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F E D E R A L R E S E R V E B A NK O F N E W Y O R K [ Ci^g“ 1*20.'iM974 } Fiscal Agent of the United States OFFERIN G OF T W O SERIES OF T R E A S U R Y BILLS $1,200,000,000 o f 92-Day Bills, Additional Am ount, Series Dated May 28, 1959, Due Nov. 27, 1959 (T o Be Issued August 27, 1959) $400,000,000 o f 182-Day Bills, Dated August 27, 1959, Due February 25, 1960 T o A ll In corporated Banks and T ru st Com panies, and O thers 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, August 20, 1959: The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,600,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 27, 1959, in the amount of $1,395,606,000, as follow s: 92-day bills (to maturity date) to be issued August 27, 1959, in the amount of $1,200,000,000, or thereabouts, repre senting an additional amount of bills dated May 28, 1959, and to mature November 27, 1959, originally issued in the amount of $399,979,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated August 27, 1959, and to mature February 25, 1960. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter pro vided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in de nominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity 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, August 24, 1959. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of 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 m ay not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by pay ment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reserva tions, noncompetitive tenders for $200,000 or less for the addi tional bills dated May 28, 1959, (92 days remaining until matur ity date on November 27, 1959) and noncompetitive tenders for $100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 27, 1959, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing August 27, 1959. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. Th e income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposi tion of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. Th e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or here after imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of dis count at which Treasury bills are originally sold by the United States is considered to be interest Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954 the amount of dis count at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise dis posed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent pur chase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular N o. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may 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, August 24, 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 fo r 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 August 20, 1959, representing an additional amount of bills dated May 21, 1959, and maturing November 19, 1959; and 182-day bills dated August 20, 1959, maturing February 18, 1960) 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 AUGUST 20, 1959) Range of Accepted Competitive Bids 91- D ay Treasury Bills Maturing N ovem ber 19,1959 P rice 182-Day Treasury Bills Maturing February 18,1960 A p p ro x . equiv. annual rate P r ice A p p ro x . equiv. annual rate H igh ....................... ......... 99.152a 3.355% 98.105b 3.748% L ow 99.117 3.493% 98.070 3.818% 99.136 3.417% 98.088 3.782% ....................... ........ Average ................. ......... a E xcepting 4 tenders totaling $6,000,000. b E xcepting 4 tenders totaling $820,000. (30 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (42 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-D ay Treasury Bills Maturing N ovem ber 19,1959 Applied, f o r D istrict Boston ............................ $ 24,046,000 182-Day Treasury Bills Maturing February 18,1960 A ccepted $ 24,046,000 A pplied f o r $ 5,317,000 A ccep ted $ 5,317,000 New Y ork ..................... 1,458,564,000 839,564,000 648,005,000 298,762,000 P h iladelphia................... 29,666,000 29,666,000 6,567,000 1,567,000 Cleveland ....................... 33,909,000 33,909,000 12,283,000 12,283,000 Richmond ..................... 15,958,000 15,958,000 901,000 901,000 Atlanta ............................ 24,854,000 24,854,000 2,931,000 2,931,000 C h ic a g o ............................ 144,307,000 110,307,000 61,514,000 35,774,000 St. Louis ........................ 14,012,000 14,012,000 2,784,000 2,784,000 Minneapolis ................... 9,255,000 9,255,000 1,975,000 1,975,000 Kansas C i t y ................... 31,165,000 31,165,000 11,235,000 11,119,000 Dallas .............................. 14,423,000 14,423,000 2,975,000 2,975,000 San F r a n c is c o ............... 53,253,000 53,253,000 33,780,000 23,780,000 Totals ............. $1,853,412,000 $1,200,412,000c c Includes $212,272,000 noncompetitive tenders accepted at the average price of 99.136. d Includes $36,091,000 noncompetitive tenders accepted at the average price of 98.088. $790,267,000 $400,168,000d
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