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FED ER A L R ESER VE BANK O F NEW YORK F s a Agent o t e United S a e icl f h tts [ Circular No. 8 0 5 2 ~ ] February 14, 1977 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,600,000,000 of 91-Day Bills, Additional Amount, Series Dated November 26,1976, Due May 26,1977 (To Be Issued February 24, 1977) $3,600,000,000 of 182-Day Bills, Dated February 24,1977, Due August 25,1977 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 Treasury Department, released February 11: The Department of the Treasury, by this public notice, invites such tenders. Others will not be permitted to submit tenders except tenders for two series of Treasury bills to the aggregate amount of for their own account. Tenders will be received without deposit $6,200 million, or thereabouts, to be issued February 24, 1977, as from incorporated banks and trust companies and from responsible follows: and recognized dealers in investment securities. Tenders from others 91-day bills (to maturity date) in the amount of must be accompanied by payment of 2 percent of the face amount of $2,600 million, or thereabouts, representing an additional bills applied for, unless the tenders are accompanied by an express amount of bills dated November 26, 1976, and to mature guaranty of payment by an incorporated bank or trust company. Public announcement will be made by the Department of the May 26, 1977 (CUSIP No. 912793 G42), originally issued in the amount of $3,601 million, the additional and Treasury of the amount and price range of accepted bids. Those submitting competitive tenders will be advised of the acceptance or original bills to be freely interchangeable. Secretary Treasury expressly 182-day bills, for $3,600 million, or thereabouts, to be dated rejection thereof. The reject any of the tenders, in whole orreserves the or or in part, February 24, 1977, and to mature August 25, 1977 and right to acceptany such respect all be final. Subject to these his action in shall (CUSIP No. 912793 ]72). reservations, noncompetitive tenders for each issue for $500,000 or without stated price one bidder will be accepted in The bills will be issued for cash and in exchange for Treasury less at the average price from any decimals) of accepted competi (in three bills maturing February 24, 1977, outstanding in the amount of full bids for the respective issues. Settlement for accepted tenders $6,204 million, of which Government accounts and Federal Reserve tive ade Banks, for themselves and as agents of foreign and international in accordance with the bids must be m or completed at the Federal or Branch or at the monetary authorities, presently hold $2,762 million. These accounts Debt on Reserve Bank 1977, in cash or other Bureau of the Public 24, immediately available may exchange bills they hold for the bills now being offered at the funds or Februaryface amount of Treasury bills maturing February in a like average prices of accepted tenders. 24, 1977. Cash and exchange tenders will receive equal treatment. The bills will be issued on a discount basis under competitive Cash adjustments will be made for differences between the par and noncompetitive bidding, and at maturity their face amount will value of maturing bills accepted in exchange and the issue price of be payable without interest. They will be issued in bearer form in the new bills. denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and Under Sections 454(b) and 1221(5) of the Internal Revenue $1,000,000 (maturity value), and in book-entry form to designated Code of 1954, the amount of discount at which bills issued here bidders. under are sold is considered to accrue when the bills are sold, Tenders will be received at Federal Reserve Banks and Branches redeemed or otherwise disposed of, and the bills are excluded from and, from individuals, at the Bureau of the Public Debt, Washing consideration as capital assets. Accordingly, the owner of bills ton, D.C. 20226, up to 1 :30 p.m Eastern Standard time, Friday, (other than life insurance companies) issued hereunder must in ., February 18, 1977. Each tender must be for a minimum of $10,000. clude in his Federal income tax return, as ordinary gain or loss, the Tenders over $10,000 must be in multiples of $5,000. In the case of difference between the price paid for the bills, whether on original competitive tenders the price offered must be expressed on the basis issue or on subsequent purchase, and the amount actually received of 100, with not more than three decimals, e.g., 99.925. Fractions either upon sale or redemption at maturity during the taxable year for which the return is m ade. may not be used. Banking institutions and dealers which make primary markets Department of the Treasury Circular No. 418 (current revision) in Government securities and report daily to the Federal Reserve and this notice prescribe the terms of the Treasury bills and govern Bank of New York their positions with respect to Government the conditions of their issue. Copies of the circular may be obtained securities and borrowings thereon may submit tenders for account from any Federal Reserve Bank or Branch, or from the Bureau of of customers provided the names of the customers are set forth in the Public Debt. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Friday, February 18 , 1977 , at the Securities Department 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 enveloped marked “Tender for Treasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written con firmation; no tenders may be submitted by telephone. Payment for 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. The results of bidding for the previous offering of Treasury bills, to be issued February 17, 1977, will be announced after release by the Treasury Department. P aul A. V olcker , President. Closing date for receipt of tenders is F rid a y , F e b ru a ry 1 8 .
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