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FEDERAL RESERVE BANK OF N EW YORK Fiscal A gent of the United States r Circular No. 6 0 5 9 ~1 L November 15, 1967 J OFFERING OF TWO SERIES OF TREASURY BILLS [,500,000,000 of 91-Day Bills, Additional Amount, Series Dated August 24,1967, Due February 23,1968 (To Be Issued November 24, 1967) $1,000,000,000 of 181-Day Bills, Dated November 24, 1967, Due May 23, 1968 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m., Eastern Standard tim e: The Treasury Department, by this public notice, invites tenders for tw o series of Treasury bills to the aggregate amount of $2,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing N ovem ber 24, 1967, in the amount of $2,401,985,000, as follow s: 91-day bills (to maturity date) to be issued N ovem ber 24, 1967, in the amount of $1,500,000,000, or thereabouts, representing an additional amount of bills dated A ugust 24, 1967, and to mature February 23, 1968, originally issued in the amount of $1,001,494,000, the additional and original bills to be freely interchangeable. 181-day bills, for $1,000,000,000, or thereabouts, to be dated Novem ber 24, 1967, and to mature May 23, 1968. T he 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 w ill be payable without interest. T hey w ill 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 (m aturity value). T enders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Stand ard time, Monday, N ovem ber 20, 1967. Tenders will not be received at the Treasury Department, W ashington. Each tender m ust be for an even multiple of $1,000, and in the case of com petitive tenders the price offered m ust 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 R eserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account of customers, provided the names of the custom ers 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 investm ent 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. Im m ediately 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 D epartm ent of the amount and price range of accepted bids. T hose sub m itting 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 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 will be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on N ovem ber 24, 1967, in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing N ovem ber 24, 1967. Cash and exchange tenders will receive equal treatment. Cash adjustm ents w ill be made for differences betw een the par value of maturing bills accepted in exchange and the issue price of the new bills. T he 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, w hether Federal or State, but are exem pt from all taxa tion now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the U nited States is considered to be interest. Under Sections 454(b) and 1221(5) of the Internal R evenue Code of 1954, the amount of discount at which bills issued here under 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 ccordingly, 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 ordi nary gain or loss. Treasury D epartm ent 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 may be obtained from any Federal R eserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, November 20, 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. Paym ent for the Treasury bills cannot be made by credit through the Treasury T a x and Loan Account. Settlem ent 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 November 16, 1967, representing an additional amount of bills dated August 17, 1967, m aturing February 15, 1968; and 182-day bills dated Novem ber 16, 1967, m aturing May 16, 1968) are shown on the reverse side of this circular. A l fr ed H a y e s , P r e s id e n t. Please note th at the issue date of the 91-d:iy i Friday, November 24, 1967, and the m aturity date, Friday, F eb ru ary 23, 1968, because the usual T hursday dates of issue and m atu rity would fall on holidays. Please also note that, because the issue date of the 6-month bills is Friday, Novem ber 24, 1967, such bills will be 181-day bills. (o v e r) RESULTS OF L A ST W E E K L Y O F FE R IN G OF T R E A S U R Y BILLS (T W O SERIES TO B E ISSUED N O V E M B E R 16, 1967) R ange of Accepted Com petitive Bids 91-Day Treasury Bills M aturing February 15,1968 182-Day Treasury Bills M aturing M ay 16,1968 Price Approx. equiv. annual rate Price Approx. equiv. annual rate H i g h .......................... ............. 98.834 4.613% 97.411 5.121% Low .......................... ............. 98.822 4.660% 97.382 5.178% Average ................... ............. 98.825 4.648%! 97.394 5.155%! e oc 1 T hese rates are on a bank discount basis. T he equivalent coupon issue yields are 4.78 percent for the 91-dav bills and 5.38 percent for the 182-day bills. ’ (56 percent of the amount of 91-day bills bid for at the low price was accepted.) (98 percent of the amount of 182-day bills bid for at the low price was accepted.) T otal Tenders A pplied fo r and Accepted (By F ederal Reserve Districts) 91-Day Treasury Bills M aturing February 15,1968 Applied for D istrict Boston ......................................... $ 18,073,000 182-Day Treasury Bills M aturing M ay 16,1968 Accepted $ 8,073,000 Applied for $ 17,445,000 Accepted $ 7,445,000 New Y o r k ..................... ............. 1,907,904,000 1,018,684,000 1,163,190,000 613,825,000 Philadelphia ................. ............. 27,481,000 13,403,000 16,326,000 8,326,000 ..................... ........... 34,743,000 25,279,000 32,820,000 27,820,000 Richmond ..................... ........... 21,446,000 10,446,000 12,938,000 12,938,000 .......................... ........... 35,931,000 23,699,000 35,797,000 30,781,000 Chicago .......................... ........... 272,835,000 228,285,000 163,851,000 131,751,000 St. L o u i s ........................ ........... 40,495,000 31,675,000 26,713,000 25,209,000 ................. ........... 29,823,000 19,023,000 19,522,000 13,022,000 Kansas City ................. ........... 30,844,000 25,971,000 13,275,000 13,271,000 ............................ ........... 24,058,000 14,618,000 19,173,000 11,173,000 ............. 184,654,000 81,574,000 130,561,000 104,461,000 T o tal .................. $2,628,287,000 Cleveland A tlanta Minneapolis Dallas San Francisco $1,500,730,000* $1,651,611,000 a Includes $227,990,000 noncompetitive tenders accepted at the average price of 98.825. b Includes $148,574,000 noncompetitive tenders accepted at the average price of 97.394. $ 1,000,022,000b
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