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FE D E R A L R ESER V E BAN K OF NEW Y O R K F isc a l A g e n t of th e U n ite d S ta te s r C ircular N o. LD ecem ber 15, 6655 ~| 1970 J OFFERING OF TWO SERIES OF TREASURY BILLS $500,000,000 of 273-Day Bills, Additional Amount, Series Dated Sept. .30, 1970, Due Sept. 30, 1971 (To Be Issued December 31,1970) $1,200,000,000 of 365-Day Bills, Dated December 31,1970, Due December 31,1971 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Follow ing is the tex t of a notice issued bv the T reasury D epartm ent, released at 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 $1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing December 31, 1970, in the amount of $4,606,518,000, as follows: 273-day bills (to maturity date) to be issued December 31. 1970, in the amount of $500,000,000, or thereabouts, repre senting an additional amount of bills dated September 30, 1970, and to mature September 30, 1971 (C U SIP No. 912793 KS4), originally issued in the amount of $1,202,480,000, the additional and original bills to be freely interchangeable, 365-day bills, for $1,200,000,000, or thereabouts, to be dated December 31, 1970, and to mature December 31, 1971 (C U SIP No. 912793 KV7). The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter pro vided. and at maturity their face amount will be payable without interest. They will be issued in bearer form onlv, and in denomi nations of $10,000, $15,000. $50,000. $100,000, $500,000 and $1,000,000 (maturity value). 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 comnetitive 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 December 31, 1970, in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 31, 1970. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for dif ferences between the par value of maturing bills accepted in exchange and the issue price of the new bills. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Wednesday, December 23, 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 multi ples 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. (Notwith standing 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. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the amount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration 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. 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 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 Bank will receive tenders for both series up to 1 :30 p.m., E astern Standard time, W ednesday, December 23, 1970, at the Securities D epartm ent of its H ead Office and at its Buffalo Branch. T ender forms for the respective series are enclosed. Please use the appropriate forms to subm it tenders and return them in the enclosed envelope marked “ T ender for T reasu ry Bills (M o n th ly ).” T enders not requiring a deposit may be subm itted by telegraph, subject to w ritten confirm ation; no tenders may 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 e s , President. N o......................... TENDER FOR 365-DAY TREASURY BILLS Dated December 31, 1970 Due December 31, 1971 To F e d e r a l R eserv e B ank o f N ew P u rsu an 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 make paym ent therefor at your C O M PETITIV E TEND ER D ated at Y ork, Fiscal A gent of the U nited States. 19. D epartm ent C ircular No. 418 (cu rren t revision) and to the T reasury D epartm ent inviting tenders for the above described to purchase such T reasury bills in the am ount indicated below, Bank on or before the issue date at the price indicated below: Do not fill in both Competitive and Noncompetitive tenders on one form $ ............................................................ (m atu rity value), or any lesser am ount that may be aw arded. P r i c e : ...................................... per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) NON CO M PETITIVE TEN D ER $ .............................................................. (m atu rity v alu e). (N ot to exceed $200,000 for one bidder through all sources) A t the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept paym ent for the bills as indicated below: Pieces Denomination Maturity value 10,000 □ □ □ 15,000 □ 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 (No changes in delivery instructions will be accepted) 1, 000,000 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) T he undersigned (if a bank or tru st com pany) hereby certifies that the T reasury bills which you are hereby instructed to dispose of in the m anner indicated in item 3 above are owned solely by the undersigned. Insert this tender in special en velop e m arked “ T ender for Treasury Bills (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) (Nam e of customer) (N am e of customer) IN S T R U C T IO N S : 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 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 amount 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. Tenders will be received w ithout deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by paym ent of 2 percent of the face amount 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 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. TENDER FOR 273-DAY TREASURY BILLS Additional Amount, Series Dated September 30, 1970, Due September 30, 1971 (To Be Issued December 31, 1970) To F ed e ra l R eserv e B ank o f N ew P u rsu an 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 make paym ent therefor at your C O M PETITIV E TENDER Dated at Y ork, Fiscal A gent of the U nited States. 19. D epartm ent C ircular No. 418 (cu rren t revision) and to the T reasu ry D epartm ent inviting tenders for the above described to purchase such T reasury bills in the am ount indicated below, Bank on or before the issue date at the price indicated below : Do not fill in both Competitive and Noncompetitive tenders on one form $ ............................................................ (m aturity value), or any lesser am ount that may be awarded. Price : ...................................... per 100. (Price must be expressed zvith not more than three decimal places, for example, 99.925) NON CO M PETITIVE TENDER $ .............................................................. (m aturity value). (Not to cxcced $200,000 for one bidder through all sources) A t the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept paym ent for the bills as indicated below: Pieces Denomination Maturity value 10,000 □ 15,000 □ □ 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 (No changes in delivery instructions zvill be accepted) 1.000,000 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) T he undersigned (if a bank or tru st com pany) hereby certifies that the T reasury bills which you are hereby instructed to dispose of in the m anner indicated in item 3 above are owned solely by the undersigned. Insert this tender in special en velop e m arked “ T en der for Treasury Bills (M o n th ly )” (Nam 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) (Name of customer) (Name of customer) IN S T R U C T IO N S : 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 permitted to submit tenders except for their own account. Banking institutions subm itting tenders for customer account may consolidate competitive tenders at the same pricc 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. 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 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 ? percent of the face amount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of pavm ent by an incorporated bank or trust company. All checks must be drawn to the order of the Federal Reserve Bank of N ew '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 T reasury, is material, the tender may be disregarded.
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