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F E D E R A L R E S E R V E BA N K O F NEW YO RK Fiscal A gent of the U nited States 6 5 M ay 20, [ C ircular No. 19704 6 J"I OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 272-Day Rills, Additional Amount, Series Dated Feb. 28,1970, Due Feb. 28,1971 (To Be Issued June 1, 1970) $1,200,000,000 of 365-Day Bills, Dated May 31, 1970, Due May 31, 1971 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 T reasury D epartm ent, released a t 4 p.m. to d a y : The T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $1,700,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing May 31, 1970, in the am ount of $1,500,544,000, as follows: 272-day bills (to m aturity date) to be issued June 1, 1970, in the am ount of $500,000,000, or thereabouts, rep resenting an additional am ount of bills dated Febru ary 28, 1970, and to m ature February 28, 1971, originally issued in the am ount of $1,200,147,000, the additional and original bills to be freely interchangeable. 365-day bills, for $1,200,000,000, or thereabouts, to be dated May 31, 1970, and to m ature May 31, 1971. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at m aturity their face am ount will be payable w ithout interest. They will be issued in bearer form only, and in denominations of $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D ay light Saving time, Tuesday, May 26, 1970. Tenders will not not be received at the T reasury D epartm ent, W ashington. Each tender m ust be for an even multiple of $10,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. (N otw ithstanding the fact th at 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 T reasury bills.) It is urged that tenders be made on the 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 nam es of the customers are set forth in such tenders. O thers than banking institutions will not be perm itted to submit tenders except for their own account. T enders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. Im mediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting competitive tenders will be advised of the acceptance or rejection thereof. The Secretary of the T reasury 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 w ithout 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. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed at the Federal Reserve Bank on June 1, 1970, in cash or other immediately available funds or in a like face am ount of T reasury bills m aturing May 31, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. The income derived from T reasury bills, w hether 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 of T reasury bills does not have any special trea t ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exempt from all taxa tion now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount at which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the am ount 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. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of 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, May 26, 1970, at the Securities Departm ent 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 (M onthly).” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Paym ent for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlem ent must be made in cash or other immediately available funds or in maturing Treasury bills. A lfred H ayes, President. 1X0 ...................... TENDER FOR 272-DAY TREASURY BILLS Additional Amount, Series Dated February 28, 1970, Due February 28, 1971 (To Be Issued June 1, 1970) To F e d e r a l R eserve B a n k o f N ew Y ork , Dated at Fiscal Agent of the United States. 1 9 ... Pursuant to the provisions of Treasury Departm ent 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 : C O M PETITIV E TEN D ER Do not fill in both Competitive and Noncompetitive tenders on one form $ .......................................................... (m aturity value), or any lesser amount that may be awarded. P r i c e : .....................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) N O N CO M PETITIV E TEN D ER $ ............................................................ (m aturity value). (N ot to cxceed $200,000 for one bidder through all sources) A t 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 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 will 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. Insert this tender in special envelope m arked “Tender for Treasury Bills (M on th ly)” (N am e of subscriber— please p rin t or type) (A ddress— please p rin t o r type) (S ig n atu re of subscriber o r authorized sig n atu re) (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 custom er) IN S T R U C T IO N S : 1. No tender for less than $10,000 will be considered, and each tender m ust be for an even multiple of $10,000 (m aturity value). 2. O thers than banking institutions will not be perm itted to submit tenders except for their own account. Banking institutions subm itting 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 am ount bid for his account, and method of payment. Form s 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. T enders will be received w ithout deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. All checks m ust be draw n 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 T reasury, is material, the tender may be disregarded. o................. TENDER FOR 365-DAY TREASURY BILLS Dated May 31, 1970 To F ed eral R eserv e B ank o f N ew Due May 31, 1971 Y ork, 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: C O M PETITIV E TEND ER Do not fill in both Competitive and Noncompetitive tenders on one form $ .......................................................... (m aturity value), or any lesser amount that may be awarded. P r i c e : .....................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) NON CO M PETITIVE TEND ER $ ............................................................ (m aturity value). (N ot to cxceed $200,000 for one bidder through all sources) A t 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 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 will be accepted) Totals Payment will be made as follows: □ By check herewith C By cash or check in immediately D 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. Insert this tender in special envelope m arked “T ender for Treasury Bills (M on thly)” (N am e of subscriber—please print or type) (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 customer) (N am e of customer) IN S T R U C T IO N S : 1. No tender for less than $10,000 will be considered, and each tender must be for an even multiple of $10,000 (m aturity value). 2. O thers than banking institutions will not be perm itted to submit tenders except for their own account. Banking institutions subm itting 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 am ount bid for his account, and method of payment. Form s 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. T enders will be received w ithout deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or tru st company. All checks m ust be drawn to the order of 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 of the Secretary of the Treasury, is material, the tender may be disregarded.
@FedFRASER