View original document

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 A NK O F N E W YORK
Fiscal Agent of the United States
r C ircular N o. 4 7 5 9 1
J u ly 16, 19
59
J

L

O F F E R IN G O F T W O S E R IE S O F T R E A S U R Y B IL L S
L
,000,000,000 o f 91-D ay Bills, Additional A m ount, Series D ated April 23, 1959, D ue O ct. 22, 1959
(T o Be Issued July 23, 1959)
$400,000,000 o f 182-D ay Bills, D ated July 23, 1959, D ue January 21, 1960
T o A ll Incorporated B anks and T rust 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
new spapers, Th ursday, July 16, 1959:
T h e T re a su ry D epartm ent, by this pu blic notice, invites
tenders f o r tw o series o f T reasu ry bills to the a ggregate amount
o f $1,400,000,000, o r thereabouts, for cash and in exch an ge for
Treasu ry bills m aturing July 23, 1959, in the am ount o f
$1,400,956,000, as f o ll o w s :
91-day bills (to m aturity date) to be issued July 23, 1959, in
the am ount o f $1,000,000,000, or thereabouts, representing
an addition al am ount o f b ills dated A p ril 23, 1959,
and to mature O ctober 22, 1959, o rigin a lly issued in the
am ount o f $400,070,000, the addition al and origin a l bills
to be freely interchangeable.
182-day bills, fo r $400,000,000, or thereabouts, to be dated
July 23, 1959, and to mature January 21, 1960.
The bills o f both series w ill be issued on a discou nt basis
under com petitive and noncom petitive b idd ing as hereinafter
provided, and at m aturity their face am ount w ill be payable
w ithout interest. T h e y w ill be issued in bearer form on ly, and
in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000
and $1,000,000 (m aturity valu e).
T en ders w ill be received at Federal 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 onday, Ju ly 20, 1959. Tenders
w ill n ot be received at the T reasu ry Departm ent, W ash ington.
E ach tender m ust 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 n ot m ore than three decim als, e.g.,
99.925. F raction s m ay not be used. It is urged that tenders
be m ade 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
or Branches on a pp lication therefor.
O thers than banking institutions w ill n ot 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 m ust be accom panied
by paym ent o f 2 percent o f the face amount o f T reasu ry bills
applied for, unless the tenders are accom panied b y an express
guaranty o f paym ent b y an in corporated bank or trust com pany.
Im m ediately after the clo s in g hour, tenders w ill be opened
at the Federal R eserve Banks and B ranches, fo llo w in g w hich
public announcem ent w ill be made b y 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 o r rejection

thereof. T h e Secretary o f the T reasu ry expressly reserves the
right to accept or reject any or all tenders, in w hole or in part,
and his a ction in any such respect shall be final. S ubject to
these reservations, noncom petitive tenders for $200,000 o r less
fo r the a dd ition al bills dated A p ril 23, 1959, (91 days re­
m aining until m aturity date on O ctob er 22, 1959) and noncom ­
petitive tenders fo r $100,000 o r less fo r the 182-day bills w ithout
stated price from any one b idder w ill be accepted in fu ll at the
average price (in three decim als) o f accepted com petitive bids
for the respective issues. Settlem ent fo r accepted tenders in
a ccord a n ce with the bids must be made or com pleted at the
Federal Reserve Bank on July 23, 1959, in cash or other
im m ediately available funds o r in a like face am ount o f
Treasu ry bills m aturing July 23, 1959. Cash and exchange
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 ange and the issue price o f the new bills.
T h e incom e derived from T reasu ry bills, w hether interest
or gain from the sale or other disposition o f the bills, does not
have any exem ption, as such, and loss from the sale o r other
d isp osition o f T reasu ry bills does not have any special treat­
ment, as such, under the Internal Revenue C ode o f 1954. The
bills are subject to estate, inheritance, g ift or other excise
taxes, w hether Federal or State, but are exem pt from all ta x a ­
tion n ow o r hereafter im posed on the principal or interest
th ereof by any State, o r any o f the possessions o f the United
States, o r by any lo ca l ta x in g authority. F o r purposes o f ta x a ­
tion the amount o f discou nt at w hich T reasu ry bills are
origin a lly sold by the U nited States is con sid ered to be interest.
U n der S ections 4 5 4(b) and 1221(5) o f the Internal Revenue
C ode o f 1954 the am ount o f discou nt at w h ich bills issued
hereunder are sold is not con sidered to a ccru e u ntil such bills
are sold, redeem ed or otherw ise disposed of, and such bills are
exclu ded 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 ­
panies) issued hereunder need include in his in com e tax return
only the difference between the price paid fo r such bills,
whether on origin a l issue or on subsequent purchase, and the
am ount actu ally received either upon sale o r redem ption at
m aturity du rin g the taxable yea r fo r w hich the return is made,
as ord in a ry gain o r loss.
T reasu ry D epartm ent C ircu lar N o. 418, R evised, and this
notice, prescribe th e terms o f the T reasu ry bills and govern
the con ditions o f their issue. Copies o f the circu la r m ay be
obtain ed from any F ed eral Reserve Bank o r B ranch.

T h is Bank w ill receive tenders fo r both series up to 1 :30 p.m., Eastern D a yligh t S avin g time, M onday,
July 20, 1959, at the Securities D epartm ent o f its H ead Office and at its B uffalo Branch. T en d er form s for the
respective series are enclosed. Please use the appropriate form s to subm it tenders and return them in an
en velope m arked “ T en d er fo r T reasu ry B ills.” Ten ders m ay be subm itted b y telegraph, su bject 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 July 16, 1959, representing an ad­
ditional amount of bills dated April 16, 1959, and maturing October 15, 1959; and 182-day bills dated July 16,
1959, maturing January 14, 1960) 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 JULY 16, 1959)
Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing October 15, 1959

182-Day Treasury Bills
Maturing January 14, 1960

P rice

A p p ro x . equiv.
annual rate

H ig h ....................... ........

99.155a

3.343%

97.978

4.000%

L o w ......................... ........

99.117

3.493%

97.960

4.035%

A verage

99.140

3.401%

97.963

4.029%

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

P rice

A p p ro x . equiv.
annual rate

a E x cep tin g one tender o f $50,000.

(60 percent o f the am ount o f 91-day bills
bid for at the low price was accepted.)

(62 percent o f the am ount 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 October 15, 1959
A pplied for

D istrict

B oston ......................... ...........

$

182-Day Treasury Bills
Maturing January 14, 1960
A pplied for

26,664,000

N ew Y o r k ................... ...........

1,385,440,000

A ccep ted

$

16,664,000
801,415,000

$

6,239,000

A ccepted

$

5,762,000

688,675,000

261,236,000

Philadelphia ............... ...........

28,078,000

18,078,000

7,057,000

1,657,000

C le v e la n d ..................... ...........

39,078,000

39,078,000

18,602,000

11,362,000

R ich m on d ................... ...........

23,629,000

23,629,000

970,000

951,000

A t la n t a ......................... ...........

23,183,000

23,163,000

3,307,000

2,880,000

C h icago ....................... ...........

172,050,000

113,050,000

100,640,000

54,095,000

St. L o u i s ..................... ...........

23,497,000

23,497,000

3,915,000

3,515,000

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

8,969,000

8,969,000

2,422,000

2,422,000

Kansas C ity ............... ..........

36,165,000

36,165,000

7,005,000

4,846,000

D a l l a s ............................ ...........

20,150,000

20,150,000

2,374,000

2,374,000

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

76,142,000

76,142,000

65,443,000

49,922,000

M inneapolis

T o t a l ............. ...........

$1,863,045,000

$1,200,000,000b

b Includes $229,025,000 noncompetitive tenders accepted at the average price of 99.140.
c Includes $42,502,000 noncompetitive tenders accepted at the average price o f 97.963.




$906,649,000

$401,022,000°

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