View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FED ER A L RESER VE BANK O F NEW YORK
Fiscal Agent of the United States

r Circular No. 7331n
I
January 31, 1974 J

Offering of $1,800,000,000 of 364-Day Treasury Bills
Dated February 12, 1974

Due February 11, 1975

To A ll Incorporated Banks and Trust Companies, and O thers
Concerned, in the Second Federal R eserve D istrict:

F ollow in g is the text o f a notice issued today by the Treasury D epartm ent:
The Treasury Department, by this public notice, invites tenders
for $1,800,000,000, or thereabouts, of 364-day Treasury bills for
cash and in exchange for Treasury bills maturing February 12,
1974, in the amount o f $1,801,085,000. The bills of this series will
be dated February 12, 1974, and will mature February 11, 1975
(C U S I P N O . 912793 V G 8 ).
The bills 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. T h ey 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 the closing hour, one-thirty p.m., Eastern Daylight
Saving time, W ednesday, February 6, 1974. Tenders will not be
received at the Treasury Department, W ashington. Each tender
must be for a minimum o f $10,000. Tenders over $10,000 must be
in multiples o f $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 the printed form s and forw arded 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 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 invest­
ment securities. Tenders from others must be accompanied by
payment o f 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, follow ing which public
announcement will be made by the Treasury Department o f the

amount and price range of accepted bids. O nly those submitting
competitive tenders will be advised o f the acceptance or rejection
thereof. The Secretary o f 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, noncompetitive tenders 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) o f accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must
be made or completed at the Federal Reserve Bank on February
12, 1974, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing February 12, 1974; p ro ­
vided, how ever, that settlem ent fo r tenders submitted to the Federal
R eserve Banks of N eiv Y ork , Chicago, and Philadelphia, and to
the Federal R eserve Bank Branches in Buffalo and D etroit, must
be com pleted at those Banks and Branches on February 13, 1974,
and must include one day’s accrued interest if settlem ent is made
with other than Treasury bills maturing F ebruary 12, 1974. Cash
and exchange tenders will receive equal treatment. Cash adjust­
ments will be made for differences between the par value o f matur­
ing bills accepted in exchange and the issue price of the new bills.
Under Sections 4 5 4 (b ) and 1221(5) of the Internal Revenue
Code of 1954, the amount of discount at which bills issued here­
under are sold is considered to accrue when the bills are sold, re­
deemed or otherwise disposed of, and the bills are excluded from
consideration as capital assets. A ccordin gly, the ow ner of Treasury
bills (other than life insurance com panies) issued hereunder must
include in his income tax return, as ordinary gain or loss, the dif­
ference 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 N o. 418 (current revision) and
this notice prescribe the terms o f 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 Bank will receive tenders up to 1 :30 p.m. Eastern Daylight Saving time, W edn esday, February 6, 1974,
at the Securities Department o f its H ead Office and at its Buffalo Branch. Please use the form on the reverse side of
this notice to submit a tender and return it in the enclosed envelope marked “ T ender fo r T reasu ry B ills.” T enders not
requiring a deposit may be submitted by telegraph, subject to written confirm ation; no tenders may be submitted bv
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.

(

over

)

No.
TENDER FOR 364-DAY TREASURY BILLS
Dated February 12, 1974

Due February 11, 1975

To F e d e r a l R e s e r v e B a n k o f N ew Y o r k ,

Dated at

Fiscal A gen t o f the U nited States.
Pursuant to the provisions o f T reasury
provisions o f the public notice issued by the
Treasury bills, the undersigned hereby offers
and agrees to make payment therefor at you r

Departm ent Circular N o. 418 (current revision ) and to the
Treasury Department inviting tenders for the above described
to purchase such T reasury bills in the amount indicated below,
Bank on or before the issue date at the price indicated b elow :

D o not fill in both Com petitive and
N oncom petitive tenders on one form

C O M P E T IT IV E TEN D ER

$ .............................................................. (m aturity v a lu e ),
or any lesser amount that may be awarded.
P r i c e : ....................................... per 100.
(P rice must be expressed with not m ore than three
decimal places, fo r exam ple, 99.925)

N O N C O M P E T ITIV E TEND ER

$ .................................................................(m aturity v a lu e).
( N o t to exceed $200,000 fo r 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 b elow :
Pieces

Denomination
$

Maturity value

10,000

□

15,000

□
□

50,000

□

100,000

□

1. Deliver over the counter to the
undersigned
2. Ship to the undersigned
3. Hold in safekeeping (for ac­
count of member bank only)
4. Allotment transfer (see list
attached)
5. Special instructions:

Payment will be made as follows:
□

By charge to our reserve account

□

By cash or check in immediately
available funds on delivery

500,000
1,000,000

(No changes in delivery instructions
will be accepted)

Totals

(Payment cannot be made through
Treasury Tax and Loan Account)

T he undersigned (m em ber bank) hereby certifies that the Treasury bills which you are hereby instructed
to dispose of in the manner indicated in item 3 above are ow ned solely by the undersigned.
(Name of subscriber—please print or type)

Insert this tender
in special envelope
m arked

“ Tender

fo r Treasury B ills ”

(Address— please print or type)
(Tel. No.)

(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)

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 $5,000
(maturity value).
2. O th ers than banking institutions will not be perm itted to subm it tenders excep t for their ow n account.
B anking institutions subm itting tenders for cu stom er accou n t m ay con solidate com petitive tenders at the same price
and m ay con solid a te n on com petitive tenders, p rovided a list is attached sh ow in g the nam e o f each bidder, the am ount
bid for his accou nt, and m ethod o f paym ent. F orm s fo r this pu rpose will be furnished upon request.
3. If the person m aking the tender is a corp ora tion , the tender should be signed b y an officer o f the corp oration
authorized to make the tender, and the sign ing o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a
r e p r e s e n ta tio n by him that he has been so authorized. If the tender is m ade by a partnership, it should be signed by a
m em ber o f the firm, w h o should sign in the fo rm “ ...................................................................................................... a copartnership, by
............................................................................................................. a member of the firm.”
4. T e n d ers w ill be received w ith ou t deposit from in corp ora ted banks and trust com pan ies and from re sp o n ­
sible and re co g n iz e d dealers in in vestm ent securities. T en d ers from oth ers m ust be a ccom p a n ied b y paym ent o f
2 percen t o f the face am ou nt o f T reasu ry bills applied for, unless the tenders are a ccom p a n ied b y an express gu a ra n ty,
o f paym ent b y an in corp ora ted bank or trust com p a n y . A ll ch ecks m ust be draw n to the ord er o f the Federal R eserve
B a n k "o f N e w Y o r k ; ch ecks en d orsed to this Bank w ill not be accep ted.
5. I f the language o f this tender is ch a n ged in any respect, w hich, in the opin ion o f the S ecreta ry o f the
T reasu ry, is m aterial, the tender m ay be disregarded.