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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States r Circular No. 7 1 8 7 i L July 18, 1973 J Offering of $1,800,000,000 of 336-Day Treasury Bills Dated July 31, 1973 Due July 2, 1974 T o A ll Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserve 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, o r thereabouts, of 336-day Treasury bills for cash and in exchange for Treasury bills maturing July 31, 1973, in the amount o f $1,701,520,000. The bills of this series w ill be dated July 31, 1973, and will mature July 2, 1974 (C U S I P N o. 912793 T U 0 ). 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 (m aturity valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Tuesday, July 24, 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 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 will be supplied by Federal Reserve Banks or Branches on application therefor. 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 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 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 w ill 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 decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 31, 1973, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing July 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 o f 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 of 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 Daylight Saving time, Tuesday, July 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 336-DAY TREASURY BILLS Dated July 31, 1973 To F e d e ra l R eserve Bank of N ew Due July 2, 1974 Dated at Y ork, Fiscal Agent of the United States. 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 19. 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 COMPETITIVE TENDER $ ...................................................... (maturity value), or any lesser amount that may be awarded. P r i c e :.................................. per 100. (P rice tnust be expressed with not m ore than three decimal places, fo r exam ple, 99.925) NONCOMPETITIVE TENDER S .........................................................(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 $ Maturity 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 on ly) 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 w in oe accepteaj (P aym en t cannot be made through T reasury 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 “T ender (Address— please print or type) (Tel. No.) (Signature of subscriber or authorized signature) for Treasury Bills” (Title 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. N o tender for less than $10,000 will be considered, and each tender must be for an even multiple of $5,000 (m aturity valu e). 2. O th ers than bankin g institutions will not be perm itted to subm it tenders excep t for their ow n account. B ank ing institutions su bm ittin g tenders for cu stom er a ccou n t m ay con solida te com p etitive tenders at the same price and m ay con solid a te n on com p etitive tenders, p rovid ed a list is attached sh ow in g the name o f each bidder, the am ount bid fo r his accou n t, and m eth od o f paym ent. F o rm s fo r 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 b y an officer o f the corp ora tion a uthorized 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 representation b y him that he has been so authorized. I f 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 fo rm ................................................. .. ............................................... . a copartnership, by ................................................................... . a m em b er o f the firm .” 4 T e n d ers w ill be received w ith ou t deposit from in corp ora ted banks and trust com panies and from re sp o n sible and re co g n ize d dealers in in vestm ent securities. T en d ers from oth ers m ust be accom pa n ied b y paym ent o f 7 percent 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 by an express guaranty o f paym ent b y an in corp ora ted bank or trust com pa 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 ew Y o r k ; ch ecks en d orsed to this B ank w ill not be a ccepted. 5. I f the language o f this tender is ch a n ged in any respect, w hich, in the opin ion o f the S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded.
@FedFRASER