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FEDERAL RESERVE BANK OF N EW YORK Fiscal A gent of the U nited States 48 [Circular No. 619705 “I February 11, J OFFERING OF TWO SERIES OF TREASURY BILLS $1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated November 20, 1969, Due May 21, 1970 (To Be Issued February 19, 1970) $1,200,000,000 of 182-Day Bills, Dated February 19, 1970, Due August 20, 1970 To All Incorporated BanTcs 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 he T reasury D epartm ent, by this public notice, invites tenders for tw o series of T reasury bills to the aggregate amount of $3,000,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing F ebruary 19, 1970, in the am ount of $3,003,574,000, as follows: 91-day bills (to m aturity date) to be issued F ebruary 19, 1970, in the am ount of $1,800,000,000, or th ere abouts, representing an additional am ount of bills dated November 20, 1969, and to m ature May 21, 1970, originally issued in the am ount of $1,200,408,000, the additional and original bills to be freely inter changeable. 182-day bills, for $1,200,000,000, or thereabouts, to be dated F ebruary 19, 1970, and to m ature A ugust 20, 1970. T he bills of both series will be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable w ithout interest. T hey 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). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard time, Monday, F ebruary 16, 1970. Tenders will not be received at the T reasury D epartm ent, W ashington. Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three decimals, e.g., 99.925. Fractions may not be used. It is urged th at 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 subm it tenders for account of customers, provided the names of the custom ers are set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received w ithout deposit from incor porated banks and trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epart m ent of the am ount and price range of accepted bids. Only those subm itting competitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury 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. Settlem ent for accepted tenders in accordance w ith the bids m ust be made or completed at the Federal Reserve Bank on February 19, 1970, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing February 19, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents 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 T reasury bills, w hether 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 T reasury 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, w hether 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 U nited States, or by any local taxing authority. F o r purposes of taxation the am ount of discount at which T reasury bills are originally sold by the United States is considered to be interest U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the am ount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury 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, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Rank will receive tenders e both series up to 1 -^0 n m E astern Standard time,, Monday, February 16, 1970, for u .ou p.m., j^ctsLcm olo. at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respect,ve series are encuT d Please use the appropriate forms to submit tenders and return them in the enclosed envelope marked Tender for T reasury Bills (W eekly).” Tenders may be submitted by telegraph, subject to written confirm ation; they m ly not be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury tZ m d Loan Account. Settlem ent m ust be made in cash or other immediately available fu n d s or in maturing T rT I , t s ’ of the last weekly offering of Treasury bills (90-day bills to be issued February 13, 1970, representing an a d d itfo n a fa m ln h teof^hiUsdated November 13, 1969, m aturing May 14, 1970; and 181-day bills dated February 13, 1970, m aturing A ugust 13, 1970) are shown on the reverse side of this circular. A lfr£ d H ayeSj President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED FEBRUARY 13, 1970) Range of Accepted Competitive Bids 90-Day Treasury Bills M aturing M ay 14,1970 181-Day Treasury Bills M aturing A ugust 13,1970 Price Approx. equiv. annual rate Price Approx. equiv. annual rate 98.186a 7.256% 96.294b 7.371% L o w ................. ................... 98.164 7.344% 96.278 7.403% A v e ra g e ........... ..................... 98.172 7.312%* 96.286 7.387% 1 High ................ ....................... a Excepting five tenders totaling $2,836,000. b Excepting one tender of $217,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.55 percent for the 90-day bills, and 7.78 percent for the 181-day bills. (45 percent of the amount of 90-day bills bid for at the low price was accepted.) (16 percent of the amount of 181-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 90-Day Treasury Bills M aturing M ay 14, 1970 Applied for District Boston ..................... ................... $ 38,768,000 181-Day Treasury Bills M aturing A ugust 13,1970 Accepted $ 28,413,000 Applied fo r $ 22,401,000 Accepted $ 10,731,000 New York ............... ................. 2,097,104,000 1,190,518,000 1,661,719,000 818,838,000 ............... 48,899,000 33,891,000 27,913,000 17,376,000 Cleveland ................. ............... 44,733,000 44,500,000 71,768,000 43,592,000 R ic h m o n d ................. ............... 44,140,000 39,936,000 28,634,000 18,624,000 Atlanta ..................... ............... 56,055,000 43,930,000 55,060,000 28,335,000 ................... ............... 230,919,000 208,809,000 212,142,000 115,657,000 St. Louis ................. ............... 57,429,000 53,129,000 37,556,000 26,236,000 M in n eap o lis............. ............... 33,635,000 21,385,000 21,366,000 5,366,000 Kansas C i t y ............. ............... 44,105,000 43,101,000 35,045,000 32,374,000 Dallas ....................... ................. 34,265,000 22,265,000 35,870,000 21,070,000 ................. 176,494,000 70,185,000 157,751,000 61,868,000 ............... $2,906,546,000 P h ila d elp h ia........... Chicago San Francisco T otal $1,800,062,000c c Includes $486,715,000 noncompetitive tenders accepted at the average price of 98.172. d Includes $326,910,000 noncompetitive tenders accepted at the average price of 96.286. $2,367,225,000 $1,200,067, OOO3
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