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FEDERAL RESERVE BANK O F N E W YORK Fiscal Agent of the United States Circular No. 5 9 6 1 ' March 22, 1967 , OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated December 29,1966, Due June 29,1967 (To Be Issued March 30, 1967) $1,000,000,000 of 182-Day Bills, Dated March 30, 1967, Due September 2 8 , 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 time: ’’ The Treasury Department, by this public notice, invites tenders for tw o series of Treasury bills to the aggregate amount of $2,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing March 30, 1967, in the amount of $2,304,771,000, as follow s: 91-day bills (to maturity date) to be issued March 30, 1967, in the amount o f $1,300,000,000, or thereabouts, representing an additional amount o f bills dated D e cember 29, 1966, and to mature June 29, 1967, originally issued in the amount of $1,001,292,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated March 30, 1967, and to mature September 28, 1967. The bills of both series will be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. T h 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, March 27, 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 com petitive 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 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 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. 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 o f accepted bids. Those submit ting tenders w ill be advised o f the acceptance or rejection thereof, lh e Secretary of the Treasury expressly reserves the acc9Pt or reject any or all tenders, in w hole or in part and his action in any such respect shall be final. Subject to £ n n ennnserviatl° ns’- ,n oncomPetitive 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) o f accepted competitive bids for the respective issues. Settlement tor accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on March 30 1967 in cash or other immediately available funds or in a like face amount of Treasury bills maturing M arch 30, 1967. Cash and exchange tenders will receive equal treatment. Cash adjust ments will be made for differences betw een the par value o f maturing bills accepted in exchange and the issue price o f the new bills. The incom e derived from Treasury bills, whether interest or gam 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 of 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 exem pt from all taxa° r he£ a*ter im P °sed 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 of taxation the amount o f discount at which Treasury bills are originally sold by the United States is considered to be interest. rn H Cr f eioc:4nS^ I22] © 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 n W ? T er ° f, T reasu7 bllls (.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 w hich the return is made as ordinary gain or loss. ’ Treasury Departm ent Circular N o. 418 (current revision) and this notice prescribe the terms of the Treasury bills and govern the conditions o f their issue. Copies o f the circular mav be obtained from any Federal Reserve Bank or Branch? This Bank will receive tenders for both series un to 1 -30 nm 1967, at the Securities Department of its Head Office and at its Buffalo Branch " T e n d e r Tnr f lu March ?7, series are enclosed. Please use the appropriate forms to submit tenders and^r etuJn ^ mS ^ ^ resPec^ ve “ Tender for Treasury Bills.” Tenders may be submitted b y t e t a a o h , u b ie rttn w r i H . * « " “ enve 0pe marked be submitted by telephone. Payment for the Treasury Mils cannot b e ’made by credit t h r o u a h ^ r Z l , t '"' " r f Loan Account. Settlement must be made in cash or other immediately available funds or in maturing T reJ u ry Mis. Results of the last weekly offering of Treasury bills (91-day bills to be issued March ??, 1 CW7 additional amount of bills dated December 22, 1966, maturing June 22 1967- and 182 dav b ilk rW p T maturing September 21, 1967) are shown on the reverse side of this circular * A lfred 10^7 ’ 967’ H ayes, President. ( over) RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED MARCH 23, 1967) Range o f A ccepted Com petitive Bids 91-Day Treasury Bills Maturing June 22,1967 Price 182-Day Treasury Bills Maturing September 21,1967 Approx. equiv. annual rate Price Approx. equiv. annual rate H i g h ......................................... 98.971 4.071% 97.988 3.980% L ow ......................................... 98.959 4.118% 97.968 4.019% Average .................................. 98.963 4.102% ! 97.975 4.005% ! 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.21 percent for the 91-day bills, 4.16 percent for the 182-day bills. (57 percent of the amount of 182-day bills bid for at the low price was accepted.) (42 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 June 22,1967 Accepted Applied fo r District B o s t o n ............... ........................ $ 23,134,000 182-Day Treasury Bills Maturing September 21,1967 $ 12,634,000 Applied fo r $ 13,416,000 Accepted $ 3,416,000 ........................ 1,690,851,000 894,190,000 1,576,585,000 814,435,000 Philadelphia . . . ........................ 25,948,000 13,848,000 14,793,000 4,943,000 ......... ........................ 39,745,000 30,877,000 13,029,000 11,437,000 R ic h m o n d ......... ........................ 18,046,000 12,046,000 10,333,000 4,333,000 Atlanta ............. ........................ 60,918,000 33,065,000 33,049,000 11,372,000 C h ic a g o ............. ........................ 331,013,000 129,557,000 294,444,000 72,507,000 St. L o u i s ........... ........................ 54,148,000 41,568,000 24,579,000 11,929,000 Minneapolis . . . ........................ 28,739,000 21,485,000 10,183,000 6,883,000 Kansas City . . . ........................ 35,973,000 33,833,000 10,500,000 10,450,000 ........................ 23,258,000 17,458,000 11,852,000 6,809,000 . ........................ 163,142,000 59,603,000 195,276,000 41,616,000 . . ........................ $2,494,915,000 New Y ork Cleveland San Francisco T otal $1,300,164,000a $2,208,039,000 a Includes $292,798,000 noncom petitive tenders accepted at the average price o f 98.963. b Includes $112,715,000 noncom petitive tenders accepted at the average price o f 97.975. $1,000,130,000b
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