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FEDERAL

RESERVE

BANK O F N EW

YORK
r C ircular N o . 4 9 3 3 1
L S eptem ber 7 , 1 9 6 0 J

Fiscal Agent o f the United States

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,100,000,000 of 91-Day Bills, Additional Amount, Series Dated June 16, 1960, Due Dec. 15, 1960
(To Be Issued September 15, 1960)
$500,000,000 of 182-Day Bills, Dated September 15, 1960, Due March 16, 1961
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

F ollow in g is the text o f a notice issued by the T reasury Department, released fo r publication today at 4 p.m.,
Eastern D aylight Saving tim e:
T h e T re a su ry D epa rtm en t, b y this p u b lic n otice, invites
ten ders fo r tw o series o f T rea su ry bills t o the a g g reg a te am ou nt
o f $1,600,000,000, o r th ereabouts, fo r cash and in ex ch a n g e fo r
T re a su ry bills m aturing S ep tem ber 15, 1960, in the a m ou n t o f
$1,600,246,000, as fo llo w s :
9 1-d ay bills (to m atu rity da te) to be issued S ep tem ber 15,
1960, in the a m ou n t o f $1,100,000,000, or thereabouts,
rep resen tin g an addition al a m ou n t o f bills dated June
16, 1960, and to m ature D ecem b er 15, 1960, origin a lly
issued in the a m ou n t o f $500,036,000, the addition al and
o rigin a l bills t o be fre e ly interchangeable.
182-day bills, fo r $500,000,000, o r th ereabouts, t o be dated
S ep tem ber 15, 1960, and to m ature M a rch 16, 1961.
T h e bills o f b o th series w ill be issued on a d iscou n t basis
u nder co m p etitive and n o n com p etitive b id d in g as h ereinafter p r o ­
vided, and at m aturity th eir fa ce a m ou n t w ill be p ayable w ith ou t
interest. T h e y w ill be issued in bearer fo r m o n 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 e rs w ill be re ce iv ed at F ed eral R eserve Banks and
B ra n ch es up to the clo s in g h our, on e-th irty o ’ c lo c k p.m ., E astern
D a yligh t S a vin g tim e, M o n d a y , S ep tem ber 12, 1960. T en d ers w ill
n ot be received at the T re a su ry D epa rtm en t, W a s h in g to n . E ach
ten der m u st be fo r an even m ultiple o f $1,000, and in the case o f
com p etitive tenders th e price offered m ust be exp ressed on the
basis o f 100, w ith n o t m o re than three decim als, e.g., 99.925.
F ra ctio n s m a y n o t b e used. It is u rg ed that ten ders b e m ade on
the printed fo rm s and fo rw a rd ed in the special en velop es w h ich
w ill be supplied b y Federal R eserve B anks o r B ra n ch es on
a pp lication th erefor.
O th e rs 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 dep osit fr o 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 fro m oth ers m u st b e a ccom p a n ied b y pay­
m e n t o f 2 p e rce n t o f th e fa ce a m ou n t o f T rea su ry bills applied
fo r, unless th e ten ders are a ccom p a n ied b y an exp ress guaranty
o f p a y m e n 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 th e clo s in g h our, ten ders w ill be op en ed at
the F ed eral R e se rve B anks and B ran ches, fo llo w in g w hich public
a n n ou n cem en t w ill b e m ade b y the T rea su ry D ep a rtm en t o f the
a m ou n t and p rice ra n ge o f a ccep ted bids. T h o s e subm itting
ten ders w ill be a d vised o f the a ccep ta n ce o r re je ctio n thereof.

T h e S ecreta ry o f th e T rea su ry ex p ressly reserves the rig h t to
a cce p t o r re je c t a n y o r all ten ders, in w h o le o r in part, and his
a ction in a n y such resp ect shall be final. S u b je ct to these reser­
vations, n on com p etitiv e ten ders f o r $200,000 or less fo r the add i­
tional bills dated June 16, 1960, (91 days rem ain in g until m a ­
turity date on D e ce m b e r 15, 1960) and n on com p etitive tenders
fo r $100,000 o r less fo r the 182-day bills w ith ou t stated price fro m
a n y o n e b id d er w ill be a ccep ted in full at th e a vera ge p r ice (in
three decim a ls) o f a ccep ted com p etitiv e bids f o r th e respective
issues. Settlem ent f o r a ccep ted ten ders in a cco rd a n ce w ith the
b id s m u st be m a d e o r com p leted at the F ed era l R e serv e Bank
o n S ep tem ber 15, 1960, in cash o r oth er im m ediately available
fu n ds o r in a like face a m ou n t o f T rea su ry bills m a tu rin g S e p ­
tem ber 15, 1960. Cash and ex ch a n g e ten ders w ill receive equal
treatm ent. Cash adjustm ents w ill be m ade fo r d ifferen ces b e ­
tw een the par valu e o f m aturing 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 r e a s u ry bills, w h eth er interest o r
gain fr o m the sale o r oth er d isp osition o f th e bills, d o e s n o t have
a n y exem ption , as such, and loss fr o m th e sale o r oth er d isp osi­
tion o f T rea su ry bills d o e s n o t have a n y special treatm ent, as
such, u nder the Internal R even u e C o d e o f 1954. T h e bills are
su b ject to estate, inheritance, g ift or oth er e x cis e taxes, w hether
Fed eral o r State, but are exem p t fro m all taxation n o w o r h e re ­
after im p osed on the principal o r interest th ereof b y a n y State,
o r a n y o f the p ossession s o f th e U n ited States, o r b y a n y lo ca l
taxing authority. F o r pu rp oses o f taxation the a m ou n t o f dis­
co u n t at w h ich T rea su ry bills are o rigin a lly sold b y th e U n ited
States is con sid ered t o be interest. U n d er S ection s 4 5 4 (b ) and
1221(5) o f th e In tern al R even u e C o d e o f 1954 the a m ou n t o f dis­
cou n t at w h ich bills issued hereun der are sold is n ot co n sid ered
to a ccru e until such bills are sold, red eem ed o r oth erw ise dis­
posed o f, and such bills are exclu d ed fro m con sidera tion as
capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (o th e r
than life in su rance co m p a n ie s ) issued hereun der need in clu d e in
his in co m e ta x return o n ly the differen ce betw een the price paid
fo r such bills, w h eth er on original issue or on su b seq u en t p u r­
chase, and the a m ou n t actu a lly receiv ed either u pon sale or
red em ption at m aturity d u rin g the taxable yea r fo r w h ich the
return is m ade, as ord in a ry gain or 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 rea su ry bills a n d g o v e rn the
co n d itio n s o f their issue. C op ies o f the circu la r m a y be obtain ed
fr o m a n y F ed era l R es e rv e B a n k or B ranch.

T h is Bank will receive tenders fo r both series up to 1 :30 p.m., Eastern Daylight Saving time, M onday, September
12, I960, at the Securities Department o f its H ead Office and at its B uffalo Branch. T ender form s fo r the respective
series are enclosed. Please use the appropriate form s to submit tenders and return them in an envelope marked “ Tender
fo r T reasu ry Bills.” Tenders may be submitted by telegraph, subject to written confirm ation; they may not be submitted
b y telephone. P a ym en t f o r the T rea su ry bills cannot be m ade b y credit through the T reasury T a x and L oan A ccount.
S ettlem en t m ust be made in cash or oth er im m ediately available fu n d s o r in m aturing T rea su ry bills.

Results o f the last offering o f Treasury bills (91-day bills to be issued September 8, 1960, representing an additional
amount o f bills dated June 9, 1960, and maturing December 8, 1960; and 182-day bills dated September 8, 1960, matur­
ing March 9, 1961) are shown on the reverse side o f 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
SEPTEMBER 8, 1960)

Range of Accepted Competitive Bids
91-D ay T rea su ry Bills

1 8 2 -D a y T rea su ry Bills

M aturing D ece m b er 8 ,1 9 6 0

M a tu rin g M a rch 9 ,1 9 6 1

Price

Approx. equiv.
annual rate

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

99.371

2 .4 8 8 %

98.590

2 .7 8 9 %

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

99.358

2.5 4 0 %

98.581

2 .8 0 7 %

A verage

99.363

2 .5 2 0 % 1

98.584

2 .8 0 2 % !

H ig h

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

Price

Approx. equiv.
annual rate

1 O n a co u p o n issue o f the sam e len gth and fo r the sam e a m ou n t invested, the return on these bills w ou ld provide
yield s o f 2.57 p ercen t fo r the 91-day bills, and 2.88 percent fo r the 182-day bills. In terest rates on bills are qu oted in
terms o f bank discount, with the return related to the face amount o f the bills payable at maturity rather than the
am ou nt invested, and their len gth in actual n u m ber o f days related to a 360-day year. In con trast, yield s o n certificates,
n otes, and b o n d s are com p u ted in term s o f interest on the am ou nt invested, and relate the n um ber o f days rem ainin g in
an interest p a y m en t p eriod to the actual n u m ber o f days in the period, w ith sem iannual c o m p o u n d in g if m ore than one
co u p o n p eriod is in volved.

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

(4 5 percent o f the am ount o f 182-day bills

bid fo r at the low price was accepted.)

bid fo r at the lo w price was accepted.)

Total Tenders Applied for and Accepted ( B y Federal Reserve Districts)
91-D ay T reasury Bills
M aturing D ecem b er 8 ,1 9 6 0
Applied for

District
B oston

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

$

1 82-D ay T reasury Bills
M atu rin g M arch 9, 1961
Applied for

21,867,000

Accepted
$

21,867,000

$

11,993,000

Accepted
$

1,893,000

N ew Y o r k .......................

1,562,601,000

776,825,000

1,086,897,000

333,327,000

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

24,997,000

9,770,000

6,744,000

1,563,000

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

28,147,000

21,347,000

38,789,000

4,189,000

R ic h m o n d .........................

15,090,000

10,739,000

12,648,000

1,648,000

Atlanta ..............................

18,664,000

16,749,000

4,430,000

3,120,000

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

200,519,000

131,714,000

117,758,000

86,171,000

St. L ou is .........................

14,381,000

12,381,000

8,237,000

2,237,000

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

10,113,000

9,308,000

1,975,000

1,675,000

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

29,166,000

27,007,000

21,163,000

8,518,000

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

16,560,000

15,530,000

7,603,000

1,603,000

San F r a n c i s c o ................

52,177,000

47,004,000

85,594,000

54,744,000

C hicago

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

$1,994,282,000

$1,100,241, 000*

$1,403,831,000

a Includes $178,386,000 noncompetitive tenders accepted at the average price of 99.363.
t>Includes $39,861,000 noncompetitive tenders accepted at the average price of 98.584.




$500,688,000b

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