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FED ER AL RESERVE BANK
O F NEW YORK
Fiscal Agent of the United States
r Circular N o. 6 1 6 9 1
L

M ay 16, 1968

J

OFFERING OF TW O SERIES OF TREASURY BILLS
$500,000,000 of 273-Day Bills, Additional Amount, Series Dated Feb. 29, 1968, Due Feb. 28, 1969
(To Be Issued May 31, 1968)
$1,000,000,000 of 365-Day Bills, Dated May 31, 1968, Due May 31, 1969
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 Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate amount
of $1,500,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing May 31, 1968, in the amount of
$4,003,990,000, as follows:
273-day bills (to maturity date) to be issued May 31,
1968, in the amount of $500,000,000, or thereabouts,
representing an additional amount of bills dated Feb­
ruary 29, 1968, and to mature February 28, 1969, origi­
nally issued in the amount of $1,001,786,000, the addi­
tional and original bills to be freely interchangeable.
365-day bills, for $1,000,000,000, or thereabouts, to be
dated May 31, 1968, and to mature May 31, 1969.
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 Day­
light Saving time, Thursday, May 23, 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. (Notwithstanding the fact
that the one-year bills will run for 365 days, the discount rate
will be computed on a bank discount basis of 360 days, as is
currently the practice on all issues of Treasury bills.) 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.

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 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 completed at the Federal Reserve Bank on May 31, 1968,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing May 31, 1968. 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 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 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 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 Daylight Saving time, Thursday, May 23,
1968, at the Securities Department of its Head Office and at its Buffalo Branch, fender forms for the respective
series are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed yellow envelope
marked “ Tender for Special Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation;
they may not be submitted by telephone. Payment for the 1 reasury 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.




A lfred

H ayes,

President.

(Closing date for receipt of this tender is Thursday, May 23, 1968)

No......................................
TENDER FOR SPECIAL 273-DAY TREASURY BILLS
Additional Amount, Series Dated February 29, 1968, Due February 28, 1969
(To Be Issued May 31, 1968)
To

F

ederal

R

B

eserve

a n k

of

N

ew

Y

ork

,

Fiscal Agent of the United States.

Dated a t .......................................................
....................................................... , 1 9 ____

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 inviting tenders for the above-described
Treasury bills, 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 settlement date specified
in the public notice at the price indicated below:

COMPETITIVE TENDER

[

]

$ .................................. ...................... (maturity value),
or any lesser amount that may be awarded.

Price:.................................. per 100.
(Price must be expressed with not more than three
decimal places, for example, 99.925)

NONCOMPETITIVE TENDER

$ .........................................................(maturity value).
(Not to exceed $200,000 for one bidder through all sources)

A t the average price of accepted competitive bids.

Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below:
Pieces

Denomination
$

Maturity value

1,000

□
□

5,000

□

10,000

□

50,000

1. Deliver over the counter to the
undersigned
2. Ship to the undersigned
3. Hold’ in safekeeping (for ac­
count of member bank only)*
4. Allotment transfer (see list
attached)
5. Special instructions:

Payment will be made as follows:
□

By charge to our reserve account

□

By cash or check in immediately
available funds

□

By surrender of $ ..............................
(maturity value) of' maturing
Treasury bills. Pay cash adjust­
ment, if any—

100,000

□

By check

500,000

□

By credit to our reserve account

1,000,000

(Payment cannot be made through
Treasury Tax and Loan Account)

(No changes in delivery instructions
will be accepted)

Total
* If

□

this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned.
Name of subscriber.............
(Please print)

Insert this tender
in yellow envelope
marked “ Tender for

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

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

By
(Official signature(s) required)

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

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

Special Treasury Bills’
Address
(Banks submitting tenders for customer account must indicate names below, or attach a list)

(Name of customer)

(Name of customer)

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 bv a
member of the firm, who should sign in the form “ ....................... . .................................................................. a copartnership bv
......................................................................................................... a member of the firm.”
•••••»
v, y
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 oavment bv
an incorporated bank or trust company.
1 J
J
**'.
l'anSuaSe 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.




(Closing date for receipt of this tender is Thursday, May 23, 1968)

No.
TENDER FOR SPECIAL 365-DAY TREASURY BILLS
Dated May 31, 1968
To

F

ederal

R

eserve

B

a n k

of

N

Due May 31, 1969

ew

Y

ork

Dated a t ......................................................
.......................................................f 19____

,

Fiscal Agent of the United States.

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 inviting tenders for the above-described
Treasury bills, 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 settlement date specified
in the public notice at the price indicated below:
COMPETITIVE TENDER

[

]

$ .........................................................(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)

n o n c o m p e t it iv e t e n d e r

$ ................................................ ..

(maturity value).

(Not to exceed $200,000 for one bidder through all sources)

At the average price of accepted competitive bids.

Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below:
Pieces

Denomination

Maturity value

1,000

□
□
□

5,000

10,000

□

50,000

□

1. Deliver over the counter to the
undersigned
2. Ship to the undersigned
3. Hold in safekeeping (for ac­
count of member bank only)*
4. Allotment transfer (see list
attached)
5. Special instructions:

Payment will be made as follows:
□

By charge to our reserve account

□

By cash or check in immediately
available funds

□

By surrender of $ ..............................
(maturity value) of maturing
Treasury bills. Pay cash adjust­
ment, if any—

100,000

□

By check

500,000

□

By credit to our reserve account

1 , 000,000

(No changes in delivery instructions
will be accepted)

Total

(Payment cannot be made through
Treasury Tax and Loan Account)

* If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned.
Name of subscriber
(Please print)

Insert this tender
in yellow envelope

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

marked “ Tender for
Special Treasury Bills”

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

By
(Official signature(s) required)

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

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

Address
(Banks submitting tenders for customer account must indicate names below, or attach a list)

(Name of customer)

(Name of customer)

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 “ ...........................................................................................t 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.