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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States T Circular No. 5 9 5 7 T L M arch 15, 1967 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated December 22,1966, Due June 22,1967 (To Be Issued March 23, 1967) $1,000,000,000 of 182-Day Bills, Dated March 23, 1967, Due September 21, 1967 To A ll Incorporated Banks a)id 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 Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount of $2,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing M arch 23, 1967, in the amount of $2,305,959,000, as follow s: 91-day bills (to maturity date) to be issued March 23, 1967, in the amount of $1,300,000,000, or thereabouts, representing an additional amount o f bills dated D e cember 22, 1966, and to mature June 22, 1967, originally issued in the amount o f $1,006,055,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated March 23, 1967, and to mature September 21, 1967. 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. T h ey will be issued in bearer form only, and in denominations o f $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, M onday, March 20, 1967. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 100, with not m ore 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 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 o f customers, provided the names o f 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 accom panied by payment o f 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. Imm ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement will be made by the Treasury Department o f the amount and price range o f accepted bids. Those submit ting tenders will be advised o f the acceptance or rejection thereof. 'I he Secretary of the Treasury expressly reserves 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 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 accordance with the bids must be made or com pleted at the Federal Reserve Bank on M arch 23, 1967, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing M arch 23, 1967. Cash and exchange tenders will receive equal treatment. Cash adjust ments will be made for^ differences between the par value of maturing bills accepted in exchange and the issue price o f the new bills. I he incom e 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 I reasury 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, gift or other excise taxes, whether Federal or State, but are exem pt from all taxa tion now or hereafter im posed 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 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) o f the Internal Revenue Lode of 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 of, and such bills are excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e 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 N o. 418 (current revision) 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 or Branch ^ „ Thls 1Ba” k W1.U. receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday March 2 0 1967, 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 len d ers may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. I ayment 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 weekly offering of Treasury bills (91-day bills to be issued March 16, 1967 representing an additional amount of bills dated December 15, 1966, maturing June 15, 1967; and 182-day bills dated’ March 16 1967 maturing September 14, 1967) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LA ST W E E K L Y O FFE R IN G OF T R E A S U R Y BILLS (T W O SERIES TO BE ISSUED M A R C H 16, 1967) Range o f A ccepted Com petitive Bids / 91-Day Treasury Bills Maturing June 15,1967 182-Day Treasury Bills Maturing September 14,1967 Price Approx. equiv. annual rate Price Approx. equiv. annual rate H i g h ......................................... 98.920 4.2 73% 97.856 4.241% Low ......................................... 98.908 4.320% 97.841 4.271% Average ................................... 98.911 4.308% ! 97.844 4.265% ! 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.43 percent for the 91-day bills, and 4.43 percent for the 182-day bills. (27 percent of the amount of 182-day bills bid for at the low price was accepted.) (84 percent of the amount of 91-day bills bid for at the low price was accepted.) Total Tenders A p p lied fo r and A ccepted (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing June 15,1967 Accepted Applied fo r District B o s t o n ............... ........................ $ 20,282,000 182-Day Treasury Bills Maturing September 14,1967 $ 10,282,000 Applied fo r $ 12,509,000 Accepted $ 2,509,000 ........................ 1,542,227,000 792,294,000 1,915,872,000 875,914,000 Philadelphia . . . ........................ 27,970,000 15,920,000 15,130,000 6,673,000 ......... ........................ 41,355,000 28,598,000 29,748,000 17,768,000 Richmond ......... ........................ 22,422,000 16,182,000 14,210,000 4,210,000 Atlanta ............. ........................ 70,967,000 53,947,000 37,693,000 10,163,000 C h ic a g o ............. ........................ 339,246,000 119,916,000 311,107,000 41,333,000 St. L o u i s ........... ........................ 55,811,000 32,035,000 37,171,000 1 1 ,2 1 1 ,0 0 0 Minneapolis ........................ 21,104,000 12,872,000 10,471,000 5,531,000 Kansas City ........................ 35,229,000 35,141,000 10,187,000 10,087,000 18,226,000 17,248,000 6,998,000 166,098,000 259,215,000 9,010,000 New Y ork Cleveland Dallas ............... San Francisco T otal .. $2,670,561,000 a Includes $287,108,000 noncompetitive tenders accepted at the average price of 98.911. b Includes $116,894,000 noncom petitive tenders accepted at the average price o f 97.844. $1,001,407,000b
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