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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r L Circular No. 6 0 7 8 December 18, 1967 1 J OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 272-Day Bills, Additional Amount, Series Dated Sept. 30, 1967, Due Sept. 30, 1968 (To Be Issued January 2, 1968) $1,000,000,000 of 366-Day Bills, Dated December 31, 1967, Due December 31, 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 Standard time: The Treasury Department, by this public notice, invites tenders for tw o series of Treasury bills to the aggregate amount of $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing D ecem ber 31, 1967, in the amount of $1,401,121,000, as follow s: 272-day bills (to maturity date) to be issued January 2, 1968, in the amount o f $500,000,000, or thereabouts, rep resenting an additional amount of bills dated September 30, 1967, and to mature September 30, 1968, originally issued in the amount of $1,000,206,000, the additional and original bills to be freely interchangeable. 366-day bills, for $1,000,000,000, or thereabouts, to be dated Decem ber 31, 1967, and to mature Decem ber 31, 1968. The 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 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 Standard time, Tuesday, Decem ber 26, 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 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. (N otwithstanding the fact that the one-year bills will run for 366 days, the discount rate will be computed on a bank discount basis of 360 days, as is currently the practice on all issues o f Treasury bills.) 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 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 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. 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 Departm ent o f the amount and price range o f accepted bids. T h ose 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 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 January 2, 1968, in cash or other immediately available funds or in a like face am ount of Treasury bills maturing Decem ber 31, 1967. Cash and exchange tenders will receive equal treatment. Cash ad justments 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 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 exem pt 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) of 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 No. 418 (current revision) and this notice prescribe the terms o f 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, Tuesday, December 26, 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 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. 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. A lfred H ayes, President. No, TENDER FOR SPECIAL 272-DAY TREASURY BILLS Additional Amount, Series Dated September 30, 1967, Due September 30, 1968 (To Be Issued January 2, 1968) To F e d e ra l R eserve B ank o f N ew Dated a t .......................................................... .......................................................... . 1 9 . . . . Y ork , Fiscal Agent of the United States. Pursuant to the provisions of Treasury Department 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: COMPETITIVE TENDER j NONCOMPETITIVE TENDER not ^ t h Competitive and ~| Noncompetitive tenders on one form j $ ............................................................ (maturity value), or any lesser amount that may be awarded. Price: .....................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) $ ............................................................ (maturity value). (N ot to exceed $200,000 for one bidder through all sources) At 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. H old in safekeeping (for ac count o f member bank on ly)* 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) o f' maturing Treasury bills. Pay cash adjust ment, if any— 100,000 □ By check 500,000 □ By credit to our reserve account 1,000,000 (Payment cannot be made through Treasury T ax and Loan Account) will be accepted) Total * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. — Name o f subscriber (P lease print) Insert this tender in yellow envelope marked “Tender for Special Treasury Bills B y .. By. (Official signature(s) required) Title —* ..................... T i t l e ........... Address (Banks subm itting tenders for custom er 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 must be for an even multiple o f $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 submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate non com petitive tenders, provided a list is attached show ing the name o f each bidder, the amount bid for his account, and m ethod o f 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 o f the corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation will 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 m em ber o f the firm, w ho should sign in the form “ ....................... ..................................................................... a copartnership, by ........................................................................................................ . .. m em ber o f the firm.” 4. 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 o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust company. 5. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded. No............... TENDER FOR SPECIAL 366-DAY TREASURY BILLS Dated December 31, 1967 To F ederal R eserve B a n k of Due December 31, 1968 N ew Y o r k , Fiscal Agent of the United States. Dated a t ........................................................... .......................................................... , 19------ Pursuant to the provisions of Treasury Department 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: COMPETITIVE TENDER [ D o not Ull in both Competitive and ~j Noncompetitive tenders on one form J $ .................................... ....................... (maturity value), or any lesser amount that may be awarded. Price: .....................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) NONCOMPETITIVE TENDER $ ............................................................ (maturity value). (N ot 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 Denomination $ Maturity value 1,000 □ □ □ 5,000 U 10,000 u 50,000 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. H old' 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 (Payment cannot be made through Treasury T ax and Loan Account) (N o changes in delivery instructions will be accepted) Total * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. Name o f subscriber Insert this tender in yellow envelope marked “Tender for Special Treasury Bills” —1 (Please print) B y ............................... By. (Official signature(s) required) Title ........................... ..................... T i t l e ........... Address (Banks submitting 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 will be considered, and each tender must be for an even multiple o f $1,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate non competitive tenders, provided a list is attached showing the name o f each bidder, the amount bid for his account, and method o f 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 o f the corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation will 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 o f the firm, w ho should sign in the form “ ....................... ..................................................................... a copartnership, by ......................................................................................................... .. m em ber o f the firm.” 4. 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 o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust company. 5. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded.
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