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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 5 9 3 0 1 , l January 11, 1967 -I OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated October 20, 1966, Due April 20, 1967 (To Be Issued January 19, 1967) $1,000,000,000 of 182-Day Bills, Dated January 19, 1967, Due July 20, 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 time: The Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount of $2,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing January 19, 1967, in the amount of $2,303,293,000, as follow s: 91-day bills (to maturity date) to be issued January 19, 1967, in the amount of $1,300,000,000, or thereabouts, representing an additional amount of bills dated O cto ber 20, 1966, and to mature April 20, 1967, originally issued in the amount of $1,000,709,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated January 19, 1967, and to mature July 20, 1967. The bills o f both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. Th 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 Standard time, M onday, January 16, 1967. 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 o f competitive tenders the price offered must be expressed on the basis of 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 forms 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 of 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 incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. Immediately 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 of the amount and price range of accepted bids. Those sub mitting tenders will be advised of 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 January 19, 1967, in cash or other immediately available funds or in a like face amount of Treasury bills maturing January 19, 1967. Cash and exchange tenders will receive equal treatment. Cash adjustments 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 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 o f 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. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) of the Internal Revenue 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. Accordingly, the ow ner of Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax leturn 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 o f 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, Monday, January 16, 1967, 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 “ Tender for 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. Results of the last weekly offering of Treasury bills (91 -day bills to be issued January 12, 1967, representing an additional amount of bills dated October 13, 1966, maturing April 13, 1967; and 182-day bills dated January 12, 1967, maturing July 13, 1967) are shown on the reverse side of this circular. A lfred H ayes, President. ( over ) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JANUARY 12, 1967) Range o f A ccepted Com petitive Bids 91-Day Treasury Bills Maturing April 13, 1967 182-Day Treasury Bills Maturing July 13, 1967 Price Approx. equiv. annual rate 98.794a 4.771% 97.534b 4.878% Low ................................................. 98.774 4.850% 97.523 4.900% Average 98.782 4.818% 1 97.528 4.890% 1 High ............................................... ......................................... a Excepting one tender of $1,000,000. Approx. equiv. annual rate Price b Excepting one tender of $260,000. 1 These rates are on a bank discount basis. 5.08 percent for the 182-day bills. The equivalent coupon issue yields are 4.95 percent for the 91-day bills, and (100 percent of the amount of 91-day bills bid for at the low price was accepted.) (69 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders A pplied for and A ccepted (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing April 13, 1967 District Boston Applied for .......................... ........... New York ................... ........... $ 25,537,000 182-Day Treasury Bills Maturing July 13, 1967 Applied for Accepted $ 15,537,000 $ 27,282,000 Accepted $ 23,662,000 1,144,619,000 686,619,000 1,316,628,000 676,561,000 ............... ........... 30,173,000 18,173,000 18,290,000 7,790,000 Cleveland ..................... ........... 48,877,000 48,877,000 40,226,000 21,876,000 Richmond ................... ........... 15,042,000 15,042,000 7,989,000 4,989,000 Atlanta .......................... ........... 60,014,000 60,014,000 39,155,000 25,763,000 ........................ ........... 317,742,000 142,742,000 317,245,000 102,845,000 St. Louis ..................... ........... 70,989,000 67,989,000 44,585,000 25,730,000 Minneapolis ................. ........... 20,973,000 20,973,000 14,917,000 8,397,000 Kansas C i t y ................. ........... 47,634,000 47,634,000 21,360,000 17,525,000 Dallas ............................ ........... 34,900,000 28,900,000 21,060,000 13,673,000 148,159,000 148,159,000 122,285,000 71,330,000 Philadelphia Chicago San F r a n c is c o ............. ........... T otal...................... ........... $1,964,659,000 $1,300,659,000° $1,991,022,000 c Includes $338,290,000 noncompetitive tenders accepted at the average price of 98.782. d Includes $165,844,000 noncompetitive tenders accepted at the average price of 97.528. $1,000,141,000d
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