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F E D E R A L R ES ER V E BANK O F NEW YORK F iscal A g e n t of the U n ited States No. 7 3 4 7 [Circular February 21, 1974 j Offering of $1,500,000,000 of 46-Day Tax Anticipation Treasury Bills, Additional Amount Dated November 1, 1973, Due April 19, 1974, To Be Issued March 4, 1974 To All Incorporated Banks and Trust Com panies, and Others C on cern ed, in th e Second Federal R eserve D istrict: F o llo w in g is the text o f a n o tice issued F ebruary 20 b y the T reasury D epartm en t: T he Treasury D epartm ent, b y this p u b lic notice, invites ten ders for $1,500,000,000 or thereabouts, o f 46-day Treasury bills (to maturity d a te ), to b e issued on M arch 4, 1974, on a discount basis under com petitive and n oncom petitive bidd in g as hereinafter provided. These bills will represent an additional amount o f bills dated N ovem ber 1, 1973, to mature April 19, 1974 (C U S IP No. 912793 U C 8 ) originally issued in the am ount o f $2,007,185,000 (an additional $1,001,915,000 was issued N ovem ber 30, 1 973). The additional and original bills w ill b e freely interchangeable. T h ey w ill b e accep ted at face value in paym ent o f incom e taxes due on April 15, 1974, and to the extent they are not presented for this purpose the face amount o f these bills will b e payable without interest at maturity. Taxpayers desiring to apply these bills in paym ent o f April 15, 1974 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 U nited States, W ashington, not m ore than fifteen days b efore that date. In the case o f bills subm itted in paym ent of 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 April 15, 1974. In the case o f bills subm itted in paym ent o f 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 tax payer shall submit on or b efore April 15, 1974, to the District D irector o f Internal Revenue for the District in w hich such taxes are payable. The bills 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 D ay light Saving time, Tuesday, February 26, 1974. Tenders will not be received at the Treasury Departm ent, 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 m ore than three decim als, e.g., 99.925. Fractions m ay 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 will not be perm itted to submit tenders except for their ow n account. Tenders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recogn ized dealers in investment securities. Tenders from others must b e a ccom panied b y paym ent o f 2 percent o f the face amount o f Treasury bills applied for, unless d ie tenders are accom panied b y an ex press guaranty o f paym ent b y an incorporated bank or trust com pany. A ll 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 bid for under this offering at a specific rate or price, until after one-thirty p.m ., Eastern Daylight Saving time, Tuesday, February 26, 1974. Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g w hich pu b lic announcem ent will be made b y the Treasury D epartm ent o f the amount and price range o f a ccepted bids. Only those subm itting com petitive tenders w ill be advised o f the acceptance or rejection thereof. The Secretary o f die 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 $300,000 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 M arch 4, 1974. Any qualified depositary will be permitted to make settlement b y credit in its Treasury Tax and Loan A ccou n t fo r 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 w hen 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 in com 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 D epartm ent Circular No. 418 (current revision) and this n otice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. C opies o f the circular m ay be obtained from any Federal Reserve Bank or Branch. T his Bank w ill rece iv e tenders u p to 1 :3 0 p .m .. Eastern D a y lig h t Saving tim e, T uesday, F ebruary 26, 1974, at the Securities D ep artm en t o f its H ea d O ffice and at its B uffalo Branch. Please use the form on the reverse side o f this circu lar to subm it a tender, an d return it in the en closed en v elop e m arked “ T en d er fo r T reasury Bills.” T enders n ot req u irin g a d e p o sit m a y b e subm itted b y telegraph, su b ject to w ritten confirm ation; th ey m ay not be subm itted b y telephon e. Settlem ent fo r a cce p te d ten ders m ust b e m ad e on or b e fo re M arch 4, 1974, in cash or oth er im m ed iately available funds, ex cep t that any qu alified dep ositary m ay m ake settlem ent b y cred it in its T reasu ry T ax and L oa n A c co u n t fo r T reasury bills a llotted to it fo r itself and its custom ers. A lfred H ayes, President. ( OVER) IM P O R T A N T — P lease m ake certain that all req u ested data is su p p lied o n this form , in clu d in g the n u m b er an d den om in ation o f p ieces desired and the d e liv ery and paym en t instructions. T E N D E R FOR 46-DAY T A X AN T IC IP A T IO N TREASURY BILLS, A D D IT IO N A L A M O U N T D a te d N o v e m b e r 1, 1973, D u e A pril 19, 1974, T o B e Issu ed M a rch 4 ,1 9 7 4 D a te d at T o F e d e r a l R eserv e B an k o f N e w Y ork , Fiscal A gen t o f the U n ited States. 1974 Pursuant to the provisions o f T reasury D ep a rtm en t C ircu lar N o. 418 (cu rre n t rev ision ) and to the p ro v i sions o f the p u b lic n otice issued b y the T reasury D ep artm en t inviting tenders fo r the a b o v e -d escrib ed T reasury bills, the u nd ersigned h ereb y offers to p u rchase such Treasury bills in the am ount in d ica ted b elow , and agrees to m ake p aym en t th erefor at y o u r Bank on or b e fo r e the issue date at the p rice in d ica ted b e lo w : C O M P E T IT IV E T E N D E R D o n ot fill in both C om petitive and N on com p etitive tenders on one form $ ............................................................... ( m aturity v a lu e ), or any lesser am ount that m ay b e aw arded. N O N C O M P E T IT IV E T E N D E R $ ............................................................. (m a tu rity v a lu e ). (N o t to ex ceed $300,000 for on e bidder through all sou rces) P rice: .................................... p er 100. (P rice must b e expressed with not m ore than three decimal places, for exam ple, 9 9 .9 2 5 ) at the average p rice o f a cce p te d com p etitiv e bids. 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 bid for under this offering at a specific rate or price, until after one-thirty p.m., Eastern Daylight Saving time, Tuesday, February 26,1974. S u bject to allotm ent, please issue, deliver, and a cce p t paym ent fo r the bills as in d icated b e lo w : Pieces D enom ination $ Maturity value □ 1. D eliver over the counter to the undersigned □ 2. Ship to the undersigned 15,000 □ 3. H old in safekeeping (fo r ac count o f m em ber bank o n ly )* 50,000 □ 4. H old as collateral for Treasury 100,000 □ 10,000 5. Payment will b e m ade as follow s: □ By charge to our account on your books □ By cash or check in imm ediately available funds on delivery □ By credit in Treasury Tax and Loan A ccount, for w hich A dvice o f D eposit (b e lo w ) is submitted herewith Special instructions: 500,000 1,000,000 ( N o changes in delivery instructions will b e a c c e p te d ) Totals T h e 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 en velope marked “ Tender for Treasury Bills ” (Tel. No.) (Address — please print or type) (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 ST R U C T IO N S : 1. N o tender for less than $10,000 will b e considered and each tender must be for an even m ultiple o f $5,000 (m aturity valu e). 2. Others than banking institutions will not b e permitted to submit tenders except for their own account. Banks subm itting tenders for customer account may consolidate com petitive tenders at the same price and may consolidate non com petitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method o f payment. Forms for this purpose will b e 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 by an officer o f the corporation will be construed as a repre sentation by him that he has been so authorized. If the tender is m ade b y a partnership, it should be signed by 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 will 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 accom panied by paym ent o f 2 percent of the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f paym ent b y an incorporated bank or trust com pany. All checks must b e drawn to the order o f the Federal Reserve Bank o f N ew York; checks endorsed to this Bank will not be accepted. 5. If the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded. A d v ice o f D e p o sit in Treasury Tax and L oa n A ccou n t T o F e d e r a l R eserv e B an k o f N e w Y ork , Fiscal A gen t o f the U n ited States. W e w ill d ep osit on M arch 4, 1974 to you r cred it in the Treasury Tax and L oan A cco u n t on ou r books, to b e held su b ject to w ithdraw al on dem and, an am ount equ al to the purchase p rice o f the bills allotted to us on our tender fo r 46-day tax anticipation Treasury bills, additional am ount, d a ted N ovem b er 1, 1973, due A pril 19, 1974, to b e issued M arch 4, 1974. (Name of Depositary) By . . . (Authorized signature(s) required) Address (City and State)
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