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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r C ircu lar N o . 6 1 8 6 I J u ly 3, 1 9 68 ~l J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated April 11, 1968, Due October 10, 1968 (To Be Issued July 11, 1968) $1,100,000,000 of 182-Day Bills, Dated July 11, 1968, Due January 9, 1969 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 h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r tw o series o f T rea su ry bills to the a ggreg a te a m ou n t o f $2,700,000,000, or thereabouts, fo r cash and in ex ch a n g e fo r T re a su ry bills m atu rin g July 11, 1968, in the a m ou n t o f $2,602,364,000, as fo llo w s : 91-day bills (to m aturity da te) to be issued Ju ly 11, 1968, in the am ou nt o f $1,600,000,000, or thereabouts, rep re sen tin g an additional am ou nt o f bills dated A pril 11, 1968, and to m ature O c t o b e r 10, 1968, origin a lly issued in the a m ou n t o f $1,000,511,000, the additional and original bills to be freely in terch angeable. 182-day bills, fo r $1,100,000,000, or th ereabouts, to be dated July 11, 1968, and to m ature January 9, 1969. T h e bills o f b oth series w ill be issued on a discou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provided , and at m aturity their face am ou nt w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form on ly, and in d en om in a tion s o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e). T e n d e rs w ill be received at F ederal R eserve B anks and B ran ch es up to the clo s in g hour, on e-th irty p.m ., E astern D a y lig h t S a vin g time, M on d a y, July 8, 1968. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a s h in g to n . Each tender m ust be fo r an even m ultiple o f $1,000, and in the case o f co m p etitive tenders the price offered m ust be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m a y not be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the special en velop es w hich w ill be supplied b y Federal R eserve Banks o r B ran ches on a pp lication th erefor. B a n k in g institutions g en era lly m ay subm it tenders for a cco u n t o f cu stom ers, provid ed the nam es o f the cu stom ers are set forth in such tenders. O th ers than b ankin g institutions w ill not be perm itted to subm it tenders excep t for their ow n accou n t. T e n d e rs w ill be received w ith ou t deposit from in corpora ted banks and trust com p a n ies and from respon sible and re cog n ized dealers in in vestm ent securities. T en d ers from oth ers m ust be a ccom p a n ied b y paym ent o f 2 p ercen t o f the face am ou nt o f T re a su ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress gu aranty o f paym ent b y an in corp ora ted bank or trust com p a n y . Im m ed ia tely after the clo s in g hour, tenders w ill be open ed at the F ederal R eserve B anks and B ranches, fo llo w in g w hich pu blic a n n ou n cem en t w ill be m ade b y the T rea su ry D ep a rtm en t o f the a m ou n t and price ran ge o f a ccep ted bids. T h o s e sub m ittin g tenders w ill be a dvised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T re a s u ry ex p ressly reserves the righ t to a ccep t or reject any o r all ten ders, in w h o le o r in part, and his a ction in any such resp ect shall be final. S u b je ct to these reservations, n on com p etitiv e tenders fo r each issue fo r $200,000 or less w ith ou t stated p rice fro m any on e b id d er w ill be a ccep ted in full at the a vera ge price (in three d e cim a ls) o f a ccep ted com p etitive bids fo r the respective issues. S ettlem ent fo r accep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the F ederal R eserv e B ank on Ju ly 11, 1968, in cash or oth er im m ediately available fun ds or in a like fa ce am ou nt o f T rea su ry bills m a tu rin g Ju ly 11, 1968. Cash and ex ch a n ge tenders w ill receive equal treatm ent. Cash a d ju st m ents w ill be m ade fo r differen ces b etw een the par valu e o f m aturing bills a ccep ted in ex ch a n g e and the issue p rice o f the new bills. T h e in com e derived from T re a s u ry bills, w h eth er interest o r gain fro m the sale or oth er disp osition o f the bills, d oes n ot have any exem ption , as such, and loss fro m the sale o r oth er d isp osition o f T rea su ry bills d oes n ot have any special treat m ent, as such, under the In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, gift or oth er excise taxes, w hether Federal o r State, but are exem p t fro m all ta x a tion n o w o r h ereafter im posed on the principal o r interest th ereof b y any State, or any o f the p ossession s o f the U n ited States, or b y any loca l ta x in g authority. F o r pu rp oses o f taxation the am ou nt o f discou n t at w hich T rea su ry bills are orig in a lly sold b y the U n ited States is con sid ered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C od e o f 1954, the am ou nt o f d iscou n t at w h ich bills issued hereunder are sold is n ot con sid ered to a ccru e until such bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu ded from con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance c o m pan ies) issued hereunder need in clude in his in com e tax return o n ly the difference b etw een the price paid fo r such bills, w hether on origin al issue o r on subsequen t pu rch ase, and the a m ou n t a ctu ally received either u pon sale o r re d em p tion at m aturity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. T reasu ry D epa rtm en t C ircular N o . 418 (cu rre n t re v is io n ) and this n otice prescrib e the term s o f the T re a s u ry bills and gov ern the con d ition s o f their issue. C opies o f the circu la r m a y be ob ta in ed from any F ed eral R eserve B ank o r B ran ch . This Bank will receive tenders for both series up to 1:30 p.m., Eastern Daylight Saving time, Monday, July 8, 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 the enclosed envelope marked “Tender for 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 f a x 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 (90-day bills to be issued July 5. 1968. representing an additional amount of bills dated April 4, 1968, maturing October 3, 1968; and 181-day bills dated Tulv 5 1968 maturing January 2, 1969) are shown on the reverse side of this circular. ’ " ’ ’ A lfred H ayes, President. (o v e r ) RESULTS O F LAST W E E K L Y OFFE R I N G O F T R E A S U R Y BILLS ( T W O SERIES T O B E ISSUED JULY 5, 1968) Range of Accepted Competitive Bids 90-Day Treasury Bills 181-Day Treasury Bills Maturing October 3 ,1 9 6 8 Maturing January 2, 1969 Price Approx. equiv. annual rate Price Approx. equiv. annual rate High .......... ...... 98.665 5.340% 97.218 5.533% L o w ........... ...... 98.625 5.500% 97.184 5.601% Average ........ ...... 98.650 5.400%! 97.190 5.589%! 1 T h e s e rates are on a bank discou n t basis. T h e equivalent cou p on issue yield s are 5.55 p ercen t fo r the 90-day bills, and 5.83 p ercen t fo r the 181-day bills. (19 percent of the amount of 90-day bills bid for at the low price was accepted.) (99 percent of the amount of 181-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) District 90-Day Treasury Bills 181-Day Treasury Bills Maturing October 3, 1968 Maturing January 2, 1969 Applied for Boston ........ ....... New York ..... ........ $ 20,929,000 A pplied for Accepted $ 12,829,000 $ 3,313,000 Accepted $ 2,313,000 1,554,387,000 1,074,057,000 1,408,544,000 792,644,000 Philadelphia .... ....... 28,318,000 28,318,000 13,924,000 5,924,000 Cleveland....... ....... 42,720,000 42,720,000 41,205,000 23,205,000 Richmond ...... ....... 13,689,000 13,689,000 4,127,000 4,127,000 Atlanta......... ....... 38,446,000 38,446,000 23,705,000 17,705,000 Chicago ........ ....... 224,006,000 204,956,000 192,698,000 81,148,000 22,925,000 20,220,000 St. Louis....... ....... 39,673,000 39,673,000 Minneapolis..... ....... 17,861,000 17,861,000 14,092,000 9,092,000 Kansas City..... ....... 21,415,000 21,415,000 11,364,000 11,364,000 Dallas......... ....... 12,781,000 12,781,000 10,172,000 10,072,000 San Francisco... ....... 103,491,000 93,491,000 235,111,000 122,511,000 T otal ......... ....... $2,117,716,000 $1,600,236,000a $1,981,180,000 a Includes $278,448,000 noncompetitive tenders accepted at the average price of 98.650. b Includes $133,436,000 noncompetitive tenders accepted at the average price of 97.190. $l,100,325,000b
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