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FE D E R AL RESERVE BANK O F N E W YORK
Fiscal Agent of the United States
f Circular No. 5 5 2 2 1
July 22, 1964
J

L

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,200,000,000 o f 91-Day Bills, Additional Amount, Series Dated April 30,1964, Due October 29,1964
(To Be Issued July 30,1964)
$900,000,000 of 182-Day Bills, Dated July 30,1964, Due January 28,1965
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 time:
The
tenders
am ount
change
am ount

T reasu ry D epartm ent, by this public notice, invites
for tw o series of T reasu ry bills to the aggregate
of $2,100,000,000, or thereabouts, for cash and in e x­
for T reasu ry bills m aturing July 30, 1964, in the
of $2,001,550,000, as fo llo w s :

91-d a y bills (to m aturity date) to be issued July 30,
1964, in the am ount of $1,200,000,000, or thereabouts,
representing an additional am ount of bills dated
A p ril 30, 1964, and to mature O ctober 29, 1964, origi­
nally issued in the am ount of $900,482,000 (an addi­
tional $100,000,000 will be auctioned July 24 and will
be outstandin g July 2 9 ), the additional and original
bills to be freely interchangeable.
182-day bills, for $900,000,000, or thereabouts, to be
dated July 30, 1964, and to mature January 28, 1965.
T h e bills of both series will be issued on a discount basis
under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount will be payable
without interest. T h e y will be issued in bearer fo rm on ly , and
in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (m atu rity va lu e).
T enders will be received at Federal R eserve Banks and
Branches up to the closing hour, one-thirty p .m ., Eastern
D a yligh t Saving time, M on d ay, July 27, 1964. T en d ers will
not be received at the T reasu ry D epartm ent, W ash in g ton .
E ach tender m ust be for an even m ultiple of $1,000, and in
the case of com petitive tenders the price offered m ust be
expressed on the basis of 100, with not m ore than three
decimals, e.g., 99.925. Fractions m ay not be used. It is urged
that tenders be m ade on the printed form s and forw arded
in the special envelopes which will be supplied by Federal
R eserve Banks or Branches on application therefor.
B anking institutions generally m ay subm it tenders for
account of custom ers, provided the nam es of the custom ers
are set forth in such tenders. O thers than banking institu­
tions will not be perm itted to submit tenders except for their
ow n account. T en ders will be received w ithout deposit from
incorporated banks and trust com panies and from respon­
sible and recognized dealers in investm ent securities. T enders
from others m ust be accom panied by paym ent of 2 percent of
the face am ount of Treasury bills applied for, unless the
tenders are accom panied by an express guaranty of paym ent
by an incorporated bank or trust com pany.
Im m ediately after the closin g hour, tenders will be opened
at the Federal R eserve Banks and Branches, follow in g which
public announcem ent will be m ade by the T reasu ry D ep art­

m ent of the am ount and price range of accepted bids. T h o se
subm itting tenders will be advised of the acceptance or rejec­
tion thereof. T h e Secretary of the T re asu ry exp ressly re ­
serves 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, noncom petitive tenders
for $200,000 or less for the additional bills dated A pril
30, 1964 (91 days rem aining until m aturity date on O ctob er
29, 1964) and noncom petitive tenders for $100,000 or less
for the 182-day bills w ithout stated price from any one bidder
will be accepted in full at the average price (in three deci­
m als) of accepted com petitive bids for the respective issues.
Settlem ent for accepted tenders in accordance w ith the bids
m ust be m ade or com pleted at the Federal Reserve Bank
on July 30, 1964, in cash or other im m ediately available funds
or in a like face am ount of T re asu ry bills m aturing July 30,
1964. Cash and exchange tenders will receive equal treat­
ment. Cash adjustm ents will be m ade for differences be­
tween the par value of m aturing bills accepted in exchange
and the issue price o f the new bills.
T h e incom e derived from T reasury bills, w hether interest
or gain fro m the sale or other disposition of the bills, does
not have any exem ption, as such, and loss fro m the sale or
other disposition of T reasury bills does not have any special
treatment, as such, under the Internal R evenue Code of
1954. T h e bills are subject to estate, inheritance, gift or
other excise taxes, w hether Federal or State, but are exem pt
from all taxation now or hereafter im p osed on the principal
or interest thereof by any State, or any of the possessions
of the U nited States, or by any local taxing authority. F or
purposes of taxation the am ount of discount at w hich T re a s­
ury bills are originally sold by the U nited States is con­
sidered to be interest. U nder Sections 4 5 4 (b ) and 1 22 1(5)
of the Internal Revenue Code of 1954 the am ount of discount
at which bills issued hereunder are sold is not considered
to accrue until such bills are sold, redeem ed or otherw ise
disposed of, and such bills are excluded from consideration
as capital assets. A cco rd in gly , the ow ner of T reasury bills
(other than life insurance com panies) issued hereunder need
include in his income tax return only the difference between
the price paid for such bills, w hether on original issue or on
subsequent purchase, and the am ount actually received either
upon sale or redem ption at m aturity during the taxable year
for w hich the return is m ade, as ordinary gain or loss.
T reasu ry D epartm ent Circular N o . 418 (current revision)
and this notice prescribe the term s of the T reasu ry bills and
govern the conditions of their issue. Copies of the circular
m ay be obtained from any Federal R eserve B ank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, July
27, 1964, at the Securities Department of 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 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 July 23, 1964, representing an additional
amount of bills dated April 23, 1964, and maturing October 22, 1964; and 182-day bills dated July 23, 1964,
maturing January 21, 1965) are shown on the reverse side of this circular.


19


A

lfred

H

ayes

,

President.
( over)

14

FI FTI ETH

A N N I V E R S A R Y

19 6 4

RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED
JULY 23, 1964)

Range of Accepted Competitive Bids
182-Day Treasury Bills
Maturing January 21,1965

91-Day Treasury Bills
Maturing October 22,1964
Price

A pprox. equiv.
annual rate

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

99.128

3.450%

Low ............................ ........

99.112
99.115

High

Average ...................... ........

Price

Approx. equiz
annual rate

98.182a

3.596%

3.513%

98.159

3.642%

3.503%!

98.170

3.619%!

a E xcep tin g three tenders totaling $1,335,000.
1 O n a coupon issue of the sam e length and for the sam e am ount invested, the return on these bills w ould provide yields
o f 3.58 percent for the 91-day bills, and 3.74 percent for the 182-day bills. Interest rates on bills are quoted in terms of bank
discount, w ith the return related to the face am ount of the bills payable at m aturity rather than the am ount invested, and their
length in actual number of days related to a 360-d ay year. In contrast, yields on certificates, notes, and bonds are computed
in term s of interest on the am ount invested, and relate the num ber of days rem aining in an interest paym ent period to the
actual num ber of days in the period, w ith semiannual co m p ou n d in g if m ore than one coupon period is involved.

(31 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(13 percent of the amount of 182-day bills
bid for at the low price was accepted.)

Total Tenders Applied for and Accepted (By Federal Reserve Districts)
91-Day Treasury Bills
Maturing October 22,1964
District

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

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

Cleveland......................
Richmond

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

A tla n ta..........................

$

44,462,000

Applied for

Accepted

Applied for

Boston ..........................

182-Day Treasury Bills
Maturing January 21,1965

$

34,462,000

$

4,664,000

Accepted

$

4,664,000

1,497,218,000

819,978,000

978,876,000

618,826,000

41,076,000

16,076,000

8,858,000

3,858,000

22,522,000

25,168,000

25,168,000

9,906,000

4,835,000

4,835,000

28,090,000

8,394,000

8,394,000
75,411,000

22,522,000
9,906,000
34,188,000

Chicago ........................

174,282,000

105,744,000

126,411,000

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

32,673,000

24,300,000

9,663,000

7,663,000

14,562,000

5,649,000

5,649,000

30,501,000

8,289,000

8,289,000

18,300,000

4,359,000

4,359,000

76,384,000

147,975,000

132,975,000

$1,333,141,000

$900,091,000°

Minneapolis

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

Kansas City ................
D a lla s............................
San Francisco
Total

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

20,942,000
31,536,000
18,300,000
142,794,000
$2,069,899,000

$ 1,200,825,000b

b Includes $237,310,000 noncompetitive tenders accepted at the average price of 99.115.
c Includes $60,605,000 noncompetitive tenders accepted at the average price of 98.170.