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FEDERAL RESERVE BANK OF N E W YO RK Fiscal Agent of the United States No. 7 1 9 5 July 26, 1973 [ Circular ~1 J Offering of $2,000,000,000 of 35-Day Tax Anticipation Treasury Bills Dated August 15, 1973, Due September 19, 1973 T o A ll In corporated Banks and Trust Com panies, and O thers C on cern ed, in th e Second Federal R eserve D istrict: Follow ing is the text of a notice issued July 25 by the Treasury Department: The Treasury D epartment, b y this p u b lic notice, invites tenders for $2,000,000,000, or thereabouts, o f 35-day Treasury bills, to be issued on a discount basis under com petitive and n on com petitive b idding as hereinafter provided. T he bills o f this series w ill b e dated August 15, 1973, and w ill mature Septem ber 19, 1973 (C U S IP N o. 912793 T V 8 ). Th ey w ill be a ccepted at face value in paym ent o f incom e taxes due on Septem ber 15, 1973, and to the extent they are not presented for this purpose the face am ount o f these bills w ill be payable w ithout interest at maturity. Taxpayers desiring to apply these bills in paym ent o f Septem ber 15, 1973 incom e taxes may submit the bills to a Federal Reserve Bank or Branch or to the Office o f the Treasurer o f the United States, W ashington, not more than fifteen days before that date. In the case o f bills submitted in paym ent o f incom e taxes o f a corporation they shall be accom panied b y a duly com pleted Form 503 and the office receiving these items w ill effect the deposit on Septem ber 15, 1973. In the case o f bills subm itted in paym ent of incom e taxes o f all other taxpayers, the office receiving the bills w ill issue receipts therefor, the original o f w hich the taxpayer shall submit on or before Septem ber 15, 1973, to the District D irector o f Internal Revenue for the District in w hich such taxes are payable. The bills w ill b e issued in bearer form only, and in denominations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity va lu e). Tenders w ill b e received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m ., Eastern D ay light Saving time, W ednesday, August 8, 1973. Tenders w ill 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 multiples o f $5,000. In the case o f com petitive tenders the price offered must be expressed on the basis o f 100, with not more than diree decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forw arded in the special envelopes w hich w ill b e supplied b y Federal Reserve Banks or Branches on application therefor. Banking institutions generally may subm it tenders for account o f customers, provided the names o f the customers are set forth in such tenders. Others than banking institutions w ill not be perm itted to submit tenders except for their ow n account. Tenders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investment securities. Tenders from others must be a ccom panied b y paym ent o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied b y an ex press guaranty o f paym ent b y an incorporated bank or trust com pany. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition o f any bills o f this issue at a specific rate or price, until after one-thirty p.m ., Eastern D aylight Saving time, W ednesday, August 8, 1973. Im m ediately after the closing hour, tenders w ill b e opened at the Federal Reserve Banks and Branches, follow in g w hich pu blic announcem ent w ill be made b y the Treasury D epartm ent o f the amount and price range o f accepted bids. Only those subm itting com petitive tenders w ill be advised o f the acceptance or rejection thereof. The Secretary o f the Treasury expressly re serves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for $500,000 or less without stated price from any one bidd er w ill be accepted in full at the average price (in three decim als) o f accepted co m petitive bids. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank in cash or other im mediately available funds on August 15, 1973. Any qualified depositary w ill b e perm itted to make settlement b y credit in its Treasury Tax and Loan A ccou n t for not more than 50 percent o f the amount o f Treasury bills allotted to it for itself and its customers. Under Sections 4 5 4 (b ) and 1 2 2 1 (5 ) o f the Internal Revenue C ode o f 1954, the amount o f discount at w hich bills issued here under are sold is considered to accrue when the bills are sold, redeem ed or otherwise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the ow ner o f Treas ury bills (oth er than life insurance com panies) issued hereunder must include in his incom e tax return, as ordinary gain or loss the difference betw een the price paid for the bills, w hether on original issue or on subsequent purchase, and the amount actually received either upon sale or redem ption at maturity during the taxable year for w hich the return is made. Treasury Departm ent 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 Daylight Saving time, Wednesday, August 8, 1973, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular 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; they may not be submitted by telephone. Settlement for accepted tenders must be made on or before August 15, 1973, in cash, 8% percent Treasury Notes of Series B-1973, 4 percent Treasury Bonds of 1973, or other funds immediately available by that date, except that any qualified depositary may make settlement by credit in its Treasury Tax and Loan Account for not more than 50 percent of the amount of Treasury Bills allotted to it for itself and its customers. A lfred H ayes, President. I ( over) IMPORTANT — Please make certain that all requested data is supplied on this form, including the number and denomination of pieces desired and the delivery and payment instructions. TENDER FOR 35-DAY TAX ANTICIPATION TREASURY RILLS Dated August 15, 1973 To Due September 19, 1973 Dated at F e d e r a l R eserve B an k o f N e w Y ork , Fiscal Agent of the United States. ..................................................? JLb//o Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions of the public notice issued by the Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: COMPETITIVE TENDER D o not fill in both C om petitive and N on com p etitive tenders on one form NONCOMPETITIVE TENDER $ ........................................................( maturity value), or any lesser amount that may be awarded. (N o t to ex cee d $500,000 for one bidder through all sou rces) Price: ................................per 100. at the average price of accepted competitive bids. $ ...................................................... ( maturity value). ( Price must b e expressed with n ot m ore than th ree decim al places, for exam ple, 9 9 .9 2 5 ) W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern Daylight Saving time, Wednesday, August 8,1973. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces D enom ination $ Maturity value □ 1. D eliver over the counter to the undersigned Paym ent will b e m ade as follow s: □ By charge to our account on your books 10,000 n 2. Ship to the undersigned 15,000 □ 3. H old in safekeeping ( for a c count o f m em ber bank only)** □ By cash or check in im m ediately available funds on delivery □ 4. H old as collateral for Treasury Tax and L oan A ccou nt* □ □ 5. B y credit in Treasury Tax and Loan A ccou nt (not more than 5 0 % o f purchase p rice) for which A dvice o f D eposit (b e lo w ) is subm itted herewith □ By surrender o f Treasury notes or bonds maturing August 15, 1973 50,000 100,000 Special instructions: 500,000 1,000,000 ( N o changes in delivery instructions will b e a c c e p te d ) Totals The undersigned certifies that the allotted bills will b e ow ned solely b y 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) (Tel. No.) ( Signature of subscriber or authorized signature ) (Title of authorized signer) (Banks submitting tenders for customer account must indicate name on line below , or attach a list) (Name of customer) (Name of customer) IN ST R U C T IO N S : 1. N o tender for less than $10,000 w ill be considered and each tender must be for an even m ultiple o f $5,000 ( maturity va lu e ). 2. Others than banking institutions w ill not be perm itted to submit tenders except for their ow n account. Banks subm itting tenders for custom er account m ay consolidate com petitive tenders at th e same price and may consolidate non com petitive tenders, provided a list is attached show ing the nam e o f each bidder, the amount bid for his account, and m ethod o f paym ent. Forms for this purpose w ill be furnished on request. 3. If the person making the tender is a corporation, the tender should be signed b y an officer o f the corporation authorized to make the tender, and the signing o f the tender b y an officer o f the corporation will be construed as a repre sentation b y him that he has been so authorized. If the tender is made b y a partnership, it should be signed b y a mem ber o f the firm, w h o should sign in the form “ .................................................................. ................................................. , a copartnership, by .......................................................................................................... .. a m em ber o f the firm.” 4. Tenders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recogn ized dealers in investment securities. Tenders from others must be accom panied b y paym ent o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f paym ent b y an incorporated bank or trust com pany. All checks must be drawn to the order o f the Federal Reserve Bank o f N ew York; checks endorsed to this Bank w ill not be accepted. 5. I f the language o f this tender is changed in any respect, w hich, in the opinion o f the Secretary of the Treasury, is material, the tender m ay be disregarded. Advice of Deposit in Treasury Tax and Loan Account To F e d e r a l R eserve B an k o f N e w Y ork , Fiscal Agent of the United States. W e will deposit on August 15, 1973 to your credit in the Treasury Tax and Loan Account on our books, to be held subject to withdrawal on demand, an amount not exceeding 50% of the purchase price of the bills allotted to us on our tender for 35-day tax anticipation Treasury bills, dated August 15, 1973, due September 19, 1973. (Name of Depositary) By . . . . Address (Authorized signature(s) required) (City and State)
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