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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States
{"Circular No. 6 4 8 6 “I
L February 16, 1970

J
OFFERING OF TWO SERIES OF TREASURY BILLS
$1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated November 28, 1969, Due May 28,1970
(To Be Issued February 26, 1970)
$1,300,000,000 of 182-Day Bills, Dated February 26, 1970, Due August 27, 1970
To All Incorporated Banks 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 th e aggregate
am ount of $3,100,000,000, or thereabouts, for cash and in
exchange for T reasury bills m aturing F ebruary 26, 1970, in
the am ount of $3,001,646,000, as follows:
91-day bills (to m aturity date) to be issued February
26, 1970, in the am ount of $1,800,000,000, or there­
abouts, representing an additional am ount of bills
dated N ovem ber 28, 1969, and to m ature May 28,
1970, originally issued in the am ount of $1,201,189,000,
the additional and original bills to be freely in ter­
changeable.
182-day bills, for $1,300,000,000, or thereabouts, to be
dated F ebruary 26, 1970, and to m ature A ugust 27,
1970.
T he bills of both series will be issued on a discount basis
under com petitive 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 denom inations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).
T enders will be received a t Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., E astern
Standard time, Friday, F ebruary 20, 1970. T enders 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 com petitive 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. I t is urged th a t 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 m ay subm it tenders for
account of customers, provided the nam es 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 tru st com panies 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 th e 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 m ade by th e T reasury D epart­
m ent of the am ount and price range of accepted bids. O nly
those subm itting com petitive tenders will be advised of the
acceptance o r rejection thereof. T he Secretary of th e T reasury
expressly reserves the rig h t to accept or reject any or ail
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 a t 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 m ade or completed at the
Federal Reserve Bank on F ebruary 26, 1970, in cash or other
immediately available funds or in a like face am ount of
T reasury bills m aturing February 26, 1970. Cash and exchange
tenders will receive equal treatm ent. Cash adjustm ents will
be made for differences between the par value of m aturing
bills accepted in exchange and the issue price of the new bills.
T he 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 reasu ry bills does not have any special trea t­
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 o r State, but are exem pt 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 w hich 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 In ternal 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 ow ner 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 th e retu rn is made,
as ordinary gain or loss.
T reasury D epartm ent Circular No. 418 (cu rren t 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 Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Friday, February 20, 1970,
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 T reasury Bills (W eekly).” Tenders may be submitted by telegraph, subject to written confirmation; they
may not be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury
T a x and Loan Account. Settlem ent m ust be made in cash or other immediately available fu n d s or in maturing
Treasury bills.
This circular was printed before the results of the bidding for T reasury bills to be issued F ebruary 19, 1970
were available; those results will be announced afte r release by the T reasury Department.




A

lfred

H

a y es,

President.

Closing date for receipt of tenders is F riday , February 20.

TREASURY DEPARTMENT
Washington, D.C.
STATEMENT FOR THE PRESS
February 13, 1970
FOR IMMEDIATE RELEASE
Treasury Announces Financing Plans
The Treasury today announced plans to raise additional cash by a
$ 1 0 0 million increase in the regular weekly six-month bill issues and a $200 mil­

lion increase in the regular monthly one-year bill issues, and by issuing an
additional $1,750 million of April, tax anticipation bills.
The increase in the six-month bills from $1.2 billion to $1.3 billion
will start with the issue of February 26 which will be auctioned Friday,
February 20. The one-year bills will be increased from $1.0 billion to $1.2 bil­
lion starting with the issue of February 28, the auction of which will be held
Tuesday, February 24. The Treasury has not yet determined how long these increases
will be continued.
The April tax bill will be auctioned on Wednesday, February 25.
Additional details will be announced next week.

for March.

These offerings are expected to cover the Treasury's cash requirements
Additional cash will be required early in April.