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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 R K Fiscal Agent of the United States r C ir c u la r N o. 4 8 1 9 1 L D e c e m b e r S, 1959 J OFFERING OF TW O SERIES OF TREASURY BILLS $1,200,000,000 o f 91-Day Bills, Additional Amount, Series Dated Sept. 10, 1959, Due March 10,1960 (To Be Issued December 10, 1959) $500,000,000 o f 182-Day Bills, Dated December 10, 1959, Due June 9, 1960 T o A ll Incorporated Batiks and Trust Companies, and Others 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, December 3, 1959: T he Treasury Department, by this public notice, invites tenders fo r tw o series o f Treasury bills to the aggregate amount o f $1,700,000,000, o r thereabouts, fo r cash and in exchange for Treasury bills maturing Decem ber 10, 1959, in the amount o f $1,700,167,000, as fo llo w s : 91-day bills (to maturity date) to be issued Decem ber 10, 1959, in the amount o f $1,200,000,000, or thereabouts, representing an additional amount o f bills dated Sep tember 10, 1959, and to mature M arch 10, 1960, originally issued in the amount o f $400,094,000, the additional and original bills to be freely interchangeable. 182-day bills, fo r $500,000,000, or thereabouts, to be dated Decem ber 10, 1959, and to mature June 9, 1960. T he bills o f both series will be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount w ill be payable without interest. They w ill be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o ’clock p.m., Eastern Standard time, M onday, December 7, 1959. Tenders will not be received at the Treasury Department, W ashington. Each tender must be fo r an even multiple o f $1,000, and in the case o f 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 may not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied b y Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to .subm it tenders except for their ow n a ccou n t Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in in vestment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied fo r, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcement w ill be made by the Treasury Department o f the amount and price range o f accepted bids. Those sub mitting tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders fo r $200,COO o r less fo r the additional bills dated September 10, 1959, (91 days re maining until maturity date on M arch 10, 1960) and noncom petitive tenders fo r $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 decim als) o f accepted competitive bids for the respective issues. Settlement fo r accepted tenders in accordance with the bids must be made o r completed at the Federal Reserve Bank on Decem ber 10, 1959, in cash o r other immediately available funds o r in a like face amount o f Treasury bills maturing Decem ber 10, 1959. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made fo r differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. T he income derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exemption, as such, and loss from the sale o r other disposition o f Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code o f 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxa tion now o r hereafter imposed on the principal o r interest thereof by any State, o r any o f the possessions o f the United States, or by any local taxing authority. F o r purposes o f taxa tion the amount o f discount at which Treasury bills are originally sold by the United States is considered to be interest Under Sections 4 5 4 (b ) and 1221(5) o f the Internal Revenue Code o f 1954 the amount o f discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed o f , and such bills are excluded from consideration as capital assets. A ccordin gly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid fo r such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale o r redemption at maturity during the taxable year for which the return is made, as ordinary gain o r loss. Treasury Department Circular N o. 418, Revised, and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, December 7, 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 form s 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 December 3, 1959, representing an additional amount of bills dated September 3, 1959, and maturing March 3, 1960; and 182-day bills dated December 3, 1959, maturing June 2, 1960) are shown on the reverse side of this circular. A lfred H ayes, President. (o v e r ) RESULTS OF LAST O FFER IN G OF T R E A SU R Y BILLS (TW O SERIES ISSUED D E C E M B E R 3, 1959) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing June 2,1960 PI-Day Treasury Bills Maturing March 3, 1960 A p p rox. equiv. annual rate P rice P r ice A p p rox. equiv. annual rate H ig h ........................................ 98.875» 4.451% 97.540b 4.866% L ow ........................................ 98.853 4.538% 97.514 4.917% A v e r a g e .............................. .. 98.862 4.501% 97.527 4.891% * E xcepting fou r tenders totaling $1,490,000. b E xcepting tw o tenders totaling (90 percent o f the amount o f 91-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (3 9 percent o f the amount o f 182-day bills bid fo r at the low price was accepted.) (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing March 3, 1960 D istrict A pplied f o r Boston ............ ....................... .............. ......................... $ 18,176,000 182-Day Treasury Bills Maturing June 2 ,1960 A ccepted $ $310,000. 18,176,000 A pplied f o r $ 5,901,000 A ccepted $ 5,901,000 1,372,265,000 725,665,000 568,624,000 284,414,000 30,695,000 18,695,000 8 , 112,000 3,112,000 Cleveland........ ....................... 34,240,000 34,240,000 35,471,000 27,421,000 Richmond ...... ....................... 16,810,000 14,810,000 3,181,000 3,181,000 A tlan ta............ ....................... 26,250,000 24,850,000 3,568,000 2,968,000 Chicago .......... ....................... 183,812,000 134,212,000 60,065,000 33,065,000 St. Louis ........ ....................... 16,931,000 16,931,000 3,325,000 3,325,000 .............. 9,922,000 8,922,000 4,306,000 2,806,000 Kansas City ......................... 31,796,000 24,796,000 5,035,000 4,635,000 D allas.............. ....................... 17,497,000 17,497,000 2,806,000 2,806,000 San Francisco ....................... 63,777,000 61,277,000 33,012,000 26,512,000 Total ....................... $1,822,171,000 N ew Y o r k ..... Philadelphia Minneapolis .... $1,100,071,000c c Includes $200,762,000 noncompetitive tenders accepted at the average price o f 98.862. d Includes $35,607,000 noncompetitive tenders accepted at the average price o f 97.527. $733,406,000 $400,146,000d
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