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F E D E R A L R ESER VE B A N K OF N E W YOR K Fiscal Agent of the United States r Circular N o . 6 5 9 2~1 L August 19, 1970 J OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 273-Day Bills, Additional Amount, Series Dated May 31, 1970, Due May 31, 1971 (To Be Issued August 31, 1970) $1,200,000,000 of 365-Day Bills, Dated August 31, 1970, Due August 31, 1971 To A ll In corporated B anks and T rust Com panies, and Others Concerned, in the Second F ederal Reserve D is tr ic t: F o l l o w i n g is t h e t e x t o f a n o ti c e i s s u e d b y th e T r e a s u r y D e p a r t m e n t , r e l e a s e d a t 4 p .m . t o d a y : The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing August 31, 1970, in the amount of $1,701,192,000, as follows: 273-day bills (to maturity date) to be issued August 31, 1970, in the amount of $500,000,000, or thereabouts, rep resenting an additional amount of bills dated May 31, 1970, and to mature May 31, 1971, originally issued in the amount of $1,200,170,000, the additional and original bills to be freely interchangeable. 365-day bills, for $1,200,000,000, or thereabouts, to be dated August 31, 1970, and to mature August 31, 1971. The bills of both series 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. They will be issued in bearer form only, and in denominations of $10,000, $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 Day light Saving time, Tuesday, August 25, 1970. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $ 10,000, and 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. (Notwithstanding 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 Treasury bills.) It is urged that tenders be made on the printed forms and forwarded 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 permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 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, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those submitting competitive tenders will be advised of 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 each issue 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 competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 31, 1970, in cash or other immediately available funds or in a like face amount of Treasury bills maturing August 31, 1970. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury 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 Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether 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 amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the amount 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 Treasury 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 amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418 (current revision) and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. T his B ank will receive tenders for both series up to 1 :30 p.m., E a stern D aylight Saving time, Tuesday, A ugust 25, 1970, a t the Securities D epartm ent of its H ead Office and at its Buffalo Branch. T ender form s for the respective series are enclosed. Please use the ap propriate form s to subm it tenders and retu rn them in the enclosed envelope m arked “ T ender for T re a su ry Bills (M o n th ly ).” T enders may be subm itted by telegraph, subject to w ritten confirm ation; they may not be subm itted 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 a y es, President. N o................. TENDER FOR 365-DAY TREASURY BILLS Dated August 31, 1970 To F e d e r a l R eserv e B an k o f N ew Due August 31, 1971 Fiscal A gent of the U nited States. P u rsu a n t to the provisions of T reasu ry provisions of the public notice issued by the T reasu ry bills, the undersigned hereby offers and agrees to m ake paym ent therefor at your COMPETITIVE TENDER D ated at Y ork, 19. D epartm ent C ircular No. 418 (c u rre n t revision) and to the T reasu ry D epartm ent inviting tenders for the above described to purchase such T rea su ry bills in the am ount indicated below, B ank on or before the issue date a t the price indicated below : D o not fill in both C om petitive and N on com petitive tenders on one form $ ............................................................. (m a tu rity v alu e), or any lesser am ount th at m ay be aw arded. P r i c e : ...................................... p er 100. (P rice m ust be expressed w ith not m ore than three decim al places, fo r exam ple, 99.925) NONCOMPETITIVE TENDER $ ...............................................................(m atu rity 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 com petitive bids. Subject to allotm ent, please issue, deliver, and accept paym ent for the bills as indicated below : Pieces Denomination $ Maturity value □ 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 ( N o changes in delivery instructions w ill be accepted) Totals Payment will be made as follows: □ By check herewith □ By cash or check in im m ediately 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 (P a ym en t caim ot be m ade through T reasury T a x and L oan A ccou n t) T h e undersigned (if a bank or tru st com pany) hereby certifies th at the T rea su ry bills w hich you are hereby instructed to dispose of in the m anner indicated in item 3 above are ow ned solely by the undersigned. In sert th is ten d er in specia l en velope m arked “T ender fo r T reasu ry B ills (M o n th ly )” (N am e of subscriber—please print or type) (Address— please print or type) (Signature of subscriber or authorized signature) (T itle of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (N am e of customer) (N am e of customer) INSTRUCTIONS: 1. No tender for less than $10,000 will be considered, and each tender must be for an even multiple of $10,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banking institutions submitting 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 amount 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 “ ..................................................................................... , a 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 must be accompanied by payment of 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. All checks must be drawn to the order of the Federal Reserve Bank of New York; 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. N o ............. TENDER FOR 273-DAY TREASURY BILLS Additional Amount, Series Dated May 31, 1970, Due May 31, 1971 (To Be Issued August 31, 1970) To F e d e r a l R eserv e B an k o f N ew P u rs u a n t to the provisions of T re a su ry provisions of the public notice issued by th e T re a su ry bills, the undersigned hereby offers and agrees to m ake paym ent therefor a t y o u r COMPETITIVE TENDER D ated at Y ork, Fiscal A g en t of the U n ited States. 1 9 ... D epartm ent C ircular N o. 418 (c u rre n t revision) and to the T rea su ry D epartm ent inviting tenders for the above described to purchase such T rea su ry bills in the am ount indicated below, B ank on or before the issue date at the price indicated b elow : D o not fill in both C om petitive and N on com petitive tenders on one form $ .......................... .................................. (m a tu rity v alu e), or any lesser am ount th at m ay be aw arded. P r i c e : ...................................... p er 100. (P rice m ust be expressed w ith not m ore than three decim al places, fo r exam ple, 99.925) NONCOMPETITIVE TENDER $ .......................................................... (m atu rity v alue). (N o t to cxceed $200,000 fo r one bidder through all sources) A t the average price of accepted competitive bids. S ubject to allotm ent, please issue, deliver, and accept paym ent for the bills as indicated below : Pieces Denomination $ Maturity value 10,000 50,000 100,000 □ 1. Deliver over the counter to the undersigned O 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 (N o changes in d elivery instructions w ill be accepted) Totals Payment will be made as follows: D By check herewith □ By cash or check in im m ediately 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 (P a ym en t cannot be made through T reasury T a x and Loan A ccou nt) T he undersigned (if a bank or tru st com pany) hereby certifies that the T reasu ry bills which you are hereby instructed to dispose of in the m anner indicated in item 3 above are owned solely by the undersigned. In sert this tender in sp ecia l envelope m arked “T ender fo r Treasury B ills (M o n th ly )” (N am e of subscriber— please print or type) (Address—please print or type) (Signature of subscriber or authorized signature) (T itle of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (N am e of customer) (N am e of customer) INSTRUCTIONS: 1. No tender for less than $10,000 will be considered, and each tender must be for an even multiple of $10,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banking institutions submitting 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 amount 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 “...................................................................................... a 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 must be accompanied by payment of 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. All checks must be drawn to the order of the Federal Reserve Bank of New York; 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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