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FEDERAL RESERVE BANK
OF N E W YORK
Fiscal Agent of the United States
]" C ircu la r N o . 6 2 7 9 "I
L
J an u ary 22, 1969
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$500,000,000 of 273-Day Bills, Additional Amount, Series Dated October 31,1968, Due October 31,1969
(To Be Issued January 31, 1969)
$1,000,000,000 of 365-Day Bills, Dated January 31, 1969, Due January 31, 1970
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:
The Treasury Department, by this public notice, invites
tenders for tw o series o f Treasury bills to the aggregate amount
o f $1,500,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing January 31, 1969, in the amount of
$1,500,465,000, as follow s:
273-day bills (to maturity date) to be issued January 31,
1969, in the amount of $500,000,000, or thereabouts, rep­
resenting an additional amount of bills dated O cto­
ber 31, 1968, and to mature O ctober 31, 1969, originally
issued in the amount o f $1,002,199,000, the additional
and original bills to be freely interchangeable.
365-day bills, for $1,000,000,000, or thereabouts, to be
dated January 31, 1969, and to mature January 31, 1970.
The bills of both series will be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable
without interest. T h ey will 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 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Stand­
ard time, Tuesday, January 28, 1969. Tenders will 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 o f 100, with not m ore than three decimals, e.g.,
99.925. Fractions may not be used. (Notwithstanding the fact
that the one-year bills will run for 365 days, the discount rate
will be computed on a bank discount basis o f 360 days, as is
currently the practice on all issues o f Treasury bills.) It is urged
that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Banking institutions generally may submit 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 submit tenders except for their ow n account.
Tenders will 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 o f 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.

Immediately after the closing hour, tenders w ill be opened
at the Federal Reserve Banks and Branches, follow in g which
public announcement will be made by the Treasury Departm ent
of the amount and price range o f accepted bids. T h ose 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, noncom petitive 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 decim als) o f
accepted competitive bids for the respective issues. Settlement
for accepted tenders in accordance with the bids must be made
or com pleted at the Federal Reserve Bank on January 31, 1969,
in cash or other immediately available funds or in a like face
amount o f Treasury bills maturing January 31, 1969. Cash and
exchange tenders will receive equal treatment. Cash adjust­
ments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price o f
the new bills.
The incom e derived from Treasury bills, whether interest
or gain from the sale or other disposition o f 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 o f 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exem pt from all taxa­
tion now or hereafter im posed on the principal or interest
thereof by any State, or any o f the possessions o f the United
States, or by any local taxing authority. For purposes o f
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) o f the Internal Revenue
Code of 1954, the amount o f 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. A ccordin gly,
the owner of Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his incom e 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 Departm ent Circular No. 418 (current revision)
and this notice prescribe the terms o f the Treasury bills and
govern the conditions o f their issue. Copies o f the circular may
be obtained from any Federal Reserve Bank or Branch.

Ihis Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Tuesday, January 28,
1969, 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 Ireasury 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
7 ax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury
bills.




A lfred H a y e s ,

President.

No........................................

TENDER FOR 273-DAY TREASURY BILLS
Additional Amount, Series Dated October 31, 1968, Due October 31, 1969
(To Be Issued January 31, 1969)
T o F e d e r a l R e se r v e B a n k

of

N ew Y

Dated a t ......................................................
......................................................., 19------

ork,

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 TENDER

rl

D o not Ml in both Competitive and
Noncompetitive tenders on one form

”1

L*

$ .................................. ......................( 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

I

$ ........................................................ (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

Denomination
$

Maturity 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 only)*
4. Allotment transfer (see list
attached)
5. Special instructions:

Payment will be made as follows:
□

By charge to our reserve account

□

By cash or check in immediately
available funds

□

By surrender of $ ..............................
(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 T ax and Loan Account)

(N o changes in delivery instructions
will be accepted)

Total

* If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned.
Name 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 subm itting 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 o f $1,000
(m aturity value).
2. Others than banking institutions w ill not be permitted to submit tenders except for their ow n 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 show ing the name o f each bidder, the amount bid for his account, and
method o f payment. Form s for this purpose will be furnished on request.
3. I f the person making the tender is a corporation, the tender should be signed by an officer o f the corporation
authorized to make the tender, and the signing o f the tender by an officer o f the corporation will 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 o f the firm, w ho should sign in the form “ ......................... ................................................................... a copartnership, by
..................................................................................................... .. m em ber o f the firm.”
4. Tenders will 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 o f 2 percent of the
face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by
an incorporated bank or trust company.
5. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the ireasury,
is material, the tender may be disregarded.




N o..................

TENDER FOR 365-DAY TREASURY BILLS
Dated January 31, 1969
To

F ed er al R eserve B a n k

of

N

ew

Y

Due January 31, 1970
Dated a t .......................................................
....................................................... . 1 9 . . . .

ork,

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 TENDER

[

D o not fill 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).
(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

Denomination

$

Maturity value

1,000

1. Deliver over the counter to the

□

undersigned
2. Ship to the undersigned
3. Hold in safekeeping (for ac­
count of member bank only)*
4. Allotment transfer (see list
attached)

□
□

5,000

□

10,000

□

50,000

Payment will be made as follows:
□

By charge to our reserve account

□

By cash or check in immediately
available funds

□

By surrender of $ ..............................
(maturity value) of maturing
Treasury bills. Pay cash adjust­
ment, if any—

5. Special instructions:

100,000

□

By check

500,000

□

By credit to our reserve account

1,000,000

(N o changes in delivery instructions
will be accepted)

Total

(Payment cannot be made through
Treasury T ax and Loan Account)

* If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned.
Name of subscriber.............

Insert this tender
in yellow envelope
marked “Tender for
Special Treasury Bills’

(Please print)

B y ............................................

................. .

B y ----- . . . .

(Official signature(s) required)

T i t l e ........................................

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 o f $1,000
(maturity value).
2. Others than banking institutions w ill not be permitted to submit tenders except for their ow n 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 show ing the name o f each bidder, the amount bid for his account, and
method o f payment. Form s for this purpose will be furnished on request.
3. I f the person making the tender is a corporation, the tender should be signed by an officer o f the corporation
authorized to make the tender, and the signing o f the tender by an officer o f the corporation w ill be construed as a
representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a
member o f the firm, w ho should sign in the form “ ......................................................................................... .. a copartnership, by
......................................................................................................... a mem ber o f the firm.”
4. Tenders will 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 o f 2 percent o f the
face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by
an incorporated bank or trust company.
5. If the language of this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury,
is material, the tender may be disregarded.