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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 F isca l A g e n t o f the U n ited States Circular No. 4 7 7 9 "I I September 10, 1959 J O F F E R IN G O F T W O S E R IE S OF T R E A S U R Y B ILL S $1,200,000,000 o f 91-D ay Bills, Additional Am ount, Series D ated June 18, 1959, D ue D ec. 17, 1959 (T o B e Issued September 17, 1959) $400,000,000 o f 182-D ay Bills, D ated September 17,1959, D ue M arch 17, I960 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F ollow in g is the text o f a notice issued by the Treasury Department, released for publication in morning newspapers, Th ursday, Septem ber 10, 1959: T h e T reasu ry D epartm ent, b y this pu blic notice, invites tenders fo r tw o series o f T reasu ry bills to the a ggregate amount o f $1,600,000,000, o r thereabouts, fo r cash and in exch an ge for T reasu ry bills m aturing Septem ber 17, 1959, in the am ount o f $1,600,712,000, as f o l lo w s : 91-day bills (to m aturity date) to be issued Septem ber 17, 1959, in the am ount o f $1,200,000,000, o r thereabouts, representing an addition al am ount o f bills dated June 18, 1959, and to mature D ecem ber 17, 1959, origin a lly issued in the am ount o f $500,103,000, the addition al and orig in a l bills to be freely interchangeable. 182-day bills, fo r $400,000,000, or thereabouts, to be dated Septem ber 17, 1959, and to mature M arch 17, 1960. T h e bills o f both series w ill be issued on a discount 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 ey w ill be issued in bearer form only, and in den om in ation s 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., Eastern D a yligh t S a vin g time, M onday, Septem ber 14, 1959. Tenders w ill n ot be received at the T reasu ry Departm ent, W ash ington. E a ch tender must be f o r an even m ultiple of $1,000, and in the case o f com petitive tenders the price offered must be exp ressed o n the basis o f 100, with not m ore than three decim als, e.g., 99.925. Fraction s m ay n ot be used. It is urged that tenders be made on the printed form s and forw a rd ed in the special envelopes w h ich w ill be supplied b y Federal R eserve Banks o r B ranches on application 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 ith ou t 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 must be accom panied by paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent by an in corporated bank or trust com pany. Im m ediately after the closin g hour, tenders w ill be opened at the Federal Reserve Banks and Branches, fo llo w in g w hich public announcem ent w ill be made by 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 he Secretary o f the T reasu ry exp ressly reserves the right to accept o r reject any or all tenders, in w hole o r in part, and his a ction in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders fo r $200,000 o r less fo r the a dd ition al bills dated June 18, 1959, (91 days re m aining until m aturity date on D ecem ber 17, 1959) and n on com petitive tenders fo r $100,000 o r less fo r the 182-day bills w ithout stated price from any one bidder w ill be a ccepted in fu ll at the average p rice (in three decim als) o f a ccepted com petitive bids for the respective issues. Settlem ent fo r a ccepted tenders in accord a n ce with the bids must be made or com pleted at the Federal R eserve Bank on Septem ber 17, 1959, in cash or other im m ediately availa b le funds or in a like face am ount o f T reasu ry bills m aturing Septem ber 17, 1959. Cash and exch a n ge 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, whether interest or gain from the sale o r oth er disposition o f the bills, does not have any exem ption, as such, and loss from the sale or other disp osition o f T rea su ry bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. T he 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 or hereafter im posed on the principal or interest th ereof by any State, o r any o f the possessions o f the U nited States, or b y 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 sidered to be interest. U n der S ections 454(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 n ot con sidered to accru e until such bills are sold, redeem ed or otherw ise disposed o f, 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 incom e ta x 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 actually received either upon sale or redem ption at maturity du rin g the taxable year fo r w hich the return is made, as ord in a ry gain or loss. T reasu ry Departm ent C ircu la r N o. 418, R evised, and this notice, prescribe the 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 obtained from any Federal R eserve Bank or Branch. T h is Bank w ill receive tenders for both series up to 1 :30 p.m., Eastern D a yligh t Saving time, M onday, Septem ber 14, 1959, at the Securities D epartm ent o f its H ead O ffice 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 envelope m arked “ T en d er for T reasu ry Bills.” Ten ders m ay be subm itted b y telegraph, su bject to written confirmation; they may not be submitted by telephone. Payment jo r the Treasury bills cannot be wade by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other immediately available funds or in tnaturing Treasury bills. R e su lts o f the la st o ffe r in g o f T r e a s u r y b ills (9 1 -d a y b ills to b e issu ed S e p te m b e r 10, 1959, re p re sen tin g an a d d ition a l a m ou n t o f b ills d a ted Ju ne 11, 1959, an d m a tu rin g D e c e m b e r 10, 1 959; an d 182-day b ills dated S e p te m b e r 10, 1959, m a tu rin g M a rch 10, 1960) are s h o w n o n th e rev e rse sid e o f this circu la r. A lfred H a y e s , President. (oveh) RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES ISSUED SEPTEMBER 10, 1959) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing D ecem ber 10,1959 Price ........................ ......... 182-D ay Treasury Bills Maturing March 10,1960 Approx. equiv. annual rate Price Approx. equiv. annual rate 99.002* 3.948% 97.750 4.451% L o w .......................... ........ 98.977 4.047% 97.730 4.490% A verage 98.994 3.979% 97.739 4.473% H ig h ................. ......... a E x ce p tin g one ten der o f $8,000. (53 percent o f the am ount o f 91-day bills bid for at the low price w as accep ted .) (84 percent o f the am ount o f 182-day bills bid fo r at the lo w price w as accep ted .) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing D ecem ber 10, 1959 District Applied for B oston .......................... ........... $ 27,132,000 182-Day Treasury Bills Maturing March 10,1960 Accepted $ 27,132,000 Applied j or $ 3,865,000 Accepted $ 3,813,000 N ew Y o r k ................... ........... 1,399,712,000 775,612,000 718,222,000 301,902,000 Philadelphia ............... ........... 32,439,000 15,439,000 7,116,000 1,991,000 Cleveland ................... ........... 39,709,000 39,709,000 19,997,000 9,997,000 R ich m on d ................... ........... 12,909,000 12,909,000 1,511,000 1,511,000 A tlanta ........................ ........... 29,501,000 29,201,000 4,988,000 4,588,000 C hicago ........................ ........... 157,873,000 143,873,000 63,905,000 35,745,000 St. L o u i s ....................... ........... 19,093,000 19,093,000 3,586,000 3,586,000 M inneapolis ............... ........... 11,181,000 11,181,000 3,085,000 2,485,000 Kansas C i t y ........................... 36,397,000 28,397,000 9,985,000 8,665,000 D a l l a s ......................................... 12,195,000 12,195,000 3,540,000 3,540,000 San F r a n c is c o ............... 90,330,000 85,330,000 45,306,000 22,266,000 T otal ........... ........... $1,868,471,000 $1,200,071,000b b In cludes $202,332,000 n on com petitive tenders a ccepted at the a verage p rice o f 98.994. c In cludes $42,462,000 n on com petitive tenders a ccep ted at the average price o f 97.739. $885,106,000 $400,089,000=
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