice, invites
ten ders fo r tw o series o f T r e a s u ry bills to th e a g g reg a te am ou nt
o f $1,700,000,000, o r th ereabouts, fo r cash a n d in ex ch a n g e fo r
T r e a s u ry bills m a tu rin g June 25, 1959, in th e a m ou n t o f
$1,699,708,000, as fo llo w s :
91-day bills ( t o m a tu rity date) to be issued June 25, 1959, in
the a m ou n t o f $1,200,000,000, o r th erea b ou ts, rep resen t­
in g an addition al a m ou n t o f bills dated M a rch 26, 1959,
and to m atu re Sep tem ber 24, 1959, origin a lly issued in
th e a m ou n t o f $400,149,000, the addition al and original
bills t o be fre e ly in terch angeable.
182-day b ills, fo r $500,000,000, or th ereabou ts, t o be dated
June 25, 1959, and to m ature D e ce m b e r 24, 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 etitive and n o n com p etitiv e b id d in g as h ereinafter p r o ­
vided, and at m atu rity th eir 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 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 re ce iv ed at F ed era l R e serv e B anks and
B ran ch es up to th e clo s in g h our, o n e-th irty o ’ c lo ck p.m ., E astern
D a y lig h t S a vin g tim e, M o n d a y , June 22, 1959. T en d ers w ill n ot
be re ce iv e d at th e T re a su ry D epa rtm en t, W a s h in g to n . E ach
ten der m u st b e f o r an even m u ltiple o f $1,000, and in the ca se o f
com p e titiv e ten ders the p rice offered m u st be exp ressed on the
basis o f 100, w ith n o t m o r e than th ree d ecim a ls, e.g., 99.925.
F r a c tio n s m a y n ot b e used. It is u rg ed that ten d ers b e m ade on
th e p rin ted fo rm s and fo rw a rd e d in th e sp ecia l en v elop es w h ich
w ill be sup plied b y F ed era l R eserve B anks o r B ra n ch es on
a p p lica tion th e re fo r.
O th ers than b ankin 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 n t. T en d ers w ill be
receiv ed w ith ou t deposit fr o m in corp ora ted banks and trust c o m ­
panies and fr o m respon sib le and re co g n iz e d dealers in in vestm ent
securities. T e n d e rs fr o m oth ers m ust be a ccom p a n ied b y p a y ­
m en t o f 2 p ercen t o f th e fa ce a m ou n t o f T rea su ry bills applied
for, unless the tenders are a ccom p a n ied b y an exp ress guaranty
o f paym ent b y an in co rp o ra ted bank o r trust com pan y.
Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at
th e F ed era l R e se rve B ank s and B ran ches, 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 rea su ry D epa rtm en t o f the
am 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 be advised o f the 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 ct a n y 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 ten ders f o r $200,000 o r less fo r th e a d d i­
tional bills dated M a rch 26, 1959, (91 days rem ainin g until m a tu r­
ity date on S ep tem ber 24, 1959) and n on com p etitiv e tenders fo r
$100,000 o r less fo r the 182-day bills w ith ou t stated p rice fro m
an y on e b id d er w ill be a ccep ted in fu ll at th e a vera ge p rice (in
th ree d ecim a ls) o f a ccep ted co m p e titiv e b id s fo r th e re sp ective
issues. S ettlem en t fo r a ccep ted ten ders in a c c o r d a n c e w ith the
bids m u st be m a d e o r co m p le te d at the F ed era l R e serv e B ank
on June 25, 1959, in cash o r 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 June 25,
1959. Cash and e x ch a n g e tenders w ill receiv e equal treatm ent.
C ash ad ju stm en ts w ill b e m a d e f o r d iffe re n ce s b etw een th e par
valu e o f m a tu rin g bills a cce p te d in e x ch a n g e and the issue price
o f the n ew bills.
T h e in co m e derived fr o m T rea su ry bills, w h eth er interest o r
gain fr o m the sale o r oth er d isp osition o f the bills, d oes n o t have
any exem ption , as such, and loss fr o m th e sale o r o th e r d isp osi­
tion o f T r e a s u ry bills d oes n ot have a n y special treatm en t, as
su ch , under 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 oth er e x cis e taxes, w hether
Fed eral o r State, but are exem p t fr o m all taxation n o w o r h ere­
after im p osed on the principal or in terest th e re o f b y any State,
o r a n y o f the p ossession s o f the U n ited States, or b y any loca l
ta x in g authority. F o r pu rposes o f taxation the a m ou n t o f dis­
co u n t at w h ich T r e a s u 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 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 h ich bills issued hereun der are sold is n ot con sidered
t o a ccru e until such bills are sold, red eem ed or oth erw ise dis­
p osed of, and such bills are exclu d ed 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 rea su ry bills (oth er
than life in su rance com p a n ies) issued h ereu n der n eed in clu d e in
his in com e tax return on ly the differen ce betw een the p rice paid
fo r such bills, w h eth er on original issue o r o n subsequen t pu r­
chase, and the a m ou n t actu ally receiv ed either u pon sale or
red em ption at m atu rity du rin g the taxable 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 Circular N o. 418, R evised , and this
notice, p rescrib e the term s o f th e T r e a s u ry bills and g o v e rn the
co n d itio n s o f th eir issue. C opies o f th e circu la r m ay be obtain ed
fro m a n y F ed eral R eserve B ank o r Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 22,
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 o f the last offerin g o f T reasu ry bills (9 1 -d a y bills to be issued June 18, 1959, representing an additional
amount o f bills dated M arch 19, 1959, and m aturing Septem ber 17, 1 959; and 182-day bills dated June 18, 1959, maturing
D ecem ber 17, 1959) are shown on the reverse side o f this circular.




A lfred H a y e s ,

President.
( over)

RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES ISSUED JUNE 18, 1959)
Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing September 17,1959

182-Day Treasury Bills
Maturing December 17,1959

Price

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

High ..................... ..........

99.180

3.244%

98.256

3.450%

L ow

99.170

3.284%

98.230

3.501%

99.172

3.276%

98.238

3.486%

................... ...........

Average

............. ..........

(82 percent o f the amount o f 91-day bills
bid for at the low price was accepted.)

(86 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 17,1959
Applied for

District
Boston

............................

$

182-Day Treasury Bills
Maturing December 17,1959
Applied for

26,719,000

Accepted
$

16,616,000

$

2,959,000

Accepted
$

2,959,000

1,370,748,000

781,224,000

586,962,000

368,848,000

.................

29,047,000

14,047,000

9,991,000

4,991,000

Cleveland .......................

50,157,000

44,713,000

18,950,000

18,950,000

.....................

16,528,000

16,022,000

1,292,000

1,292,000

Atlanta ............................

32,160,000

29,337,000

3,697,000

3,697,000

.........................

237,044,000

158,748,000

71,871,000

45,703,000

St. Louis .......................

29,142,000

27,587,000

19,422,000

19,122,000

Minneapolis ...................

8,930,000

7,530,000

3,357,000

2,729,000

Kansas C i t y ...................

45,034,000

35,674,000

7,991,000

7,949,000

Dallas ..............................

20,162,000

19,789,000

4,823,000

4,823,000

San F r a n c is c o ...............

53,051,000

49,220,000

20,250,000

19,040,000

T o t a ls .............

$1,918,722,000

N ew Y ork .....................
Philadelphia

Richmond

Chicago

$1,200,507,000*

$751,565,000

a Includes $247,769,000 noncom petitive tenders accepted at the average price of 99.172.
b Includes $50,240,000 n on com petitive tenders accepted at the average price o f 98.238.




$500,103,000b


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102