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F E D E R A L R E S E R V E BANK O F NEW YO R K Fiscal Agent of the United States r Circular No. 6 6 2 6 1 L October 27,1970 J OFFERING OF TWO SERIES OF TREASURY BILLS [,800,000,000 of 91-Day Bills, Additional Amount, Series Dated August 6, 1970, Due February 4, 1971 (To Be Issued November 5, 1970) $1,400,000,000 of 182-Day Bills, Dated November 5, 1970, Due May 6,1971 T o A l l In c o r p o ra te d B a n k s an d T r u s t C om pan ies, an d O th e rs C o n cern ed , in th e S e c o n d F e d e ra l R e s e r v e D is tr ic t: Follow ing is the te x t of a notice issued by the T re asu ry D epartm ent, released at 4 p.m. to d ay : T h e T re a su ry D ep artm en t, by th is public notice, invites te n d ers for tw o series of T re a su ry bills to th e a g g re g ate am o u n t of $3,200,000,000, o r th e re a b o u ts, for cash and in e x change fo r T re a su ry bills m a tu rin g N o v em b er 5, 1970, in th e am o u n t of $3,111,930,000, as follow s: recognized d ealers in in v e stm en t securities. T e n d e rs fro m o th e rs m u st be acco m p an ied by p a y m en t of 2 p e rc en t of th e face a m o u n t of T re a su ry bills applied for, u n less th e ten d ers are accom panied by an ex p ress g u a ra n ty of p a y m en t by an in co rp o rated b an k or tr u s t com pany. 91-day bills (to m a tu rity d ate) to be issued N o v em b er 5, 1970, in th e am o u n t of $1,800,000,000, o r th ere a b o u ts, re p re se n tin g an ad d itio n al am o u n t of bills d ated A u g u st 6, 1970, an d to m a tu re F e b ru a ry 4, 1971, orig in ally issued in th e am o u n t of $1,299,640,000, th e additional and original bills to be freely in terch an g eab le. Im m ed iately a fte r th e clo sin g h o u r, te n d e rs w ill be opened at the F e d e ra l R eserve B anks an d B ran ch es, fo llo w ing w hich public a n n o u n cem en t w ill be m ade by th e T re a su ry D e p a rt m en t of th e a m o u n t an d price ra n g e of accep ted bids. O n ly tho se su b m ittin g co m p etitiv e te n d e rs w ill be advised of th e acceptance or rejectio n thereof. T h e S e c re ta ry of th e T re a su ry e x p ressly reserv es th e rig h t to a c cep t o r reje c t any or all ten d ers, in w hole o r in p a rt, and his action in an y such resp ect shall be final. S u b ject to th ese reserv atio n s, n o n co m p etitiv e ten d ers fo r each issue fo r $200,000 o r less w ith o u t sta te d price from any one b id d er will be accep ted in full a t th e av erag e price (in th re e d ecim als) of accep ted com petitive bids fo r the respective issues. S e ttlem en t fo r accep ted te n d e rs in acco rd ance w ith th e bids m u st be m ade o r co m p leted a t th e F ed eral R eserve B ank on N o v em b er 5, 1970, in cash o r o th e r im m edi ately available fu n d s o r in a like face am o u n t of T re a su ry bills m a tu rin g N o v em b er 5, 1970. C ash and e x c h an g e ten d ers w ill receive equal tre a tm e n t. C ash a d ju stm e n ts will be m ade for differences betw een th e p ar value of m a tu rin g bills accepted in exchange and th e issue price of th e new bills. U n d e r S ections 454(b) and 1221(5) of th e In te rn a l R ev enue Code of 1954, the a m o u n t of d isco u n t at w hich bills issued h e reu n d e r are sold is con sid ered to accru e w hen the bills are sold, redeem ed o r o th erw ise d isp o sed of, and th e bills are excluded from co n sid eratio n as capital assets. A c co rd in g ly , th e o w n er of T re a su ry bills (o th e r th a n life in s u r ance co m p an ies) issued h e re u n d e r m u st include in his incom e tax re tu rn , as o rd in a ry gain o r loss, th e difference b etw een the price paid for th e bills, w h eth e r on o rig in al issue o r on su b se q u en t p u rch ase, an d th e am o u n t ac tu a lly received e ith er upon sale or red em p tio n a t m a tu rity d u rin g th e tax a b le y e a r fo r w hich the re tu rn is m ade. T re a su ry D e p a rtm e n t C ircular N o. 418 (c u rre n t revision) and this notice prescrib e th e term s of th e T re a su ry bills and g o v ern th e co n d itio n s of th e ir issue. C opies of th e circu lar m ay be o b tained fro m an y F ed eral R eserv e B an k o r B ranch. 182-day bills, for $1,400,000,000, o r th ere ab o u ts, to be dated N ovem ber 5, 1970, an d to m a tu re M ay 6, 1971 (C U S IP No. 912793 K G 0). T h e bills of b o th series will be issued on a d isco u n t basis u n der com p etitiv e and n o ncom petitive b id d in g as h erein afte r provided, and a t m a tu rity th e ir face am o u n t will be payable w ith o u t interest. T h ey will be issued in b e arer form only, and in d en o m in atio n s of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity valu e). T e n d e rs w ill be received at F ed eral R eserve B an k s and B ranches up to th e closing hour, o n e -th irty p.m., E a ste rn S ta n d a rd tim e, M onday, N o v em b er 2, 1970. T e n d e rs will not be received at the T re a su ry D e p artm e n t, W ash in g to n . E ach te n d e r m u st be for a m inim um of $10,000. T e n d e rs over $10,000 m ust be in m ultiples of $5,000. In th e case of com peti tive ten d ers the price offered m u st be ex p ressed on th e basis of 100, w ith n o t m ore th a n th ree decim als, e.g., 99.925. F ra c tions m ay n ot be used. It is u rg ed th a t ten d ers be m ade on the p rin ted form s and fo rw ard ed in th e special envelopes w hich will be supplied by F e d e ra l R eserve B anks o r B ranches on application th erefo r. B an k in g in stitu tio n s g en erally m ay su b m it ten d ers for acco u n t of custom ers, provided th e nam es of the cu sto m ers are set fo rth in such ten d ers. O th e rs th an b a n k in g in stitu tio n s will not be p erm itted to su b m it te n d ers except fo r th e ir ow n account. T en d ers w ill be received w ith o u t d ep o sit from in co r p o rated banks and tru s t com panies and fro m responsible and T his B ank will receive tenders fo r both series up to 1:30 p.m., E astern S tan d ard time, M onday, N ovem ber 2, 1970, at the Securities D epartm ent o f its H ead Office and ait its Buffalo B ranch. T en d er form s fo r 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 en d e r fo r T reasu ry Bills (W e e k ly ).” T enders m ay be subm itted by telegraph, subject to w ritten confirm ation; they m ay not be subm itted 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. R esults of the last weekly offering o f T reasu ry bills (91-day bills to be issued O ctober 29, 1970, representing an additional am ount of bills dated Ju ly 30, 1970, m aturing Ja n u a ry 28, 1971; and 182-day bills dated O ctober 29, 1970, m aturin g A pril 29, 1971) are shown on the reverse side of this circular. A lfred H a yes, President. ( over) R E SU L T S O F LA ST W E E K L Y O F F E R IN G O F T R E A S U R Y B IL L S (T W O SE R IE S TO B E ISSU E D O C T O B E R 29, 1970) R a n g e of A ccep ted C om p etitiv e B ids 91-Day Treasury Bills Maturing January 28,1971 182-Day Treasury Bills Maturing April 29,1971 P r ic e A p p r o x . equ iv. annual ra te P r ic e A p p r o x . eq u iv. annual ra te ................................................. 98.539 5.780% 96.911 6.110% L o w .................................................... 98.516 5.871% 96.902 6.128% A v e r a g e ............................................. 98.526 5.831 % J 96.908 6.116% J H ig h 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 6.00 percent fo r the 91-day bills, and 6.40 percent fo r the 182-day bills. (7 percent of the am ount of 91-day bills bid fo r a t the low price was accepted.) (100 percent of the am ount of 182-day bills bid fo r at the low price w as accepted.) T o ta l T en d ers A p p lie d fo r a n d A ccepted (B y F e d e ra l R eserve D istricts) 91-Day Treasury Bills Maturing January 28,1971 B oston A c c e p te d A p p lie d f o r D is tr ic t ............................. ......... $ 29,240,000 182-Day Treasury Bills Maturing April 29,1971 $ 19,240,000 A p p lied f o r $ 18,280,000 A c c e p te d $ 7,450,000 ....................... ......... 1,892,285,000 1,200,945,000 2,184,820,000 1,224,325,000 P h ila d e lp h ia .................... ......... 46,025,000 31,025,000 13,645,000 9,075,000 Cleveland ......................... ......... 47,790,000 44,070,000 44,365,000 19,605,000 R ic h m o n d ......................... ......... 17,585,000 17,585,000 20,040,000 10,040,000 ......... 42,420,000 31,220,000 36,805,000 17,000,000 C h ic a g o ............................. ......... 223,395,000 200,745,000 238,945,000 36,120,000 St. L o u i s ........................... ......... 53,285,000 52,820,000 31,445,000 17,845,000 M inneapolis .................... ......... 34,635,000 23,625,000 24,230,000 4,630,000 K an sas C ity .................... ......... 30,400,000 29,400,000 23,190,000 17,090,000 D allas ............................... ......... 28,135,000 20,135,000 25,520,000 12,020,000 169,905,000 129,605,000 246,885,000 25,375,000 N ew Y o rk S an F rancisco ................ T o t a l ............... ......... $2,615,100,000 $1,800,415,000* a Includes $336,960,000 noncompetitive tenders accepted at the average price of 98.526. t> Includes $187,665,000 noncompetitive tenders accepted at the average price of 96.908. $2,908,170,000 $1,400,575,000b
@FedFRASER