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F E D E R A L R E S E R V E B A N K O F N E W YO RK Fiscal Agent of the United States E C ircu la r N o . 6 3 8 1 A u g u s t 6, 1969 3 OFFERING OF TWO SERIES OF TREASURY BILLS 1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated May 15, 1969, Due November 13, 1969 (To Be Issued August 14, 1969) $1,200,000,000 of 183-Day Bills, Dated August 14,1969, Due February 13,1970 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: The Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount o f $2,800,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 14, 1969, in the amount of $2,802,095,000, as fo llo w s : 91-day bills (to maturity date) to be issued August 14, 1969, in the amount of $1,600,000,000, or thereabouts, representing an additional amount of bills dated M ay 15, 1969, and to mature Novem ber 13, 1969, origi nally issued in the amount of $1,300,474,000, the addi tional and original bills to be freely interchangeable. 183-day bills, for $1,200,000,000, or thereabouts, to be dated August 14, 1969, and to mature February 13, 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 will 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 (maturity 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, August 11, 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 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 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 of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f 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 w ill 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 August 14, 1969, in cash or other immediately available funds or in a like face amount of Treasury bills maturing August 14, 1969. Cash and exchange tenders will receive equal treatment. Cash adjust ments w ill be made for differences between the par value o f 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 of the bills, does not have any exemption, 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 of 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 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. 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 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, August 11, 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 August 7, 1969, representing an additional amount of bills dated May 8 , 1969, maturing November 6 , 1969; and 182-day bills dated August 7, 1969, maturing February 5, 1970) are shown on the reverse side of this circular. A lfred H ayes, President. Please note that the Treasury bills maturing February 13, 1970, will be 183-day bills. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED AUGUST 7, 1969) Range of Accepted Competitive Bids 9 1 -Day Treasury Bills Maturing November 6 , 1 9 6 9 A p p ro x . equiv. annual rate P rice 98.247 a 6.935% 96.444 7.034% 98.226 7.018% 96.411 7.099% 98.232 6.994% 1 96.418 P rice High ..................................... L ow ............... .......................... a E xcepting one tender of $700,000. 1 These rates are on a bank discount basis. 7.45 percent for the 182-day bills. 00 0 .......................... A p p rox. equiv. annual rate 5k VO Average 1 8 2 -Day Treasury Bills Maturing Febru-ary 5 , 1 9 7 0 The equivalent coupon issue yields are 7.22 percent for the 91-day bills, ; (100 percent of the amount of 91-day bills bid for at the low price was accepted.) (95 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 November 6 , 1 9 6 9 D istrict Applied fo r Boston ................ .................... New York .......... .................... $ 38,443,000 1 8 2 -Day Treasury Bills Maturing February 5 , 1 9 7 0 A ccep ted $ 27,343,000 A pplied fo r 9,116,000 $ A ccep ted $ 8,816,000 2,044,744,000 1,069,335,000 1,909,395,000 821,510,000 .................... 40,893,000 25,713,000 20,691,000 9,691,000 Cleveland ............ .................... 50,440,000 48,140,000 36,059,000 34,784,000 Richmond .......... .................... 36,749,000 35,749,000 27,896,000 19,291,000 Atlanta ................ .................... 46,951,000 36,751,000 37,185,000 27,128,000 Chicago .............. .................... 160,141,000 133,512,000 177,920,000 145,950,000 St. Louis ............. .................... 51,800,000 36,200,000 35,905,000 26,905,000 ....... .................... 27,059,000 22,309,000 17,645,000 8,145,000 Kansas C ity ......... .................... 33,762,000 33,762,000 2 2 ,220,000 21,420,000 Dallas ................... .................... 33,310,000 22,310,000 24,498,000 14,198,000 .................... 139,587,000 109,887,000 123,393,000 62,393,000 ................... $2,703,879,000 Philadelphia Minneapolis San Francisco TOTAL ........ $1,601,011,000 b $2,441,923,000 b Includes $390,039,000 noncompetitive tenders accepted at the average price of 98.232. c Includes $229,415,000 noncompetitive tenders accepted at the average price of 96.418. $1,200,231,000c
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