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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States J" Circular No. 7 1 2 5 "I L April 18, 1973 J O ffering o f $ 1 , 8 0 0 , 0 0 0 , 0 0 0 o f 344-D a y T reasury B ills Dated April 30, 1973 Due April 9, 1974 T o A ll Incorporated Banks and T rust Companies, and O thers C oncerned, 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 344-day Treasury bills for cash and in exchange for Treasury bills maturing A pril 30, 1973, in the amount o f $1,700,030,000. The bills of this series will be dated A pril 30, 1973, and w ill mature A pril 9, 1974 (C U S I P N o. 9 1 2 7 9 3 S P 2 ). The bills w ill 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. Th ey w ill be issued in bearer form only, and in denominations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity va lu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Tuesday, A pril 24, 1973. Tenders will not be received at the Treasury Department, W ashington. Each tender must be fo r a minimum o f $10,000. Tenders over $10,000 must be in multipies o f $5,000. In the case o f competitive tenders the price offered must be expressed on the basis o f 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 w ill 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 of the customers are set fo^th in such tenders. Others than banking institutions will not be perm !tted 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 o f 2 percent o f the face amount o f 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 in g which public announcement will be made by the Treasury Department o f the amount and price range of accepted bids. O nly those submitting competitive tenders will be advised o f the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole o r 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 w ill be accepted in full at the average price (in three decim als) o f accepted competitive bids. Settlement for. accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on A pril 30, 1 9 7 3 ? jn cash or other immediately available funds or in a like f ace amount of Treasury bills maturing A pril 30, 1973. Cash ancj exchange tenders w ill receive equal treatment. Cash adjustments will be made for differences between the par value o f maturjng bills accepted in exchange and the issue price o f the new bills, Under Sections 4 5 4 (b ) and 1221(5) o f 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, re deemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. A ccordin gly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder must indude in his income taxthe return( as ordinary gain or loss, difference between the price paid for the bills, whether on original jssue 0r on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year £or w j1j c }1 tbe return is made Treasury Department Circular N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Tuesday, April 24, 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.” 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. ( over) No................... TENDER FOR 344-DAY TREASURY BILLS Dated April 30, 1973 To F ed er al R eserve B a n k of N ew Due April 9, 1974 Dated at Y ork, Fiscal Agent of the United States. 19... 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 C O M P E T IT IV E T EN D ER 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. Price : ............................ .. per 100. (P rice must be expressed with not m ore than three decimal places, fo r exam ple, 99.925) N O N C O M P E T ITIV E TEN D ER $ ......................................................... (maturity value). (N o t to exceed $200,000 fo r one bidder through all sources) 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. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r ac count of member bank only) 4. Allotm ent transfer (see list attached) 5. Special instructions: Payment 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 will be accepted) (Paym ent cannot be made through Treasury T a x and Loan A ccou 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. (Name of subscriber— please print or type) Insert this tender in special envelope marked “Tender for Treasury Bills” (Address— please print or type) (Signature of subscriber or authorized signature) (Title of authorized signer) (B anking 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. N o tender for less than $10,000 will be considered, and each tender must be for an even multiple o f $5,000 (maturity value). 2. O th ers than bankin g institutions w ill not be perm itted to subm it tenders excep t for their ow n accou nt. B anking institutions subm itting tenders for cu stom er accou n t m ay con solidate com petitive tenders at the same price and m ay con solid a te n on com petitive tenders, p rovided a list is attached sh ow in g the nam e o f each bidder, the am ount bid for his accou nt, and m eth od o f paym ent. F orm s for this pu rpose will be furnished upon request. 3. I f the person m aking the tender is a corp ora tion , the tender should be signed by an officer o f the corp ora tion authorized to m ake the tender, and the sign in g o f the tender b y an officer o f the corp ora tion will be con stru ed as a representation 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 ber o f the firm, w h o should sign in the fo rm “ ..................................................................................................... a copartnership, by ........................... ......................................................... a m em b er o f the firm. 4. T e n d e rs w ill be received w ith ou t deposit from in corpora ted banks and trust com panies and from resp on sible and re co g n ize d dealers in investm ent securities. T en d ers from others m ust be accom panied b y paym ent o f 2 percent o f the face am ount o f T reasu ry bills applied for, unless the tenders are a ccom pa n ied by an express guaranty o f paym ent b y an in corp ora ted bapk o j trust com pa n y. A ll checks m ust be draw n to the ord er o f the Federal R eserve Bank o f N ew Y o r k ; ch eck s en d orsed to this Bank will not be a ccepted. 5. If the language o f this tender is ch a n ged in any respect, w hich, in the opin ion o f the Secretary o f the T reasu ry, is m aterial, the tender m ay be disregarded.
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