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FEDERAL RESERVE BANK OF N EW YORK F iscal A gent of the U nited S tates r Circular No. 6 4 9 1 '! 1» February 18, 1970 J Offering of $1,750,000,000 of 50-Day Tax Anticipation Treasury Bills, Additional Amount Dated October 14, 1969, Due April 22, 1970, To Be Issued March 3, 1970 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 today by the Treasury Department: The T reasury Departm ent, by this public notice, invites tenders for $1,750,000,000, or thereabouts, of 50-day T reasury bills (to m aturity date), to be issued M arch 3, 1970, on a dis count basis under competitive and noncompetitive bidding as hereinafter provided. These bills will represent an additional am ount of bills dated O ctober 14, 1969, to m ature April 22, 1970, originally issued in the am ount of $2,006,704,000 (an additional $1,007,472,000 was issued November 26, 1969). The additional and original bills will be freely interchangeable. They will be accepted at face value in paym ent of income taxes due on April 15, 1970, and to the extent they are not presented for this purpose the face am ount of these bills will be payable w ithout interest at maturity. Taxpayers desiring to apply these bills in paym ent of April 15, 1970 income taxes may submit the bills to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the U nited States, W ashington, not more than fifteen days before that date. In the case of bills sub mitted in paym ent of income taxes of a corporation they shall be accompanied by a duly completed Form 503 and the office receiving these items will effect the deposit on April 15, 1970. In the case of bills subm itted in paym ent of income taxes of all other taxpayers, the office receiving the bills will issue receipts therefor, the original of which the taxpayer shall sub m it on or before April 15, 1970, to the D istrict D irector of In ternal Revenue for the D istrict in which such taxes are payable. The bills will be issued in bearer form only, and in denomina tions of $1,000, $5,000, $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 Stand ard time, W ednesday, February 25, 1970. T enders 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, 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 forms 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. 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. Tenders 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 bidders are required to agree not to purchase or to sell, or to make any agreem ents w ith respect to the purchase or sale or other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Wednesday, February 25, 1970. 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. 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. Sub ject 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 decimals) of accepted com petitive bids. Paym ent of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on March 3, 1970, provided, however, any qualified depositary will be permitted to make paym ent by credit in its T reasury Tax and Loan Account for T reasury bills allotted to it for itself and its cus tomers up to any am ount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. The income derived from T reasury bills, whether 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 United 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. Under 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 up to 1 :30 p.m., Eastern Standard time, Wednesday, February 25, 1970, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in the enclosed blue envelope marked “ Tender for Tax Anticipation Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds on March 3, 1970, except that any qualified depositary may make payment by credit in its Treasury Tax and Loan Account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits. A lfred H ayes, President. ( over) Advice of Deposit in Treasury Tax and Loan Account To F ederal R eserve B ank of N ew Y ork , Fiscal Agent of the United States W e will deposit on M arch 3, 1970 to your credit in the T reasury T ax and Loan Account on our books, to be held subject to withdrawal on demand, an amount equal to the purchase price of the bills allotted to us on our tender for 50-day tax antici pation Treasury bills, dated October 14, 1969, due April 22, 1970, to be issued M arch 3, 1970. (Name of Depositary) By............................ ; Address (Authorized signature(i) required) (City and State) T IMPORTANT— Please make certain that all requested data is supplied on this form, including the number and denomination of pieces desired and the delivery and payment instructions. TENDER FOR 50-DAY TAX ANTICIPATION TREASURY BILLS ADD ITIONAL AMOUNT Dated October 14, 1969, Due April 22, 1970, To Be Issued March 3, 1970 To F ederal R eserve B ank of N ew Y ork , Dated at Fiscal Agent of the United States. 19. Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions 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 : CO 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 TEND ER $ .......................................................... (m aturity value). (N ot to exceed $200,000 for one bidder through all sources) at the average price of accepted competitive bids. W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Wednesday, February 25, 1970. 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. Hold as collateral for Treas ury Tax and Loan Account* 5. Special instructions: 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 credit in Treasury Tax and Loan Account. (Please complete Advice of Deposit below.) 500,000 1,000,000 (N o changes in delivery instructions will be accepted) Totals * T he undersigned certifies that the allotted bills will be owned solely by the undersigned. (Name of subscriber—please print or type) Insert this tender in special envelope m arked “Tender for Tax A nticipation Treasury Bills” (Address—please print or type) (Signature of subscriber or authorized signature) (Title of authorized signer) (Banks subm itting tenders for customer account m ust indicate name on line below, or attach a list) (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. Banks subm itting tenders for customer account may consolidate competitive tenders at the same price and may consolidate non competitive 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 on 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. Tenders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. Tenders 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 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.
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