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FEDERAL RESERVE BANK OF N EW YORK
Fiscal Agent of the United States
rCircular No. 6 0 8 9 T
U January 3, 1968 J

Offering of $2,500,000,000 of 161-Day Tax Anticipation Treasury Bills, Additional Amount
Dated October 9, 1967, Due June 24, 1968, To Be Issued January 15, 1968
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

The following statement was made public today by the Treasury Department:
The Treasury Department announced today the forthcoming auction of $2.5 billion of tax anticipation bills
maturing in June 1968. The bills are in addition to the $3 billion of June tax bills already outstanding.
The bills will be auctioned on Tuesday, January 9, for payment on Monday, January 15. Commercial banks
may make payment for the bills by crediting Treasury Tax and Loan Accounts.
The bills mature on June 24, 1968, but may be used at face value in payment of Federal taxes due on June 15,
1968.

Following is the text of the public notice offering the bills referred to in the above statement:
The Treasury Department, by this public notice, invites
tenders for $2,500,000,000, or thereabouts, of 161-day Treasury
bills (to maturity date), to be issued January 15, 1968, on a
discount basis under competitive and noncompetitive bidding
as hereinafter provided. The bills of this series will be desig­
nated tax anticipation series and represent an additional amount
of bills dated October 9, 1967, to mature June 24, 1968, originally
issued in the amount of $3,005,517,000. The additional and
original bills will be freely interchangeable. They will be ac­
cepted at face value in payment of income taxes due on June 15,
1968, and to the extent they are not presented for this purpose
the face amount of these bills will be payable without interest
at maturity. Taxpayers desiring to apply these bills in payment
of June 15, 1968, income taxes may submit the bills to a Federal
Reserve Bank or Branch or to the Office of the Treasurer of
the United States, Washington, not more than fifteen days
before that date. In the case of bills submitted in payment of
income taxes of a corporation they shall be accompanied by a
duly completed Form 503 and the office receiving these items
will effect the deposit on June 15, 1968. In the case of bills
submitted in payment of income taxes of all other taxpayers,
the office receiving the bills will issue receipts therefor, the
original of which the taxpayer shall submit on or before June 15,
1968, to the District Director of Internal Revenue for the Dis­
trict in which such taxes are payable. The bills 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, Tuesday, January 9, 1968. 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 institutions 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.
All bidders are required to agree not to purchase or to sell,
or to make any agreements with respect to the purchase or sale

or other disposition of any bills of this additional issue at a
specific rate or price, until after one-thirty p.m., Eastern Stand­
ard time, Tuesday, January 9, 1968.
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 Department
of the amount and price range of accepted bids. Those sub­
mitting tenders will be advised of the acceptance or rejection
thereof. The Secretary of the Treasury expressly reserves 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 $400,000 or less
without stated price from any one bidder will be accepted in
full at the average price (in three decimals) of accepted com­
petitive bids. Payment of accepted tenders at the prices offered
must be made or completed at the Federal Reserve Bank in
cash or other immediately available funds on January 15, 1968,
provided, however, any qualified depositary will be permitted
to make payment by credit in its Treasury Tax and Loan
Account for Treasury bills allotted to it for itself and its cus­
tomers up to any amount for which it shall be qualified in
excess of existing deposits when so notified by the Federal
Reserve Bank of its District.
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 taxa­
tion 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 interest.
Under Sections 454(b) and 1221(5) of the Internal Revenue
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 com­
panies) 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 m a y
be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Tuesday, January 9, 1968, at the
Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of
this circular to submit a tender, and return it in the enclosed blue envelope marked “ Tender for Treasury Bills— Tax
Anticipation Series.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be sub­
mitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds on
January 15, 1968, except that any qualified depositary may make payment by credit in its Treasury Tax and Loan
Account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified
in excess of existing deposits.
A l f r e d H a y e s , President.



( over)

No..............
T E N D E R F O R 161-DAY T R E A S U R Y BILLS, ADDITIONAL A M O U N T
TO BE DESIGNATED “ T A X ANTICIPATION SERIES”

Dated October 9, 1967, Due June 24, 1968, To Be Issued January 15, 1968
To

F ederal R

eserve

Ban k

of

N

ew

Y

ork,

Dated at ....................................................

Fiscal Agent of the United States,

..........................................................., 1968

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public notice issued by the Treasury Department and printed on the reverse side of this tender,
the undersigned hereby offers to purchase the above-described Treasury bills in the amount indicated below,
and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below:
COMPETITIVE TENDER

f
j

* * *J[in both Competitive and
N oncompetitive tenders on one form

$ ........................................................ (maturity value),
or any lesser amount that may be awarded.
P r ic e :.................................. per 100.
(Price must be expressed with not more than three
decimal places, for example, 99,925)

j
,

NONCOMPETITIVE TENDER

$ .........................................................( maturity value).
(Not to exceed $400,000 for one bidder through all sources)

At the average price of accepted competitive bids

Subject to allotment, payment for these bills will be made at your Bank on January 15, 1968, by cash or other
immediately available funds, or (in the case of a qualified depositary) by credit in Treasury Tax and Loan
Account.
W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale
or other disposition of any bills of this additional issue at a specific rate or price, until after one-thirty p.m.,
Eastern Standard time, Tuesday, January 9, 1968.
Name of subscriber..........................................................

Insert this tender
in blue envelope
marked “ Tender for
Treasury Bills —
Tax Anticipation Series”

(Please print)

}

By ......................................................................... .

By

Title ..................................................................... .

T i t l e ...........

\
j
j

A d d r e s s ..................... ..

..................... .. ....................... ................ ... .. f

(Banks submitting tenders for customer account must indicate name on line below, or attach a list)
(Name of customer)

(Note. Successful bidders will receive a letter of instructions form with their allotment notice to instruct us as to
the disposition of, and method of payment for, the bills allotted to them.)
IN S T R U C T IO N S :
1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000
(maturity value).
2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banks
submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate non­
competitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and
method of payment. Forms for this purpose will be furnished on request.
3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation
authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a
representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
member of the firm, who should sign in the form “ ........................................................................................... . a copartnership, by
........................................................................................................ . a member of the firm.”
4. 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.
5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury,
is material, the tender may be disregarded.




F

ederal

R eserve B a n k

of

New Y

1

ork

NOTICE OF ALLOTMENT
OF UNITED STATES OF AMERICA TREASURY BILLS
TA X ANTICIPATION SERIES

January 10, 1968

Your □

competitive □ noncompetitive tender for—
UNITED S T A T E S OF A M E R IC A 1 6 1-D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES
A D D IT IO N A L A M O U N T, SERIES D A T E D O C T O B E R 9, 1967, DUE JUNE 24, 1968
(T O BE ISSUED JA N U A R Y 15, 1 9 6 8 )

has been accepted at the price of

(per 100), in the amount of—

$

(maturity value)

Settlement therefor must be made in cash or other immediately available funds at the
Federal Reserve Bank of New York on or before January 15, 1968. However, a qualified deposi­
tary may make settlement by credit to its Treasury Tax and Loan Account, provided the advice of
deposit attached to the enclosed letter of instructions form is executed and returned immedi­
ately. If settlement is to be made by check on a bank other than the Federal Reserve Bank o f New
York, such checks should be received by us in time for collection on January 15, 1968; otherwise
forfeiture of the prescribed deposit may be declared by the Secretary of the Treasury.
On the enclosed letter o f instructions form, please fill in instructions as to payment and dis­
position for the total amount o f Treasury bills of this issue awarded to you, and return the
letter immediately to our Government Bond Division.

F

ederal

R

eserve

B

a n k of

New Y

ork

Fiscal Agent of the United States

Checked by




PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION

□

2

competitive □ noncompetitive
UNITED S T A T E S OF A M E R IC A 16 1-D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES
A D D IT IO N A L A M O U N T, SERIES D A T E D O C T O B E R 9, 1967, DUE JUNE 24, 1968
( T O BE ISSUED JA N U A R Y 15, 19 6 8 )

price of

PURCHASE PRICE

MASTER
M A T U R IT Y VALUE

P U R CH ASE PRICE

DISPOSITION

AMOUNT

METHOD OF PAYMENT

□

Over the Counter

□

Safekeeping

□

Ship

□

Treasury Tax & Loan

□

Delivery Teller

□

Allotment Transfer

□

Foreign Oper. Div.

□

Form 12




□

Check or Cash

□

Reserve Account

D Treas. T. & L. Acc.

ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT

□

competitive □ noncompetitive
UNITED ST A T E S OF A M E R IC A 161-D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES
A D D IT IO N A L A M O U N T, SERIES D A T E D O C T O B E R 9, 1967, DUE JUNE 24, 1968
(T O BE ISSUED JA N U A R Y 15, 1 9 6 8 )




price of
$

3

ALLOTMENT NOTICE FOR SECURITY FILES

□

competitive □

noncompetitive

UN ITED S T A T E S OF A M E R IC A 16 1-D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES
A D D IT IO N A L A M O U N T, SERIES D A T E D O C T O B E R 9, 1967, DUE JUNE 24, 1968
(T O BE ISSUED JA N U A R Y 15, 19 6 8 )




price of
$

4

(This letter of instructions, accompanied by attached duplicate and triplicate
copies, should be filled in for the total amount of Treasury bills of this issue
awarded, and returned to Federal Reserve Bank of New York)

LETTER OF INSTRUCTIONS
To F e d e r a l R e s e r v e B a n k o f N e w Y
Fiscal Agent of the United States,
Federal Reserve P. 0. Station,
New York, N. Y. 10045

ork

,

Attention: Government Bond Division—2nd Floor
Dated at ...........
1968

On our competitive and noncompetitive tenders for—
U N ITE D S T A T E S OF A M E R IC A 1 6 1 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES
A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 9, 19 67, DUE JUNE 24, 196S
(T O BE ISSUED J A N U A R Y 15, 1 9 6 8 )

accepted in the aggregate amount of—

$

(maturity value)

Please issue and make delivery of the bills as instructed below:
Denomination

Pieces

$

Maturity Value

P

lease

D o N ot U se T h is S pa c e

1,000
5,000
10,000
50,000
100,000
500,000

1,000,000
Total—
□ 1. Deliver over the counter to the undersigned
□ 2. Ship to the undersigned
□ 3. Hold in safekeeping (for account of member bank
only) *
□ 4. Hold as collateral for Treasury Tax and Loan Account*
□ 5. Special instructions:

Payment will be made as follows:
By cash or other immediately avail­
able funds
By charge to our reserve account
$ ............................... By credit m Treasury Tax and Loan
Account for which Advice of Deposit
is submitted herewith

(No changes in delivery instructions will ~be accepted)
^

If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned.

This letter of instructions must be signed
officially in the space provided and re­
turned immediately to

Submitted by
(Please print)

By

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

B y ..................

(Authorized signature(s) required)

Federal Reserve Bank of New York,

Title .........................................................................

Title

Fiscal Agent of the United States.
(Spaces below are for the use o f Federal Reserve Bank of New Y ork )

Government Bond Division

Safekeeping Division

Deliver against payment of
D ELIVE EY RECEIPT
Received from Federal Reserve Bank o f New York, Fiscal Agent of the United States, the above-described securities allotted in the amount
indicated above.
By.

Mu t m c n b e r .

Date.

1 W If payment is to be made by credit to Treasury Tax and Loan Account, an advice of the deposit should be
furnished this Bank on the form below.

Advice of Deposit in Treasury Tax and

To

F

ederal

R

eserve

B

a n k

of

N

e w

Y

ork

Loan Account

,

Government Bond Division.
We will deposit on January 15, 1968 $
(purchase price) to the credit of the Federal
Reserve Bank of New York, Fiscal Agent of the United States, in the Treasury Tax and Loan Account, to be held subject
to withdrawal on demand in payment for $
(maturity value) 161-day tax anticipation Treasury
bills, additional amount, dated October 9, 1967, due June 24, 1968, to be issued January 15, 1968.




(Name of Depositary)

A dd ress.......................................................................
(City and State)

(DUPLICATE FOB USB OF FEDERAL RESERVE BANK OF NEW YORK)

DELIVERY TICKET— SAFEKEEPING DIVISION
To F ederal R eserve B a n k o f N e w Y ork ,
Fiscal Agent of the United States,
Federal Reserve P. 0. Station,

New York, N. Y.

Attention: Government Bond Division—2nd Floor

10045

Dated a t ............
1968
On our competitive and noncompetitive tenders for—
U N IT E D S T A T E S OF A M E R IC A 1 6 1 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES
A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 9, 1 9 67 , DUE JUNE 24 , 1968
( T O BE ISSUED J A N U A R Y 15, 1 9 6 8 )

accepted in the aggregate amount of—

$

(maturity value)

Please issue and make delivery of the bills as instructed below;
Pieces

Denomination

$

Maturity Value

P le a s e

Do

N o t U se T h is S pa ce

1,000
5,000
10,000
50,000
100,000
500,000

1,000,000
Total—
□ 1. Deliver over the counter to the undersigned
□ 2. Ship to the undersigned
□ 3. Hold in safekeeping (for account of member bank
only)*
□ 4. Hold as collateral for Treasury Tax and Loan Account*
□ 5. Special instructions:

Payment will be made as follows:
$ ............................... By cash or other immediately avail­
able funds

$ ............................... By credit in Treasury Tax and Loan
Account for which Advice of Deposit
is submitted herewith

(No changes in delivery instructions will J)e accepted)
3? If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned.

This letter of instructions must be signed
officially in the space provided and re­
turned immediately to
Federal Reserve Bank of New York,

Submitted by
(Please print)

By

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

Title

B y ..................
(Authorized signature(s) required)

.......................... Title ..............

Fiscal Agent of the United States.
Address
(Spaces below are for the use of Federal Reserve Bank of New Y ork )

Safekeeping Division

Government Bond Division

D E LIV E R Y RECEIPT
Received from Federal Reserve Bank o f New York, Fiscal Agent of the United States, the above-described securities allotted in the amount
indicated above.


Date.................................
8u bseriber....................................................................................


B y ........................................................................................

(TRIPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YORK)

RELOCATION OFFICE— OUT
To F e d e r a l R e s e r v e B a n k o f N e w Y
Fiscal Agent of the United States,
Federal Reserve P. 0. Station,
New York, N. Y. 10045

ork

,

Attention: Government Bond Division—2nd Floor
Dated at
1968

On our competitive and noncompetitive tenders for—
U N ITE D S T A T E S OF A M E R IC A 1 6 1 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES
A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 9, 1967 , DUE JUNE 24 , 19 68
(T O BE ISSUED J A N U A R Y 15, 1 9 6 8 )

accepted in the aggregate amount of—

$

(maturity value)

Please issue and make delivery of the bills as instructed below:
Pieces

Denomination

$

Maturity Value

P

lease

Do N

ot

U se T h is S pac e

1,000
5,000
10,000
50,000
100,000
500,000
'

1,000,000
Total—
□ 1. Deliver over the counter to the undersigned
□ 2. Ship to the undersigned
□ 3. Hold in safekeeping (for account of member bank
only)*
□ 4. Hold as collateral for Treasury Tax and Loan Account*
□ 5. Special instructions:

Payment will be made as follows:
able funds

$ ............................... By credit in Treasury Tax and Loan
Account for which Advice of Deposit
is submitted herewith
(No changes in delivery instructions will be accepted)
If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned.

This letter of instructions must be signed
officially in the space provided and re­
turned immediately to

Submitted by
(Please print)

By

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

B y .................
(Authorized signature(s) required)

Federal Reserve Bank of New York,

Title .........................................................................

Title .............

Fiscal Agent of the United States.
A d d re ss................................................................................................
(Spaces below are for the use of Federal Reserve Bank of New Y ork )

Government Bond Division

Safekeeping Division
Checked ...........................

D ELIVE RY RECEIPT
Received from Federal Reserve Bank o f New York, Fiacal Agent of the United States, the above described securities allotted in the amount
indicated above.


Date..
Subscriber.
------

By.