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FE D E R A L R ESERVE B A N K OF N E W YORK Fiscal Agent of the United States I*Circular No. 6 5 9 7 1 *• August 28, 1970 •* OFFERING OF TWO SERIES OF TREASURY BILLS |>1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated June 11, 1970, Due December 10, 1970 (To Be Issued September 10, 1970) $1,400,000,000 of 182-Day Bills, Dated September 10, 1970, Due March 11, 1971 T o A ll Incorporated B anks and T ru st Companies, and O thers Concerned, in the Second F ederal R eserve D istric t: Follow ing is the tex t of a notice issued by the T reasu ry D epartm ent, 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 of $3,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 10, 1970, in the amount of $3,104,310,000, as follows: 91-day bills (to maturity date) to be issued September 10, 1970, in the amount of $1,800,000,000, or thereabouts, representing an additional amount of bills dated June 11, 1970, and to mature December 10, 1970, originally issued in the amount of $1,302,860,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,400,000,000, or thereabouts, to be dated September 10, 1970, and to mature March 11, 1971 (CUSIP No. 912793 JY3). 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. They will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to closing hour, one-thirty p.m., Eastern Daylight Saving time, Friday, September 4, 1970. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on printed forms 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 of the customers are set forth in such tenders. Others than banking institutions will not be per mitted to submit tenders execpt for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest ment 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. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those submitting competitive 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 will be accepted in full at the average price (in three decimals) of accepted competi tive 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 September 10, 1970, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing September 10, 1970. Cash and exchange tenders will re ceive 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. 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 considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from considera tion as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the 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. Treasury Department Circular No. 418 (current revision) and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be ob tained from any Federal Reserve Bank or Branch. T his B ank will receive tenders for both series up to 1 :30 p.m., E astern D aylight Saving time, Friday, September 4, 1970, at the Securities D epartm ent of its H ead Office and at its Buffalo Branch. T ender form s for the respective series are enclosed. Please use the appropriate form s to subm it tenders and retu rn them in the enclosed envelope m arked “ T ender for T reasu ry Bills (W e e k ly ).” T enders may be subm itted by telegraph, subject to w ritten confirm ation; they may not be subm itted by telephone. Payment for the Treasury bills cannot be made by credit through the Treas ury T ax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. T his circular was printed before the results of the bidding for T re asu ry bills to be issued Septem ber 3, 1970 w ere available; those results will be announced after release by the T reasu ry D epartm ent. A lfred H a y es, President. Closing date for receipt of tenders is F riday , September 4.
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