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F E D E R A L R E S E R V E B A N K O F N E W Y O RK [ Ci^guBt^7’i95? 6] Fiscal Agent of the United States OFFERING OF T W O SERIES OF T R E A S U R Y BILLS $1,100,000,000 o f 91-Day Bills, Additional Amount, Series Dated June 4, 1959, Due Dec. 3, 1959 (T o Be Issued September 3, 1959) $400,000,000 o f 182-Day Bills, Dated September 3, 1959, Due March 3, 1960 T o A ll In corporated Banks and T rust 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, August 27, 1959: T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites ten ders fo r tw o series o f T reasu ry bills t o the a ggreg ate am ou nt o f $1,500,000,000, o r th ereabou ts, for cash and in ex ch a n g e for T r e a s u ry bills m a tu rin g Septem ber 3, 1959, in the am ou nt o f $1,500,793,000, as fo llo w s : 91-day bills ( t o m aturity date) to be issued S ep tem ber 3, 1959, in the a m ou n t o f $1,100,000,000, or th ereabou ts, rep re senting an addition al am ou nt o f bills dated June 4, 1959, and to m ature D ecem b er 3, 1959, originally issued in the am ou nt o f $400,244,000, the additional and origin a l bills to be freely in terch angeable. 182-day bills, fo r $400,000,000, o r th ereabouts, to be dated S ep tem ber 3, 1959, and to m ature M a rch 3, 1960. T h e bills o f b o th series w ill be issued on a d iscou n t basis u nder co m p etitive and n o n com p etitive bid d in g as h ereinafter p r o vided, and at m aturity their face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form 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 va lu e). T e n d e rs w ill b e received at Federal R es e rv e Banks and B ran ches up to the clo s in g hour, on e-th irty o ’c lo c k p.m ., E astern D a y lig h t S a vin g tim e, M on d a y, A u g u st 31, 1959. T en d ers will n ot be receiv ed at the T re a su ry D epa rtm en t, W a sh in g ton . E ach tender m ust be f o r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith n ot m ore than th ree decim als, e.g., 99.925. F ra ctio n s m ay n ot be used. It is u rged that tenders be m ade on the printed fo rm s and fo rw a rd ed in the special en velopes w hich w ill be supplied b y Federal R eserve B anks o r B ran ch es on a pp lication th erefor. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it ten ders e x ce p t fo r their ow n a ccou n t. T en d ers w ill be received w ith ou t d ep o sit fro m in corpora ted banks and trust c o m panies and fro m resp on sib le and recog n ized dealers in investm ent securities. T e n d e rs fr o m oth ers m u st be a ccom p a n ied b y p a y m ent o f 2 p ercen t o f the face 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 corp ora ted bank o r trust com p a n y . Im m ediately after the clo s in g hour, tenders will be op en ed at the Federal R e se rve Banks and B ran ches, fo llo w in g w h ich pu blic a nn oun cem ent w ill be m ade b y the T rea su ry D epartm en t o f the a m ou n t and price ra n ge o f a ccep ted bids. T h o s e subm itting tenders w ill be advised o f the a ccep ta n ce or rejection thereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves the righ t to a ccep t o r reject any o r all tenders, in w h o le o r in part, and his action in any such resp ect shall be final. S u b ject t o these reserva tions, n on com p etitiv e tenders for $200,000 o r less fo r the add i tional bills dated June 4, 1959, (91 days rem ain in g until m atur ity date on D e ce m b e r 3, 1959) and n on com p etitiv e tenders fo r $100,000 o r less for the 182-day bills w ith ou t stated price from any on e b idd er w ill be a ccep ted in full at th e a verage p rice (in three decim a ls) o f a ccep ted com p etitive bids fo r the respective issues. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m ust be m ade o r com p leted at the F ed eral R e serv e Bank on S ep tem ber 3, 1959, in cash o r oth er im m ediately available funds o r in a like face am ou nt o f T rea su ry bills m atu rin g S e p tem ber 3, 1959. Cash and exch a n ge ten ders w ill receiv e equal treatm ent. Cash a dju stm en ts w ill be made fo r d ifferen ces betw een the par valu e o f m atu rin g bills a ccep ted in ex ch a n g e and the issue price o f the n ew bills. T h e in com e derived fro m T r e a s u ry b ills, w h eth er in terest o r gain fr o m the sale o r oth er d isp osition o f the bills, d oes n ot have any ex em p tion , as such, and loss fro m the sale o r oth er d isp o si tion o f T rea su ry bills d o e s n ot have a n y special treatm ent,, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er e x cis e taxes, w hether Federal or State, but are exem p t from all taxation n o w o r h ere a fter im p osed on the principal o r interest th ereof b y a n y State, o r any o f the possession s o f the U n ited States, or b y a n y local ta x in g authority. F o r pu rp oses o f taxation the a m ou n t o f dis cou n t at w h ich T rea su ry bills are o rigin a lly sold b y the 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 Internal R even u e C od e o f 1954 th e a m ou n t o f dis co u n t at w h ich bills issued h ereun der are sold is n ot con sid ered to a ccru e until such bills are sold, redeem ed or oth erw ise dis p osed o f, and such bills are exclu d ed from con sid era tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance co m p a n ie s ) issued hereun der need in clu d e in his in com e tax return o n ly the differen ce betw een the price paid f o r such bills, w h eth er on origin al issue o r on subsequen t pu r chase, and the a m ou n t actu ally received either upon sale o r redem ption at m aturity du rin g the taxable year 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 C ircu lar N o. 418, R evised, and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C op ies o f the circular m ay be obtain ed fro m a n y Federal R e serv e Bank o r B ranch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 31, 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 f o r 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 (92-day bills to be issued August 27, 1959, representing an additional amount of bills dated May 28, 1959, and maturing November 27, 1959; and 182-day bills dated August 27, 1959, maturing February 25, 1960) are shown on the reverse side of this circular. A lfred H ayes, President. RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES ISSUED AUGUST 27, 1959) Range of Accepted Competitive Bids 92-Day Treasury Bills Maturing N ovem ber 27,1959 182-Day Treasury Bills Maturing February 25, 1960 Price Approx. equiv. annual rate High .................... ........ 99.054" 3.702% 97.936b 4.083% Low 99.001 3.909% 97.830 4.292% 99.023 3.824% 97.901 4.152% ....................... ........ Average ................. ........ Price a Excepting one tender o f $100,000. Approx. equiv. annual rate b E xcepting one tender o f $100,000. (28 percent o f the amount o f 92-day bills bid for at the low price was accepted.) (77 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) District Boston ............................ $ 92-Day Treasury Bills Maturing N ovem ber 27,1959 182-Day Treasury Bills Maturing February 25,1960 Applied for A pplied for 28,601,000 Accepted $ 18,601,000 $ 2,482,000 Accepted $ 2,482,000 New Y ork ..................... 1,507,788,000 805,268,000 584,289,000 303,139,000 Philadelphia ................... 33,552,000 18,552,000 8,017,000 7,997,000 ....................... 21,886,000 21,886,000 13,429,000 13,429,000 R ic h m o n d ........................ 12,296,000 12,296,000 1,153,000 1,153,000 Atlanta ............................ 22,935,000 22,935,000 2,988,000 2,988,000 .......................... 212,068,000 185,068,000 44,948,000 42,948,000 St. Louis ........................ 14,881,000 14,881,000 2,798,000 2,798,000 Minneapolis ................... 11,600,000 11,600,000 2,969,000 2,969,000 Kansas C i t y ................... 25,191,000 25,191,000 5,204,000 5,204,000 Dallas .............................. 9,580,000 9,580,000 2,249,000 2,249,000 San Francisco ............... 64,285,000 54,285,000 22,686,000 12,686,000 Totals ............. $1,964,663,000 Cleveland Chicago $1,200,143,000° c Includes $188,792,000 noncompetitive tenders accepted at the average price o f 99.023. d Includes $35,600,000 noncompetitive tenders accepted at the average price of 97.901. $693,212,000 $400,042,000d
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