View original document

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

FEDERAL RESERVE BANK
OF N EW YORK
Fiscal A gent of the U nited S tates
r Circular N o. 6 4 8 8 1
L February 17, 1970 J

OFFERING OF TWO SERIES OF TREASURY BILLS
$500,000,000 of 273-Day Bills, Additional Amount, Series Dated Nov. 30, 1969, Due Nov. 30, 1970
(To Be Issued March 2, 1970)
$1,200,000,000 of 365-Day Bills, Dated February 28, 1970, Due February 28, 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 Treasury Department, released at 4 p.m. today:
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 February 28, 1970, in the am ount of
$1,500,540,000, as follows:
273-day bills (to m aturity date) to be issued M arch 2,
1970, in the am ount of $500,000,000, or thereabouts,
representing an additional am ount of bills dated No­
vember 30, 1969, and to m ature November 30, 1970,
originally issued in the am ount of $1,001,199,000, the
additional and original bills to be freely interchangeable.
365-day bills, for $1,200,000,000, or thereabouts, to be
dated February 28, 1970, and to m ature February 28,
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. T hey will be issued in bearer form only, and
in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (m aturity value).
T enders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., E astern
Standard time, Tuesday, F ebruary 24, 1970. Tenders will not
be received at the T reasury D epartm ent, W ashington. Each
tender m ust be for an even multiple of $1,000, and in the case
of competitive tenders the price offered m ust be expressed
on the basis of 100, w ith not more than three decimals, e.g.,
99.925. Fractions may not be used. (N otw ithstanding the fact
that 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.) I t is urged
th at tenders be made on the printed form s and forwarded in
the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Banking institutions generally may subm it tenders for
account of customers, provided the nam es of the custom ers 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.

Immediately 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. O nly 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
March 2, 1970, in cash or other immediately available funds or
in a like face am ount of T reasury bills m aturing February 28,
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 tax a­
tion now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United
States, or by any local taxing authority. For purposes of
taxation the am ount of discount a t which T reasury bills are
originally sold by the United 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,
w hether 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 Standard time, Tuesday, February 24,
1970, 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 envelope marked
“Tender for Special Treasury Bills.” 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

a y es,

President.

No...............
TENDER FOR 365-DAY TREASURY BILLS
Dated February 28, 1970

To

Due February 28, 1971

YofeK,
Fiscal Agent of the United States.

F

ederal

R

eserve

B

ank

of

N

ew

Dated at
19...

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 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 ric e : .....................................per 100.
(Pricc must be expressed with not more than three
decimal places, for example, 99.925)

NONCOMPETITIVE TENDER

$ .......................................................... (m aturity value).
(Not to exceed $200,000 fo r one bidder through all sources)

At 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

□

1,000
□
□

5,000
10,000

□

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:

500,000
1,000,000

(No changcs 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.
(Name of subscriber—please print or type)

Insert this tender
in special envelope
marked “Tender for
Treasury Bills (M onthly)’

(Address—please print or type)
(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 $1,000 will be considered, and each tender must be for an even multiple of $1,000
(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. Forms 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 “ ................................................................................................. copartnership, by
........................................................................................................., a member of the firm.”
4. Tenders will be received without deposit from incorporated banks and trust companies and from respon­
sible and recognized dealers in investment securities. Tenders from others m ust be accompanied by paym ent of
2 percent of the face amount of Treasury bills applied for. unless the tenders are accompanied bv an express guaranty
of payment by an incorporated bank or trust company. All checks must be drawn to the order o*f the Federal Reserve
Bank of New York; checks endorsed to this Bank will not be accepted.
re se rv e
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.



No.
TENDER FOR 273-DAY TREASURY BILLS
Additional Amount, Series Dated November 30, 1969, Due November 30, 1970
(To Be Issued March 2, 1970)
To

F

e d e r a l R e s e r v e B a n k o f N e w YofeK,
Fiscal Agent of the United States.

Dated a t .........................................

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:

COMPETITIVE TENDER

Do not Ull 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 ivith not more than three
decimal places, for example, 99.925)

NONCOMPETITIVE TENDER

$ .......................................................... (m aturity value).
(N ot to exceed $200,000 fo r one bidder through all sources)

At 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

1,000

□
□
□

5,000
10,000

□

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)
S. Special instructions:

500,000
1,000,000

(No changes in delivery instructions
zvill 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.
(Name of subscriber—please print or type)

Insert this tender
in special envelope
marked “Tender for
Treasury Bills (M onthly)’

(Address—please print or type)
(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 $1,000 will be considered, and each tender m ust be for an even multiple of $1,000
(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 trust company. All checks must 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.




Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102