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F E D E R A L R E S E R V E B A N K O F NEW Y O R K
Fiscal A gen t o f the U nited States
rCircular No. 5 5 9 4 1
December 29, 1964 J

1
»

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,100,000,000 o f 91-Day Bills, Additional Amount, Series Dated October 8, 1964, Due April 8, 1965
(T o Be Issued January 7, 1965)
$1,000,000,000 o f 182-Day Bills, Dated January 7, 1965, Due July 8, 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 Standard time:
The
tenders
amount
change
amount

Treasury Department, by this public notice, invites
for two series of Treasury bills to the aggregate
of $2,100,000,000, or thereabouts, for cash and in ex­
for Treasury bills maturing January 7, 1965, in the
of $2,100,338,000, as follows:

91-day bills (to maturity date) to be issued January 7,
1965, in the amount of $1,100,000,000, or thereabouts,
representing an additional amount of bills dated
October 8, 1964, and to mature April 8, 1965, originally
issued in the amount of $901,176,000, the additional
and original bills to be freely interchangeable.
182-day bills, for $1,000,000,000, or thereabouts, to be
dated January 7, 1965, and to mature July 8, 1965.
The bills of both series will 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. They will be issued in bearer form only, and
in denominations of $1,000, $5,000, $10,000, $50,000, $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 p.m., Eastern
Standard time, Monday, January 4, 1965. Tenders will not
be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case
of competitive tenders the price offered must be expressed on
the basis of 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 forms and forwarded in the special
envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Banking institutions generally may submit tenders for
account of customers, provided the names of the customers
are set forth in such tenders. Others than banking institu­
tions will not be permitted to submit tenders except for their
own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible
and recognized dealers in investment securities. Tenders from
others must be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an
incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which

public announcement will be made by the Treasury Depart­
ment of the amount and price range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejec­
tion thereof. The Secretary of the Treasury expressly re­
serves the 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
for each issue for $200,000 or less without stated price from
any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids for the
respective issues. Settlement for accepted tenders in accord­
ance with the bids must be made or completed at the Federal
Reserve Bank on January 7, 1965, in cash or other im­
mediately available funds or in a like face amount of Treasury
bills maturing January 7, 1965. Cash and exchange tenders
will receive equal treatment. Cash adjustments will be made
for differences between the par value of maturing bills ac­
cepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest
or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code of 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exempt from all
taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United
States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the United States is considered to be inter­
est. Under Sections 454(b) and 1221(5) of the Internal Rev­
enue Code of 1954, the amount of discount at which bills
issued hereunder are sold is not considered to accrue until
such bills are sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life
insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid
for 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 for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision)
and this notice prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular
may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, January 4,
1965, 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. P aym ent for the Treasury bills cannot be made by credit through the Treasury T ax and

Loan Account. Settlem ent must be made in cash or other im m ediately available funds or in maturing Treasury bills.
Results of the last weekly offering of Treasury bills (91-day bills to be issued December 31, 1964, representing
an additional amount of bills dated October 1, 1964, and maturing April 1, 1965; and 182-day bills dated December 31,
1964, maturing July 1, 1965) are shown on the reverse side of this circular.


19 14


A lfred H

ayes,

President.
(over)

F I F T I E T H

A N N I V E R S A R Y

1 9

6 4

RESULTS OF LAST W E E K L Y OFFERING OF TREASURY BILLS (TW O SERIES
TO BE ISSUED DECEMBER 31, 1964)

Range of Accepted Competitive Bids
91-D ay Treasury Bills
M aturing A p ril 1, 1965
Approx. equiv.
annual rate

Price

High

182-D ay Treasury Bills
M aturing July 1 ,1 9 6 5

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

Price

Approx. equiv.
annual rate

3.853%

98.004

3.948%

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

99.021

3.873%

97.998

3.960%

Average

99.023

3.867% 1

97.999

3.957% x

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

1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide yields
of 3.96 percent for the 91-day bills, and 4.09 percent for the 182-day bills. Interest rates on bills are quoted in terms of bank
discount, with the return related to the face amount of the bills payable at maturity rather than the amount invested, and their
length in actual number of days related to a 360-day year. In contrast, yields on certificates, notes, and bonds are computed
in terms of interest on the amount invested, and relate the number of days remaining in an interest payment period to the
actual number of days in the period, with semiannual compounding if more than one coupon period is involved.

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

(95 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-D ay Treasury Bills
M aturing A p ril 1, 1965
District

Accepted

Applied for

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

$

35,987,000

182-Day Treasury Bills
M aturing July 1, 1965

$

33,497,000

Accepted

Applied for

$

10,096,000

$

4,096,000

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

1,607,174,000

776,186,000

1,585,753,000

800,701,000

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

26,284,000

11,284,000

9,851,000

4,851,000

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

27,115,000

27,115,000

58,283,000

22,083,000

Richmond ................. .........

22,077,000

19,837,000

16,275,000

6,225,000

Atlanta

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

44,043,000

35,909,000

33,443,000

25,846,000

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

288,254,000

135,574,000

193,428,000

57,408,000

St. L o u is ..................... ........

42,847,000

35,779,000

16,535,000

14,535,000

Minneapolis

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

17,922,000

13,442,000

7,994,000

5,319,000

Kansas City ............... ____

24,530,000

22,530,000

18,681,000

15,874,000

D allas............................ ____

41,231,000

23,511,000

21,135,000

7,735,000

San Francisco ...........

87,583,000

66,015,000

67,239,000

37,301,000

Cleveland

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

$2,265,047,000

$1,200,679,000*

a Includes $233,521,000 noncompetitive tenders accepted at the average price of 99.023.
b Includes $97,594,000 noncompetitive tenders accepted at the average price of 97.999.




$2,038,713,000

$1,001,974,000b

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