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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 6 2 4 8*1 L. November 19, 1968 J Offering of $2,000,000,000 of 203-Day Tax Anticipation Treasury Bills, Additional Amount Dated October 24, 1968, Due June 23, 1969} To Be Issued December 2, 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 3:30 p.m., Eastern Standard time: T h e T reasu ry D epartm en t, b y this p u b lic n otice, invites tenders fo r $2,000,000,000, o r thereabouts, o f 203-day T reasu ry bills (to m aturity d a te ), to be issued D e ce m b e r 2, 1968, on a discou n t basis under com p etitive and n on com p etitive b idd ing as hereinafter p rovided . T h ese bills w ill represent an additional a m ou n t o f the series o f bills dated O c to b e r 24, 1968, to m ature June 23, 1969, o rigin a lly issued in the am ou nt o f $3,010,446,000. T h e additional and origin a l bills w ill be freely in terch angeable. T h e y w ill be a cce p te d at face value in pa ym en t o f in com e taxes due on June 15, 1969, and to the exten t th ey are n ot presen ted for this pu rpose the face a m ou n t o f these bills w ill be payable w ith ou t interest at m aturity. T a x p a y ers desirin g to a pply these bills in p a ym en t o f June 15, 1969, in com e taxes m ay subm it the bills to a F ed eral R e serv e B ank or B ra n ch or to the O ffice o f the T reasu rer o f the U n ited States, W a s h in g to n , n ot m ore than fifteen days b e fo re that date. In the case o f bills su b m itted in pa ym en t o f in com e taxes o f a corp ora tion th ey shall be a ccom p a n ied b y a duly com p leted F o r m 503 and the office rece iv in g these item s w ill e ffe ct the dep osit on June 15, 1969. In the case o f bills subm itted in pa ym en t o f in com e taxes o f all oth er taxpayers, the office receiv in g the bills w ill issue receip ts th erefor, the origin a l o f w h ich the taxpayer shall su b m it o n o r b e fo re June 15, 1969, to the D istrict D ire cto r o f In ternal R e ven u e for the D is trict in w h ich such taxes are payable. T h e bills w ill be issued in bearer fo r m on ly , and in den om in a tions 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 Standard tim e, T u esda y, N o v e m b e r 26, 1968. T en d ers w ill n o t b e rece iv e d at the T re a su ry D epartm en t, W a sh in g ton . E a ch ten der m u st b e fo r an even m u ltiple o f $1,000, and in the case o f co m p etitive ten ders the p rice offered 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 ctio n s m ay n ot be used. It is u rged that tenders be m ad e on the printed form s and forw a rd e d in the special en velop es w h ich w ill be supplied b y F ed eral R eserv e Banks or B ra n ch es on a pp lication th erefor. B a n k in g in stitu tions g en era lly m ay subm it tenders for acco 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 n ot be perm itted to subm it tenders ex cep t for their ow n accou n t. 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 and fro m respon sib le and recog n ized dealers in in vestm ent securities. T en d ers fro m oth ers m ust be a cco m p a n ie d b y p a 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 p a n ied by an exp re ss gu aranty o f pa ym en t b y an in corp ora ted bank or trust com p a n y . A ll bidd ers are requ ired to a gree n ot to pu rch ase o r to sell, or to m ake any agreem en ts w ith resp ect to the pu rch ase o r sale or oth er disp osition o f any bills o f this issue at a sp ecific rate or price, until after o n e-th irty p.m ., E astern Standard tim e, T u esd a y, N o v e m b e r 26, 1968. Im m ed ia tely after the clo s in g h our, tenders w ill be op en ed at the F ed eral R e serv e B anks and B ran ches, fo llo w in g w h ich pu b lic 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 a nd p rice 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 or re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry e x p ressly reserves the righ t to a ccep t o r re je ct any o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall b e final. S u b je ct to these reservations, n on com p etitiv e ten ders fo r $400,000 o r less w ith ou t stated p rice fr o m any o n e b idd er w ill be a ccep te d in full at the a vera ge p rice (in three decim a ls) o f a ccep ted c o m petitive bids. P a y m en t o f a ccep ted ten ders at the p rices o ffe re d m u st be m ade o r com p leted at the F ed era l R e s e rv e B an k in cash o r other im m ediately available funds on D e ce m b e r 2, 1968, p rovided , h ow ev er, any qualified dep osita ry w ill b e perm itted to m ake pa ym en t b y cred it in its T rea su ry T a x a nd L o a n A c c o u n t for T rea su ry bills a llotted to it fo r itself and its cu s tom ers up to any am ou nt fo r w h ich it shall be qualified in excess o f e x istin g dep osits w hen so n otified b y the F ederal R eserve B ank o f its D istrict. T h e in co m e derived fro m T rea su ry bills, w h eth er interest or gain fro m the sale or oth er d isp osition o f the bills, d o e s n o t have any exem p tion , as such, a nd lo s s fr o m the sale o r oth er disp osition o f T rea su ry b ills d oes n ot have a n y 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, g ift o r oth er excise taxes, w h eth er F ed era l o r State, b u t are ex em p t fr o m all taxa tion n o w o r h ereafter im p o s e d on the p rincip al o r interest th ereof b y a n y State, o r a n y o f the p ossession s o f the U n ited States, o r b y any lo ca l ta x in g authority. F o r p u rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are origin a lly sold b y the U n ited States is con sid ered t o be interest. U n d er 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 b ills issued hereunder are sold is n o t con sid ered to a ccru e until such bills are sold, red eem ed or oth erw ise d isp osed o f, and such bills are e x clu d ed fr o m con sid era tion as capital assets. A c c o r d in g ly , the o w n e r o f T rea su ry bills (o th e r than life in su rance c o m pan ies) issued hereun der n eed in clude in his in co m e ta x return on ly the differen ce b etw een the p rice paid fo r su ch bills, w hether o n origin al issue o r o n subsequen t pu rch ase, a nd the a m ou n t actu ally receiv ed either u pon sale o r red em p tion at m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, 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 isio n ) and this n otice prescrib e the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C op ies o f th e circu la r m a y be ob ta in ed fr o m any F ed era l R es e rv e B a n k o r B ran ch . This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Tuesday, November 26, 1968, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in the enclosed blue envelope marked “ Tender for Tax Anticipation Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds on December 2, 1968, except that any qualified depositary may make payment by credit in its Treasury Tax and Loan Account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits. A lfred H a y e s, President. ( over) No. TENDER FOR 203-DAY TAX ANTICIPATION TREASURY BILLS ADDITIONAL AMOUNT I Dated October 24, 1968, Due June 23, 1969, To Be Issued December 2, 1968 To F ed era l R eserve Ba n k N of ew Y Dated a t ...................................................... ork, Fiscal Agent of the United States. ......................................................., 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 and printed on the reverse side of this tender, inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefore at your Bank on or before the issue date at the price indicated below: COMPETITIVE TENDER f ?r° not fiU. V* both Comt>etitiverand 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) NONCOMPETITIVE TENDER $ ........................................................ (maturity value). (Not to exceed $400,000 for one bidder through all sources) At the average price of accepted competitive bids. Subject to allotment, payment for these bills will be made at your Bank on December 2, 1968, by cash or other immediately available funds, or (in the case of a qualified depositary) by credit in Treasury Tax and Loan Account. W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this additional issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Tuesday, November 26, 1968. N am e o f s u b s c r ib e r .................................... (Please p r i n t ) ........................ Insert this tender in blue envelope marked “ Tender for Tax Anticipation Treasury Bills” __ .......................... B y ..........................................................................................................( O f f i c i a l B y ................ signature(s) required) T itle ........................................................................... T itle A d d re s s .................................................................................................................... (B a n k s su b m ittin g ten ders fo r cu sto m e r a ccou n t m ust in dicate nam e on line b elow , or attach a list) (Name of customer) (Note. Successful bidders will receive a letter of instructions form with their allotm disposition of, and method of payment for, the bills allotted to them.) notice to instruct us as to the IN S T R U C T IO N S : 1. N o ten der f o r less than $1,000 w ill be con sid ered , and each tender ™ * u r (m a tu rity v a lu e ). CaCh ten der m ust be fo r an even m u ltiple o f $1,000 2. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it tenders su b m ittin g ten ders fo r cu stom er a cco u n t m a y con solid a te com p etitive tender eX° ep co m p e titiv e tenders, p ro v id e d a list is attached s h o w in g the nam e o f ea ch b'dd m e th o d o f pa ym en t. F o r m s fo r this p u rp ose w ill be furn ish ed on requ est * ^ o r their o w n a ccou n t. B anks h**” * ^ m a y co n so lid ate n on am ou nt bid fo r his a ccou n t, and 3. I f the p erson m a k in g the ten der is a corp ora tion , the ten der should h* • a i a u th orized to m ake the tender, a nd th e sig n in g o f the ten der b y an ffi f S1§n ed b y an officer o f the corp o ra tio n rep resen ta tion b y him that he has been s o a uthorized. I f the tende m e m b e r o f the firm , w h o sh ou ld sign in the fo rm “ .............. * ° i° ^ c o r Pora ti ° n w ill be con stru ed as a *S ma 6 y a Pa rtn ership, it sh ou ld be sign ed b y a ............................................................................................................ , a m em b er o f the firm .” ..............................................’ 3 cop artn ersh iP- 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 hanW a * * re co g n iz e d dea lers in in vestm en t securities. T en d ers from o t W c ™ t 3IK rUSt c ? m panies and from respon sib le and fa ce a m o u n t o f T r e a s u ry bills a pplied for, unless the tenders are a c c °m p a m e d b y pa ym en t o f 2 p ercen t o f the an in co rp o ra te d bank o r trust com p a n y . pam e y an exp ress gu a ra n ty o f pa ym en t b y 5. I f the la n g u a ge o f this ten der is ch a n ged in a n v recnoM is m aterial, the ten der m a y be d isregarded. ’ • .l >1 e op in ion o the S ecreta ry o f the T reasu ry,
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