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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States I" Circular No. 6 4 0 1 ~ l L September 10, 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated June 19,1969, Due December 18,1969 (To Be Issued September 18, 1969) $1,200,000,000 of 182-Day Bills, Dated September 18, 1969, Due March 19, 1970 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 $3,000,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 18, 1969, in the amount of $3,003,546,000, as follow s: 91-day bills (to maturity date) to be issued September 18, 1969, in the amount o f $1,800,000,000, or thereabouts, representing an additional amount o f bills dated June 19, 1969, and to mature D ecem ber 18, 1969, originally issued in the amount of $1,100,761,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,200,000,000, or thereabouts, to be dated September 18, 1969, and to mature March 19, 1970. The bills o f 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, September 15, 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 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 envelopes w hich 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 o f the customers are set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their ow n 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 accom panied by payment of 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. Imm ediately after the closing hour, tenders will 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 sub mitting tenders will be advised of the acceptance or rejection thereof. The Secretary o f 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 decimals) of 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 September 18, 1969, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 18, 1969. Cash and exchange tenders will 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. The incom e 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 o f 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 im posed 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. For purposes of taxation the amount o f discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) o f the Internal Revenue Code o f 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. Accordingly, the owner 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 No. 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, Sep tember 15, 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 September 11, 1969, representing an additional amount of bills dated June 12, 1969, maturing December 11, 1969; and 182-day bills dated September 11, 1969, maturing March 12, 1970) are shown on the reverse side of this circular. A lfred H ayes, President. ( over ) RESULTS OF LAST W E E K L Y OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED SEPTEMBER 11, 1969) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing December 11 ,19 6 9 A pprox. equiv. annual rate Price Approx. equiv. annual rate 98.200a 7.121% 96.268b 7.382% ...................... 98.176 7.216% 96.240 7.437% ........................ 98.184 7.184%! 96.255 7.408%! Price H i g h .................. 182-D ay Treasury Bills Maturing March 12 ,19 7 0 ................. a Excepting four tenders totaling $17,000. b Excepting six tenders totaling $23,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.42 percent for the 91-day bills, and 7.80 percent for the 182-day bills. (8 percent of the amount of 182-day bills bid for at the low price was accepted.) (73 percent of the amount of 91-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 182-Day Treasury Bills Maturing March 12 ,19 7 0 91-Day Treasury Bills Maturing December 11,19 6 9 ................... $ 36,884,000 A pplied for Accepted Applied for District $ 26,884,000 $ 6,559,000 Accepted $ 6,559,000 New Y o r k ............. ................... 1,862,623,000 986,573,000 1,597,373,000 863,781,000 Philadelphia ......... ................... 42,627,000 27,627,000 22,324,000 12,324,000 ................... 50,355,000 50,355,000 44,104,000 39,104,000 ................... 27,748,000 18,248,000 10,916,000 8,416,000 ................... 53,643,000 46,082,000 33,326,000 23,262,000 ................... 208,811,000 202,911,000 147,172,000 102,251,000 ................... 49,338,000 43,757,000 45,582,000 31,422,000 ......... ................... 24,787,000 17,087,000 18,770,000 11,770,000 Kansas City ......... ................... 41,888,000 41,488,000 22,816,000 22,816,000 ................... 29,118,000 21,118,000 23,304,000 12,804,000 . . . ................... 141,049,000 117,969,000 110,827,000 65,727,000 ................... $2,568,871,000 Minneapolis San Francisco T o tal ................ $1,600,099,000c $2,083,073,000 c Includes $410,857,000 noncom petitive tenders accepted at the average price o f 98.184. d In clu d e s $212,863,000 n on com p etitiv e ten ders a ccep ted at the average price o f 96.255. $1,200,236,000d
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