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FED ERA L R E SER V E BANK OF NEW Y O R K Fiscal Agent of the United States ["Circular No. 6 2 1 4 1 LSeptember 18, 1968 J OFFE R IN G OF TW O SERIES OF T R E A SU R Y BILLS .,600,000,000 of 91-Day Bills, Additional Amount, Series Dated June 27, 1968, Due Dec. 26, 1968 (To Be Issued September 26, 1968) $1,100,000,000 of 182-Day Bills, Dated September 26, 1968, Due March 27, 1969 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following i the text of a notice issued by the Treasury Department, released for publication today at 4 p.m., s Eastern Daylight Saving time: The Treasury Departm ent, b y this public notice, invites ten ders for tw o series of Treasury bills to the aggregate amount of $2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 26, 1968, in the am ount of $2,600,526,000, as follows: 91-day bills (£o m aturity date) to be issued September 26, 1968, in the am ount o f $1,600,000,000, or thereabouts, rep resenting an additional am ount o f bills dated June 27, 1968, and to mature D ecem ber 26, 1968, originally issued in the am ount o f $1,105,037,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,100,000,000, or thereabouts, to be dated Septem ber 26, 1968, and to mature M arch 27, 1969. 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 m aturity 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 aylight Saving time, M on d a y, September 23, 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 may 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 own account. Tenders will be received Without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others must be accom panied b y 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, following which public announcem ent will be made by the Treasury Departm ent of the amount and price range of accepted bids. Those 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 whole 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 decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on September 26, 1968, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 26, 1968. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for diiferences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income 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 tax ation now or hereafter imposed 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 otherwise 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, 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 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 w l receive tenders for both s r e up to 1: p.m., Eastern Daylight Saving time, Monday, September 23, il eis 30 1968, at the Securities Department of i s Head Office and at i s Buffalo Branch. Tender forms for the respective s ries t t e are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed envelope marked “Tender for Treasury B l s ” Tenders may be submitted by telegraph, subject to written confirmation; they may not il. 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. Results of the l s , weekly offering of Treasury b l s (91-day b l s to be issued September 1 , 1968, representing an at il il 9 additional amount of b l s dated June 20, 1968, maturing December 1 , 1968; and 182-day b l s dated September 19 il 9 il 1968, maturing March 20, 1969) are shown on the reverse side of this circular. A lfred H ayes, President. (o v e r ) RESULTS OF LAST W E E K L Y OFFERING O F T R E A S U R Y BILLS ( T W O SERIES T O BE ISSUED S E P T E M B E R 19, 1968) Range of Accepted Competitive Bids 91-Day Treasury Bills Mattering December 19, 1968 Approx. equiv. 182-Day Treasury Bills Maturing March 20, 1969 •• ' ;' ■ annual rate Price Price Approx. equiv. annual rate High..... ........... 98.684 5.206% 97.352a 5.238% L ow...... ........... 98.678 5.230% 97.341 5.260% Average... ........... 98.681 5.218%* 97.347 5.248%* a Excepting one tender of $290,000. 1 These rates are on a bank discount basis. 5.47 percent for the 182-day bills. The equivalent coupon issue yields are 5.36 percent for the 91-day bills, ai (90 percent of the amount of 182-day b l s il bid for at the low price was accepted.) (96 percent of the amount of 91-day b l s il bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills 182-Day Treasury Bills Maturing December 19, 1968 Maturing March 20, 1969 Applied, for District Boston....... ..... $ 31,211,000 Applied for Accepted. $ 23,131,000 $ 25,573,000 Accepted $ 13,973,000 New York.... ..... 1,764,592,000 1,065,256,000 1,680,513,000 865,513,000 Philadelphia......... 34,336,000 18,836,000 16,128,000 5,028,000 Cleveland...... ..... 47,567,000 46,317,000 47,567,000 15,407,000 Richmond..... ..... 31,112,000 17,596,000 20,413,000 7,113,000 Atlanta....... ..... 52,388,000 35,879,000 45,354,000 20,160,000 Chicago...... ..... 220,937,000 164,144,000 185,919,000 95,676,000 S Louis...... ..... t. 63,955,000 41,323,000 34,229,000 13,969,000 Minneapolis.... .... 30,186,000 18,006,000 22,385,000 7,685,000 Kansas City.... .... 43,216,000 36,940,000 19,899,000 14,899,000 Dallas........ .... 29,247,000 20,207,000 20,970,000 10,770,000 ... 176,290,000 113,190,000 142,565,000 29,915,000 T o t a l ........... ..... $2,525,037,000 San Francisco $1,600,825,000b $2,261,515,000 M n clud es $313,707,000 n oncom petitive tenders accepted at the average price o f 98.681, e Includes $137,794,000 noncom petitive tenders accepted at the average price o f 97.347. $1,100,108,000c
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