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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 7 08 2-1 J January 18, 1973 Offering of $1,800,000,000 of 349-Day Treasury Bills Dated January 31, 1973 Due January 15, 1974 T o A ll Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice issued by the Treasury Department and released at 4 p.m. today: The Treasury Department, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 349-day Treasury bills for cash and in exchange for Treasury bills maturing January 31, 1973, in the amount o f $1,700,320,000. The bills of this series will be dated January 31, 1973, and will mature January 15, 1974 ( C U S I P N o. 912793 S L 1 ). The bills 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 valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Thursday, January 25, 1973. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in multi ples o f $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 the printed form s and forw arded 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 o f customers, provided the names o f 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 nayment o f 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 w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcement will be made by the Treasury Department o f 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 $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 31, 1973, in cash or other immediately available funds or in a like face amount of Treasury bills maturing January 31, 1973. Cash and exchange tenders will receive equal treatment. Cash adjust ments will be made for differences between the par value o f matur ing bills accepted in exchange and the issue price of the new bills. Under Sections 4 5 4 (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. A ccordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder must include in his income tax return, as ordinary gain or loss, the dif ference 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 N o. 418 (current revision) and this notice prescribe the terms of the Treasury bills and govern the conditions o f their issue. Copies o f 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, Thursday, January 25, 1973, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this notice 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 a y e s , President. ( over) N o................... TEN DER FO R 349-D A Y T R E A SU R Y BILLS Dated January 31, 1973 To F ed era l R eserve B an k o f N ew Due January 15, 1974 Dated at Y ork , Fiscal Agent of the United States. 1 9 ... Pursuant to the provisions of Treasury provisions of the public notice issued by the Treasury bills, the undersigned hereby offers and agrees to make payment therefor at your COMPETITIVE TENDER Department Circular No. 418 (current revision) and to the Treasury Department inviting tenders for the above described to purchase such Treasury bills in the amount indicated below, Bank on or before the issue date at the price indicated below: D o not fill in both Com petitive and N oncom petitive tenders on one form $ ...................................................... (maturity value), or any lesser amount that may be awarded. P r i c e :.................................. per 100. (P r ic e must be expressed with not m ore than three decimal places, fo r exam ple, 99.925) NONCOMPETITIVE TENDER $ ......................................................... (maturity value). ( N o t to exceed $200,000 fo r one bidder through all sou rces) At the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ M aturity value 10,000 □ □ □ 15,000 50,000 □ 100,000 □ 1. D eliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r a c count of member bank on ly) 4. Allotm ent transfer (see list attached) 5. Special instructions: Paym ent will be made as fo llo w s : □ B y charge to our reserve account □ B y cash or check in immediately available funds on delivery 500,000 1,000,000 (N o changes in delivery instructions w ill be accepted) (P aym en t cannot be made through Treasury T a x and Loan A cco u n t) Totals The undersigned (member bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. (N am e of subscriber— please print or type) Insert this tender in special envelope marked “T ender for Treasury Bills (Monthly)” (A ddress— 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 custom er) (N am e of customer) IN S T R U C T IO N S : 1. N o tender for less than $10,000 will be considered, and each tender must be for an even multiple o f $5,000 (m aturity va lu e). 2. O th ers than bankin g institutions w ill not be perm itted to subm it tenders excep t for their ow n a ccou nt. B ank ing institutions su bm ittin g tenders for cu stom er a ccou n t m ay con solid a te com p etitiv e tenders at the same price and m ay co n solid a te n on com p etitive tenders, p rovid ed a list is attached s h ow in g the nam e o f each bidder, the am ount bid fo r his a ccou n t, and m eth od o f paym ent. F orm s for this pu rpose w ill be furnished upon request. 3. I f the person m akin g the tender is a corp ora tion , the tender should be sign ed by an officer o f the corp ora tion auth orized to m ake the tender, and the sign in g o f the tender b y an officer o f the corp ora tion w ill be con stru ed as a represen tation b y him that he has been so authorized. If the tender is m ade b y a partnership, it should be signed b y a m em b er o f the firm , w h o should sign in the form “ ...................................................................................................... a cop artn ersh ip, b y ...................................................................................................................... a m em b er o f the firm .” 4. T e n d e rs w ill be received w ith ou t dep osit from in corp ora ted banks and trust com pan ies and from re sp o n sible and re co g n iz e d dealers in in vestm ent securities. T en d ers from oth ers m ust be a ccom p a n ied b y paym ent o f 2 percen t o f the face am ou nt o f T reasu ry bills applied for, unless the tenders are a ccom p a n ied b y an express guaranty o f paym ent b y an in corp ora ted bank or trust com p a n y . A ll ch ecks m ust be draw n to the ord er o f the Federal R eserve Bank o f N e w Y o r k ; ch ecks en d orsed to this Bank w ill not be accep ted. 5. If the language o f ihis tender is ch a n ged in any respect, w hich, in the opin ion o f the S ecreta ry o f the T reasu ry, is m aterial, the tender m ay be disregarded.
@FedFRASER