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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States Circular No. 6 3 6 7 ~l July 17, 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 273-Day Bills, Additional Amount, Series Dated April 30, 1969, Due April 30, 1970 (To Be Issued July 31, 1969) $1,200,000,000 of 365-Day Bills, Dated July 31, 1969, Due July 31, 1970 T o A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: T h e T re a su ry D epartm en t, b y this pu blic n otice, invites tenders fo r tw o series o f T rea su ry bills to the a g g reg a te am ou nt o f $1,700,000,000, or thereabouts, for cash and in ex ch a n ge for T re a su ry bills m aturing July 31, 1969, in the am ou nt o f $4,409,468,000, as fo llo w s : 273-day bills (to m aturity date) to be issued July 31, 1969, in the am ou nt o f $500,000,000, or thereabouts, rep resen ting an addition al am ou nt o f bills dated A pril 30, 1969, and to m ature A p ril 30, 1970, o rigin a lly issued in the a m ou n t o f $1,000,634,000, the addition al and o r ig i nal bills to be freely interchangeable. 365-day bills, fo r $1,200,000,000, or thereabouts, to be dated July 31, 1969, and to m ature July 31, 1970. T h e bills o f b oth series w ill be issued on a discou n t basis under com p etitive and n on com p etitive b id d in g as hereinafter p rovid ed , and at m aturity their face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form on ly, and in den om in ation s o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e). T e n d e rs w ill be receiv ed at Federal R eserve Banks and B ran ches up to the clo s in g hour, on e-th irty p.m ., E astern D a y light S a vin g tim e, T h u rsd a y, July 24, 1969. T en d ers w ill not be receiv ed at the T re a su ry D epartm en t, W a s h in g to n . E ach tender m ust be fo r an even m ultiple o f $1,000, and in the case o f com p etitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F ra ction s m ay n ot be used. (N otw ith sta n d in g the fact that the on e -y e a r bills w ill run for 365 days, the discou n t rate w ill be com p u te d on a bank d iscou n t basis o f 360 days, as is cu rrently the practice on all issues o f T reasu ry b ills.) It is urged that tenders be m ade on the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ed eral R eserve B anks o r B ra n ch es on a pplication th erefor. B a n k in g institutions gen erally m ay subm it tenders for a cco u n t o f cu stom ers, p rovid ed the nam es o f the cu stom ers are set forth in such tenders. O th ers than bankin g institutions w ill n ot be perm itted to subm it tenders e x cep t for their ow n accou n t. T e n d e rs w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fro m respon sib le and re co g n ize d dealers in in vestm ent securities. T en d ers fro m oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face am ou nt o f T re a su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f pa ym en t b y an in corp ora ted bank or trust com p a n y . Im m ed ia tely after the clo s in g hour, ten ders w ill be o p e n e d at the F ed eral R eserv e B anks and B ran ches, fo llo w in g w h ich p u blic a n n ou n cem en t w ill be m ade b y the T rea su ry D ep a rtm en t o f the a m ou n t and p rice ran ge o f a cce p te d bids. T h o s e su b m itting tenders w ill be advised of the a ccep ta n ce or re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry ex p ressly reserves the righ t to a ccep t or re je ct any or all tenders, in w h ole o r in part, and his a ction in any such resp ect shall be final. S u b je ct to these reservations, n on com p etitiv e tenders for each issue fo r $200,000 or less w ith ou t stated price fro m any on e b idd er w ill be a ccep ted in full at the average price (in three d ecim a ls) o f a ccep ted com p etitive bids fo r the respective issues. S ettlem en t fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the F ed era l R eserve B ank on Ju ly 31, 1969, in cash or oth er im m ediately available funds or in a like face am ou nt o f T rea su ry bills m aturing July 31, 1969. Cash and exch a n ge tenders w ill receiv e equal treatm ent. Cash ad ju st m ents w ill be m ade for differences b etw een the par value o f m aturing bills a ccep ted in exch a n ge and the issue p rice o f the n ew bills. T h e in com e derived fro m T rea su ry bills, w h eth er interest or gain fro m the sale or oth er disp osition o f the bills, d oes n ot have any exem ption , as such, and loss fro m the sale o r oth er d isp osition o f T rea su ry bills d oes n ot have any special treat m ent, as such, under the In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w hether F ederal or State, but are ex em p t fro m all ta x a tion n o w o r h ereafter im p osed on the principal or interest th ereof b y a n y State, or any o f the p ossession s o f the U n ited States, or b y any loca l ta x in g authority. F o r p u rp o se s o f taxation the a m ou n t o f discou n t at w h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sid ered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C ode o f 1954, the am ou nt o f discou n t at w h ich bills issued h ereunder are sold is n ot con sid ered to accru e until such bills are sold, red eem ed or oth erw ise d isp osed of, and such bills are exclu d ed fro m con sidera tion as capital assets. A c co r d in g ly , the ow n e r o f T rea su ry bills (o th e r than life insurance c o m pan ies) issued hereunder need in clude in his in com e tax return o n ly the differen ce betw een the price paid for such bills, w hether on origin a l issue or on subsequen t purchase, and the a m ou n t a ctu ally receiv ed either upon sale or red em p tion at m aturity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain or loss. T rea su ry D ep a rtm en t C ircular N o. 418 (cu rren t re v is io n ) and this n otice p rescrib e the term s o f the T re a s u ry bills and g ov ern the con d ition s o f their issue. C opies o f the circu la r m a y be obtain ed fro m any F ed era l R eserv e B an k or B ran ch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Thursday, July 24, 1969, 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 the enclosed 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 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. A lfred H a y e s , President. No. TENDER FOR 273-DAY TREASURY BILLS Additional Amount, Series Dated April 30, 1969, Due April 30, 1970 (To Be Issued July 31, 1969) To F ederal R eserve B a n k of N Y ew ork Dated a t .............................. , Fiscal Agent of the United States. 19. 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 such 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 [ D o not fill in both Com petitive and N oncom petitive tenders on one form $ ...................................................... (maturity value), or any lesser amount that may be awarded. Price: .................................. per 100. (P r ic e must be expressed with not m ore than three decimal places, fo r exam ple, 99.925) 1 NONCOMPETITIVE TENDER $ ...................................................... (maturity value). ( N o t to exceed $200,000 f o r 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 M aturity value 1,000 $ □ □ □ 5,000 10,000 □ 50,000 □ 100,000 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping ( f o r ac count o f member bank on ly) 4. Allotm ent transfer (see list attached) 5. Special instructions: 500,000 , Payment will be made as follow s: □ By check herewith O □ □ By cash or check in immediately available funds on delivery By charge to our reserve account B y surrender of $ ................................ (maturity value) o f maturing Treasury bills. Pay cash adjust ment, if any— □ By check .□ 1 000,000 (N o changes in delivery instructions will be accepted) Totals By credit to our reserve account (Paym ent cannot be made through Treasury T a x and Loan A ccou n t) The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. (Name of subscriber— please print or type) Insert this tender in special envelope marked “Tender for Special Treasury Bills’ • ••*••.......... ......................'.................. (Address— please print or type) (Signature of subscriber or authorized signature) (Title of authorized signer) (B ankin g institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be con sid ered , and each tender m ust be for an even m ultiple o f $1,000 (m a tu rity v a lu e ). 2. O th ers than ban kin g institutions w ill not be perm itted to subm it tenders ex cep t fo r their ow n a ccou nt. B a n k in g institutions su b m ittin g tenders fo r cu stom er a cco u n t m a y con solid a te com p etitive tenders at the same price and m a y co n solid a te n on com p etitiv e tenders, p rovided a list is attached sh o w in g the nam e o f each bidder, the am ou nt bid fo r his a ccou n t, and m eth od o f paym ent. F orm s for this pu rpose w ill be furnished upon request. 3. If the person m a k in g the tender is a corp ora tion , the tender shou ld be sign ed b y an officer o f the corp ora tion a uthorized to m ake the tender, and the sign in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a rep resen tation b y him that he has been so authorized. I f the tender is m ade b y a partnership, it sh ou ld be sign ed b y a m em b er o f the firm , w h o sh ou ld sign in the fo rm “ .................................................................................................... , a copartn ersh ip, b y .................................................................................................................... . a m em b er o f the firm .” 4. T e n d e rs w ill be receiv ed w ith ou t dep osit from in corp ora ted banks and trust com pan ies and from resp on sible and re co g n ize d dealers in in vestm en t securities. T e n d e rs from oth ers m ust be a ccom p a n ied b y paym ent o f 2 percent o f the face am ou nt o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an express guaranty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y . A ll ch eck s m ust be draw n to the ord er o f the Federal R eserve B ank o f N e w Y o r k ; ch eck s en d orsed to this B an k will not be accepted. 5. I f the language o f this ten der is ch a n ged in a n y respect, w hich, in the opin ion o f the S ecreta ry o f the T reasu ry, is m aterial, the tender m ay be disregarded. No. TENDER FOR 365-DAY TREASURY BILLS Dated July 31, 1969 To F ederal R eserve B a n k of N ew Due July 31, 1970 Y ork Dated at , Fiscal Agent of the United States. 19. 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 such 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 [ D o not fill in both Com petitive and N oncom petitive tenders on one form $ ...................................................... (maturity value), or any lesser amount that may be awarded. Price: .................................. per 100. (P rice must be expressed zvith not m ore than three decimal places, fo r exam ple, 99.925) 1 NONCOMPETITIVE TENDER $ ...................................................... (maturity value). (N o t to exceed $200,000 f o r one bidder through all sou rces) 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 $ M aturity value □ 1,000 □ □ 5,000 10,000 □ 50,000 □ 100,000 1. D eliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping ( f o r a c count o f member bank on ly) 4. Allotm ent transfer (see attached) 5. Special instructions: list 500,000 1,000,000 Payment will be made as fo llo w s : □ B y check herewith Q By cash or check in immediately available funds on delivery □ B y charge to our reserve account Q B y surrender of $ ................................ (m aturity value) o f maturing Treasury bills. Pay cash adjust ment, if any— □ B y check □ By credit to our reserve account (N o changcs in delivery instructions zvill be accepted) Totals (P aym en t cannot be made through T reasury T a x and Loan A ccou n t) The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. (Name of subscriber— please print or type) Insert this tender in special envelope marked “Tender for Special Treasury Bills” •.•».................. . (Address— please print or type) (Signature of subscriber or authorized signature) (Title of authorized signer) (B anking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be con sid ered , and each tender m ust be for an even m ultiple o f $1,000 (m a tu rity v a lu e). 2. O th ers than b ankin g institutions w ill not be perm itted to subm it tenders e x cep t for their ow n a ccou n t. B ank ing institutions su b m ittin g tenders fo r cu stom er a cco u n t m ay con solid a te com p etitiv e tenders at the same price and m ay co n solid a te n on com p etitive tenders, provid ed a list is attached s h ow in g the nam e o f each bidder, the amount bid for his a ccou n t, and m eth od o f paym ent. F orm s for this pu rpose w ill be furnished u pon request. 3. If the person m akin g the tender is a corp ora tion , the tender shou ld be sign ed b y an officer o f the corp ora tio n authorized to m ake the tender, and the sign in g o f the ten der b y an officer o f the corp ora tion w ill be con stru ed as a represen tation b y him that he has been so authorized. I f the tender is m ade by a partnership, it sh ou ld be sign ed b y a m em ber o f the firm, w h o should sign in the form “ .....................................................................................................) a cop artn ersh ip b v .................................................................................................................... . a m em b er o f the firm ." 4. T e n d e rs w ill be received w ith ou t dep osit from in corp ora ted banks and trust com pa n ies and fro m re s p o n sible and re co g n ize d dealers in in vestm ent securities. T e n d e rs from oth ers m ust be a ccom p a n ied b y p a ym en t o f 2 percent o f the face am ou nt o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corpora ted bank o r trust com p a n y . A ll ch eck s m ust be draw n to the o rd er o f the Federal R pcervp B ank o f N e w Y o r k ; ch ecks en d orsed to this B ank w ill not be a ccepted. 5. I f the language o f this tender is ch a n ged in any respect, w hich, in the op in ion o f the S ecreta ry o f the T reasu ry, is m aterial, the tender m ay be disregarded.
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