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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 6 3 6 1 "1 L July 9, 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated April 17,1969, Due October 16,1969 (To Be Issued July 17, 1969) $1,100,000,000 of 182-Day Bills, Dated July 17, 1969, Due January 15, 1970 T o A ll Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: 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 am ount o f $2,700,000,000, or th ereabouts, for cash and in exch a n ge for T re a su ry bills m aturing July 17, 1969, in the a m ou n t of $2,701,700,000, as fo llo w s : 9 1 -d a y bills (to m aturity date) to be issued Ju ly 17, 1969, in the am ou nt o f $1,600,000,000, or thereabouts, rep resen tin g an additional a m ou n t o f bills dated A p r il 17, 1969, and to m ature O c to b e r 16, 1969, o rig i nally issued in the am ou nt o f $1,100,975,000, the a dd i tional and origin al bills to be freely interchangeable. 182-day bills, fo r $1,100,000,000, or thereabouts, to be dated July 17, 1969, and to m ature January 15, 1970. 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 etitive b id d in g as hereinafter p ro vid 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 Federal R eserve B anks and B ran ch es up to the clo s in g hour, on e-th irty p.m., E astern D a y light S a vin g tim e, M on d a y, July 14, 1969. T en d ers w ill n ot be received at the T re a su ry D epartm en t, W a sh in g ton . E ach tender m ust be fo r an even m u ltiple o f $1,000, and in the case o f com p etitive tenders the price offered 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 ction s m ay n ot be used. It is u rged that tenders be m ade on the printed form s and forw a rd ed in the special en velopes w h ich w ill be supplied b y F ederal R eserve Banks or B ran ches on a pp lication th erefor. B a n k in g institutions gen erally m ay subm it tenders for a cco u 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 b ankin g institutions w ill not be perm itted to subm it tenders e x ce p t for their ow n accou n t. T en d ers w ill be receiv ed w ith ou t dep osit from in corp ora ted banks and trust com pa n ies and fro m respon sib le and recog n ized dealers in in vestm ent securities. T en d ers fro m oth ers m ust be accom p a n ied b y p a ym en t o f 2 p ercen t 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 by an express gu aranty o f pa ym en t b y an in corp ora ted bank or trust com pa 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 hich p u b lic 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 a m ou n t and price ran ge o f a cce p te d bids. T h o s e sub m ittin g tenders w ill be a dvised o f the a ccep ta n ce o r 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 resp ect 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 from any on e b id d er w ill be a cce p te d in full at the average price (in three decim a ls) o f a ccep 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 u st be m ade or com p leted at the F ed eral R eserve B ank on July 17, 1969, in cash or oth er im m ediately available funds o r in a like face a m ou n t o f T reasu ry bills m aturing Ju ly 17, 1969. Cash and exch a n ge tenders w ill receiv e equal treatm ent. Cash ad ju st m ents w ill be m ade for differences b etw een the par valu e o f m aturing bills a ccep ted in ex ch a n g e and the issue p rice o f the n ew bills. T h e in com e derived from T rea su ry bills, w h eth er interest or gain fro m the sale o r oth er disp osition o f the bills, d oes n ot have any exem ption , as such, and loss fr o m the sale o r oth er d isp osition o f T rea su ry bills does n ot have any special treat 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 F ederal or State, but are ex em p t fro m all ta x a tion n ow o r h ereafter im posed on the principal o r in terest th ereof b y any State, or any o f the p ossession s o f the U n ited States, or b y any loca l ta x in g authority. F o r p u rp oses o f taxation the am ou nt o f discou n t at w h ich T re a s u ry bills are origin a lly sold by the U n ited States is con sid ered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C ode o f 1954, the am ou nt 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 exclu d ed fro m con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life insurance c o m pan ies) issued hereunder need in clud e in his in co m e ta x return o n ly the difference b etw een the price paid fo r such bills, w hether on original issue or on subsequen t pu rch ase, and the am ou nt a ctu ally receiv ed either upon sale o r red em p tion 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 re v isio n ) and this n otice prescrib e the term s o f the T re a s u ry b ills and gov ern the con d ition s o f their issue. C opies o f the circu la r m ay be obtain ed from any F ed era l R eserve B ank o r B ran ch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, July 14, 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 sub mitted 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 July 10, 1969, representing an additional amount of bills dated April 10, 1969, maturing October 9, 1969; and 182-day bills dated July 10, 1969 maturing January 8 , 1970) are shown on the reverse side of this circular. A lfred IIayes, President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY RILLS (TW O SERIES TO BE ISSUED JULY 10, 1969) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing October 9,1969 Price H i g h ...................................... 182-Day Treasury Bills Maturing January 8, 1970 A pprox. equiv. annual rate Price Approx. equiv. annual rate 98.24 l a 6.959% 96.352b 7.216% ...................................... 98.202 7.113% 96.289 7.340% Average ................................ 98.213 7.069%! 96.305 7.309%! Low a E x ce p tin g tw o tenders tota lin g $2,882,000. b E x ce p tin g six tenders tota lin g $1,154,000. 1 T h e se rates are on a bank discou n t basis. T h e equivalent cou p on issue y ield s are 7.30 percen t for the 91-day bills, and 7.69 p ercen t fo r the 182-day bills. (39 percent of the amount of 91-day bills bid for at the low price was accepted.) (55 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 October 9,1969 Applied for District Boston .......................... .......... $ 31,186,000 182-Day Treasury Bills Maturing January 8, 1970 A pplied for Accepted $ 21,186,000 $ 6,575,000 Accepted $ 6,005,000 New Y o r k .................... .......... 1,789,818,000 1,104,068,000 1,686,320,000 792,486,000 Philadelphia ................ .......... 35,251,000 20,251,000 20,172,000 10,172,000 .................... .......... 37,622,000 37,622,000 42,279,000 36,529,000 Richmond .................... .......... 19,924,000 17,924,000 15,142,000 11,642,000 ........................ .......... 43,072,000 35,072,000 27,072,000 21,077,000 .......... 203,233,000 173,233,000 124,746,000 88,947,000 St. Louis ...................... .......... 43,791,000 38,891,000 30,023,000 25,023,000 ................ .......... 21,061,000 8,311,000 18,173,000 6,283,000 Kansas City ................ .......... 34,906,000 34,906,000 26,681,000 26,581,000 .......................... .......... 28,959,000 19,959,000 32,042,000 22,542,000 135,749,000 88,749,000 162,486,000 54,076,000 Cleveland Atlanta Minneapolis Dallas San Francisco T o ta l ............ ................. .......... $2,424,572,000 $1,600,172,000c $2,191,711,000 c In clu d es $374,178,000 n on com p etitiv e tenders a ccep ted at the average price o f 98.213. d In clu d es $252,737,000 n on com p etitiv e tenders a ccep ted at the average price o f 96.305. $1,101,363,000d
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