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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States rC ircu la r N o. 6 0 2 4 1 L A ugust 23, 1967 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,400,000,000 of 91-Day Bills, Additional Amount, Series Dated Nov. 30,1966, Due Nov. 30,1967 (To Be Issued August 31, 1967) $1,000,000,000 of 182-Day Bills, Additional Amount, Series Dated Feb. 28, 1967, Due Feb. 29, 1968 (To Be Issued August 31, 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 Daylight Saving tim e: The Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount o f $2,400,000,000, or thereabouts, for cash and in ex change for Treasury bills maturing August 31, 1967, in the amount of $3,805,643,000, as follow s: 91-day bills (to maturity date) to be issued August 31, 1967, in the amount of $1,400,000,000, or thereabouts, representing an additional amount o f bills dated N o vem ber 30, 1966, and to mature N ovem ber 30, 1967, originally issued in the amount o f $900,493,000 (addi tional amounts of $499,956,000 and $1,000,993,000 were issued February 28 and June 1, 1967, respectively), the additional and original bills to be freely inter changeable. 182-day bills (to maturity date) to be issued August 31, 1967, in the amount o f $1,000,000,000, or thereabouts, representing an additional amount o f bills dated F eb ruary 28, 1967, and to mature February 29, 1968, originally issued in the amount o f $901,029,000 (an additional $500,040,000 was issued M ay 31, 1967), the additional and original bills to be freely interchange able. T he bills o f 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 D aylight Saving time, M onday, August 28, 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 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. 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 of 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 will be made by the Treasury Departm ent of the amount and price range of accepted bids. Th ose sub mitting tenders will be advised o f 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, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder w ill 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 com pleted at the Federal Reserve Bank on August 31, 1967, in cash or other immediately available funds or in a like face’ amount o f Treasury bills maturing August 31, 1967. Cash and exchange tenders will receive equal treatment. Cash adjust ments will be made for differences between the par value of 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 safe 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 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. For purposes o f taxation the amount o f 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 of 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. A ccord in g ly the owner of 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 Departm ent Circular N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the condm ons 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, August 28, 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 (92-day bills to be issued August 24, 1967, representing an additional amount of bills dated May 25, 1967, maturing November 24, 1967; and 183-day bills dated August 24, 1967, maturing February 23, 1968) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF L A 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 AUGUST 24, 1967) Range of Accepted Competitive Bids 92-D ay Treasury Bills Maturing N ovem ber 24,1967 Price 183-Day Treasury Bills Maturing February 23,1968 Approx. equiv. annual rate Price Approx. equiv. annual rate H i g h .......................... ............. 98.905a 4.285% 97.524 4.871% L ow .......................... ............. 98.884 4.370% 97.489 4.940% Average ................... ............. 98.892 4.336% ! 97.498 4 .92 2% 1 a E xcepting one tender o f $200,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.46 percent for the 92-dav bilk anH 5.13 percent for the 183-day bills. y ’ (99 percent of the amount of 92-day bills bid for at the low price was accepted.) (69 percent of the amount o f 183-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 92-Day Treasury Bills Maturing N ovem ber 24,1967 Applied for District B o s t o n ............................ ........... $ 11,325,000 183-Day Treasury Bills Maturing February 23,1968 Accepted $ 11,125,000 Applied for $ 31,834,000 Accepted $ 11,834,000 N ew Y o r k ...................... ........... 1,591,367,000 959,867,000 1,432,172,000 737,072,000 Philadelphia ................. ........... 25,219,000 13,219,000 13,826,000 5,826,000 ...................... ........... 16,582,000 16,582,000 26,357,000 21,807,000 Richmond ...................... ........... 8,985,000 8,985,000 5,333,000 5,333,000 Atlanta .......................... ........... 30,008,000 27,008,000 20,416,000 13,416,000 Chicago .......................... ........... 345,183,000 173,332,000 321,102,000 97,147,000 St. L o u i s ........................ ........... 40,514,000 36,214,000 20,148,000 11,948,000 Minneapolis 20,350,000 20,350,000 15,766,000 10,266,000 Kansas City ................. ........... 20,759,000 20,759,000 16,563,000 16,563,000 Dallas ............................ ........... 23,521,000 16,521,000 32,189,000 21,189,000 ............. 97,287,000 96,187,000 86,525,000 48,275,000 Cleveland ................. ........... San Francisco T otal ................. ........... $2,231,100,000 $1,400,149,000b $2,022,231,000 b Includes $208,132,000 noncom petitive tenders accepted at the average price of 98.892. c Includes $125,661,000 noncompetitive tenders accepted at the average price of 97.498. $1,000,676,000c
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