The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 7 0 3 8 l *- November 15, 1972 J Offering of $1,800,000,000 of 355-Day Treasury Bills D ated N ovem ber 30, 1972 D ue N ovem ber 20, 1973 To A ll Incorporated B anks and T ru st Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of a notice issued by the Treasury Department and released at 4 p.m. today: The T reasury Departm ent, by this public notice, invites tenders for $1,800,000,000, o r thereabouts, of 355-day T reasury bills for cash and in exchange for T reasury bills m aturing November 30, 1972, in the amount of $5,803,525,000. The bills of this series will be dated November 30, 1972, and will m ature November 20, 1973 (C U S IP No. 912793 R E ). 8 The bills will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at m aturity their face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $ , , $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). 10000 Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard time, W ednesday, November , 1972. Tenders will not be received at the T reasury Department, W ashington. 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 , w ith 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 forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. 22 100 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 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 T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or tru st 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 T reasury D epartm ent 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 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. Subject to these reservations, noncompetitive tenders for $ 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. Settlem ent for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on November 30, 1972, in cash or other immediately available funds or in a like face amount of T reasury bills m aturing November 30, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjust ments will be made for differences between the par value of m atur ing bills accepted in exchange and the issue price of the new bills. 200,000 U nder 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, re deemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance companies) issued herejmder must include in his income tax return, as ordinary gain or loss, the dif ference between the price paid for the bills, w hether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made. T reasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice prescribe the terms of the T reasury bills and govern the conditions of their issue. Copies of the circular may be ob tained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Wednesday, November 22, 1972, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the enclosed form to submit a tender and return it in the enclosed envelope marked “ Tender for Treasury Bills (M onthly).” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted 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 ayes, President.
@FedFRASER