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F E D ER A L R ES ER V E BANK O F NEW YO R K Fiscal Agent of the United States rCircular No. 6 616~ I u October 9, 1970 J Offering of $2,500,000,000 of 244-Day Tax Anticipation Treasury Bills D a te d O cto b er 21, 1970, D u e Ju n e 22,1971 T o A ll In c o r p o ra te d B a n k s a n d T ru st C o m p a n ie s , a n d O th e rs C o n c e rn e d , in th e S e c o n d F e d e ra l R e se r v e D istr ic t: Following is the text of a notice issued yesterday by the Treasury Department: The Treasury D epartm ent, by this public notice, invites tenders for $2,500,000,000, or thereabouts, of 244-day Treasury bills, to be issued on a discount basis under com petitive and non competitive bidding as hereinafter provided. The bills of this series will be dated O ctober 21, 1970, and will m ature June 22, 1971 (C U SIP No. 912793 M D 5). They will be accepted at face value in paym ent of income taxes due on June 15, 1971, 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 m aturity. Tax payers desiring to apply these bills in paym ent of June 15, 1971 incom e taxes m ay subm it the bills to a F ederal Reserve Bank or Branch or to the Office of the T reasurer of the U nited States, W ashington, not more than fifteen days before th at date. In the case of bills subm itted in paym ent of income taxes of a corpora tion they shall be accom panied by a duly com pleted Form 503 and the office receiving these items will effect the deposit on June 15, 1971. 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 w hich the taxpayer shall subm it on or before June 15, 1971, to the D istrict D irector of Internal Revenue for the D istrict in w hich such taxes are payable. The bills 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 (m aturity value). T enders will be received a t F ederal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving time, T hursday, O ctober 15, 1970. Tenders will not be received at the Treasury D epartm ent, W ashington. E ach tender m ust be for a minimum of $10,000. Tenders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive 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 m ay not be used. It is urged that tenders be m ade on the printed forms and fo r w arded in the special envelopes w hich will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it 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 subm it tenders except for m eir own account. 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 accom panied by paym ent of 2 percent of the face am ount of Treasury bills applied for, unless th e tenders are accom panied by an ex press guaranty of paym ent by an incorporated bank or trust company. All bidders are required to agree n o t to purchase or to sell, or to m ake 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., E astern D aylight Saving time, Thursday, O ctober 15, 1970. Im m ediately after the closing hour, tenders will be opened a t the F ederal Reserve Banks and Branches, following which public announcem ent will be m ade by the Treasury 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 Treasury expressly re serves 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, noncom petitive tenders for $400,000 or less w ithout stated price from any one b idder will be accepted in full at the average price (in three decim als) of accepted com petitive bids. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted at the Federal Reserve Bank in cash or other im m ediately available funds on O ctober 21, 1970. Any qualified depositary will be perm itted to make settlem ent by credit in its Treasury Tax and Loan Account for Treasury bills allotted to it for itself and its customers. U nder Sections 4 5 4 (b ) and 1221(5) of the Internal Revenue Code of 1954, th e am ount of discount at w hich bills issued here under are sold is considered to accrue w hen the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the ow ner of T reas ury bills (other than life insurance com panies) issued hereunder must include in his income tax return, as ordinary gain or loss, the difference betw een the price paid for the bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for w hich the return is made. Treasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any F ederal Reserve Bank or Branch. T his B ank w ill receive ten d ers u p to 1:30 p.m ., E a ste rn D ay lig h t Saving tim e, T hursday, O cto b er 15, 1970 a t th e Securities D e p a rtm e n t o f its H e a d Office an d a t its Buffalo B ranch. Please use th e form on th e reverse side of this’ circu lar to su b m it a te n d e r, a n d re tu rn it in th e enclosed envelope m ark ed “T e n d er for T ax A nticipation T reasu ry B ills/’ T en d ers m ay b e su b m itte d b y teleg rap h , subject to w ritte n confirm ation; th ey m ay n o t b e sub m itted b y telep h o n e. S ettlem en t for a c c e p ted ten d ers m u st b e m ad e in cash or o th e r im m ediately available funds on O cto b er 21, 1970, excep t th a t any qualified d ep o sitary m ay m ake settlem en t by c red it in its T rea su iy T ax an d L oan A ccount for T re a su ry bills allo tte d to it fo r itself an d its custom ers. A lfre d H ay es ,President. ( over) A dvice of D ep o sit in T reasu ry T ax an d L o an A ccount To o r N e w Y ork F iscal A gent of the U n ited States F e d er a l R eser ve B a n k W e w ill d ep o sit on O cto b er 21, 1970 to y o u r c re d it in the T reasury Tax an d L oan A ccount on our books, to b e held su b ject to w ith d ra w a l on dem an d , an am o u n t e q u a l to th e purchase price of th e bills allo tted to us on our te n d e r for 244day tax anticip atio n T reasury bills, d a te d O cto b er 21, 1970, due Ju n e 22, 1971. (Name ofDepositary) By ...................... Address (Authorized signature(s) required) (City and State) IM P O R T A N T — P lease m ake c e rta in th a t all re q u e ste d d a ta is su p p lie d on this form , in clu d in g th e n u m b e r a n d d e n o m in a tio n of pieces d e sired a n d th e d eliv ery an d p a y m e n t instructions. TENDER FOR 244-DAY TAX ANTICIPATION TREASURY BILLS D a te d O cto b er 21, 1970 To F e d e r a l R e ser ve B ank of N D u e Ju n e 22,1971 ew D a te d a t ............................................................ 1Q York, F iscal A gent of th e U n ited States. ........................................................, ly.... P u rsu a n t to th e provisions of T reasu ry D e p a rtm e n t C ircu lar No. 418 (c u rre n t revision) an d to th e p rovi sions of th e p u b lic n otice issued by th e T reasu ry D e p a rtm e n t inviting ten d ers for the above-described T reasu ry bills, th e u n d ersig n ed h e re b y offers to p u rch ase such T reasu ry bills in th e am o u n t in d icated below , a n d agrees to m ake p a y m e n t th erefo r a t y o u r B ank on or b efore th e issue d a te a t th e price in d ica ted below : C O M P E T IT IV E T E N D E R V D o n o t fill in b o th C o m p e titiv e a n d | L N o n c o m p e titiv e te n d e r s on o n e f o r m j N O N C O M P E T IT IV E T E N D E R $ ............................................................ (m a tu rity v a lu e ), or any lesser am o u n t th a t m ay b e aw ard ed . $ ........................................................... P r i c e : ................................. p e r 100. a t the average price of acc ep ted com petitive bids. (m a tu rity v a lu e ). ( N o t to e x c e e d $ 4 0 0 ,0 0 0 fo r o n e b id d e r th ro u g h a ll so u r c e s) (P ric e m u s t b e e x p r e ss e d w ith n o t m o re th a n th re e d e c im a l p la c e s, f o r e x a m p le , 9 9 .9 2 5 ) 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 Daylight Saving time, Thursday, October 15, 1970. Subject to allotm ent, p lease issue, deliver, an d acc ep t p ay m en t for th e bills as in d ica te d below : Pieces Denomination $ M aturity value 10,000 15,000 50,000 100,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned CD 3. H old in safekeeping (fo r ac count of member bank only)* □ 4. H old as collateral for T reas ury T a x and Loan Account* O 5. Special instruction*: Paym ent will be made as follows: □ By check herewith □ By cash or check in im m e d ia te ly a v a ila b le fu n d s cm delivery □ By charge to our reserve account □ By credit in T reasury T ax and Loan A ccount (P lease complete Advice of Deposit below.) 500,000 ( N o ch a n g es in d e liv e r y in stru c tio n s zvill be a cc e p te d ) 1,000,000 Totals * The 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) (B an k s su b m ittin g ten d ers for cu sto m er acco u n t m u st indicate nam e on line below , o r a tta c h a list) (N a m e of custom er) (N a m e of custom er) INSTRUCTIONS: 1. No tender for less than $10,000 will be considered and each tender m ust be for an even multiple of $5,000 (m aturity value). 2. O thers than banking institutions will not be perm itted to subm it tenders except for their own account. Banks subm itting tenders for customer account may consolidate com petitive tenders a t th e sa m e p r ic e and may consolidate non competitive tenders, provided a list is attached showing the nam e of each bidder, the am ount bid for his account, and m ethod of paym ent. Forms 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 th at he has been so authorized. If the tender is m ade by a partnership, it should be signed by a m em ber of the firm, who should sign in the form “ ................................................................................................ . a copartnership, by .............................................................................................. . a m em ber 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 accom panied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust company. All checks m ust be draw n 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.
@FedFRASER