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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent o f the United States r Circular No. 59 73 1 I April 26, 1967 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated February 2, 1967, Due August 3, 1967 (To Be Issued May 4, 1967) $1,000,000,000 of 182-Day Bills, Dated May 4, 1967, Due November 2, 1967 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f 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 two 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 May 4, 1967, in the amount of $2,302,827,000, as follow s: 91-day bills (to maturity date) to be issued May 4, 1967, in the amount o f $1,300,000,000, or thereabouts, represent ing an additional amount o f bills dated February 2, 1967, and to mature August 3, 1967, originally issued in the amount o f $1,002,103,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated May 4, 1967, and to mature November 2, 1967. The bills of 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. They will 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 will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Monday, May 1, 1967. Tenders will not be received at the Treasury Department, Washington. 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 o f 100, with not more 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 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 o f 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, following which public announcement will be made by the Treasury Department o f the amount and price range o f accepted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reserva tions, 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) o f 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 May 4, 1967, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing May 4, 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 o f 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 treatment, 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 taxation now or here after imposed 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. For purposes o f taxation the amount o f dis count 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. Accordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder need include in his income 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 No. 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 Daylight Saving time, Monday, M ay 1, 1967, at the Securities Department o f 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 fo r the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. Results o f the last weekly offering o f Treasury bills _(91-day bills to be issued A pril 27, 1967, representing an additional amount of bills dated January 26, 1967, maturing July 27, 1967; and 182-day bills dated A pril 27, 1967, maturing October 26, 1967) are shown on the reverse side o f this circular. A lfred H ayes, President. ( over ) RESULTS OF LA ST W E E K L Y O FFE R IN G OF T R E A S U R Y BILLS (T W O SERIES TO BE ISSUED A P R IL 27, 1967) Range o f A ccepted Com petitive Bids 91-Day Treasury Bills Maturing July 27,1967 182-Day Treasury Bills Maturing O ctober 26,1967 Price Approx. equiv. annual rate Price Approx. equiv. annual rate ..................... 99.06> 3.691% 98.106 3.746% L ow ........................ 99.058 3.727% 98.086 3.786% A v e r a g e ................. 99.061 3 .71 5% 1 98.093 3 .772% 1 H igh a Excepting one tender o f $300,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 3.81 percent for the 91-day bills, and 3.91 per cent for the 182-day bills. (92 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (50 percent o f the amount o f 182-day bills bid for at the low price was accepted.) T otal Tenders A p p lied for and A ccepted (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing July 27,1967 District Boston Applied, fo r ............................ ......... $ 19,444,000 182-Day Treasury Bills Maturing October 26,1967 Accepted $ 9,444,000 Accepted Applied fo r $ 25,895,000 $ 15,895,000 New Y o r k ..................... ........ 1,638,642,000 922,502,000 1,382,991,000 807,991,000 Philadelphia................... ......... 29,944,000 17,781,000 17,880,000 5,880,000 Cleveland ....................... ........ 29,274,000 29,210,000 29,338,000 24,338,000 ..................... ........ 11,505,000 11,505,000 2,626,000 2,626,000 A t la n t a ............................ ......... 44,619,000 32,519,000 29,102,000 15,502,000 .......................... ........ 312,962,000 125,962,000 253,816,000 52,816,000 St. Louis ........................ ........ 49,636,000 43,612,000 24,015,000 21,665,000 M in n ea p olis................... ........ 16,306,000 12,266,000 10,068,000 7,318,000 Kansas C i t y ................... ........ 32,763,000 30,763,000 9,905,000 9,905,000 Dallas .............................. ........ 24,528,000 15,448,000 14,634,000 7,134,000 San Francisco ......................... 154,110,000 49,710,000 65,619,000 29,269,000 ......................... ........ $2,363,733,000 Richmond Chicago T otal $ 1,300,722,000b t>Includes $259,206,000 noncompetitive tenders accepted at the average price o f 99.061. c Includes $96,137,000 noncompetitive tenders accepted at the average price o f 98.093. $1,865,889,000 $ 1,000,339,000=
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