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FED ER AL RESERVE BANK O F NEW YORK Fiscal A gen t of the United States r Circular No. 6 2 I f> ~ l L September 18, 1968 J OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 273-Day Bills, Additional Amount, Series Dated June 30,1968, Due June 30,1969 (To Be Issued September 30, 1968) $1,000,000,000 of 365-Day Bills, Dated September 30, 1968, Due September 30, 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: The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 30, 1968, in the amount of $1,500,396,000, as follows: 273-day bills (to m aturity date) to be issued September 30, 1968, in the amount of $500,000,000, or thereabouts, rep resenting an additional amount of bills dated June 30, 1968, and to mature June 30, 1969, originally issued in the amount of $1,001,671,000, the additional and original bills to be freely interchangeable. 365-day bills, for $1,000,000,000, or thereabouts, to be dated September 30, 1968, and to mature September 30, 1969. The bills of both series w ill be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at m aturity their face amount w ill be payable without interest. T hey w ill 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 (m aturity value). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D a y light Saving time, Tuesday, September 24, 1968. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions may not be used. (Notw ithstanding the fact that the one-year bills w ill run for 365 days, the discount rate w ill be computed on a bank discount basis of 360 days, as is currently the practice on all issues of Treasury bills.) I t is urged that tenders be made on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account of customers, provided the names of the customers are set forth in such tenders. Others than banking institutions w ill not be permitted to submit tenders except for their own account. Tenders w ill 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 of 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. Imm ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, following which public announcement w ill be made by the Treasury Departm ent of the amount and price range of accepted bids. Those sub m itting tenders w ill 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 w ill 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 30, 1968, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 30, 1968. Cash and exchange tenders w ill receive equal treatment. Cash adjust ments w ill be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. T he 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. T he bills are subject to estate, inheritance, g ift or other excise taxes, whether Federal or State, but are exempt from all taxa tion 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 ox, 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 m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Departm ent 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 will receive tenders for both series up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, Septem ber 24, 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 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. (Closing date for receipt of this tender is Tuesday, September 24, 1968) No................................... TENDER FOR 273-DAY TREASURY BILLS Additional Amount, Series Dated June 30, 1968, Due June 30, 1969 (To Be Issued September 30, 1968) Dated a t ........................................................................ ........................, 19___ T o F e d e r a l R eserve B a n k o f N ew Y o r k , 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 T E N D E R [ Do not £11 in both Competitive and ”1 Noncompetitive tenders on one form I $ ........................ (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). (Not 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 $ M aturity value 1,000 □ □ □ 5,000 10,000 □ 50,000 □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for ac count of member bank o nly)* 4. Allotment transfer (see list attached) S. Special instructions: Payment w ill be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds (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 Tax 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. Nam e of subscriber............. Insert this tender in yellow envelope marked “ Tender for Special Treasury Bills’ B y ............... T i t l e ........................................ (Please print) By (Official signature (s) required) ..................... 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 w ill be considered, and each tender must be for an even multiple of $1,000 (m aturity value). 2. Others than banking institutions w ill 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 of each bidder, the amount bid for his account, and method of payment. Forms for this purpose w ill be furnished on request. 3. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation w ill be construed as a representation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ........................................................................................... a copartnership, by ........................... ............................................................................ . a member of the firm .” 4. Tenders w ill 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 of 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. 5. I f the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. (Closing date for receipt of this tender is Tuesday, September 24, 1968) No............. TENDER FOR 365-DAY TREASURY BILLS Dated September 30, 1968 To F ed era l R eserve B an k o f N ew Y ork , Fiscal Agent of the United States. Due September 30, 1969 Dated at ........................ ........................, 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 j~ Do not All 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) At the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Maturity value Denomination $ 1,000 □ □ □ 5,000 □ 10,000 □ 50,000 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for ac count o f member bank o nly)* 4. Allotment transfer (see list attached) S. Special instructions: Payment w ill be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds (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 Tax and Loan Account) (N o changes in delivery bistructions will be accepted) Total * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. Nam e of subscriber Insert this tender in yellow envelope marked “ Tender for Special Treasury Bills' (Please print) By.. By (Official signature(s) required) T itle ..................... 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 w ill be considered, and each tender must be for an even multiple of $1,000 (m aturity value). 2. Others than banking institutions w ill 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 of each bidder, the amount bid for his account, and method of payment. Forms for this purpose w ill be furnished on request. 3. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation w ill be construed as a representation by him that he has been so authorized. I f the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ................... ..................................................................... .. a copartnership, by .................................................................................................a member of the firm. 4. Tenders w ill 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 of 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. 5. I f the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded.