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FED ERAL RESERVE BANK O F N EW YORK Fiscal Agent o f the United States [ C ir cu la r N o. 4 8 5 4 F e b r u a r y 16, 1900 I OFFERING OF TWO SERIES OF TREASURY BILLS $1,200,000,000 of 91-Day Bills, Additional Amount, Series Dated Nov. 27, 1959, Due May 26,1960 (To Be Issued February 25, 1960) $400,000,000 of 182-Day Bills, Dated February 25, 1960, Due August 25, 1960 T o A ll Incorporated Banks and Trust 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, Tuesday, February 16, 1960: 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 $1,600,000,000, o r thereabouts, fo r cash and in exchange for T reasury bills maturing February 25, 1960, in the amount o f $1,600,274,000, as fo llo w s : 91-day bills ( t o maturity date) to be issued February 25, 1960, in the amount o f $1,200,000,000, or thereabouts, representing an additional amount o f bills dated N ovem ber 27, 1959, and to mature M ay 26, 1960, originally issued in the amount o f $400,058,000, the additional and original bills to be freely interchangeable. 182-day bills, fo r $400,000,000, or thereabouts, to be dated February 25, 1960, and to mature August 25, 1960. T he bills o f both series w ill be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. T h ey 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o ’clock p.m.. Eastern Standard time, Friday, February 19, 1960. Tenders w ill 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 w ill be supplied b y Federal Reserve Banks or Branches on application therefor. Others than banking institutions w ill not be permitted to submit tenders except fo r their ow n account. 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 will be made b y the Treasury Department o f the amount and price range o f accepted bids. Those sub mitting tenders will be advised o f the acceptance or rejection thereof. T he 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 $200,000 o r less fo r the additional bills dated Novem ber 27, 1959, (91 days re maining until maturity date on M ay 26, 1960) and noncom petitive tenders fo r $100,000 or less for the 182-day bills without stated price from any one bidder w ill be accepted in fu ll 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 or completed at the Federal Reserve Bank on February 25, 1960, in cash o r other immediately available funds o r in a like face amount o f Treasury bills maturing February 25, 1960. Cash and exchange tenders w ill receive equal treatment. Cash adjustments w ill 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 fro m Treasury bills, whether interest or gain from the sale o r 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, g ift or other excise taxes, whether Federal or State, but are exempt from all taxa tion now or hereafter imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. F or 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 ow ner o f Treasury bills (oth er than life insurance co m panies) issued hereunder need include in his income ta x 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 or redemption at maturity during the taxable year fo r which the return is made, as ordinary gain or 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 o r Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Friday, February 19, 1960, 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 for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment fo 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 maturinq Treasury bills. This circular was printed before the results o f the bidding fo r Treasury bills to be issued February 18, 1960, were available; those results will be announced after release by the Treasury Department. A lfred H ayes, President. Closing date for receipt of tenders is Friday, February 19. T H E S E C R E T A R Y O F T H E T R E A S U R Y W A SHIN G TO N January 25, i960 To Banks and Other Financial Institutions: The Treasury Department has summarized on a Jx5 card the revised instructions of August 3 , 1959/ for the report ing of large and unusual currency transactions on Form TCR-1, Report of Currency Transactions. A supply of these reminder cards is being furnished to you for distribution to your tellers. These cards, when placed in tellers' cages, will serve not only as a reminder to the teller of the importance of these reports to the Treasury but will also keep before him the types of transactions that should be reported. Your cooperation in distributing these cards to tellers and your continued assistance in this program is very much appreciated.* •cretary of the Treasury * Additional cards nay be obtained from the District Directors of Internal Revenue located in the twelve principal Federal Reserve Bank cities. C U R R E N C Y TR A N S A C TIO N REPO RTS IN STR U CTIO N S U> S. T reasu ry Form s T C R -1 are to b e prepared for cu rren cy tra n s a ctio n s in the fo llo w in g am ounts: 1. $ 2 ,5 0 0 or more United S ta tes cu rrency in den om in a tion s o f $100 or higher; 2. $ 1 0 ,0 0 0 or more U nited States cu rrency in any den om in a tion s, and 3. A n y amount in any den om in ation s, w hich in th e judgm ent o f th e fin a n cia l in stitu tion e x c e e d th o s e com m ensurate w ith th e cu stom ary co n d u ct o f th e b u s in e s s , industry or p r o fe s s io n o f the p e rso n or o rga n iza tion co n ce rn e d . R e p o rts are to b e file d by the 15th day o f the month fo llo w in g that in w hich the reported tra n s a ctio n s o c c u r , w ith the F ed era l R e s e r v e Bank o f th e d is trict in w h ich the rep ortin g fin a n cia l in stitu tion is lo c a t e d . C o p ie s o f the form may be o b ta in e d from any F e d e ra l R e s e r v e Bank. U . S. T R E A S U R Y D E P A R T M E N T 6P0 a 8 7 « > ° IRS Document No. 5248 (1-60)
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