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FE D E R A L R E SER VE B A N K O F N E W YO R K F isc a l A gent of the U nited S tates r Circular No. 6 6 1 1 ' 1 L October 2, 1970 -I OFFERING OF TWO SERIES OF TREASURY BILLS $1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated July 16, 1970, Due January 14, 1971 (To Be Issued October 15, 1970) $1,400,000,000 of 182-Day Bills, Dated October 15, 1970, Due April 15, 1971 T o A ll Incorporated B anks and T ru st Com panies, and O thers Concerned, in the Second Federal R eserve D istric t: Follow ing is the te x t o f a notice issued by th e T re a su ry D epartm ent, released a t 4 p.m. to d a y : The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $3,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing October 15, 1970, in the amount of $3,104,180,000, as follows: 91-day bills (to maturity date) to be issued October 15, 1970, in the amount of $1,800,000,000, or thereabouts, representing an additional amount of bills dated July 16, 1970, and to mature January 14, 1971, originally issued in the amount of $1,304,530,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,400,000,000, or thereabouts, to be dated October 15, 1970, and to mature April 15, 1971 (CUSIP No. 912793 KD7). 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, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to closing hour, one-thirty p.m., Eastern Daylight Saving time, Friday, October 9, 1970. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in mul tiples of $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 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 per mitted 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 invest ment 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 competi tive 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 October 15, 1970, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing October 15, 1970. Cash and exchange tenders will re ceive equal treatment. Cash adjustments will be made for differ ences between the par value of maturing bills accepted in exchange and the issue price of the new bills. 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 considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from considera tion as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the difference 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 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 ob tained from any Federal Reserve Bank or Branch. T h is B ank will receive ten d ers fo r both series up to 1 :30 p.m., E astern D aylight Saving time, Friday, October 9, 1970, a t the Securities D epartm ent of its H ead Office and at its Buffalo B ranch. T en d er form s fo r the respective series are enclosed. Please use the appropriate form s to subm it tenders and re tu rn them in the enclosed envelope m arked “T en d er fo r T re a su ry Bills (W e e k ly ).” T en d ers m a y b e subm itted by telegraph, subject to w ritten confirm ation; they m ay not be subm itted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treas ury T a x and Loan Account. Settlem ent m ust be made in cash or other immediately available fu n d s or in maturing Treasury bills. T h e bidding fo r the previous offering o f T re a su ry bills, to be issued O ctober 8, 1970, will take place on M onday, O ctober 5 ; the results of th at bidding will be announced a fte r release by the T re a su ry D epartm ent. A lfred H a y es, President. Closing date for receipt o f tenders is F riday , October 9.