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F E D E R AL R E S E R V E BANK O F N E W YORK Fiscal Agent of the United States r Circular No. 7 2 3 8 ~1 U September 27, 1973 -J Special Offering of $1,800,000,000 o f 294-Day Treasury Bills Dated October 9, 1973 Due July 30, 1974 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: The following statement was made public today by the Treasury Department: The Treasury today announced the sale of $1.8 billion of bills maturing on July 30, 1974. The issuance of these bills will complete the cycle of maturities on Tuesdays at four-week intervals, the establishment of which was begun last year. The bills will be auctioned on Wednesday, October 3, for payment on Tuesday, October 9. Commercial banks may make payment for 50% of their own and their customers’ accepted tenders by credit to Treasury tax and loan accounts. Following is the text of the public notice offering the Treasury bills referred to above: The Treasury Department, by this public notice, invites tenders for $ 1,8 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 294-d ay Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated October 9, 1973, and will mature July 3 0, 1974 (C U S IP No. 9 12 7 93 U B 0 ) when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $ 1 0 ,0 00 , $15 ,0 00 , $ 50,000, $ 1 0 0 ,00 0 , $50 0 ,00 0 and $ 1,0 0 0,0 0 0 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m ., Eastern Daylight Saving time, W ednesday, October 3, 1973. Tenders will not oe received at the Treasury Department, Washington. Each tender must be for a minimum of $ 10,000. Tenders over $ 10 ,0 00 must be in multiples of $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., 9 9.925. 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 F edcral Reserve Banks or Branches on application therefor. 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 Treasury Department 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 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 $20 0 ,00 0 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 in cash or other immediately available funds on October 9, 1973. Any quali fied depositary will be permitted to 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. 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 investment securities. Tenders from others must be accompanied by payment of 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. Under Sections 4 5 4 ( b ) and 1 2 2 1 (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, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the difference 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. 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 of any bills of this issue at a specific rate or price, until after one-thirty p.m ., Eastern Daylight Saving time, W ednesday, October 3, 1973. Treasury Department Circular No. 418 (current revision) and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of 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, October 3, 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. Settlement for accepted tenders may be made in cash or other immediately available funds, 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 bills allotted to it for itself and its customers. A lfred H ayes, President. ( over) No. TENDER FOR 294-DAY TREASURY BILLS y Dated October 9,1973 To F e d e r a l R eserve B a n k of Due July 30, 1974 Dated a t ...................... N e w Y ork, Fiscal Agent of the United States. ................................................................................................................................................................................y JLy I 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 Do not fill in both Competitive and Noncompetitive tenders on one form (maturity value), ' d. or any lesser amount that may be awarde NONCOMPETITIVE TENDER $ ..................................................... ( maturity value). (N ot to exceed $200,000 for one bidder through all sources) Price: ................................per 100. ( Price must be expressed with not more than three decimal places, for example, 99.925) 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 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned 15,000 □ 3. H old in safekeeping (for ac count of member bank only) 5 0,0 0 0 □ 4. Allotment transfer (see list at tached ) 1 00,000 □ 5. Hold as collateral for Treasury Tax and Loan Account □ 6. $ 10,000 5 00 ,0 00 Payment will be made as follows: □ By charge to our reserve account u By cash or check in on delivery □ By credit in Treasury Tax and Loan Account (not more than 5 0 % of purchase price). (Please complete Advice of Deposit below .) available funds immediately Special instructions: 1 ,00 0 ,00 0 (N o changes in delivery instructions will be accepted) Totals The undersigned (member bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in items 3 or 5 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) (Tel. No.) (Signature of subscriber or authorized signature) (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 ,0 00 will be considered and each tender must be for an even multiple of $5,000 (maturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banking insti tutions submitting tenders for customer account may consolidate competitive tenders and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. Forms for this purpose will be furnished upon request. at the same price 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a repre sentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ .................................................... , a copartnership, by ................................................................................................................ .. a member of the firm.” 4. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 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. All checks must be drawn to the order of the Federal Reserve Bank of N ew York; checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Advice of Deposit in Treasury Tax and Loan Account To F e d e r a l R eserve B a n k of N e w Y ork, Fiscal Agent of the United States. W e will deposit on October 9, 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 to exceed 50 percent of the purchase price of the bills allotted to us on our tender for 294-day Treasury bills to be dated October 9, 1973 and to mature July 30, 1974. (Name of Depositary) By . . . (Authorized signature(s) required) Address (City and State)
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