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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States I* Circular No. 6372 T July 23, 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated May 1, 1969, Due October 30, 1969 (To Be Issued July 31, 1969) $1,100,000,000 of 182-Day Bills, Dated July 31, 1969, Due January 29, 1970 T o A ll Incorporated Banks and T rust 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: The Treasury Department, by this public notice, invites tenders for tw o series of Treasury bills to the aggregate amount of $2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing July 31, 1969, in the amount of $4,409,468,000, as f o llo w s : 91-day bills (to maturity date) to be issued July 31, 1969, in the amount of $1,600,000,000, or thereabouts, representing an additional amount of bills dated M ay 1, 1969, and to mature October 30, 1969, orig i nally issued in the amount of $1,099,921,000, the addi tional and original bills to be freely interchangeable. 182-day bills, for $1,100,000,000, or thereabouts, to be dated July 31, 1969, and to mature January 29, 1970. The bills o f both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount w ill be payable without interest. Th ey will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). 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, Monday, July 28, 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 of competitive tenders the price offered must be expressed on the basis o f 100, with not more 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 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 own 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 of 2 percent o f 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 will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those 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, noncompetitive 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 completed at the Federal Reserve Bank on July 31, 1969, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 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 of the new bills. The income 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 exempt from all taxa tion now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions o f the United States, or by any local taxing authority. F or 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 4 5 4 (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 co m panies) 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. Treasury Department Circular N o. 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 for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, July 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 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 of Treasury bills (91-day bills to be issued July 24, 1969, representing an additional amount of bills dated April 24, 1969, maturing October 23, 1969; and 182-day bills dated July 24, 1969, maturing January 22, 1970) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JULY 24, 1969) Range of Accepted Competitive Bids 9 1 -Day Treasury Bills Maturing October 2 3 , 1 9 6 9 P rice 1 8 2 -Day Treasury Bills Maturing January 2 2 , 1 9 7 0 A p p rox. equiv. annual rate P rice A p p rox. equiv. annual rate High .......... ............................. 98.190 a 7.160% 96.248 b 7.422% Low ....... ............................. 98.170 7.240% 96.224 7.469% 98.175 7.220% 1 96.229 7.459% Average ............................. 1 a E xcepting six tenders totaling $930,000. b Excepting three tenders totaling $143,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.46 percent for the 91-day bills, a 7.86 percent fo r the 182-day bills. (84 percent of the amount of 91-day bills bid for at the low price was accepted.) (71 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) 9 1 -Day Treasury Bills Maturing October 2 3 , 1 9 6 9 D istrict Boston A pplied fo r ................. ........................ $ 37,954,000 1 8 2 -Day Treasury Bills Maturing January 2 2 , 1 9 7 0 A ccep ted $ 27,483,000 A ccep ted A pplied for $ 9,199,000 $ 7,777,000 New York ........................ 1,863,729,000 1,061,294,000 1,731,439,000 773,319,000 Philadelphia ........................ 41,479,000 24,789,000 20,303,000 10,240,000 Cleveland ........ ......................... 41,435,000 41,339,000 53,709,000 43,680,000 Richmond ........................ 35,873,000 25,373,000 32,305,000 13,605,000 Atlanta ............. ........................ 56,469,000 42,469,000 53,919,000 37,016,000 Chicago ........... ........................ 234,724,000 171,394,000 168,968,000 82,759,000 St. Louis ......... ........................ 48,171,000 37,993,000 33,732,000 25,032,000 Minneapolis ........................ 24,496,000 10,586,000 23,362,000 11,570,000 Kansas C ity ............................. 42,336,000 42,336,000 28,414,000 26,358,000 Dallas ............... ........................ 18,328,000 16,328,000 17,481,000 17,481,000 San Francisco ........................ 145,644,000 98,644,000 111,472,000 51,462,000 .......................... $2,590,638,000 T otal $1,600,028,000c $2,284,303,000 c Includes $407,041,000 noncompetitive tenders accepted at the average price of 98.175. d Includes $273,628,000 noncompetitive tenders accepted at the average price of 96.229. $1,100,299,000 d
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