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F E D ER A L R ES ER V E BANK O F NEW YO RK Fiscal Agent of the United States J" Circular No. 5 9 1 9 "1 L December 19, 1966 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated September 29,1966, Due Marcli 30,1967 (To Be Issued December 29, 1966) $1,000,000,000 of 182-Day Bills, Dated December 29, 1966, Due June 29, 1967 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m., Eastern Standard tim e: T h e T reasury D epartm ent, by this public notice, invites tenders for tw o series of T reasu ry bills to the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T easu ry bills m aturing D ecem ber 29, 1966, in the am ount of $2,302,871,000, as fo llo w s: 91-day bills (to maturity date) to be issued D ecem ber 29, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of bills dated Sep tem ber 29, 1966, and to mature M arch 30, 1967, origi nally issued in the am ount of $1,000,700,000, the addi tional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated D ecem ber 29, 1966, and to mature June 29, 1967. T h e 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 h e y 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 (m aturity valu e). T enders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m ., Eastern Standard time, Friday, D ecem ber 23, 1966. T enders will not be received at the T reasu ry D epartm ent, W ash in g ton . E ach 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, with not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied by Federal R eserve Banks 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 th ers than banking institutions will not be permitted to subm it 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 en ders from others m ust be accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty of 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 in g which public announcem ent will 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. S ettlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal Reserve Bank on D ecem ber 29, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing D ecem ber 29, 1966. Cash and exchange tenders w ill 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, whether 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 reasury bills does not have any special treat ment, as such, under the Internal R evenue 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 now or hereafter im posed 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 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 cco rd in gly , the ow ner of T reasury bills (other than life insurance co m 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 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 of the circular m ay be obtained from any Federal R eserve B ank or Branch. I his Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, F r id a y , D e c e m b e r 2 3 , 1 9 6 6 , 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 an envelope marked Lender for 1reasury 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. Results of the last weekly offering of Treasury bills (91-day bills to be issued December 22, 1966, representing an additional amount of bills dated September 22, 1966, maturing March 23, 1967; and 182-day bills dated December 22, 1966, maturing June 22, 1967) are shown on the reverse side of this circular. A lfred H ayes, President. Closing date for receipt of tenders is Friday, December 23. ( over) RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED DECEMBER 22, 1966) Range of A ccepted Com petitive Bids 91-Day Treasury Bills Maturing March 23,1967 182-Day Treasury Bills Maturing June 22,1967 Price Approx. equiv. annual rate Price Approx. equiv. annual rate H i g h ......................................... 98.789 4.791% 97.528 4.890% L ow ......................................... 98.772 4.858% 97.498 4.949% Average .................................. 98.776 4 .84 2% 1 97.503 4.939% ! 1 T h ese rates are on a bank discount basis. T h e equivalent coupon issue yields are 4.97 percent for the 9 1-d a y bills, 5.14 percent for the 182-day bills. (93 percent of the amount of 91-day bills bid for at the low price was accepted.) (97 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) 91 -Day Treasury Bills Maturing March 23,1967 District Applied for B o s t o n ............... ........................ New Y o r k ......... ........................ $ 28,783,000 1,521,301,000 182-Day Treasury Bills Maturing June 22,1967 Accepted $ 24,478,000 848,111,000 Applied for $ 37,379,000 Accepted $ 4,319,000 1,378,177,000 753,778,000 8,847,000 Philadelphia . . . ........................ 37,494,000 18,766,000 19,947,000 Cleveland ......... ........................ 26,626,000 23,553,000 23,786,000 14,878,000 Richmond ......... ........................ 34,009,000 23,009,000 24,062,000 20,002,000 Atlanta ............. ........................ 53,669,000 27,043,000 40,690,000 15,432,000 C h ic a g o ............. ........................ 218,624,000 158,959,000 131,785,000 85,175,000 St. L o u i s ........... ........................ 67,518,000 57,518,000 60,754,000 16,545,000 Minneapolis . . . ........................ 20,788,000 15,188,000 9,903,000 5,313,000 26,290,000 12,968,000 12,618,000 Kansas City . . . ........................ 27,065,000 Dallas ............... ........................ 24,000,000 14,430,000 14,706,000 9,206,000 San Francisco .. ........................ 224,428,000 62,858,000 140,572,000 56,403,000 ........................ $2,284,305,000 T otal $ 1,300,203,000a $1,894,729,000 a Includes $226,260,000 noncom petitive tenders accepted at the average price of 98.776. b Includes $118,689,000 noncom petitive tenders accepted at the average price of 97.503. $1,002,516,000b
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