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FED ER A L R E S E R V E BANK OF N EW YORK Fiscal Agent of the United States C ircu la r N o . 6 3 9 2 ~1 A u g u s t 2 O', 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 271-Day Bills, Additional Amount, Series Dated May 31, 1969, Due May 31, 1970 (To Be Issued September 2, 1969) $1,200,000,000 of 365-Day Bills, Dated August 31, 1969, Due August 31, 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 p u b lic 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 ou nt o f $1,700,000,000, or thereabouts, for cash and in exch a n ge for T re a su ry bills m atu rin g A u g u st 31, 1969, in the am ou nt o f $1,706,008,000, as fo llo w s : 271-day bills (to m aturity date) to be issued S ep tem ber 2, 1969, in the am ou nt o f $500,000,000, or thereabouts, rep resen tin g an additional am ou nt o f bills dated M a y 31, 1969, and to m ature M a y 31, 1970, origin a lly issued in the a m ou n t o f $1,000,225,000, the a ddition al and o rig i nal bills to be freely in terch angeable. 365-day bills, fo r $1,200,000,000, or thereabouts, to be dated A u g u st 31, 1969, and to m ature A u g u st 31, 1970. T h e bills o f b o th series w ill be issued on a discou n t basis under co m p etitive and n on com p etitive bid d in g as h ereinafter p rovided , 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 v a lu e). T e n d e rs w ill be receiv ed at F ederal R eserve Banks and B ran ches up to the clo s in g hour, on e-th irty p.m ., E astern D a y ligh t S a vin g tim e, T u esd a y, A u g u st 26, 1969. T en d ers w ill not be received at the T re a su ry D epartm en t, W a sh in g ton . E ach ten der m ust be fo r an even m ultiple o f $ 1,000, and in the case o f co m 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. (N otw ith sta n d in g the fact that the on e -y e a r bills w ill run fo r 365 days, the discou n t rate w ill be com p u te d on a bank d iscou n t basis o f 360 days, as is cu rrently the practice on all issues o f T rea su ry b ills.) It is urged 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 B anks o r B ran ch es on a pp lication th erefor. B a n k in g institutions gen era lly m ay subm it tenders for a ccou n t o f cu stom ers, p rov id ed the n am es o f the cu stom ers are set forth in such tenders.^ O th ers than bankin g institutions w ill n ot be perm itted to subm it tenders e x cep t for their o w n a ccou nt. T en d ers w ill be receiv ed w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fro m respon sib le and re co g n ize d dealers in in vestm ent securities. T en d ers fro m oth ers m ust be a ccom p a n ied b y pa 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 b y an express gu aranty o f pa ym en t b y an in corp ora ted bank or trust com p a n y . Im m ed ia tely after the clo s in g hour, ten ders w ill be o p e n e d at the F ed era l R eserve B anks and B ran ches, fo llo w in g w h ich 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 su b m ittin g tenders w ill be a dvised o f the a ccep ta n ce or re je ctio n th ereof. T h e Secreta 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 or 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 fro m any on e b idd er w ill be a cce p te d in full at the a vera ge price (in three decim a ls) o f a ccep ted com p etitive bids fo r the respective issues. S ettlem en t for a ccep ted tenders in a cco rd a n ce w ith the bids m u st be m ade or com p leted at the F ed era l R eserve B ank on S ep tem ber 2, 1969, in cash or oth er im m ediately available funds or in a like face a m ou nt o f T rea su ry bills m a tu rin g A u g u st 31, 1969. Cash and e x ch a n ge tenders w ill receiv e equal treatm ent. Cash a d ju st m ents w ill be m ade fo r differen ces b etw een the par valu e o f m aturing bills a ccep ted in e x ch a n g e and the issue p rice o f the n ew bills. T h e in com e derived fro m T rea su ry bills, w h eth er interest or gain fro m the sale o r oth er d isp osition o f the bills, d oes n ot have any exem ption , as such, and loss fro m the sale o r oth er d isp osition o f T rea su ry bills d oes n ot have any special treat m ent, as such, under the In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er e x cise taxes, w hether F ederal or State, but are ex em p t fro m all ta x a tion n o w or hereafter im p osed o n 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, o r b y any loca l ta x in g authority. F o r p u rp o se s o f taxation the a m ou n t o f discou n t a t w h ich T re a s u ry bills are origin a lly sold b y 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 e ven u e C ode o f 1954, the am ou nt o f discou 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 from 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 in su rance c o m pan ies) issued hereunder need in clude in his in co m e tax return on ly the differen ce 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 tio n at m aturity du rin g the taxable year fo r 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 C ircular N o. 418 (cu rren t re v is io n ) and this n otice p rescrib e the term s o f the T r e a s u ry bills* and g ov ern the con d ition s o f their issue. C opies o f the circu la r m a y be ob ta in ed fro m a n y F ed era l R eserv e 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, Tuesday, August 26 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 Special 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. A lfred H ayes, President. No. TENDER FOR 271-DAY TREASURY BILLS Additional Amount, Series Dated May 31, 1969, Due May 31, 1970 (To Be Issued September 2, 1969) To F ederal R eserve B a n k of N Y e w o r k Dated a t ...................................................... .......................................................... 1 9 ... , Fiscal Agent of the United States. Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provisions of the public notice issued by the Treasury Department inviting tenders for the above described Treasury bills, the undersigned hereby offers to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: COMPETITIVE TENDER [ I not m !n both Com petitive and N oncom petitive tenders on one form $ ....................................................... (maturity value), or any lesser amount that may be awarded. Price: .................................. per 100. (P rice must be expressed with not m ore than three decimal places, for exam ple, 99.925) 1 NONCOMPETITIVE TENDER $ ...................................................... (maturity value). (N o t to exceed $200,000 f o r one bidder through all sou rces) At the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ Maturity value □ 1,000 5,000 1. Deliver over the counter to the □ □ 2. □ 4. □ 5. 3. 10,000 50,000 100,000 undersigned Ship to the undersigned H old in safekeeping ( f o r ac count of member bank on ly) Allotm ent transfer (see list attached) Special instructions: 500,000 Payment will be made as follow s: □ By check herewith □ By cash or check in immediately available funds on delivery □ By charge to our reserve account □ By surrender o f $ ................................ (maturity value) o f maturing Treasury bills. Pay cash adjust ment, if any— □ By check □ 1,000,000 (N o changes in delivery instructions will be accepted) Totals By credit to our reserve account (P aym en t cannot be made through Treasury T a x and Loan A ccou n t) The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. (N am e of subscriber— please print or type) Insert this tender in special envelope marked “Tender for Special Treasury Bills’ (Address— please print or type) (Signature of subscriber or authorized signature) (T itle of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (N am e of custom er) (N am e of customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be con sidered, and each tender m ust be for an even m ultiple o f $1,000 (m atu rity valu e). 2. O th ers than bankin g institutions w ill not be perm itted to subm it tenders ex cep t for their ow n account. B anking institutions subm itting tenders for cu stom er a ccou n t m ay con solida te com petitive tenders at the same price and m ay con solid a te n on com petitive tenders, provided a list is attached sh ow in g the nam e o f each bidder, the am ount bid for his accou n t, and m ethod o f paym ent. F orm s for this pu rpose w ill be furnished upon request. 3. If the person m akin g the tender is a corp ora tion , the tender should be signed b y an officer o f the corp oration authorized to m ake the tender, and the sign in g o f the tender b y an officer o f the corp ora tion will be con stru ed as a representation b y him that he has been so authorized. I f the tender is m ade by a partnership, it shou ld be signed b y a m em ber o f the firm, w h o should sign in the fo rm “ .................................................................................................... . a copartn ersh ip, b y ...................................................................................................................... a m em b er o f the firm .” 4. T e n d e rs w ill be receiv ed w ith ou t deposit from in corp ora ted banks and trust com pan ies and from resp o n sible and re co g n iz e d dealers in in vestm ent securities. T e n d e rs from oth ers m ust be a ccom p a n ied b y paym ent o f 2 percent o f the face a m ou n t o f T rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an express guaranty o f pa ym en t b y an in corp ora ted bank or trust com p a n y . A ll ch eck s m ust be draw n to the o rd er o f the Federal R eserve Bank o f N ew Y o r k ; ch ecks en d orsed to this B ank w ill not be accepted. 5. I f the language o f this ten der is ch a n ged in any respect, w hich, in the op in ion o f the S ecreta ry o f the T reasu ry, is m aterial, the tender m ay be disregarded. TENDER FOR 365-DAY TREASURY BILLS Dated August 31, 1969 To F ederal R eserve B a n k of N Y ew Due August 31, 1970 o rk Dated at , Fiscal Agent of the United States. 1 9 ... Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provisions of the public notice issued by the Treasury Department inviting tenders for the above described Treasury bills, the undersigned hereby offers to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: COMPETITIVE TENDER [ D o not till in both Com petitive and N oncom petitive tenders on one form $ ...................................................... (maturity value), or any lesser amount that may be awarded. P r ic e :.................................. per 100. (P r ic e must be expressed zvith not m ore than three decimal places, fo r exam ple, 99.925) ] NONCOMPETITIVE TENDER $ ...................................................... (maturity value). ( N ot to exceed $200,000 f o r one bidder through all sou rces) At the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ Maturity value 1,000 5,000 10,000 50,000 100,000 □ 1. Deliver over the counter to the □ □ 2. □ 4. □ 5. 3. undersigned Ship to the undersigned H old in safekeeping ( f o r ac count o f member bank on ly) Allotm ent transfer (see list attached) Special instructions: 500,000 1,000,000 Payment will be made as fo llo w s : □ By check herewith □ □ □ By cash or check in immediately available funds on delivery B y charge to our reserve account B y surrender of $ ................................ (maturity value) o f maturing Treasury bills. Pay cash adjust ment, if any— □ By check □ (N o changes in delivery instructions zvill be accepted) Totals By credit to our reserve account (P aym en t cannot be made through Treasury T a x and Loan A ccou n t) The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. (N am e of subscriber— please print or type) Insert this tender in special envelope marked “Tender for Special Treasury Bills’ (Address— please print or type) (Signature of subscriber or authorized signature) (T itle of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (N am e of custom er) (N am e o f customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be con sidered, and each tender m ust be for an even m ultiple o f $1,000 (m atu rity va lu e). 2. O th ers than banking institutions w ill not be perm itted to subm it tenders excep t fo r their ow n accou nt. B anking institutions subm itting tenders for cu stom er a cco u n t m ay con solida te com petitive tenders at the same price and m ay con solidate n on com petitive tenders, provided a list is attached sh ow in g the nam e o f each bidder, the am ou nt bid for his accou nt, and m ethod o f paym ent. F orm s for this pu rpose w ill be furnished upon request. 3. If the person m aking the tender is a corp ora tion , the tender should be signed b y an officer o f the corp ora tion authorized to make the tender, and the sign ing o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a representation by him that he has been so authorized. I f the tender is m ade by a partnership, it shou ld be signed b y a m em ber o f the firm, w h o should sign in the fo rm “ ..................................................................................................... a copartn ersh ip, b y ..................................................................................................................... a m em b er o f the firm .” 4. T e n d e rs w ill be received w ith ou t dep osit from in corpora ted banks and trust com pan ies and from re s p o n sible and re co g n ize d dealers in in vestm ent securities. T e n d e rs from oth ers m ust be a ccom p a n ied b y pa ym en t o f 2 percent o f the face am ou nt o f T reasu ry bills applied for, unless the tenders are a ccom p a n ied b y an exp ress guaranty o f paym ent b y an in corpora ted bank o r trust com pa n y. A ll ch eck s m ust be draw n to the ord er o f the Federal R eserve B ank o f N e w Y o r k ; ch ecks en dorsed to this B ank w ill not be a ccepted. 5. I f the language o f this tender is ch a n ged in any respect, w hich, in the opin ion o f the S ecreta ry o f the T reasu ry, is m aterial, the tender m ay be disregarded.
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