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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 5871 *1 L September 21, 1966 Jf Offering of 9-Month and 12-Month Treasury Bills To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: Following is the text of a statement and an official notice issued today by the Treasury Depart ment, offering two series of Treasury b ills: The Treasury Department announced today that $1.4 billion of Treasury bills will be sold through competi tive bidding on September 27 for payment September 30. The proceeds of the sale will be used to redeem the $1.0 billion of 12-month bills maturing September 30 and raise $400 million of additional cash. The sale of $1.4 billion of bills will include $900 million of new 12-month bills and $500 million of additional bills maturing June 30, 1967. This reopening, as 9-month bills, of the 12-month bills sold in June 1966, marks the start of a program to auction both 9-month and 12-month bills each month. By reopening the 12-month bills for additional sales, the plan is expected to increase the marketability of the 12-month bill issues. The initiation of the program at this time will help to raise additional funds in the months ahead, when Treasury borrowing needs in the market will be enlarged because of Government Investment Account purchases of Federal agency securities, and because of the cancellation of the sale of participation certificates at this time, as announced by the Treasury on September 10. The Treasury also noted that its next major cash borrowing, probably in the form of tax anticipation bills, is expected to be announced in early October for payment after mid-October. Further borrowing intentions, which may involve bills or coupon-bearing issues, will be indicated as plans become firm. T h e T reasu ry D epartm ent, by this public notice, invites tenders for tw o series of T reasu ry bills to the aggregate am ount of $1,400,000,000, or thereabouts, for cash and in e x change for T reasury bills m aturing Septem ber 30, 1966, in the am ount of $1,000,499,000, as fo llo w s: 273-d ay bills (to m aturity date) to be issued Septem ber 30, 1966, in the am ount of $500,000,000, or thereabouts, representing an additional am ount o f bills dated June 30, 1966, and to mature June 30, 1967, originally issued in the am ount of $1,001,443,000, the additional and original bills to be freely interchangeable. 365-d ay bills, for $900,000,000, or thereabouts, to be dated Septem ber 30, 1966, and to mature Septem ber 30, 1967. T h e 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 without interest. T h e y 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 (m aturity valu e). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D ayligh t S avin g time, T u esday, Septem ber 27, 1966. T enders will not be received at the T reasury D epartm ent, W ash in g ton . 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, wTith not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. (N otw ith sta n d in g the fact that the one-year bills will run for 365 days, the discount rate will be com puted on a bank discount basis of 360 days, as is currently the practice on all issues of T reasury bills.) It is urged that tenders be m ade on the printed form s and forw arded in the special envelopes which will be supplied by Federal Reserve B anks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of custom ers, provided the nam es of the custom ers are set forth in such tenders. O thers than banking institutions w ill not be permitted to submit tenders except for their ow n account. T enders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an incorporated bank or trust com pany. Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which ( over) public announcem ent w ill be made by the T reasu ry D epartm ent of the am ount and price range of accepted bids. T h o se sub m itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the T reasu ry 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, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank on Septem ber 30, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 30, 1966. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences betw een the par value of m aturing bills accepted in exchange and the issue price of the new bills. T h e incom e derived from T reasury bills, w hether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, as such, and loss from the sale or other disposition of T reasu ry bills does not have any special treat m ent, as such, under the Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exem pt from all taxa tion n ow 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 of taxation the am ount of discount at which T reasury bills are originally sold by the U nited States is considered to be interest. U nd er Sections 4 5 4 (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 otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccord ingly, the ow ner o f T reasu ry bills (other than life insurance co m panies) issued hereunder need include in his incom e tax return only the difference betw een the price paid for such bills, whether 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 w hich the return is made, as ordinary gain or loss. T reasury D epartm ent Circular N o . 418 (current revision) and this notice prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Tuesday, Septem ber 27, 1966, 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 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 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 ayes, President. No......................... TENDER FOR SPECIAL 273-DAY TREASURY BILLS Additional Amount, Series Dated June 30, 1966, Due June 30, 1967 (To Be Issued September 30, 1966) T o F ederal R eserve B a n k of N ew Y ork, Dated a t ................................................................... Fiscal Agent of the United States. .......................................................... . 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 b elow : C O M P E T IT IV E T E N D E R \ D° not b° th Competitive and "1 I Noncompetitive tenders on one form I $ ............................................................ (maturity value), or any lesser amount that may be awarded. N O N C O M PE TITIV E TE N D E R $ ............................................................ (maturity value). (Not to exceed $200,000 for one bidder through all sources) P rice : .....................................per 100. A t the average price of accepted competitive bids. (Price must be expressed with not more than three decimal places, for example, 99.925) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below : Pieces Denomination $ Maturity value 1,000 □ 1. Deliver over the counter to the undersigned □ 2. 5,000 □ 3. H old in safekeeping (for ac count o f member bank o n ly )* Ship to the undersigned 10,000 □ 4. Allotment attached) 50,000 □ 5. Special instructions: transfer (see list Payment will be made as follow s: □ B y charge to our reserve account □ B y cash or check in immediately available funds □ B y surrender of $ .................................. (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— 100,000 □ B y check 500,000 □ B y credit to our reserve account 1,000,000 (Payment cannot be made through Treasury Tax and Loan Account) (No changes in delivery instructions zvill be accepted) Total * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. N a m e of subscriber (Please print) Insert this tender in yellow envelope marked “Tender for Special Treasury Bills’ B y ........................... T itle ............................... - 1 By (Official signature(s) required) ....................... T itle ............ A dd ress (B an k s subm itting tenders for custom er account m ust indicate nam es below , or attach a list) (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 considered, and each tender m ust be for an even m ultiple o f $1,000 (m aturity valu e). 2. O th ers than banking institutions w ill not be perm itted to subm it tenders except for their ow n account. B anks subm itting tenders for custom er account m ay consolidate competitive tenders at the same price and m ay consolidate non com petitive tenders, provided a list is attached show ing the nam e of each bidder, the am ount bid for his account, and m ethod o f paym ent. F orm s for this purpose will be furnished on request. 3. I f the person m aking the tender is a corporation, the tender should be signed by an officer o f the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation w ill be construed as a representation by him that he has been so authorized. I f the tender is m ade by a partnership, it should be signed b y a m em ber of the firm, w ho should sign in the form “ ..................................................................................................... ., a copartnership, by ....................................................................................................................... a m em ber of the firm .” 4. T enders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. T en ders from others m ust be accom panied by paym ent of 2 percent of the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. 5. If the language of this tender is changed in any respect, which, in the opinion o f the Secretary o f the T reasury, is material, the tender m ay be disregarded. No. TENDER FOR SPECIAL 365-DAY TREASURY BILLS Dated September 30, 1966 To F e d e ra l R eserve B a n k of N ew Due September 30, 1967 Dated a t .......................................................... .......................................................... , 1 9 . . . . Y ork, 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 b elow : COMPETITIVE TENDER f not Competitive and Noncom petitive tenders on one form $ ............................................................(maturity value), or any lesser amount that may be awarded. P r i c e : .....................................per 100. (P rice must be expressed with not more than three decimal places, fo r example, 99.925) 1 NONCOMPETITIVE TENDER $ ............................................................ (maturity value). (N o t to exceed $200,000 fo r 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. □ 3. H old in safekeeping (for ac count o f member bank o n ly )* Ship to the undersigned □ 4. Allotment attached) □ 5. transfer (see list Payment will be made as follow s: □ B y charge to our reserve account □ B y cash or check in immediately available funds □ B y surrender of $ ........... ................. (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— Special instructions: 100,000 □ B y check 500,000 □ B y credit to our reserve account 1,000,000 ( Paym ent cannot be made through Treasury T a x and Loan Account) (N o 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. N a m e o f subscriber Insert this tender in yellow envelope marked “Tender for Special Treasury Bills’ (Please print) B y ................................... By (Official signature(s) required) T itle ............................... ....................... T i t l e ............ A dd ress (B a n k s su bm ittin g tenders for custom er account m ust indicate nam es below , or attach a list) (N a m e of customer) (N a m e of customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be considered, and each tender m ust be for an even multiple o f $1,000 (m aturity v a lu e). 2. O th ers than banking institutions w ill not be perm itted to subm it tenders except for their ow n account. Banks subm itting tenders for custom er account m ay consolidate com petitive tenders at the same price and m ay consolidate non com petitive tenders, provided a list is attached show ing the nam e o f each bidder, the am ount bid for his account, and m ethod o f paym ent. F orm s for this purpose w ill be furnished on request. 3. I f the person m akin g the tender is a corporation, the tender should be signed by an officer of the corporation authorized to m ake the tender, and the signing of the tender by an officer of the corporation will be construed as a representation b y him that he has been so authorized. I f the tender is m ade by a partnership,-it should be signed by a m em ber of the firm, w ho should sign in the form “ ......................................................................................................... a copartnership, by ................................................................................................ .. m em ber o f the firm. 4 T en ders will be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. T en ders from others m ust be accom panied by paym ent of 2 percent of the face am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent by an incorporated bank or trust com pany. 5. I f the language of this tender is changed in any respect, which, in the opinion o f the Secretary of the T reasury, is material, the tender m ay be disregarded. F e d e r a l R e se r v e B a n k of New Y o rk NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA 273-DAY TREASURY BILLS Y ou r □ competitive □ noncompetitive tender fo r— U N ITE D S T A T E S OF A M E R IC A 2 7 3 -D A Y T R E A S U R Y BILLS D A T E D JUNE 30, 19 66, DUE JUNE 30, 1 9 67 , T O BE ISSUED SEPTEM BER 30 , 1966 has been accepted at the price o f $ (per 100), in the amount o f— (m aturity value) Settlement therefor must be made in cash or other immediately available funds or in a like face amount of the m aturing issue o f Treasury bills at the Federal Reserve Bank of New Y ork on or before September 30, 1966. I f settlement is to be made by check on a hank other than the Federal Reserve Bank of New York, such check should be received by us in time for collection on that date; otherwise it will be necessary fo r the bidder to pay for the securities allotted at the accepted price plus interest to the date o f collection at the equivalent rate of discount. Delivery of the Treasury bills will be made in accordance with instructions submitted with your tender, and your reserve account will be charged on September 30, 1966 if you so indicated. I f you did not submit such instructions, or if additional instructions are required, a Letter of Instructions form is enclosed; please complete the letter in triplicate and return it prom ptly to this Bank. F e d e ra l R eserve B a n k o f N ew Y o r k Fiscal A gent o f the United States Checked by (This letter of instructions, accompanied by attached duplicate and triplicate copies, should be filled in and returned to Federal Reserve Bank of New York) LETTER OF INSTRUCTIONS To F e d e ra l R eserve B a n k o f N ew Y ork, Fiscal A gent of the United States, Federal Reserve P. 0 . Station, New York, N. Y . 10045 A ttention: Government Bond Division— 2nd Floor Dated at ......................................................... .............................................................1966 On our □ competitive □ noncompetitive tender fo r— UNITED S T A T E S OF A M E R IC A 2 7 3 -D A Y T R E A SU R Y BILLS D A T E D JUNE 30, 1966, DUE JUNE 30, 1967, T O BE ISSUED SEPTEM BER 30, 1P66 accepted at the price of (per 100), in the amount o f— (m aturity value) $ Please issue and make delivery o f the bills as instructed b elow : Denomination P ieces $ Maturity Value P l e a s e D o N ot U s e T h i s S p a ce 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— □ □ □ □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (fo r account of member bank only)* 4. Allotment transfer (see list attached) 5. Special instructions: Payment will be made as follow s: □ □ □ B y charge to our reserve account B y cash or check in immediately available funds B y surrender o f $ .................................. (m aturity value) of maturing Treasury bills. Pay cash adjustment, if any— □ B y cheek □ (No changes in delivery instructions will be accepted) B y credit to our reserve account (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. This letter of instructions must be signed officially in the space provided and returned immediately to submitted by (Pleaseprint) By , B y (Authorized signature(s) required) Federal Reserve Bank of New York, Title ................................................................................... Title .............. Fiscnl Agent of the United States. A d d r e s s ............................................................................................................... (Spaces below are for the use of Federal Reserve Bank o f New Y ork ) Government Bond Division Security Custody Department Safekeeping Division P A Y M E N T R E C E IV E D signed: Taken from vault ............................................... D E L IV E R A G A IN S T P A Y M E N T Counted ..................................................................... Checked ............................................... ................... O F $ ........................................................... signed: D E L I V E R Y R E C E IP T Received from Federal Eeserve Bank of New York, Fiscal A gent o f the United States, the above described Treasury bills allotted in the amount Digitized for indicated FRASER above. http://fraser.stlouisfed.org/ Date................................. Subscriber................................................................................... Federal Reserve Bank of St. Louis By................................................................................... (DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YORK) DELIVERY TICKET— SAFEKEEPING DIVISION To F e d e ra l R eserve B a n k o f N ew Y ork, Fiscal A gent of the United States, Federal Reserve P. 0 . Station, New York, N. Y . 10045 A ttention: Government Bond Division— 2nd Floor Dated at ............. .1966 On our □ competitive □ noncompetitive tender fo r— U N ITED S T A T E S OF A M E R IC A 2 7 3 -D A Y T R E A SU R Y BILLS D A T E D JUNE 30, 1966, DUE JUNE 30, 1967, T O BE ISSUED SEPTEM BER 30, 1966 accepted at the price o f (per 100), in the amount of( maturity value) Please issue and make delivery of the bills as instructed below Denomination Pieces $ Maturity Value P l e a s e Do N o t U s e Tms S p a ce 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— □ □ □ □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r account o f member bank o n ly )* 4. Allotm ent transfer (see list attached) 5. Special instructions: (No changes in delivery instructions will be accepted) ^ Payment will be made as fo llo w s: □ □ □ B y charge to our reserve account B y cash or check in immediately available funds B y surrender o f $ .................................. (m aturity value) of maturing Treasury bills. Pay cash adjustment, if any— □ B y cheek □ B y credit to our reserve account (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. This letter of instructions must be signed officially in the space provided and re turned immediately to Federal Reserve Bank of New York, Submitted by ( Please print) By .......................... , B y .................... (Authorized signature(s) required) Tlt]e .......................... Title .............. Fiscal Agent of the United States. A d dr ess (Spaces below are for the use of Federal Reserve Bank o f New York) Government Bond Division Security Custody Department Safekeeping Division P A Y M E N T R E C E IV E D Taken from vault ............................................... signed : D E L I V E R A G A IN S T P A Y M E N T Counted ..................................................................... Checked ..................................................................... Delivered ..................... OF $ ........................................................... signed: D E L I V E R Y R E C E IP T Received from Federal Reserve Bank of New York, Fiscal A gent o f the United States, the above described Treasury bills allotted in the amount indicated above. http://fraser.stlouisfed.org/ Date Federal Reserve Bank of St. Louis Subscriber (T R IP L IC A T E F O R U SE OF F E D E R A L R E S E R V E B A N K OF N E W Y O R K ) RELOCATION OFFICE— OUT To F e d e ra l R eserve B a n k o f N e w Y ork, Fiscal A gent of the United States, Federal Reserve P. 0 . Station, New York, N. Y. 10045 Attention : Government Bond Division— 2nd Floor Dated at .1966 On our □ competitive □ noncompetitive tender fo r— U N ITED S T A T E S OF A M E R IC A 2 7 3 -D A Y T R E A S U R Y BILLS D A T E D JUNE 30, 1966, DUE JUNE 30, 19 67, T O BE ISSUED SEPTEM BER 30, 1966 accepted at the price o f (per 100), in the amount of( maturity value) Please issue and make delivery of the bills as instructed b e lo w : Denomination P ieces $ M aturity Value P l e a se Do N o t U se T h is S p a c e 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— □ □ □ □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r account o f member bank o n ly )* 4. Allotm ent transfer (see list attached) 5. Special instructions: Payment will be made as follow s: □ □ □ B y charge to our reserve account B y cash or check in immediately available funds B y surrender of $ .................................. (m aturity value) of m aturing Treasury bills. Pay cash adjustment, if any— □ B y check □ (No changes in delivery instructions will he accepted) (Payment cannot be made through Treasury Tax and Loan Account) If this item is checked, the undersigned certifies that the allotted This letter of instructions must be signed officially in the space provided and re turned immediately to B y credit to our reserve account bills will be owned solely by the undersigned. Submitted b y ............................. (Please print) By ............. B y......... ............................................... (Authorized signature(s) required) Federal Reserve Bank of New York, Title ................................................................................... Title Fiscal Agent of the United States. A d d r e s s ............................................................................................................. (Spaces below are for the use of Federal Reserve Bank of New York) Government Bond Division Security Custody Department Safekeeping Division P A Y M E N T R E C E IV E D signed: Taken from vault ............................................... D E L IV E R A G A IN S T P A Y M E N T Counted ..................................................................... Checked ..................................................................... Delivered ............................................................. OF $ ........................................................... signed: D E L I V E R Y R E C E IP T Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States, the above described Treasury bills allotted in the amount indicated above. Subscriber. http://fraser.stlouisfed.org/ Date. Federal Reserve Bank of St. Louis By. PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION Y ou r □ competitive □ noncompetitive tender fo r — U N ITE D S T A T E S OF A M E R IC A 2 7 3 -D A Y T R E A S U R Y BILLS D A T E D JUNE 30, 19 66, DUE JUNE 30, 19 67, T O BE ISSUED SEPTEM BER 30 , 1966 which has been accepted at the price o f (per 100), in the amount of- PRINCIPAL MASTER M A T U R IT Y V A L U E PRINCIPAL DISPOSITION □ Over the Counter □ Safekeeping □ Ship □ Treasury Tax & Loan □ Allotment Transfer SPLIT D ISPO SITIO N M E T H O D OF P A Y M E N T □ Reserve Account 0 Check or Cash □ Delivery Teller □ Foreign Oper. Div. □ Form 12 □ Maturing Bills 5 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ competitive □ noncompetitive UN ITED S T A T E S OF A M E R IC A 2 7 3 -D A Y T R E A S U R Y BILLS D A T E D JUNE 30 , 1 9 66 , DUE JUNE 30 , 1 9 67 , T O BE ISSUED SEPTEM BER 30 , 1966 RELOCATION OFFICE—IN □ competitive □ noncompetitive U N ITE D S T A T E S OF A M E R IC A 2 7 3 -D A Y T R E A S U R Y BILLS D A T E D JUNE 30 , 1 9 66 , D UE JUNE 30, 1 9 6 7 , T O BE ISSUED SEPTEM BER 30 , 1966
@FedFRASER