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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States r Circular No. 6 2 5 3 '! L December 4, 1968 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated September 12,1968, Due March 13,1969 (To Be Issued December 12, 1968) $1,100,000,000 of 182-Day Bills, Dated December 12, 1968, Due June 12, 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 Standard time: T h e T re a su ry D epa rtm en t, b y this pu blic n otice, invites tenders fo r tw o series o f T rea su ry bills to the a ggreg a te am ou nt o f $2,700,000,000, or thereabouts, for cash and in exch a n ge for T re a su ry bills m aturing D e ce m b e r 12, 1968, in the a m ou n t o f $2,701,428,000, as fo llo w s : 91-day bills (to m aturity da te) to be issued D ecem b er 12, 1968, in the a m ou n t o f $1,600,000,000, or thereabouts, rep resen ting an additional am ou nt o f bills dated S ep tem ber 12, 1968, and to m ature M a rch 13, 1969, o r ig i n ally issued in the am ou nt o f $1,100,203,000, the add i tional and origin al bills to be freely in terch angeable. 182-day bills, fo r $1,100,000,000, or th ereabouts, to be dated D e ce m b e r 12, 1968, and to m ature June 12, 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 b id d in g as hereinafter provid ed , 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 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 va lu e). T e n d e rs w ill be received at F ed eral R eserve B anks and B ran ches up to the clo sin g hour, on e-th irty p.m ., E astern Standard time, M on d a y, D e ce m b e r 9, 1968. T en d ers w ill not be received at the T re a su 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 f com p etitive tenders the price o ffe re d 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 ra ctio n s m ay n ot be used. It is urged that tenders be m ade on the printed form s and forw a rd ed in the special en velopes w hich w ill be supplied b y F ed eral R eserve Banks or B ran ches on a pp lication th erefor. B a n k in g institutions gen era lly m ay subm it tenders for a ccou n t o f cu stom ers, p rovid ed the nam es o f the cu stom ers are set forth in such tenders. O th ers than ban kin g institutions w ill n ot be perm itted to subm it tenders ex cep t for their ow n a ccou nt. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com pan ies and from respon sible and re cog n ized dealers in in vestm ent securities. T en d ers fro m oth ers m ust be a ccom p a n ied b y paym ent o f 2 percent 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 express 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 op en ed at the F ederal 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 rea su ry D ep a rtm en t o f the am ou nt and p rice range o f a ccep ted bids. T h o s e su b m ittin g tenders w ill be advised 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 ex p ressly reserves the righ t to a ccep t or re je ct any or all tenders, in w h o le o r in part, and his a ction in any such respect shall be final. S u b je ct to these reservations, n on com p etitive tenders fo r each issue fo r $200,000 or less w ith ou t staied price fro m any on e bidder w ill be a cce p te d in full at the average price (in three d ecim a ls) o f accep ted com p etitive bids for the respective issues. S ettlem ent for a ccep ted tenders in a ccord a n ce w ith the bids m ust be m ade or com p leted at the Federal R eserve Bank on D e ce m b e r 12, 1968, in cash or oth er im m ediately available funds or in a like face am ou nt o f T reasu ry bills m aturing D e ce m b e r 12, 1968. Cash and exch a n ge tenders w ill receive equal treatm ent. Cash adjustm ents w ill be m ade for differences b etw een the par value o f m aturing bills accep ted in exch a n ge and the issue p rice o f the new bills. T h e in com e derived fro m T rea su ry bills, w h eth er interest or 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 or oth er disposition o f T rea su ry bills does n ot have a n y special trea t m ent, as such, under the Internal R even u e C ode o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w hether Federal or State, but are ex em p t fro m all ta x a tion n ow or h ereafter im posed on the principal or in terest th ereof b y any State, or any o f the possession s o f the U n ited States, o r b y any loca l ta x in g authority. F o r p u rp oses o f taxation the a m ou n t o f discou n t at w h ich T rea su ry b ills are origin a lly sold b y the U n ited 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 o f 1954, the am ou nt o f discou n t at w hich bills issued hereun der are sold is n ot con sidered to accru e until such bills are sold, red eem ed or oth erw ise disp osed of, and such bills are exclu d ed fro m con sideration as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (oth er than life insurance c o m pan ies) issued hereunder need in clude in his in com e tax return o n ly the differen ce b etw een the price paid fo r such bills, w hether on original issue or on subsequent pu rch ase, and the am ou nt actu a lly received either upon sale or red em ption at m aturity du rin g the taxable year fo r w hich the return is m ade, as ord in a ry gain or loss. T rea su ry D epa rtm en t Circular N o. 418 (cu rren t rev isio n ) and this n otice prescrib e the term s o f the T rea su ry bills and g ov ern the con d ition s o f their issue. Copies o f the circu la r m a y be ob ta in ed from any F ed eral R eserve Bank or B ran ch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, December 9, 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 Tax 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 (91-day bills to be issued December 5, 1968, representing an additional amount of bills dated September 5, 1968, maturing March 6, 1969; and 182-day bills dated December 5, 1968, maturing June 5, 1969) are shown on the reverse side of this circular. A lfred H ayes, President. (O V E R ) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED DECEMBER 5, 1968) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing June 5, 1969 91-Day Treasury Bills Maturing March 6, 1969 „ . Price Approx. equiv. A,. annual rate Prirp Lr%ce Approx.equiv. annual rate Hi« h ....................................... 98'585 5.598% 97.120* 5.697% Low ....................................... 98.567 5.669 % 97.092 5.752% AveraSe ................................ 98-576 5.633%* 9 7 .,03 5 .7 3 0 ^ , a E x c e p tin g on e ten der o f $5,000. i T h e s e rates are on a bank d iscou n t basis. T h e equivalent cou p on issue yield s are 5.79 percent for the Q1 r \ ^-i, 5.98 p e rce n t fo r the 182-day bills. percent tor the 9 1-d ay bills, and (16 percent of the amount of 91-day bills b,d for at the low pnce was accepted.) (92 percent of the amount of 182-day bills bid for at the Iow price wa$ accep' d ) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing March 6, 1969 Dstrict Applied for Bo’ t o n ....................................... $ 31,517,000 182-Day Treasury Bills Maturing June 5, 1969 Accepted $ 19,517,000 Applied for $ 5,825,000 Accepted $ 5,825,000 N e w Y o r k ................................ 1,778,765,000 1,110,765,000 1,433,481,000 812,281,000 .............................. 27,505,000 12,505,000 17,471,000 12,071,000 ................................... 37,656,000 37,656,000 42,070.000 31,990,000 Richmond ................................... 11,405,000 11,405,000 5,045,000 5,045,000 Atlanta ....................................... 35,121,000 30,121,000 23,645,000 16,045,000 Chkag0 ....................................... 199,309,000 192,609,000 125,856,000 115,856,000 St .. ............................................... 43,768,000 36,516,000 25,672,000 18,472,000 M inneapolis .............................. 24,497,000 22,497,000 18,284,000 12,624,000 Kansas City .............................. 29,093,000 27,093,000 15,349,000 13,349,000 DalIas ......................................... 27,798,000 17,798,000 20,575,000 10,575,000 F ra n c is c o ............................ 134,650,000 81,682,000 142,772,000 46,132,000 T o t a l ............................ $2,381,084,000 $1,876,045,000 $1,100,265,000' P h ila d e lp h ia Cleveland San $1,600,164,000h b In clu d es $275,738,000 n on com p etitive tenders a ccep ted at the average price o f 98.576. c In clu d es $141,556,000 n on com p etitiv e tenders accep ted at the average price o f 97.103.
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