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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 6 0 3 3 1 L September 13, 1967 J OFFERING OF TWO SERIES OF TREASURY RILLS L,400,000,000 of 91-Day Bills, Additional Amount, Series Dated June 22, 1967, Due December 21, 1967 (To Be Issued September 21, 1967) $1,000,000,000 of 182-Day Bills, Dated September 21, 1967, Due March 21, 1968 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: r ' '* The Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount of $2,400,000,000, or thereabouts, for cash and in ex change for Treasury bills maturing September 21, 1967, in the amount o f $2,300,149,000, as follow s: 91-day bills (to maturity date) to be issued September 21, 1967, in the amount of $1,400,000,000, or thereabouts, representing an additional amount o f bills dated June 22, 1967, and to mature D ecem ber 21, 1967, originally issued in the amount o f $1,000,050,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated September 21, 1967, and to mature March 21, 1968. 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. 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 Daylight Saving time, M onday, September 18, 1967. Tenders will 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 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 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 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 in g which public announcement will be made by the Treasury Department o f the amount and price range o f accepted bids. Those sub mitting 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 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 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 September 21, 1967, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 21, 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 o f 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 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 o f 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) o f 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. 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 of their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch. T ^11's Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday September 1967, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for’ The Tesvective series are enclosed. Please use the appropriate forms to submit tenders and return them in an envebpe S e e d Tender for Treasury Bills Tenders may be submitted by telegraph, subject to written confirmation they , ™ v n o t be submitted by telephone Payment for the Treasury hills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made m cash or other immediately available funds or in maturing Treasury b7ls Results of the last weekly offering of Treasury bills (91-day bills to be issued September 14, 1967 representing an additional amount of bilk dated June 15, 1967, maturing December 14, 1967; and 182-day bills dated Sep’t e X r 14 % 7 maturing March 14, 1968) are shown on the reverse side of this circular. ^cpteinoer 1 % u o /, A lfred H a y e s , President. ( over) RESULTS OF LA ST W E E K L Y O FFE R IN G O F T R E A S U R Y BILLS (T W O SERIES TO BE ISSUED SE PT E M B E R 14, 1967) Range o f A ccepted Com petitive Bids 91-Day Treasury Bills Maturing Decem ber 14,1967 High ........................................ ............................ ............................. 182-Day Treasury Bills Maturing March 14, 1968 Price Approx. equiv. annual rate Price Approx. equiv. annual rate 98.906a 4.328% 97.510 4.925% 98.891 4.387% 97.490 4.965% 4.360% 1 97.497 4.951% ' 98.898 a Excepting one tender o f $500,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.48 percent for the 91-day bills, ai 5.16 percent for the 182-day bills. (31 percent of the amount of 91-day bills; bid for at the low price was accepted.) (89 percent of the amount of 182-day bills bid for at the low price was accepted.) T otal Tenders A p p lied fo r and A ccepted (B y Federal Reserve Districts) 182-Day Treasury Bills Maturing March 14, 1968 91-Day Treasury Bills Maturity Decem ber 14, 1967 Boston ............... ........................ $ 20,355,000 $ 10,355,000 Accepted Applied for Accepted Applied for District $ 29,394,000 $ 23,394,000 New Y o r k ......... ....................... 1,542,503,000 917,562,000 1,214,527,000 626,092,000 ..................... 28,415,000 16,415,000 13,786,000 5,786,000 C levelan d ........... ........................ 30,616,000 30,616,000 39,709,000 25,709,000 ......... ....................... 15,191,000 12,191,000 8,723,000 5,723,000 A tla n ta ............... ....................... 53,465,000 42,780,000 33,590,000 22,290,000 Chicago ............. ....................... 206,861,000 144,612,000 213,584,000 140,144,000 St. L o u i s ........... ....................... 48,838,000 40,731,000 29,653,000 21,717,000 Minneapolis . . . . ....................... 27,296,000 21,856,000 20,338,000 14,838,000 ....................... 36,259,000 36,259,000 21,355,000 20,294,000 D a lla s ................. ....................... 27,795,000 21,295,000 20,062,000 11,062,000 San Francisco . . ....................... 124,039,000 105,349,000 148,274,000 83,024,000 ....................... $2,161,633,000 $1,792,995,000 $1,000,073,000' Philadelphia . . . . Richmond Kansas City T otal . $1,400,021,000b b Includes $253,197,000 noncom petitive tenders accepted at the average price o f 98.898. c Includes $144,040,000 noncompetitive tenders accepted at the average price o f 97.497.
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