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FEDERAL RESERVE BANK O F NEW YORK
Fiscal Agent of the United States

r C i r c u la r N o . 4 9 1 4 1
L
J u ly 2 0 , I 9 6 0
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,000,000,000 of 91-Day Bills, Additional Amount, Series Dated Apr. 28, 1960, Due Oct. 27, 1960
(To Be Issued July 28, 1960)
$400,000,000 of 182-Day Bills, Dated July 28, 1960, Due January 26, 1961
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m.,
Eastern Daylight Saving tim e:
T h e Treasury Department, by this public notice, invites
tenders for tw o series o f Treasury bills to the aggregate amount
o f $1,400,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing July 28, 1960, in the am ount of
$1,401,176,000, as follow s:
91-day bills (to maturity date) to be issued July 28, 1960,
in the amount o f $1,000,000,000, or thereabouts, repre­
senting an additional amount o f bills dated April 28,
1960, and to mature O ctober 27, 1960, originally issued
in the amount o f $400,225,000, the additional and orig­
inal bills to be freely interchangeable.
182-day bills, for $400,000,000, o r thereabouts, to be dated
July 28, 1960, and to mature January 26, 1961.
T h e bills o f both series w ill be issued on a discount basis
under com petitive and noncom petitive bidding as hereinafter pro­
vided, and at maturity their face amount w ill be payable without
interest. T h ey will be issued in bearer form only, and in de­
nominations o f $1,000, $5,000, $10,000, $100,000, $500,000 and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty o ’ clock p.m., Eastern
Daylight Saving time, M onday, July 25, 1960. Tenders will not be
received at the Treasury Department, W ashington. Each tender
m ust be for 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 m ore 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 forwarded in the special envelopes which
w ill be supplied by Federal Reserve Banks or Branches on
application therefor.
Others than banking institutions w ill not be permitted to
submit tenders except for their ow n account. Tenders w ill be
received without deposit from incorporated banks and trust co m ­
panies and from responsible and recognized dealers in investment
securities. Tenders from others must be accom panied by pay­
ment o f 2 percent o f the face am ount o f Treasury bills applied
for, unless the tenders are accom panied b y an express guaranty
o f payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, follow in g which public
announcement w ill be made by the Treasury Departm ent o f the
amount and price range o f accepted bids. T h ose submitting
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 o r all tenders, in w hole or in part, and his
action in any such respect shall be final. Subject to these reser­
vations, noncom petitive tenders for $200,000 or less for the addi­
tional bills dated April 28, 1960, (91 days remaining until
maturity date on O ctober 27, 1960) and noncompetitive tenders
for $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 decimals) o f accepted com petitive bids for the respective
issues. Settlement for accepted tenders in accordance with the
bids must be made or com pleted at the Federal Reserve Bank
on July 28, 1960, in cash or other immediately available funds
or in a like face amount o f Treasury bills maturing July 28,
1960. Cash and exchange tenders will receive equal treatment.
Cash adjustments w ill be made for differences between the par
value o f maturing bills accepted in exchange and the issue price
o f the new bills.
T h e incom e 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 or other disposi­
tion o f Treasury bills does not have any special treatment, as
such, under the Internal Revenue Code o f 1954. T he bills are
subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exempt from all taxation n ow or here­
after im posed on the principal or interest thereof by any State,
or any o f the possessions o f the United States, o r b y any local
taxing authority. F or purposes o f taxation the amount o f dis­
count at which Treasury bills are originally sold b y the United
States is considered to be interest. Under Sections 454(b) and
1221(5) o f the Internal Revenue Code o f 1954 the amount o f dis­
count at which bills issued hereunder are sold is not considered
to accrue until such bills are sold, redeemed or otherwise dis­
posed of, and such bills are excluded from consideration as
capital assets. A ccordin gly, the ow ner o f Treasury bills (other
than life insurance com panies) issued hereunder need include in
his incom e tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent pur­
chase, and the amount actually received either upon sale or
redemption at maturity during the taxable year for w hich the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 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 Daylight Saving time, Monday, July 25,
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 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 fo r the Treasury bills cannot be made by credit through the Treasury T a x 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 July 21, 1960, representing an additional
amount of bills dated April 21, 1960, and maturing October 20, 1960; and 182-day bills dated July 21, 1960, maturing
January 19, 1961) are shown on the reverse side of this circular.




A

l f r e d

H

a y e s

,

President.
(

over)

RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JULY 21, 1960)

Range o f A ccepted Competitive Bids
91-Day Treasury Bills
Maturing O ctober 20, 1960

182-Day Treasury Bills
Maturing January 19, 1961

Price

Approx. equiv.
annual rale

Price

High ......................... .........

99.423a

2 .2 8 3 %

98.684

2 .603%

L o w ........................... .........

99.410

2 .3 3 4 %

98.670

2 .6 3 1 %

.................. .........

99.417

2 .3 0 7 % 1

98.673

2 .6 2 5 % 1

Average

Approx. equiv.
annual rate

a E xceptin g one tender o f $4,268,000.
1 O n a coupon issue o f the same length and for the same amount invested, the return on these bills would provide
yields o f 2.35 percent for the 91-day bills, and 2.70 percent for the 182-day bills. Interest rates on bills are quoted in
terms o f bank discount with the return related to the face am ount o f the bills payable at maturity, rather than the
amount invested, and their length in actual number o f days related to a 360-day year. In contrast, yields on certificates,
notes, and bonds are com puted in terms o f interest on the amount invested, and relate the number o f days remaining in
an interest payment period to the actual number o f days in the period, with semiannual com pounding if m ore than one
coupon period is involved.

(5 9 percent o f the amount of 91-day bills

(14 percent of the amount of 182-day bills

bid for at the low price was accepted.)

bid for at the low price was accepted.)

T otal Tenders A pplied fo r and Accepted (B y Federal Reserve Districts)
91-Day Treasury Bills
Maturing October 20, 1960
Applied for

District
Boston

..............................

$

30,191,000

182-Day Treasury Bills
Maturing January 19, 1961

Accepted.
$

16,921,000

Applied for
$

3,756,000

Accepted
$

2,358,000

New Y o r k .......................

1,250,676,000

640,386,000

673,981,000

312,312,000

Philadelphia....................

28,119,000

12,719,000

6,848,000

1,698,000

Cleveland .........................

25,881,000

20,081,000

14,187,000

5,526,000

R ichm ond.........................

11,694,000

10,334,000

12,055,000

2,094,000

A t la n ta ..............................

19,362,000

14,568,000

3,745,000

2,631,000

...........................

195,128,000

127,218,000

93,732,000

40,861,000

St. Louis .........................

26,821,000

21,296,000

5,618,000

4,918,000

M inneapolis.....................

14,067,000

10,067,000

4,951,000

2,351,000

Kansas C i t y ....................

38,828,000

35,328,000

9,690,000

4,553,000

Dallas ................................

12,019,000

12,019,000

3,381,000

3,381,000

San F ran cisco................

81,156,000

79,204,000

37,508,000

17,380,000

Chicago

Total ..............

$1,733,942,000

$1,000,141,000b

$869,452,000

Includes $230,023,000 noncompetitive tenders accepted at the average price of 99.417.
c Includes $52,499,000 noncompetitive tenders accepted at the average price of 98.673.




$400,063,000°

At Circular No, U91U

F

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ew

Yo

B

ank

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REMINDER

Wrapped Coin Service To Be Discontinued October 1, 1960

You were informed by letter dated January 2 0, 1960, that this Bank would discontinue
furnishing wrapped coin as of October 1, 1960. This reminder is to notify you again of this fact.
If you plan to continue furnishing wrapped coin to your customers and have not completed
arrangements to continue the service, our Bank Relations Department will be glad to furnish
you with information about available wrapping equipment and to suggest simplified procedures
for its use.




Cash Department


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102