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FED ERAL R E SER V E BANK OF NEW Y O R K Fiscal Agent of the United States Tcircuiar No. 6175"] L ° June 5, 1968 J O FFERIN G OF T W O SERIES OF T R E A SU R Y BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated March 14,1968, Due Sept. 12,1968 (To Be Issued June 13, 1968) $1,100,000,000 of 182-Day Bills, Dated June 13, 1968, Due December 12, 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: T he Treasury Departm ent, b y this public notice, invites tenders for two series o f Treasury bills to the aggregate amount o f $2,700,000,000, or thereabouts, for cash and in exchange for Treas ury bills maturing June 13, 1968, in the amount o f $2,600,476,000, as follow s: 91-day bills (to m aturity date) to be issued June 13, 1968, in the amount o f $1,600,000,000, or thereabouts, representing an additional amount of bills dated M arch 14, 1968, and to mature September 12, 1968, originally issued in the amount o f $1,000,290,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,100,000,000, or thereabouts, to be dated June 13, 1968, and to mature D ecem ber 12, 1968. The bills o f both series will 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 w ithout interest. T h ey will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m ., Eastern D ayligh t Saving time, M on day, June 10, 1968. Tenders will not be received at the Treasury D epartm ent, W ashington. Each tender must be for an even multiple o f $1,000, and in the case o f com petitive tenders the price offered must be expressed on the basis o f 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 b y Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it 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 subm it tenders except for their ow n account. Tenders will 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 accom panied by paym ent o f 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an incorporated bank or trust com pany. Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcem ent will be made by the Treasury Departm ent o f the am ount and price range o f accepted bids. Those sub m itting tenders will be advised o f the acceptance or rejection thereof. T he 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. Su bject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decimals) o f accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on June 13, 1968, in cash or other im m ediately available funds or in a like face am ount o f Treasury bills maturing June 13, 1968. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, 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 C ode o f 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exem pt from all tax ation now or hereafter im posed on the principal or interest thereof b y any State, or any o f the possessions o f the United States, or b y any local taxing authority. For purposes o f taxation the amount of discount at which Treasury bills are originally sold b y the United States is considered to be interest. Under Sections 454(b) and 1221(5) o f the Internal Revenue C ode o f 1954, the amount o f 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 ccordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return on ly the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular m ay 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 Saving time, Monday, June 1 0 1968, 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 sub mitted 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. Results of the last weekly offering of Treasury bills (91-day bills to be issued June 6 , 1968 representing an additional amount of bills dated March 7, 1968, maturing September 5, 1968; and 182-day bills dated Tune 6 1968 maturing December 5, 1968) are shown on the reverse side of this circular. ’ ’ A lfred H ayes, President. (o v e r ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 6, 1968) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing September 5, 1968 182-Day Treasury Bills Maturing December 5, 1968 Price Approx. equiv. annual rate High........ 98.579 5.622% 97.128a 5.681% Low......... 98.564 5.681% 97.109 5.718% Average...... 98.572 5.649%* 97.119 5.699%* Approx. equiv, annual rate Price a Excepting one tender of $542,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 5.81 percent for the 91-day bills, and 5.95 percent for the 182-day bills. (86 percent of the amount of 91-day bills (68 percent of the amount of 182-day bills bid for at the 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 September 5, 1968 Applied, for District Boston............ $ 22,838,000 182-Day Treasury Bills Maturing December 5, 1968 Accepted $ 12,838,000 Applied for $ 17,182,000 Accepted $ 3,635,000 New York......... 1,708,398,000 1,117,558,000 1,741,973,000 871,316,000 Philadelphia........ 24,020,000 23,870,000 15,275,000 7,275,000 Cleveland.......... 30,231,000 30,231,000 29,318,000 25,968,000 Richmond.......... 13,373,000 12,803,000 8,041,000 4,940,000 Atlanta............ 48,320,000 47,320,000 28,288,000 17,998,000 Chicago............ 287,498,000 121,998,000 296,802,000 62,729,000 St. Louis........... 72,212,000 54,172,000 43,472,000 Minneapolis........ 22,102,000 68,212,000 22,102,000 13,410,000 7,910,000 Kansas City........ 29,281,000 25,001,000 17,701,000 10,618,000 Dallas............. 24,546,000 16,546,000 21,763,000 11,363,000 San Francisco....... 126,822,000 101,772,000 121,945,000 32,795,000 T o t a l ......................... $2,409,641,000 $2,365,870,000 $1,100,019,000* $1,600,25 l,000b b Includes $251,038,000 noncompetitive tenders acc:epted at the average price of 98.572. c Includes $120,565,000 noncompetitive tenders accepted at the average price of 97.119.
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