The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FED E R A L RESER VE BANK O F NEW YORK Fiscal Agent of the United States f"Circular No. 7 3 8 1 ~1 I April 25, 1974 J Offering of $1,800,000,000 of 364-Day Treasury Bills Dated May 7, 1974 Due May 6, 1975 T o A ll In corporated Banks and T rust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice issued today by the Treasury Department: The Treasury Department, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 364-day Treasury bills to be dated M ay 7, 1974, and to mature M ay 6, 1975 (C U S I P N o. 912793 V K 9 ). The bills will be issued for cash and in exchange for Treasury bills maturing M ay 7, 1974, outstanding in the amount of $1,800,435,000, o f which Government accounts and Federal Reserve Banks, fo r themselves and as agent of foreign and international monetary authorities, presently hold $1,094,750,000. These accounts may exchange bills they hold for the bills now being offered at the average price o f accepted tenders. The bills w ill 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 $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Thursday, M ay 2, 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 w ill be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account o f customers, provided the names o f 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 o f 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 o f accepted bids. O nly those submitting competitive tenders w ill be advised o f 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 $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 M ay 7, 1974, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing M ay 7, 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 o f the new bills. Under Sections 4 5 4 (b ) and 1221(5) of the Internal Revenue Code of 1954, the amount o f 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 ccordingly, the owner o f 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 o f their issue. Copies o f the circular may be ob tained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Thursday, May 2, 1974, at the Securities Department o f its Head 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 “ Tender for Treasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may 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. ( over) No. TENDER FOR 364-DAY TREASURY BILLS Dated May 7, 1974 To F ederal R eserve Bank of N ew Due May 6, 1975 Dated at Y ork, Fiscal Agent of the United States. 19... Pursuant to the provisions of Treasury provisions of the public notice issued by the Treasury bills, the undersigned hereby offers and agrees to make payment therefor at your Department Circular No. 418 (current revision) and to the Treasury Department inviting tenders for the above described to purchase such Treasury 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 $ .......................................................... (maturity value), 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 TENDER $ .................................................................(maturity value). (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 below : Pieces Denomination $ M aturity value 10,000 15,000 □ □ □ 50,000 □ 100,000 □ 1. D eliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r ac count o f member bank on ly) 4. Allotm ent transfer (see list attached) Paym ent w ill be made as fo llo w s : □ B y charge to our reserve account □ B y cash or check in immediately available funds on delivery 5. Special instructions: 500,000 1,000,000 (No changes in delivery instructions will be accepted) Totals (Payment cannot be made through Treasury Tax and Loan Account) The undersigned (member bank) 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 “T ender (Address—please print or type) (Tel. No.) (Signature of subscriber or authorized signature) for Treasury Bills” (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. N o tender for less than $10,000 w ill be considered, and each tender must be for an even multiple o f $5,000 (m aturity va lu e). 2. O th ers than b ankin g institutions w ill n ot be perm itted to subm it tenders excep t for their ow n accou nt. B a n k in g institutions su b m ittin g tenders for cu stom er a ccou n t m ay con solid a te com p etitive tenders at the same price and m ay con so lid a te n on com p etitive tenders, p rovid ed a list is attached sh ow in g the nam e o f each bidder, the am ount bid fo r his accou n t, and m eth od o f paym ent. F o rm s fo r this pu rpose w ill be furnished upon request. 3. I f the person m a k in g the tender is a corp ora tion , the ten der should be sign ed b y an officer o f the corp ora tion au th orized to m ake the tender, and the sign in g o f the tender b y an officer of the corp ora tion w ill be con stru ed as a represen tation b y him that he has been so authorized. If the ten der is m ade b y a partnership, it should be signed b y a m em b er o f the firm , w h o should sign in the fo rm “ .................................................................................................... . a copartn ersh ip, b y ...................................................................................................................... a m em b er o f the firm .” 4. T e n d e rs w ill be received w ith ou t dep osit fro m in corp ora ted banks and trust com panies and fr o m ' 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 u st 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 rea su ry bills applied for, unless the tenders are a ccom p a n ied b y an express guaranty o f pa ym en t 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 Bank o f N e w Y o r k ; ch eck s en d orsed to this B ank 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 a y be disregarded.
@FedFRASER