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FED ER A L R E S E R V E BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 6 3 4 5 1 U June 4, 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,700,000,000 of 91-Day Bills, Additional Amount, Series Dated March 13, 1969, Due September 11, 1969 (To Be Issued June 12, 1969) $1,300,000,000 of 182-Day Bills, Dated June 12, 1969, Due December 11, 1969 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text o f a notice issued by the Treasury Department, released at 4 p.m. today: T he Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount o f $3,000,000,000, or thereabouts, for cash and in ex change for Treasury bills maturing June 12, 1969, in the amount of $3,001,704,000, as follow s: 91-day bills (to maturity date) to be issued June 12, 1969, in the am ount o f $1,700,000,000, or thereabouts, representing an additional am ount o f bills dated M arch 13, 1969, and to mature September 11, 1969, originally issued in the amount o f $1,100,151,000, the additional and original bills to be freely inter changeable. 182-day bills, for $1,300,000,000, or thereabouts, to be dated June 12, 1969, and to mature D ecem ber 11, 1969. The bills o f both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at maturity their face amount will be payable w ithout interest. T h ey w ill be issued in bearer form only, and in denom inations o f $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 D ay light Saving time, M onday, June 9, 1969. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple o f $1,000, and in the case o f com petitive 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. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for ac count 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 incor porated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accom panied by payment o f 2 percent of the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust com pany. Imm ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g which public announcement will be made by the Treasury D epart ment o f the amount and price range o f accepted bids. Those submitting tenders will be advised o f the acceptance or rejec tion thereof. The Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole 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 w ithout stated price from any one bidder will be accepted in full at the average price (in three deci mals) o f accepted com petitive 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 June 12, 1969, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing June 12, 1969. Cash and exchange tenders w ill receive equal treatment. Cash adjustments will be made fo r differences between the par value o f maturing bills accepted in exchange and the issue price of 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 exem ption, as such, and loss from the sale or other disposition o f 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. F or purposes of taxation the am ount o f discount at which Treasury bills are originally sold by the U nited States is considered to be inter est. U nder Sections 454(b) and 1221(5) o f the Internal R ev enue C ode o f 1954, the amount o f discount at w hich 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 o f Treasury bills (oth er than life in surance 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 pur chase, 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. T reasury 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. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 9, 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 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 o f Treasury bills (91-day bills to be issued June 5, 1969, representing an additional amount o f bills dated March 6, 1969, maturing September 4, 1969; and 182-day bills dated June 5, 1969 maturing December 4, 1969) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 5, 1969) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing September 4, 1969 A pprox. equiv. annual rate Price High 182-Day Treasury Bills Maturing December 4,1969 _ Price A pprox. equiv. annual rate ............................................. 98.452 6.124% 96.766 6.397% L o w ............................................... 98.427 6.223% 96.722 6.484% Average 98.435 6.191%! 96.737 6.454% 1 ...................................... 1 These rates are on a bank discount basis. 6.76 percent fo r the 182-day bills. The equivalent coupon issue yields are 6.38 percent for the 91-day bills, and (51 percent of the amount of 91-day bills bid for at the low price was accepted.) (41 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing September 4,1969 Applied fo r District B o sto n .......................... .......... $ 32,985,000 182-Day Treasury Bills Maturing December 4,1969 Applied for Accepted $ 22,985,000 $ 4,418,000 Accepted $ 4,418,000 New York .................. .......... 2,053,986,000 1,255,736,000 1,783,468,000 1,046,538,000 Philadelphia................ .......... 31,957,000 16,957,000 15,690,000 5,690,000 Cleveland .................... .......... 33,235,000 32,235,000 22,766,000 22,766,000 R ich m on d................................ 19,222,000 18,222,000 8,708,000 6,508,000 Atlanta ........................ ........... 40,230,000 33,985,000 25,477,000 18,769,000 ........................ .......... 170,955,000 125,090,000 139,114,000 82,064,000 St. Louis ...................... ........ 42,189,000 35,189,000 25,730,000 19,612,000 Minneapolis .................. .......... 22,629,000 16,384,000 15,619,000 7,119,000 Kansas C i t y .................. ........ 27,817,000 27,817,000 12,538,000 12,538,000 Dallas ............................ ........... 25,468,000 15,968,000 19,117,000 10,117,000 San F ra n cisco.............. ........ 134,057,000 99,597,000 149,623,000 64,078,000 .................. .......... $2,634,730,000 Chicago T otal $1,700,165,000“ $2,222,268,000 a Includes $308,185,000 noncom petitive tenders accepted at the average price o f 98.435. b Includes $137,937,000 noncom petitive tenders accepted at the average price o f 96.737. $l,300,217,000b
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