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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular N o. 6 4 0 3 L September 17, 1969 OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 273-Day Bills, Additional Amount, Series Dated June 30, 1969, Due June 30, 1970 (To Be Issued September 30, 1969) $1,000,000,000 of 365-Day Bills, Dated September 30, 1969, Due September 30, 1970 To All 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 two series of Treasury bills to the aggregate amount o f $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 30, 1969, in the amount of $1,501,007,000, as follow s: 273-day bills (to maturity date) to be issued September 30, 1969, in the amount o f $500,000,000, or thereabouts, representing an additional amount o f bills dated June 30, 1969, and to mature June 30, 1970, originally issued in the amount of $1,201,406,000, the additional and origi nal bills to be freely interchangeable. 365-day bills, for $1,000,000,000, or thereabouts, to be dated September 30, 1969, and to mature September 30, 1970. The bills of 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 of $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, Tuesday, September 23, 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 m ore than three decimals, e.g., 99.925. Fractions may not be used. (N otwithstanding the fact that the one-year bills will run for 365 days, the discount rate will be computed on a bank discount basis of 360 days, as is currently the practice on all issues of Treasury bills.) It is urged that tenders be made on the printed form s and forwarded 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 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 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 o f payment by an incorporated bank or trust company. Imm ediately 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 Departm ent of the amount and price range of accepted bids. T h ose 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 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 decim als) 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 30, 1969, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 30, 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 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 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) of the Internal Revenue Code of 1954, the amount of 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 ccordingly, the owner o f 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 o f 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, Tuesday, September 23, 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 273-DAY TREASURY BILL S Additional Amount, Series Dated June 30, 1969, Due June 30, 1970 (To Be Issued September 30, 1969) To F ederal R eserve B a n k of N e w Y o r k , Dated at Fiscal Agent of the United States. 19. 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 [ Do not fill in both Competitive and Noncompetitive tenders on one form $ .................... .................................. (maturity value), or any lesser amount that may be awarded. Price: .................................. per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) 1 NONCOMPETITIVE TENDER $ ...................................................... (maturity value). (Not to exceed $200,000 for one bidder through all sources) 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 undersigned lLJ —i o n 3. Hold in safekeeping (for ac count of member bank only) □ 4. Allotment transfer (see list attached) □ 5. Special instructions: □ 500,000 1,000,000 (• iVun cr hanges in delivery instructions zvill be accepted) Totals Payment will be made as follows: □ By check herewith □ By cash or check in immediately available fimds on delivery □ By charge to our reserve account □ By surrender of $.......................... (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— □ By check □ By credit to our reserve account (Payment cannot be made through Treasury Tax and Loan Account) 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. (Name 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) (Title of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (Name of customer) (Name of customer) INSTRUCTIONS: 1. No tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banking institutions submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ................................................................................., a copartnership, by .............................................................................................. . a member of the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible 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 of payment by an incorporated bank or trust company. All checks must be drawn to the order of the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. No. TENDER FOR 365-DAY TREASURY BILLS Dated September 30, 1969 To F ederal R eserve B ank of N ew Y ork, Due September 30, 1970 Dated at Fiscal Agent of the United States. 19. 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 [ Do not till in both Competitive and Noncompetitive tenders on one form $ .......................................................... (maturity value), or any lesser amount that may be awarded. P r ic e :.....................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) ] NONCOMPETITIVE TENDER $ .......................................................... (maturity value). (N ot to exceed $200,000 fo r one bidder through all sources) 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 undersigned 2. Ship to the undersigned 3. Hold in safekeeping (fo r ac count of member bank only) 4. Allotment transfer (see list attached) 5. Special instructions: 500,000 1,000,000 (N o changes in delivery instructions zvill be accepted) Totals Payment will be made as follows: □ By check herewith □ By cash or check in immediately available funds on delivery □ By charge to our reserve account □ By surrender of $ .............................. (maturity value) of maturing Treasury bills. Pay cash adjust ment, if any— □ By check □ By credit to our reserve account (Payment cannot be made through Treasury Tax and Loan Account) 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’ (A ddress— 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) I N S T R U C T IO N S : 1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple o f $1 000 (maturity value). ’ 2. Others than banking institutions will not be permitted to submit tenders except for their own account Banking institutions submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name o f each bidder the amount bid for his account, and method o f payment. Forms for this purpose will be furnished upon request. 3. If the person making the tender is a corporation, the tender should be signed by an officer o f the corporation authorized to make the tender, and the signing o f the tender by an officer o f the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed bv a member of the firm, who should sign in the form “ ............................................................................................. a copartnership b ........................................................................................................... . a member o f the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Ireasury bills applied for, unless the tenders are accompanied by an express euarantv of payment by an incorporated bank or trust company. A ll checks must be drawn to the order o f the Federal Reserve Bank of New Y ork ; checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion o f the Secretary o f the Ireasury, is material, the tender may be disregarded.
@FedFRASER