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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States No. 6 3 9 1 tCircular ] August 2 0 , 1969 O F F E R IN G O F T W O SER IES O F T R E A S U R Y B IL L S $ 1 ,6 00 ,0 00 ,00 0 o f 92-D ay B ills, A d d ition a l A m ou n t, Series D ated M ay 2 9 ,1 9 6 9 , D ue N ovem b er 2 8 ,1 9 6 9 ( T o B e Issued A ugust 28, 1 9 6 9 ) $ 1 ,2 0 0 ,00 0,0 00 o f 182-D ay B ills, D ated August 28, 1969, D u e F ebruary 26, 1970 To All Incorporated Banlcs 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, 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 $2,800,000,000, or thereabouts, for cash and in ex change for Treasury bills maturing August 28, 1969, in the amount o f $2,802,134,000, as follow s: 92-day bills (to maturity date) to be issued August 28, 1969, in the amount of $1,600,000,000, or thereabouts, representing an additional amount of bills dated M ay 29, 1969, and to mature Novem ber 28, 1969, originally issued in the amount o f $1,300,016,000, the additional and original bills to be freely inter changeable. 182-day bills, for $1,200,000,000, or thereabouts, to be dated A ugust 28, 1969, and to mature February 26, 1970. The bills of both series will be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. T h 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 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, August 25, 1969. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 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 forwarded in the special en velopes which will be supplied by Federal Reserve Banks or 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 ow n ac count. 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 of 2 percent of the face amount o f 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 w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcement will be made by the Treasury Department o f the amount and price range of accepted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. T h e 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 without stated price from any one bidder will be accepted in full at the average price (in three decimals) o f accepted competitive 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 August 28, 1969, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing August 28, 1969. Cash and exchange tenders w ill receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. T he incom e 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 of 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 exempt from all taxa tion now or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions of the United States, or by any local taxing authority. F or purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be inter est. Under Sections 454(b) and 1221(5) o f the Internal R ev e nue Code o f 1954, the am ount 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 ow ner of Treasury bills (other than life insurance 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 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 o f 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 25, 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 fo r 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 August 21, 1969, representing an additional amount of bills dated May 22, 1969, maturing November 20, 1969; and 182-day bills dated August 21, 1969, maturing February 19, 1970) are shown on the reverse side of this circular. A lfred H ayes, President. Please note that the Treasury bills maturing November 28, 1969 will be 92-day bills. ( over ) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED AUGUST 21, 1969) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing November 20,1969 P r ice 182-Day Treasury Bills Maturing February 19,1970 A p p ro x . equiv. annual rate P r ice A p p ro x . equiv. annual rate High ...................... ............ 98.280 6.804% 96.415a 7.091% Low ........................ ............ 98.255 6.903% 96.388 7.145% Average ................ ............ 98.267 6.856%* 96.400 7.121% 1 a E xceptin g one tender o f $5,000. 1 T hese rates are on a bank discount basis. T h e equivalent coupon issue yields are 7.07 percent fo r the 91-day bills, and 7.49 per cent f o r the 182-day bills. (9 percent of the amount o f 91-day bills bid for at the low price was accepted.) (85 percent of the amount o f 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 November 20,1969 D istrict A pplied f o r Boston .......................... .......... $ 28,958,000 182-Day Treasury Bills Maturing February 19,1970 A ccep ted $ 18,958,000 A pplied f o r $ 7,508,000 A ccep ted $ 7,208,000 New York .............................. 1,899,039,000 1,069,189,000 1,673,272,000 873,515,000 Philadelphia.................. .......... 38,439,000 23,439,000 20,786,000 10,436,000 Cleveland ...................... .......... 42,708,000 40,678,000 26,349,000 26,199,000 R ichm on d...................... ........ 19,539,000 18,539,000 22,029,000 15,229,000 Atlanta .......................... ........ 45,566,000 43,566,000 37,223,000 28,523,000 ........................ .......... 186,872,000 156,872,000 136,912,000 75,520,000 St. Louis ...................... .......... 56,226,000 53,771,000 50,097,000 46,597,000 Minneapolis .................. .......... 21,817,000 20,817,000 16,361,000 8,986,000 Kansas C i t y .................. ........ 27,919,000 27,918,000 23,546,000 22,076,000 ........ 24,348,000 17,348,000 25,532,000 15,432,000 San F ran cisco.............. ........ 135,377,000 109,007,000 127,341,000 70,741,000 ........ $2,526,808,000 Chicago T otal bIncludes ................ $1,600,102,000b $347,019,000 noncom petitive tenders accepted at the average price o f 98.267. c Includes $207,908,000 noncom petitive tenders accepted at the average price o f 96.400. $2,166,956,000 $1,200,462,000c
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