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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States r Circular No. 5 9 3 1 T i. January 18, 1967 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated October 27, 1966, Due April 27, 1967 (T o Be Issued January 26, 1967) $1,000,000,000 of 182-Day Bills, Dated January 26, 1967, Due July 27, 1967 To A ll 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 Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount o f $2,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing January 26, 1967, in the am ount o f $2,302,000,000, as follow s: 91-day bills (to maturity date) to be issued January 26, 1967, in the amount o f $1,300,000,000, or thereabouts, representing an additional amount o f bills dated O cto ber 27, 1966, and to mature A pril 27, 1967, originally issued in the amount of $1,000,479,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated January 26, 1967, and to mature July 27, 1967. T h e bills o f both series w ill be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided, and at maturity their face amount w ill be payable without interest. T h ey w ill be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, M onday, January 23, 1967. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be for an even multiple o f $1,000, and in the case of 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 form s 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 o f customers, provided the names o f the customers are set forth in such tenders. O thers than banking institutions will not be permitted to submit tenders except for their ow n account. Tenders w ill 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 o f 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. Imm ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g which public announcement w ill be made by the Treasury Department o f the amount and price range o f accepted bids. T h ose sub mitting tenders w ill be advised o f the acceptance or rejection thereof. T h e 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, noncom petitive 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 decim als) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on January 26, 1967, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing January 26, 1967. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price of the new bills. The incom e 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 o f 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 o f the possessions o f the United States, or by any local taxing authority. F or purposes o f 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) o f the Internal Revenue Code o f 1954, the amount o f 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 ccordin gly, the owner o f Treasury bills (other than life insurance com 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 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 N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f 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 23, 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 (9 1 -day bills to be issued January 19, 1967, representing an additional amount of bills dated October 20, 1966, maturing April 20, 1967; and 182-day bills dated January 19, 1967, maturing July 20, 1967) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST W EEK L Y OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JANUARY 19, 1967) Range o f A ccepted C om petitive Bids 91-D ay Treasury Bills Maturing A pril 2 0,1 96 7 Price A pprox. equiv. annual rate Price High 182-Day Treasury Bills Maturing July 20, 1967 A pprox. equiv. annual rate ................................. ............. 98.816 4.684% 97.637 4.674% Low ................................... ............. 98.805 4.727% 97.627 4.694% Average 98.808 4.716% x 97.631 4.686%* .......................... ............. 1 These rates are on a bank discount basis. 4.87 percent for the 182-day bills. The equivalent coupon issue yields are 4.84 percent for the 91-day bills, a (6 percent of the amount of 182-day bills bid for at the low price was accepted.) (58 percent of the amount of 91-day bills bid for at the low price was accepted.) Total Tenders A p p lied fo r and A ccepted (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing A pril 20, 1967 Accepted Applied for District ......... $ 30,424,000 182-Day Treasury Bills Maturing July 20, 1967 $ 13,324,000 Applied for $ 6,582,000 Accepted $ 2,582,000 New Y o r k ...................... ......... 1,905,637,000 804,312,000 1,717,340,000 784,753,000 .................. ......... 38,397,000 21,109,000 32,338,000 6,743,000 Cleveland ........................ ......... 41,343,000 29,628,000 40,895,000 17,234,000 23,035,000 16,760,000 18,081,000 8,491,000 Atlanta ............................ .......... 59,202,000 21,209,000 61,224,000 12,796,000 ............................ ......... 414,411,000 165,719,000 363,891,000 91,368,000 St. Louis .................................. 75,349,000 66,229,000 58,741,000 13,891,000 Minneapolis ..................... ........ 17,214,000 8,794,000 11,399,000 5,299,000 Kansas C i t y ..................... ........ 32,467,000 26,054,000 15,125,000 12,023,000 Dallas ................................ ........ 27,490,000 16,990,000 13,914,000 8,414,000 San F r a n c is c o ................. ........ 329,151,000 111,346,000 254,177,000 37,182,000 T ota l..........................____ $2,994,120,000 Philadelphia Richmond Chicago ...................... ......... $1,301,474,000a $2,593,707,000 a Includes $276,912,000 noncompetitive tenders accepted at the average price of 98.808. b Includes $134,113,000 noncompetitive tenders accepted at the average price of 97.631. $1,000,776,000b
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