The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States No. 6 3 9 9 t Circular September 3, 1969 ] OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated June 12,1969, Due December 11,1969 (To Be Issued September 11, 1969) $1,200,000,000 of 182-Day Bills, Dated September 11, 1969, Due March 12, 1970 To All Incorporated Banlcs and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: T h e Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount of $2,800,000,000, or thereabouts, for cash and in ex change for Treasury bills maturing September 11, 1969, in the amount of $2,800,296,000, as follow s: 91-day bills (to maturity date) to' be issued Sep tember 11, 1969, in the amount o f $1,600,000,000, or thereabouts, representing an additional amount of bills dated June 12, 1969, and to mature D ecem ber 11, 1969, originally issued in the amount of $1,300,610,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,200,000,000 or thereabouts, to be dated September 11, 1969, and to mature M arch 12, 1970. T h e bills o f both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at maturity their face amount will be payable w ithout interest. T h ey 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 D ay light Saving time, M onday, September 8, 1969. 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 of competitive tenders the price offered must be ex pressed 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 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 in corporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty of 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 of accepted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. The 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, 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 September 11, 1969, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 11, 1969. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differ ences between the par value of maturing bills accepted in exchange and the issue price o f the new bills. The 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 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 im posed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. F or purposes o f 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 R eve nue Code o f 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. A ccordingly, the owner 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 No. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions of their issue. Copies o f 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, Monday, Sep tember 8, 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 f o r Treasury Bills.” Tenders may be submitted by telegraph, subject to written c o n fir m a tio n ; they may not be submitted by telephone. Payment fo r 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 September 4, 1969, representing an additional amount of bills dated June 5, 1969, maturing December 4, 1969; and 182-day bills dated September 4, 1969, maturing March 5, 1970) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED SEPTEMBER 4, 1969) Range of Accepted Competitive Bids 9 1-Day Treasury Bills Maturing December 4,196 9 182-D ay Treasury Bills Maturing March 5,19 7 0 Approx. equiv. annual rate Price Approx. equiv. annual rate 98.244a 6.947% 96.405 7.111% L o w .............................. ................. 98.222 7.034% 96.360 7.200% Average........................ ................. 98.227 7.014%* 96.377 7.166%a Price High ............................ ................. a Excepting one tender o f $100,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.24 percent for the 91-day bills, and 7.54 percent fo r the 182-day bills. (9 percent of the amount of 91-day bills bid for at the low price was accepted.) (22 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) 9 1-Day Treasury Bills Maturing December 4,1969 Applied fo r District Boston ....................................... $ 29,754,000 182-D ay Treasury Bills Maturing March 5 ,19 7 0 Accepted, $ 18,108,000 Applied fo r $ 8,825,000 Accepted $ 8,825,000 New York ................... ........... 1,964,124,000 1,065,597,000 1,645,717,000 872,212,000 Philadelphia................... ........... 35,638,000 20,390,000 19,879,000 9,879,000 Cleveland ................................... 29,223,000 27,732,000 30,985,000 30,408,000 Richmond....................... .......... 25,163,000 25,163,000 17,710,000 17,710,000 Atlanta ............................ .......... 41,835,000 29,178,000 30,432,000 23,432,000 Chicago .......................... ......... 267,474,000 235,783,000 129,793,000 94,535,000 St. Louis ........................ ........ 43,947,000 28,507,000 26,697,000 19,107,000 Minneapolis ................... ......... 26,569,000 25,569,000 18,741,000 17,241,000 Kansas C it y ................... ......... 26,632,000 23,026,000 22,545,000 22,091,000 Dallas .............................. ........ 27,167,000 15,667,000 22,029,000 12,639,000 164,195,000 85,304,000 130,192,000 72,012,000 San Francisco............... T o tal ................... ......... $2,681,721,000 $1,600,024,000b $2,103,545,000 b Includes $314,854,000 noncom petitive tenders accepted at the average price o f 98.227. c Includes $176,110,000 noncom petitive tenders accepted at the average price o f 96.377. $1,200,091,000c
@FedFRASER