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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States r Circular No. 6 2 6 0 ~1 L December 16, 1968 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated September 26,1968, Due March 27,1969 (To Be Issued December 26, 1968) $1,100,000,000 of 182-Day Bills, Dated December 26, 1968, Due June 26, 1969 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: The following statement was made public December 12 by the Treasury Department: The Treasury announced today that the regular weekly bill auction that would normally be held on Monday, the 23rd, will be held on Friday, December 20. The day for the auction is being advanced to assure ample time between it and the payment date during the pre-holiday season. Payment for and delivery of the bills will be on the normal day, Thursday, December 26. For the subsequent weekly bill auction the announcement inviting tenders will be made on Monday, Decem ber 23, and the auction will be held on Friday, the 27th. The payment and delivery day for these bills will be Thursday, January 2. The Treasury added that the regular monthly bill auction will be announced on Monday, December 16 with the auction taking place the following Monday, December 23. The payment and delivery date for these bills will be Tuesday, December 31. Following is the text of the public notice offering the bills to be auctioned Friday, December 20: T h e T re a su ry D epartm 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 g g reg a te a m ou n t o f $2,700,000,000, or thereabouts, for cash and in exch a n ge fo r T re a su ry bills m aturing D ecem b er 26, 1968, in the am ou nt o f $2,709,535,000, as fo llo w s : 91-day bills (to m aturity date) to be issued D e ce m b e r 26, 1968, in the a m ou n t o f $1,600,000,000, or thereabouts, rep resen tin g an additional a m ou n t o f bills dated S ep tem ber 26, 1968, and to m ature M arch 27, 1969, orig inally issued in the am ou nt o f $1,102,282,000, the add itional and origin a l bills to be freely in terch angeable. 182-day bills, fo r $1,100,000,000, or thereabouts, to be dated D e ce m b er 26, 1968, and to mature June 26, 1969. T h e bills o f b oth series w ill be issued on a discou n t basis under com p etitive and n on com p etitive b id d in g as hereinafter provided , and at m aturity their face am ount 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 atu rity v a lu e). 'P ’ y ’ T e n d e rs w ill be receiv ed at F ederal 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, F riday, D e ce m b e r 20, 1968. T en d ers w ill n ot be receiv ed at the T reasu ry D epartm en t, W a sh in g ton . E ach ten der m ust be fo r an even m u ltiple o f $1,000, and in the case o f co m p etitive tenders the price o ffered 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 velop es w hich w ill be supplied b y F ed eral R eserve Banks or B ra n ch es on a pplication th erefor. B a n k in g institutions gen era lly m ay subm it ten ders fo r a ccou 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 not be perm itted to subm it ten ders ex cep t for their ow n a ccou n t. T en d ers w ill be receiv ed w ith ou t dep osit fro m in co rp o ra te d banks and trust com pan ies and fro m respon sible and re co g n ize d 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 p ercen t o f the face a m ou n t o f T rea su ry bills applied for, unless the tenders are a cco m p a n ie d b y an exp ress guaranty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely after the clo s in g hour, ten ders w ill be o p e n e d at the F ederal R eserve B anks and B ran ches, fo llo w in g w h ich ^ hll c a n n ou n cem en t w ill be m ade b y the T rea su ry D e p a rtm e n t o f . th e am ou nt and p rice ran ge o f a ccep ted bids. T h o s e su b ™lttinf ^ nudercs w l“ afd ™ ed ° f the a ccep ta n ce or re je ctio n . S e cre ta rj o f the T rea su ry ex p ressly reserves the n g ,h t, t-° aC^ P rCJ °r ! en2 e[ i \ m T ^ c V " p a rt’ ?.nd hls a ctl° n. 111 an^ such r e j e c t shall be final. S u b je ct to these reservations, n on com p etitiv e tenders fo r each issue fo r $200,000 or less w ith ou t stated price fro m any on e bidd er w ill be a ccep ted in full at the average price (in three decim a ls) o f a ccep ted com p etitive bids for the resp ective issues. S ettlem en t fo r a ccep ted tenders in a ccord a n ce w ith the b ids m u st be m ade or com p leted at the F ed eral R eserve B an k on D e ce m b e r 26 1968, in cash or oth er im m ediately available fu n ds o r in a like face am ou nt o f T rea su ry bills m aturing D e ce m b e r 26, 1968. Cash and exch a n ge tenders w ill receive equal treatm ent.' Cash a djustm ents w ill be m ade fo r differen ces betw een the par value o f m aturing bills accep ted in ex ch a n g e and the issue price o f the new bills. ( ovek) Closing date for receipt of tenders is Friday, December 20. T h e in co m e derived fro m T re a s u ry bills, w h eth er interest or gain fro m the sale or oth er d isp osition o f the bills, d oes n ot have any e xem p tion , as such, and loss fr o m the sale or oth er disp osition o f T r e a s u ry b ills d oes n ot have any special treat m ent, as such, under the In tern a l R ev en u e C od e o f 1954. T h e bills are su b je ct to estate, inheritance, g ift or oth er excise taxes, w hether F ed era l or State, but are ex em p t fro m all taxa tion n o w o r h ereafter im p osed on the principal or interest th e re o f b y any State, or a n y o f the p ossession s o f the U nited States, o r b y a n y lo ca l ta x in g authority. F o r pu 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 so ld b y the U n ited States is con sid ered to be interest. U n d e r S e ctio n s 4 5 4 (b ) and 1221(5) o f the Internal R even u e C ode o f 1954, the a m ou n t 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 such bills are sold, red eem ed or oth erw ise d isp osed of, and such bills are ex clu d ed from con sidera tion as capital assets. A c co r d in g ly , the ow n e r o f T rea su ry bills (o th e r than life insurance c o m pan ies) issued hereunder need include in his in com e tax return o n ly the differen ce betw een the price paid fo r such bills, w h eth er on origin a l issue or on subsequen t purchase, and the a m ou nt actu a lly receiv ed either upon sale o r red em ption at m aturity du rin g the taxable year for w h ich 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 revision ) and this n otice p rescrib 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. C opies o f the circular m ay be ob ta in ed fro m any F ederal R eserve Bank or B ranch. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time Friday D ecen t. 1968, at the Securities Department of its Head Office and at its Buffalo Branch. Tender’forms for the rT , series are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed envelopeT a r' k e l U t r, t , r T 7 T y P ' T f T r S ,m,'t,ted by tekgraph' SUbjeCt t0 written confirmation; they mav not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasure Tar Z d T Account. Settlement must be made m cash or other immediately available funds or in maturing Treasury bills. This circular was printed before the results of the bidding for Treasury bills to be issued December 19 1968 were available; those results will be announced after release by the Treasury Department. A lfred H ayes, President.
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