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FEDERAL RESERVE BANK OF N E W YORK Fiscal A gent of the U nited States 'Circular No. 6 0 6 2 T . November 16, 1967 J OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 275-Day Bills, Additional Amount, Series Dated August 31, 1967, Due August 31,1968 (To Be Issued November 30, 1967) $1,000,000,000 of 366-Day Bills, Dated November 30, 1967, Due November 30, 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 time: T he Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing N ovem ber 30, 1967, in the amount of $3,801,885,000, as follow s: 275-day bills (to maturity date) to be issued Novem ber 30, 1967, in the amount of $500,000,000, or thereabouts, rep resenting an addditional amount of bills dated A ugust 31, 1967, and to mature A ugust 31, 1968, originally issued in the amount of $1,000,336,000, the additional and original bills to be freely interchangeable. 366-day bills, for $1,000,000,000, or thereabouts, to be dated N ovem ber 30, 1967, and to mature Novem ber 30, 1968. T he bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at maturity their face am ount will 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). Tenders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, W ednesday, N ovem ber 22, 1967. Tenders will not be received at the Treasury Departm ent, 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, w ith not more than three decimals, e.g., 99.925. Fractions may not be used. (N otw ithstanding the fact that the one-year bills w ill run for 366 days, the discount rate w ill be computed on a bank discount basis of 360 days, as is currently the practice on all issues of Treasury bills.) It is urged that tenders be made on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay submit tenders for account o f custom ers, 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 ow n account. Tenders will be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent 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. 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 Department of the amount and price range of accepted bids. T hose sub m itting tenders will be advised of the acceptance or rejection thereof. T he 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, 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 must be made or completed at the Federal Reserve Bank on N ovem ber 30, 1967, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing N ovem ber 30, 1967. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents 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 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 im posed 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 otherw ise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, 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, w hether 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 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 Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Wednesday, November 22, 1967, at the Securities Departm ent 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 the enclosed yellow envelope marked “Tender for Special 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 m ust be made in cash or other immediately available funds or in maturing Treasury ^ S‘ A lfr e d H ayes, President. No.................................... TENDER FOR SPECIAL 275-DAY TREASURY BILLS Additional Amount, Series Dated August 31, 1967, Due August 31, 1968 (To Be Issued November 30, 1967) T o F e d e r a l R eserve B a n k of Dated a t .......................................................... .......................................................... , 1 9 . . . . N ew Y ork, Fiscal Agent of the United States. Pursuant to the provisions of Treasury Departm ent Circular No. 418 (current revision) and to the provisions of the public notice issued by the Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase the above-described Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the settlement date specified in the public notice at the price indicated below : CO M PETITIV E TEN D ER D o not Ml in both Competitive and "*] f '“',v Ttenders " r "‘on one form I jf X Noncompetitive $ ............................................................ (m aturity value), or any lesser amount that may be awarded. P ric e : .....................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) NON CO M PETITIV E TEN D ER $ ............................................................ (m aturity value). (N o t to exceed $200,000 for one bidder through all sources) A t the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Maturity value Denomination $ 1,000 □ 5,000 □ □ 10,000 □ 50,000 □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold' in safekeeping (for ac count o f member bank only)* 4. Allotment transfer (see list attached) 5. Special instructions: Payment will be made as follow s: □ By charge to our reserve account □ By cash or check in immediately available funds □ By surrender of $ .............................. (maturity value) of' maturing Treasury bills. Pay cash adjust ment, if any— 100,000 □ By check 500,000 □ By credit to our reserve account 1,000,000 (Paym ent cannot be made through Treasury T ax and Loan Account) w ill be accepted) Total * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. N am e o f subscriber Insert this tender B y ................................ in yellow envelope marked “ Tender for Special Treasury Bills ” —* T itle ........................... (Please print) By (Official signature (s) required) ................. . T i t l e ........... A d d r e ss.............................................................................................................. (Banks subm itting tenders for customer account m ust indicate names below, or attach a list) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be considered, and each tender m ust be for an even multiple of $1,000 (m aturity value). 2. Others than banking institutions w ill not be permitted to submit tenders except for their ow n account. Banks subm itting tenders for customer account may consolidate com petitive tenders at the same price and m ay consolidate non com petitive tenders, provided a list is attached show ing the name of each bidder, the amount bid for his account, and m ethod of payment. Form s for this purpose will be furnished on request. 3. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation w ill be construed as a representation by him that he has been so authorized. If the tender is made by a partnership,-it should be signed by a member of the firm, who should sign in the form “ ............................................................................................. . a copartnership, by ............................................................................................................a m em ber of the firm.” 4. 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 m ust be accompanied by paym ent of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. 5. If the language of this tender is changed in any respect, which, in the opinion o f the Secretary of the Treasury, is material, the tender may be disregarded. No.............. T E N D E R F O R SPECIAL 366-D A Y T R E A S U R Y B IL L S Dated N o v e m b e r 30, 1967 To F ederal R eserve B a n k of N e w Y ork D u e N o v e m b e r 30, 1968 Dated a t .......................................................... .......................................................... t 19___ , Fiscal Agent of the United States. Pursuant to the provisions of Treasury Departm ent Circular No. 418 (current revision) and to the provisions of the public notice issued by the Treasury Departm ent inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase the above-described Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the settlement date specified in the public notice at the price indicated below : C O M PETITIV E TEN D ER F Do not fill in both Competitive and Noncompetitive tenders on one form $ ............................................................ (m aturity value), or any lesser amount that may be awarded. P r i c e : .....................................per 100. (Price must be expressed w ith not more than three decimal places, for example, 99.925) N O N CO M PETITIV E TEN D ER ] $ ............................................................ (m aturity value). (N ot to excced $200,000 for one bidder through all sources) A t the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ Maturity value 1,000 □ □ □ 5,000 10,000 □ 50,000 □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for ac count o f member bank only)* 4. Allotment transfer (see list attached) 5. Special instructions: Payment will be made as follow s: □ By charge to our reserve account □ By cash or check in immediately available funds □ By surrender of $ .............................. (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— 100,000 □ By check 500,000 □ By credit to our reserve account 1,000,000 (N o changes in delivery instructions w ill be accepted) Total (Paym ent cannot be made through Treasury T ax and Loan Account) * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. N am e of subscriber (Please print) Insert this tender in yellow envelope marked “ Tender for B y ................................ By (Official signature(s) required) T i t l e ............................ ................... T i t l e ........... Special Treasury Bills’ Address (Banks subm itting tenders for customer account must indicate names below, or attach a list) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be considered, and each tender m ust be for an even multiple of $1,000 (m aturity value). 2. Others than banking institutions w ill not be permitted to submit tenders except for their ow n account. Banks subm itting tenders for customer account m ay consolidate com petitive tenders at the same price and m ay consolidate non com petitive tenders, provided a list is attached show ing the name of each bidder, the amount bid for his account, and m ethod of payment. Form s for this purpose w ill be furnished on request. 3. If the person m aking the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation w ill be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, w ho should sign in the form “ ........................................................................................... .. a copartnership, by .............................................................................................................a m em ber of the firm.” 4. Tenders w ill be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accompanied by paym ent of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender m ay be disregarded.
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