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FEDERAL RESERVE BANK OF N EW YORK Fiscal A g e n t of the U n ited States N o. 6 2 0 5 ~I LI" Circular A ugust J 21, 1968 OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 270-Day Bills, Additional Amount, Series Dated May 31, 1968, Due May 31, 1969 (To Be Issued September 3, 1968) $1,000,000,000 of 365-Day Bills, Dated August 31, 1968, Due August 31, 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 reasu ry D epartm en t, by this pu b lic n otice, invites ten ders fo r tw o series o f T reasu ry bills to the a ggreg ate am ount o f $1,500,000,000, or th ereabouts, for cash and in exch a n ge for T re a su ry bills m aturing A u g u st 31, 1968, in the am ou nt of $1,500,511,000, as fo llo w s : 270-day bills ( t o m aturity date) to be issued S ep tem ber 3, 1968, in the a m ou n t o f $500,000,000, or thereabouts, rep resen tin g an a ddition al am ou nt o f bills dated M a y 31, 1968, and to m ature M ay 31, 1969, origin a lly issued in the a m ou n t o f $1,002,217,000, the additional and original bills to be freely in terch angeable. 365-day bills, fo r $1,000,000,000, o r thereabouts, to be dated A u g u s t 31, 1968, and to m ature A u g u st 31, 1969. T h e bills o f b oth series w ill be issued on a discou n t basis under co m p etitive and n on com p etitiv e bid d in g as h ereinafter pro v id e d , and at m aturity their face a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly, and in den om in ation 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 receiv ed at F ed eral R eserve B anks and B ra n ch es up to the clo s in g hour, on e-th irty p.m ., E astern D a y ligh t S a vin g tim e, T u e sd a y , A u g u st 27, 1968. T en d ers w ill n ot be received at the T reasu ry D epartm en t, W a s h in g to n . E a ch tender m ust be fo r an even m ultiple o f $1,000, and in the case o i com p etitive tenders the price o ffe re d m u st be exp ressed on the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F ra ction s m ay n ot be used. (N otw ith sta n d in g the fact that the o n e-yea r bills w ill run for 365 days, the d iscou n t rate w ill be com p u ted on a bank d iscou n t basis o f 360 days, as is cu rren tly the practice on all issues o f T rea su ry bills.) 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 F ederal R eserve Banks or B ran ches on a pp lication th erefor. B ank ing institutions gen era lly m ay subm it tenders for a ccou n t o f cu stom ers, p ro vid ed the nam es o f the cu stom ers are set forth in such tenders. O th ers than bankin g institutions w ill not be perm itted to subm it tenders e x cep t for their ow n a ccou nt. T e n d e rs w ill be received w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and from respon sib le and recog n ized dealers in in vestm ent securities. T e n d e rs fro m oth ers m ust be a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T re a su ry bills applied for, unless the tenders are a ccom pa n ied by an exp ress guaranty o f pa ym en t by an in corp ora ted bank or trust com p a n y . Im m edia tely after the closin g hour, tenders w ill be open ed at the F ed era l R eserve B anks and B ran ches, fo llo w in g w h ich pu blic a n n ou n cem en t w ill be m ade b y the T re a s u ry D ep a rtm e n t o f the a m ou n t and price range o f a cce p te d bids. T h o s e su b m itting 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 rea su ry ex p re s sly reserves the righ t to a ccep t or re je ct any or all tenders, in w h ole or 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 for $200,000 or less w ith ou t stated price fr o m any on e bidder w ill be a ccep ted in full at the average price (in three d ecim a ls) o f a ccep ted com p etitive bids for the respective issues. S ettlem en t for a ccep 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 eserve B ank on S ep tem ber 3, 1968, in cash o r oth er im m ediately available fun ds or in a like face am ou nt o f T rea su ry bills m a tu rin g A u g u st 31, 1968. C ash and ex ch a n ge tenders w ill receive equal treatm ent. Cash a d ju s t m ents w ill be m ade for differences b etw een the par value o f m aturing bills a ccep ted in ex ch a n ge and the issue p rice o f the n ew bills. T h e in com e derived from T rea su ry bills, w h eth er interest or gain from the sale or oth er d isp osition o f the bills, d oes n ot have any exem ption , as such, and loss from the sale or oth er disp osition o f T reasu ry bills does n ot have any special treat m ent, as such, under the Internal R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w hether F ed eral or State, but are ex em p t fro m all ta x a tion n o w or hereafter im posed on the prin cip al or interest th ereof b y any State, or any o f the p ossession s o f the U n ited States, o r b y any local ta x in g authority. F or p u rposes o f taxation the am ount o f discou n t at w hich T rea su ry bills are origin a lly sold b y the U nited States is con sid ered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C ode of 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 su ch bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu d ed 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 in su rance c o m panies) issued hereunder need include in his in co m e tax return on ly the differen ce b etw een the p rice paid for such bills w hether on origin al issue or on subsequen t pu rch ase, and the am ou nt a ctu ally receiv ed either u pon sale or red em p tion at m aturity du rin g the taxable year fo r w h ich the return is m ad e as ord in a ry gain o r loss. T rea su ry D ep a rtm en t C ircu lar N o. 418 (cu rren t re v is io n ) and this n otice p rescrib e the term s o f the T re a s u ry bills and g ov ern the con d ition s o f their issue. C op ies o f the circu lar m av be ob ta in ed from any F ed eral R eserv e B ank o r B ra n ch This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Tuesday August 27 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 enveloc marked “ Tender for Special Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmationthey may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasure Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury A lfred H ayes, President. (Closing date for receipt of this tender is Tuesday, August 27, 1968) No................................. TENDER FOR SPECIAL 270-DAY TREASURY BILLS Additional Amount, Series Dated May 31, 1968, Due May 31, 1969 (To Be Issued September 3, 1968) To F ederal R eserve B a n k of N e w Y ork Dated a t ...................................................... ......................................................., 1 9 . . . . , 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 NONCOMPETITIVE TENDER f” Do I not fill in both Competitive and ”1 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 M aturity value Denomination $ 1,000 □ □ □ 5,000 □ 10,000 □ 50,000 1. D eliver over the counter to the undersigned 2. Ship to the undersigned 3. H o ld in safekeeping (fo r ac count o f member bank o n ly )* 4. Allotm ent transfer (se e list attached) 5. Special instructions: Paym ent w ill be made as fo llo w s : □ B y charge to our reserve account □ B y cash o r check in immediately available funds □ B y surrender o f $ ................................ (m aturity value) o f maturing Treasury bills. P a y cash adjust ment, if any— 100,000 □ B y check 500,000 □ B y credit to our reserve account 1,000,000 (Payment cannot be made through Treasury Tax 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. N a m e o f su b scrib er Insert this tender in yellow envelope marked “Tender for Special Treasury Bills’ By T itle -J (Please print) By. (Official signature (s) required) .................... T i t l e ............ A d d re s s (B a n k s su b m ittin g ten ders fo r cu stom er a cco u n t m u st in dicate nam es b e lo w , o r attach a list) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender fo r less than $1,000 w ill b e con sid ered , and each tender m u st be fo r an even m ultiple o f $1,000 (m a tu rity v a lu e ). 2. O th ers than b a n k in g institutions w ill n o t b e perm itted to subm it tenders e x ce p t fo r their o w n accou n t. Banks su b m ittin g tenders fo r cu stom er a cco u n t m a y con solid a te com petitive tenders at the same price and m ay con solida te n on c o m p etitive tenders, p rovid ed a list is attached s h o w in g the nam e o f each bidder, the am ou nt bid fo r his accou n t, and m e th o d o f paym ent. F o r m s fo r this pu rpose w ill b e furnished, o n request. 3. I f the person m a k in g the tender is a corp ora tion , the tender shou ld be sign ed b y an officer o f the corp ora tion authorized to m ake the tender, and the sig n in g o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a represen tation b y him that he has been s o authorized. I f the tender is m ade b y a partnersh ip,-it shou ld be signed b y a m em b er o f the firm , w h o sh ou ld sign in the fo r m “ ........................................... .. ..................................................... a cop artn ersh ip b v .................................................................................................................. .. m e m b e r o f the firm .” 4. T e n d e rs w ill be receiv ed w ith ou t d e p o s it fro m in corp ora ted banks and trust com p a n ies and fro m respon sib le and r e co g n iz e d dealers in in vestm en t securities. T e n d e rs fro m oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 percent o f the face a m ou n t o f T re a su ry bills applied for, unless the ten ders are a ccom p a n ied b y an exp ress gu a ra n ty o f p a ym en t b y an in co rp o ra te d bank o r trust com p a n y . 5. I f the la n gu a ge o f this ten der is ch a n ged in a n y respect, w hich, in the op in ion o f the S ecreta ry o f the T rea su ry, is m aterial, the ten der m a y be disregarded. (Closing date for receipt of this tender is Tuesday, August 27, 1968) No............. TENDER FOR SPECIAL 365-DAY TREASURY BILLS Dated August 31, 1968 To F ederal R eserve B a n k of N e w Y Due August 31, 1969 o rk Dated a t ....................................................... .......................................................; 19.. .. , 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 Do not fill in both Competitive and "1 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, jor example, 99.925) NONCOMPETITIVE TENDER $ ................................................ . . . . (maturity value). (N ot to exceed $200,000 for one bidder through all sources) At the average price of acccpted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ M aturity value 1,000 1. D eliver over the counter to the undersigned 2. Ship to the undersigned 3. H o ld ' in safekeeping (fo r ac count o f member bank o n ly )* 4. Allotm ent transfer (see list attached) 5. Special instructions: □ □ □ 5,000 □ 10,000 □ 50,000 Paym ent w ill be made as fo llo w s : □ B y charge to our reserve account □ B y cash or ch cck in immediately available funds □ B y surrender o f $ ..................... .. (m aturity value) o f ' maturing Treasury bills. P a y cash adjust ment, if any— 100,000 □ B y chcck 500,000 □ B y credit to our reserve account 1,000,000 /A (Payment cannot be made through Treasury Tax and Loan Account) will be acceptcd) Total * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. N a m e o f su b scrib er Insert this tender in yellow envelope marked “Tender for Special Treasury Bills’ (Please print) B y ......................... By (Official signature(s) required) T itle ............................. .................... T i t l e ............ A d d ress (B a n k s su b m ittin g ten ders fo r cu stom er a ccou n t m ust in dicate nam es b e lo w , o r attach a list) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o ten der fo r less than $1,000 w ill be con sid ered , and each ten der m u st b e fo r an even m u ltiple o f $1 000 (m a tu rity v a lu e ). ’ 2. O th e rs than b a n k in g institutions w ill n ot b e perm itted to subm it ten ders e x ce p t fo r their o w n a cco u n t B anks su b m ittin g ten ders fo r cu stom er a ccou n t m a y con solid a te com p etitive ten ders at the same price and m a y con solid a te n on co m p etitive ten ders, p rov id ed a list is attached sh o w in g the nam e o f each b idder, the a m ou n t b id fo r his a ccou n t * and m e th o d o f paym ent. F o rm s fo r this p u rp ose w ill be fu rn ish ed on request. * 3. I f the person m a k in g the ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the cornnratinn a uthorized to m ake the tender, and the sig n in g o f the ten der b y an officer o f the co rp o ra tio n w ill b e con stru ed a T a represen tation b y him that he has b een so a uthorized. I f the ten der is m ade b y a p a rtn ersh ip ,-it sh ou ld be siVnrri h i t m em b er o f the firm , w h o sh ou ld sign in the fo r m “ ................................................................... _ . ................................................................................................................ . m em b er o f th e firm .” ..............................’ a c o Pa rtn ership, b y 4. T e n d e rs w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com p a n ies a nd fro m resp on sib le and re co g n ize d dealers in in vestm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y p a y m en t o f 2 p ercen t o f the face a m ou n t o f T re a su ry bills applied for, unless the ten ders are a cco m p a n ie d b y an exp ress gu a ra n ty o f d m ! an in co rp o ra te d bank o r trust com p a n y . & J uy 5. I f the language o f this ten der is ch a n ged in any respect, w hich, in the op in ion o f the S ecreta ry o f the T rea su ry is FRASER m aterial, the ten der m ay be disregarded. Digitized for J
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