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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular N o . 6 0 4 2 "1 L October 4, 1967 j OFFERING OF TWO SERIES OF TREASURY BILLS ,500,000,000 of 90-Day Bills, Additional Amount, Series Dated July 13, 1967, Due January 11 1968 (To Be Issued October 13, 1967) $1,000,000,000 of 181-Day Bills, Dated October 13,1967, Due April 11, 1968 To All 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 time: • The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $2,500,000,000, or thereabouts, for cash and in ex change for Treasury bills maturing October 13, 1967, in the amount of $2,400,976,000, as follows: 90-day bills (to maturity date) to be issued October 13, 1967, in the amount of $1,500,000,000, or thereabouts, representing an additional amount of bills dated July 13, 1967, and to mature January 11, 1968, originally issued in the amount of $1,000,444,000, the additional and original bills to be freely interchangeable. 181-day bills, for $1,000,000,000, or thereabouts, to be dated October 13, 1967, and to mature April 11, 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. They 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, Monday, October 9, 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 of competitive tenders the price offered must be expressed on the basis of 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 of 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 of 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. 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 of the amount and price range of accepted bids. Those sub mitting tenders will be advised of the acceptance or rejection thereof. The Secretary of 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 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 decimals) of 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 October 13 1967 in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 13, 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 of the new bills! The income derived from Treasury bills, whether interest or gain from the sale or other disposition of 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 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 imposed on the principal or interest thereof by any State, or any of the possessions of 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) of 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. Accordinelv the owner of Treasury bills (other than life insurance com panies) 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 redemotion at maturity during the taxable year for which the return is made as ordinary gam or loss. 1 Treasury Department Circular No. 418 (current revision') and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular mav 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 Savin? time Mondav r w w o 1967, at the Securities Department of its Head Offiee and at its Buffalo Branch. T J L r K t o series are enclosed. Please use the appropriate forms to submit tenders and return them in an pnvplnn* 5 “Tender for Treasury Bdls.” 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 Treasure 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 (91-day bills to be issued October 5 1967 reoresentW an additional amount of bills dated July 6, 1967, maturing January 4, 1968 j and 182-day bills dated Ortoher ^ 1*0^7 maturing April 4, 1968) are shown on the reverse side of this circular. A lfred H ayes, President. Please note that the current offering is for 90-day and 181-day Treasury bills. (o v e r ) RESULTS OF LAST W EEK L Y OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED OCTOBER 5, 1967) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing January 4,1968 Price High ........... ..... ..... ..... 182-Day Treasury Bills Maturing April 4,1968 Approx. equiv. annual rate Price Approx. equiv. annual rate 98.868a 4.478% 97.440b 5.064% 98.852 4.542% 97.418 5.107% 98.859 4.514%! 97.427 5.089%! a Excepting two tenders totaling $325,000. b Excepting one tender of $200,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.64 percent for the 91-day bills, and 5.31 percent for the 182-day bills. (53 percent ofthe amount of91-day bills (86percent ofthe amount of 182-day bills bid for atthe low price was accepted.) bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing January 4, 1968 .... $ 20,383,000 Applied for Accepted Applied, for District 182-Day Treasury Bills Maturing April 4,1968 $ 10,383,000 $ 15,563,000 Accepted $ 10,563,000 New York ....... .... Philadelphia ...... .... 1,483,499,000 962,927,000 1,340,050,000 681,680,000 25,725,000 13,725,000 16,659,000 8,659,000 .... 22,633,000 22,633,000 40,895,000 31,895,000 Richmond........ ... Atlanta ......... .... 20,666,000 11,196,000 16,731,000 6,731,000 44,639,000 28,347,000 33,204,000 17,104,000 Chicago......... .... St. Louis........ .... 209,876,000 159,989,000 201,175,000 107,175,000 36,317,000 28,706,000 28,811,000 19,081,000 Minneapolis ...... .... Kansas City...... .... 25,558,000 20,781,000 18,393,000 8,393,000 25,119,000 24,119,000 18,221,000 13,196,000 Dallas .......... .... 25,913,000 16,913,000 20,282,000 10,282,000 124,140,000 100,705,000 157,021,000 85,341,000 San Francisco.... Total....... .... $2,064,468,000 $1,400,-424,000c $1,907,005,000 c Includes $226,964,000 noncompetitive tenders accepted at the average price of 98.859. d Includes $148,067,000 noncompetitive tenders accepted at the average price of 97.427. $1,000,100,00a 1
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