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F E D E R A L R E S E R V E BA N K OF N EW YORK Fiscal Agent of the United States r C ircu la r N o . 6 3 0 7 L M a r c h 19, 1969 1 J OFFERING OF $1,800,000,000 STRIP OF WEEKLY BILLS To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of a notice issued by the Treasury Department and released for pub lication 011 March 18: The Treasury Department, by this public notice, invites tenders for additional amounts of six series of Treasury bills to an aggregate amount of $1,800,000,000, or thereabouts, for cash. The addi tional bills will be issued March 31, 1969, will be in the amounts, and will be in addition to the bills originally issued and maturing, as follows: Amount of additional issue $ 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000 Original issue dates 1968 November November November November December December Maturity Dates 1969 7 14 21 29 5 12 May May May May June June 8 15 22 29 5 12 $1,800,000,000 Days from March 31,1969 to maturity 38 45 52 59 66 73 Amount currently outstanding (in millions) $2,702 2,699 2,705 2,702 2,701 2,701 (Average) 55.5 The additional and original bills will be freely interchangeable. Each tender submitted must be in the amount of $6,000, or an even multiple thereof, and one-sixth of the amount tendered will be applied to each of the above series of bills. The bills offered hereunder will be issued on a discount basis under competitive and noncompeti tive bidding as hereinafter provided, and at maturity their face amount will be payable without inter est. They wall 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, onethirty p.m., Eastern Standard time, Tuesday, March 25, 1969. Tenders will not be received at the Treasury Department, Washington. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. A single price must be submitted for each unit of $6,000, or even multiple thereof. A unit represents $1,000 face amount of each issue of bills offered hereunder, as previously described. 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 and 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 will not be permitted to submit tenders except for their own account, Tenders will be received without deposit from incorpo rated 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 incor porated bank or trust company. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of these additional issues at a specific rate or price until after one-thirty p.m., Eastern Standard time, Tuesday, March 25, 1969. ( over) Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following wrhich public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the accept ance 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. Noncompetitive tenders for $180,000 or less (in even multiples of $6,000) without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted eompetitiv bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank or Branch in cash or other immediately available funds on March 31, 1969; pro vided, howTever, any qualified depositary will be permitted to 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 when so notified by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether interest or gain from the sale or other disposi tion 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 treatment, as such, under the Internal Revenue Code of 1354. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation 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 of, and such bills are excluded from consideration as capital assets. Accord ingly, the owner of Treasury bills (other than life insurance companies) 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 maturity during the taxable year for which the return is made, as ordinary gain or loss. Purchasers of a strip of the bills offered hereunder should, for tax purposes, take such bills on to their books on the basis of their purchase price prorated to each of the six outstanding issues, using as a basis for pro ration the closing market prices for each of the issues on March 31, 1969. (Federal Reserve Banks will have available a list of these market prices, based on the mean between the bid and asked quota tions furnished by the Federal Reserve Bank of New York.) Treasury Department 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 up to 1 :30 p.m., Eastern Standard time, Tuesday, March 25, 1969, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the enclosed tender form to submit a tender, and return it in the enclosed envelope marked “ Tender for Strip of Outstanding 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 on March 31, 1969, in cash or other immediately available funds, except that any qualified depositary will be permitted to 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 lfked H ayes, President. No...................................... TENDER FOR STRIP OF 6 SERIES OF TREASURY BILLS TO BE ISSUED MARCH 31, 1969 (Additional Amounts of Outstanding Weekly Series Maturing May 8 to June 12, 1969, Inclusive) To F ederal R eserve B a n k of N ew Y o r k , Fiscal Agent of the United States. Dated at ................................................. ......................................................., 1969 Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions of the public notice issued by the Treasury Department inviting tenders for the above-described strip of Treasury bills, the undersigned hereby offers to purchase such strip of Treasury bills in the amount indicated below, and agrees to make payment therefor at your bank on or before the issue date at the price indicated below: COMPETITIVE TENDER (In multiples of $6,000) [~ Do not fill in both Competitive and "1 [_ Noncompetitive tenders on one form J $ .........................................................( maturity value ), or any lesser amount that may be awarded. P r i c e :.................................. per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) NONCOMPETITIVE TENDER (In multiples of $6,000) $ .....................................................( maturity value ). (N ot to exceed $180,000 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 March 31, 1969, 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 these additional issues at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Tuesday, March 25, 1969. (N am e of subscriber— please print or type) Insert this tender in envelope marhed ‘Tender for Strip of Outstanding Treasury Bills” (A ddress— please print or type) ( Signature of subscriber or authorized signature) (T itle o f authorized signer) (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (Name of Customer) (Name of Customer) (N ote. Successful bidders will receive a letter o f instructions form with their allotment notice to instruct us as to the disposition of, and m ethod o f payment for, the bills allotted to them.) I N S T R U C T IO N S : 1. Tenders must be submitted in units of $6,000 or multiples thereof. A unit represents $1,000 face amount of each series o f bills offered hereunder. A single price must be submitted for each unit o f $6,000 or multiple thereof. Am ounts issued on accepted tenders will be applied equally to each o f the six separate series included in the offering. 2. Others than banking institutions will not be perm itted to submit tenders except for their ow n account. Banks submitting tenders for customer account may consolidate com petitive 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 m ethod o f payment. Form s for this purpose will be furnished on request. 3. If 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 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. If the tender is made by a partnership, it should be signed by a member of the firm, w ho should sign in the form “ ........................................................................................... a copartnership, by ....................................................................................................... a member of the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Ten ders from others must be accom panied by paym ent o f 2 percent of the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty of 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 Treasury, is material, the tender may be disregarded. F ed eral R eserve B a n k of N e w 1 Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA TREASURY BILLS March 26, 1969 Your □ competitive □ noncompetitive tender for— A ST R IP OF UNITED STATES OF AMERICA TREASURY BILLS TO BE ISSUED MARCH 31, 1969 MATURING MAY 8, MAY 15, MAY 22, MAY 29, JUNE 5, AND JUNE 12, 1969 has been accepted at the price of $ (per 100 ), in the amount of— (maturity value) Settlement therefor must be made in cash or other immediately available funds at the Federal Reserve Bank of New York on or before March 31, 1969. However, a qualified depositary may make settlement by credit to its Treasury Tax and Loan Account, provided the advice of deposit attached to the enclosed letter-of-instructions form is executed and returned immediately. If set tlement is to be made by check on a bank other than the Federal Reserve Bank of New York, such checks should be received by us in time for collection on March 31, 1969; otherwise forfeiture of the prescribed deposit may be declared by the Secretary of the Treasury. On the enclosed letter-of-instructions form, please fill in instructions as to payment and dis position for the total amount of this strip of Treasury bills awarded to you, and return the letter immediately to our Government Bond Division. F ederal R eserve B a n k of N e w Y ork Fiscal Agent of the United States Checked by 2 PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION Your □ competitive □ noncompetitive tender for— A STRIP OF UNITED STATES OF AMERICA TREASURY BILLS TO BE ISSUED MARCH 31, 1969 MATURING MAY 8, MAY 15, MAY 22, MAY 29, JUNE 5, AND JUNE 12, 1969 price of $ 1 PURCHASE PRICE I M A S T E R MATURITY VALUE PURCHASE PRICE DISPOSITION 0 Over the Cotmter 0 Safekeeping 0 Treasury Tax & Loan 0 Ship 0 Allotment Transfer AM O U N T METHOD OF PAYMENT 0 Check or Cash 0 Reserve Account 0 Treas. T. & L. A cc. 0 Delivery Teller 0 Foreign Oper. Tj Form 12 .. -_ ! Div. ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ competitive □ noncompetitive A STRIP OF UNITED STATES OF AMERICA TREASURY BILLS TO BE ISSUED MARCH 31, 1969 MATURING M AY 8, M A Y 15, M A Y 22, M A Y 29, JUNE 5, AND JUNE 12, 1969 $ 3 - — ALLOTMENT NOTICE FOR SECURITY FILES □ competitive □ noncompetitive A STRIP OF UNITED STATES OF AMERICA TREASURY BILLS TO BE ISSUED MARCH 31 MATURING M AY 8, M A Y 15, M A Y 22, M A Y 29, JUNE 5, AND JUNE 12, 1969 a $ 1969 (This letter of instructions, accompanied by attached duplicate and triplicate copies, should be filled in for the total amount of this strip of Treasury bills awarded, and returned to Federal Reserve Bank of New York) LETTER OF INSTRUCTIONS T o F ed eral R eser ve B a n k of N e w Y ork, Agent of the United States, Federal Reserve P. 0 . Station, New York, N. Y. 100-15 F is c a l Attention: Government Bond Division— 2nd Floor Dated a t ........... . 1969 On our competitive and noncompetitive tenders for— A STRIP OF UNITED STATES OF AMERICA TREASURY BILLS TO BE ISSUED MARCH 31, 1969 MATURING M A Y 8, M AY 15, M A Y 22, M AY 29, JUNE 5, AND JUNE 12, 1989 accepted in the aggregate amount of— $ (maturity value) Please issue and make delivery of the bills as instructed below: Issue Maturing $10,00 0 $5,000 $ 1 ,000 $50,000 $100,000 $ 500,000 $1,000 ,0 00 ,y 8, 1969 ,y 15, 1969 y 22, 1969 y 29, 1969 ae 5, 1969 tie 12, 1969 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. Hold in safekeeping (for account of member bank only) * □ 4. Hold as collateral for Treasury Tax and Loan Account* □ 5. Special instructions: Payment will be made as follows By cash or other immediately available funds $ ............................ By charge to our reserve account By credit in Treasury Tax and Loan Account for which Advice of Deposit is submitted herewith (No changes in delivery instructions will he accepted) If this item is check ed, the undersigned certifies that the allotted bills wiil be ow ned solely by the undersigned. This letter of instructions must be signed officially in the space provided and returned immediately to (N am e of subscriber— please print or type) .......................................................................................... (A d d r e ss -p le a s e print or type) Federal Reserve Bank of New York, (Signature of subscriber or authorized signature) Fiscal Agent of the United States. (T itle of authorized signer) (S paces below are for the use o f Federal R eserve Bank o f New Y o rk ) Safekeeping Division Government, Bond Division Payment r e c e iv e d ........................ Checked . BeliYer against payment of $. Delivered D E L IV E R Y Received from Federal Reserve Bank of New York, Fiscal A gent of R E C E IP T the United States, the above-described securities allotted in the amount indicated above. D a te ...................................... ■ --- - --- ' Subscriber............................... .............................................................................. ^ .................................................... L '.'J J ..................................... ~ If payment is to be made by credit to Treasury Tax and Loan Account, an advice of the deposit should be furnished this Bank on the form below. Advice of Deposit in Treasury Tax and Loan Account To F e d er al R eserve B a n k of New Y ork, Government Bond Division. We will deposit on March 31, 1969 $ (purchase price) to the credit of the Federal Reserve Bank of New York, Fiscal Agent of the United States, in the Treasury Tax and Loan Account, to be held subject to withdrawal on demand in payment for $ (maturity value) of a strip o f Treasury bills maturing May 8, May 15, May 22, May 29, June 5, and June 12, 1969. (Name of Depositary) Address (City and State) (D U PLIC A TE F O R USE OF F E D E R A L R E SER VE BAN K OF N EW Y O R K ) DELIVERY TICKET— SAFEKEEPING DIVISION To F ed eral R eserve B a n k of N e w Y ork, Fiscal Agent of the United States, Federal Reserve P. 0 . Station, New York, N. Y. 10045 Attention: Government Bond Division— 2nd Floor Dated a t ............ 1969 On onr competitive and noncompetitive tenders for— A ST R IP OF UNITED S T A T E S OF A M E R IC A T R E A S U R Y BILLS T O BE ISSUED M ARCH 31, 1969 M A TU R IN G M A Y 8, M A Y 15, M A Y 22, M A Y 29, JUNE 5, AND JUNE 12, 1969 accepted in the aggregate amount of— (maturity value) $ Please issue and make delivery of the bills as instructed below: Issue M aturing $ 1,000 $5,000 $1 0,00 0 $100 ,0 00 $50,000 $ 500,000 $1 ,000 ,0 00 iy 8, 1969 ly 15, 1969 iy 22, 1969 iy 29, 1969 ne 5, 1969 ne 12, 1969 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. Hold in safekeeping (for account of member bank only) * □ 4. Hold as collateral for Treasury Tax and Loan Account* □ 5. Special instructions: Payment will be made as follow s: $ ............................ By cash or other immediately available funds $ ............................ By charge to our reserve account $ ............................ By credit in Treasury Tax and Loan Account for which Advice of Deposit is submitted herewith ianges in delivery instructions will be accepted) this item is checked, the undersigned certifies that the allotted bills will be ow ned solely by the undersigned. >f instructions must be signed the space provided and re^mediately to (Name of subscriber— please print or type) ................................................................................................... J Reserve Bank of New York, (Address— please print or type) (Signature of subscriber or authorized signature) !al Agent of the United States. (Title of authorized signer) (S p aces below are for the use o f Federal Reserve Bank o f New Y o rk ) ___U_____________________________________________ i n r m r v m i T T P H ___................................. Government Bond Division Safekeeping Divinion Delivfrrd D E LIV E R Y RECEIPT Received from Federal Reserve Bank o f New York, Fiscal Agent o f the United States, the above-described securities allotted in the amount indicated above. D ate................................. Subscriber................................................................................... B y .......................................................................................... (T R IP L IC A T E FO R USE OF F E D E R A L R ESERVE BAN K OF N EW Y O R K ) RELOCATION OFFICE— OUT To F e d e r a l R e s e r v e B a n k of N e w Y o r k , Fiscal Agent of the United States, Federal Reserve P. 0 . Station, New York, N. Y. 10045 Attention: Government Bond Division— 2nd Floor Dated a t ............ 1969 On our competitive and noncompetitive tenders for— A STRIP OF UNITED STATES OF AMERICA TREASURY BILLS TO BE ISSUED MARCH 31, 1969 MATURING MAY 8, MAY 15, MAY 22, MAY 29, JUNE 5, AND JUNE 12, 1969 accepted in the aggregate amount of(maturity value) $ Please issue and make delivery of the hills as instructed below: Issue Maturing $5,000 $1,000 $10,000 $100,000 $50,000 $500,000 $1,000,000 y 8, 1969 y 15, 1969 y 22, 1969 y 29, 1969 le 5, 1969 le 12, 1969 □ □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for account of member bank only)* □ 4. Hold as collateral for Treasury Tax and Loan Account* □ 5. Special instructions: Payment will be made as follow s: $ ............................ By cash or other immediately available funds $ ............................ By charge to our reserve account By credit in Treasury Tax and Loan Account for which Advice of Deposit is submitted herewith (No changes in delivery instructions will be accepted ) If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. letter of instructions must be signed jitii Jy in the space provided and reimmediately to / ' tc • eral Reserve Bank of New York, (Name of subscriber— please print or type) (Address— please print or type) (Signature of subscriber or authorized signature) ^ sea l Agent o f the United States. (Title of authorized signer) / □ (Spaces below are for the use of Federal Reserve Bank of New York) ty $ ........................... 5. Special instructions: jl c u a ig c w uui i ra ci vc a t u u u u l By credit in Treasury Tax and Loan A rw m n t W A rlv^p nf T)pr>qsit. Government Bond Division Paym eni S a fe k e e p in g D ivision Checked ................... De)iv*nwi Del^er against payment of D E LIV E R Y RECEIPT received from Federal Reserve Bank o f New York, Fiscal Agent o f the United States, the above-described securities allotted in the amount indicated above. Date. Subscriber. By.
@FedFRASER