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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [ CNovember°5 19591] OFFERING OF TW O SERIES OF TREASURY BILLS $1,200,000,000 of 91-Day Bills, Additional Amount, Series Dated August 13, 1959, Due Feb. 11, 1960 (To be Issued November 12, 1959) $400,000,000 of 182-Day Bills, Dated November 12, 1959, Due May 12, 1960 T 0 A ll Incorporated Banks and T ru st Companies, and O thers Concerned, in the Second Federal R eserve D istrict: Following is the text o f a notice issued by the Treasury Department, released for publication in morning newspapers, Thursday, November 5, 1959: T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites tenders fo r tw o series o f T rea su ry bills t o the a g g reg a te a m ou n t o f $1,600,000,000, o r th ereabouts, fo r cash and in ex ch a n g e for T r e a s u ry bills m aturing N ov em b er 12, 1959, in the am ou nt o f $1,600,326,000, as f o llo w s : 91 -d a y bills (to m aturity da te) to be issued N o v e m b e r 12, 1959, in the a m ou n t o f $1,200,000,000, o r thereabouts, rep resen tin g an addition al a m ou n t o f bills dated A u g u st 13, 1959, and to mature F eb ru a ry 11, 1960, origin a lly issued in the a m ou n t o f $400,033,000, the additional and origin al bills to be fre e ly in terch angeable. 182-day bills, fo r $400,000,000, o r th ereabouts, to be dated N o v e m b e r 12, 1959, and to m ature M a y 12, 1960. 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 e titiv e and n o n com p etitiv e b id d in g as h ereinafter p r o vided, and at m aturity their face am ou nt w ill be p ayable w ith ou t interest. T h e y w ill be issued in bearer fo r m on ly , and in de 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 ers w ill be received at F ed eral R e serv e B anks and B ran ch es up t o the clo s in g h our, on e-th irty o ’c lo c k p.m ., E astern Standard tim e, M o n d a y , N o v e m b e r 9, 1959. T en d ers w ill not be received at the T r e a s u ry D epartm en t, W a s h in g to n . E ach ten der m ust be f o r an even m u ltiple o f $1,000, and in th e case o f com p etitive tenders the p r ice offered m ust be ex p ressed on the basis o f 100, w ith n ot m o re than th ree decim a ls, 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 es e rv e B anks o r B ra n ch es on a pp lication th erefor. O th ers than b a n k in g in stitu tions w ill n ot be perm itted to subm it tenders 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 d ep o sit fro m in corp ora 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 en t o f 2 p ercen t o f th e face a m ou n t o f T rea su ry bills applied fo r, unless th e tenders are a ccom p a n ied b y an express guaranty o f p a ym en t b y an in co rp o ra ted bank o r trust com p a n y . Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at the F ed era l R e se rve Banks and B ranches, fo llo w in g w h ich p u b lic an n ou n cem en t w ill be m ade b y the T r e a s u ry D ep a rtm en t o f the a m ou n t and price ran 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 or re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry ex p ressly reserves the righ t to a ccep t or reject a n y o r all tenders, in w h ole or in part, and his action in a n y such resp ect shall be final. S u b ject to these reserva tions, n on com p etitiv e tenders fo r $200,000 o r less fo r the addi tional bills dated A u g u st 13, 1959, (91 days rem ain in g until m a tu rity date on F eb ru a ry 11, 1960) and n on com p etitive ten ders fo r $100,000 o r less fo r the 182-day bills w ith ou t stated p rice fro m a n y on e b id d er w ill be a ccep ted in full at the a verage p rice (in three d ecim a ls) o f a ccep ted com p etitiv e 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 u st be m ade o r com p leted at the Federal R e serv e Bank on N o v e m b e r 12, 1959, in cash or oth er im m ediately available funds o r in a like fa ce am ou nt o f T rea su ry bills m aturing N ov em b er 12, 1959. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash a dju stm en ts w ill be m ade 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 fr o m T rea su ry bills, w h eth er in terest o r gain fro m the sale or oth er d isp osition o f the bills, d oes n ot have any exem 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 oes n ot have any special treatm ent, as such, under th e Internal R even u e C od 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 ta xes, w hether Fed eral o r State, but are ex em p t fro m all ta x a tio n .n o w o r h ere a fter im p osed on the prin cip a l o r interest th ereof b y a n y State, o r any o f the p ossession 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 origin a lly s o ld b y th e U nited 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 the a m ou n t o f dis co u n t at w h ich bills issued hereun der are s o ld is n ot co n sid ered to a ccru e until such bills are sold , red eem ed o r oth erw ise d is p osed o f, and such bills are exclu d ed fr o m con sid era tio n 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 com p a n ies) issued hereun 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 origin a l issue or on su b seq u en t pur chase, and the a m ou n t actu ally receiv ed either u pon sale o r redem ption at m aturity 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 C ircu lar N o . 418, R evised , and this n otice, prescrib e the term s o f the T r e a s u ry bills and g o v e rn the con d ition s o f th eir issue. C op ies o f the circular m a y be obtain ed fro m any Federal R e serv e B ank o r B ran ch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, November 9, 1959, at the Securities Department o f its Head Office and at its Buffalo Branch. Tender forms fo r 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 of the last offering of Treasury bills (91-day bills to be issued November 5, 1959, representing an additional amount of bills dated August 6, 1959, and maturing February 4, 1960; and 182-day bills dated November 5, 1959, maturing May 5, 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 NOVEMBER 5, 1959) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing February 4,1960 Approx. equiv. annual rate Price Approx. equiv. annual rate 98.971“ 4.071% 97.785 4.381% ....................... ........ 98.947 4.166% 97.733 4.484% ................. ........ 98.954 4.137% 97.757 4.437% Price ........ High L ow 182-Day Treasury Bills Maturing May 5, 1960 Average a E xcep tin g one tender o f $787,000. (20 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (48 percent o f the amount o f 182-day bills bid fo r at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing February 4, 1960 Applied for District Boston ............................ $ 24,023,000 182-Day Treasury Bills Maturing May 5, 1960 Accepted $ 14,023,000 Applied for $ 1,921,000 Accepted $ 1,921,000 New Y ork ..................... 1,460,904,000 630,394,000 576,038,000 275,438,000 Philadelphia ................... 27,220,000 17,220,000 7,010,000 2,010,000 Cleveland ....................... 39,086,000 39,086,000 11,866,000 11,866,000 R ic h m o n d ........................ 12,296,000 12,296,000 1,864,000 1,864,000 Atlanta ............................ 25,973,000 25,973,000 8,679,000 8,279,000 .......................... 197,999,000 143,199,000 77,702,000 52,202,000 St. Louis ........................ 21,187,000 21,187,000 4,850,000 4,850,000 Minneapolis ................... 13,703,000 13,523,000 1,977,000 1,977,000 Kansas C i t y ................... . . 34,434,000 26,434,000 5,067,000 4,967,000 Dallas .............................. 17,544,000 17,544,000 5,235,000 4,820,000 San Francisco ............... 57,107,000 39,227,000 29,837,000 29,837,000 Totals ............. $1,931,476,000 Chicago $1,000,106,000b b Includes $213,657,000 noncompetitive tenders accepted at the average price o f 98.954. c Includes $44,645,000 noncompetitive tenders accepted at the average price o f 97.757. $732,046,000 $400,031,000°
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