The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r C i r c u la r N o . 4 9 3 1 1 L A u g u st 29, 19 60 1 OFFERING OF TWO SERIES OF TREASURY BILLS $1,100,000,000 of 91-Day Bills, Additional Amount, Series Dated June 9, 1960, Due Dec. 8, 1960 (To Be Issued September 8, 1960) $500,000,000 of 182-Day Bills, Dated September 8, 1960, Due March 9, 1961 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 T reasury Department, released 4 p.m ., Eastern D aylight Saving tim e: The 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, for cash and in exchange for Treasury bills maturing September 8, 1960, in the amount o f $1,600,265,000, as fo llo w s : 91-day bills (to maturity date) to be issued September 8, 1960, in the amount o f $1,100,000,000, or thereabouts, repre senting an additional amount o f bills dated June 9, 1960, and to mature December 8, 1960, originally issued in the amount o f $500,067,000, the additional and orig inal bills to be freely interchangeable. 182-day bills, fo r $500,000,000, or thereabouts, to be dated September 8, 1960, and to mature M arch 9, 1961. The bills o f both series will be issued on a discount basis under competitive 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o ’clock p.m., Eastern Daylight Saving time, Friday, September 2, 1960. Tenders w ill not be re ceived 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 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 fro m 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 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 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 he Secretary o f the Treasury expressly reserves the fo r publication today at right to accept or reject any or all tenders, in whole 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 June 9, 1960, (91 days re maining until maturity date on Decem ber 8, 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 decimals) 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 September 8, 1960, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 8, 1960. 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 or 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 exem pt 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 ccordingly, the ow ner o f Treasury bills (oth er than life insurance com 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 may be obtained from any Federal Reserve Bank o r Branch. T h is Bank will receive tenders fo r both series up to 1 :30 p.m ., Eastern Daylight Saving time, Friday, S ep tem ber 2, 1960, at the Securities Department o f its H ead O ffice and at its B uffalo Branch. T ender form s 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. P a ym en t f o r the T reasury bills cannot be made b y credit through the T rea su ry T a x and Loan A ccou n t. S ettlem en t must be made in cash o r oth er im m ediately available fu n d s o r in m aturing T reasury bills. T his circular was printed b efore the results o f the bidding fo r T reasury bills to be issued Septem ber 1, 1960, were available; those results will be announced a fter release by the Treasury Department. A lfred H ayes, P resident. Closing date for receipt of tenders is Friday, September 2.
@FedFRASER