The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FED E R A L RESER V E BANK O F NEW YORK F iscal A g e n t of the U n ited States t Circular No. 7 3 6 1 1 March 21, 1974 J Offering of $2,500,000,000 of 84-Day Tax Anticipation Treasury Bills, Additional Amount Dated November 30, 1973, Due June 21, 1974, To Be Issued March 29, 1974 T o A ll Incorporated Banks and Trust Com panies, and Others C on cern ed, in th e Second Federal R eserve D istrict: F ollo w in g is the text o f a n otice issued M arch 20 b y the Treasury D ep artm en t: The Treasury D epartm ent, b y this pu blic notice, invites tenders fo r $2,500,000,000, or thereabouts, o f 84-day Treasury bills, (to maturity da te), to be issued on M arch 29, 1974, on a discount basis under com petitive and noncom petitive b idd ing as hereinafter provided. These bills w ill represent an additional amount o f bills dated N ovem ber 30, 1973, to mature June 21, 1974 (C U S IP No. 912793 V N 3 ) originally issued in the amount o f $1,999,750,000. The additional and original bills will be freely interchangeable. They w ill be accepted at face value in paym ent o f incom e taxes due on June 15, 1974, and to the extent they are not presented for this purpose the face amount o f these bills w ill be payable w ithout interest at maturity. Taxpayers desiring to apply these bills in paym ent o f June 15, 1974 incom e taxes may submit the bills to a Federal Reserve Bank or Branch or to the Office of the Treasurer o f the United States, W ashington, not more than fifteen days before that date. In the case of bills submitted in pay ment o f incom e taxes o f a corporation they shall be accom panied by a duly com pleted Form 503 and the office receiving these items will effect the deposit on June 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 before June 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, M arch 26, 1974. 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 m ore than three decim als, 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 will 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 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 b e 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 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 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 w ith respect to the purchase or sale or other disposition o f any bills b id for under this offering at a specific rate or price, until after one-thirty p.m ., Eastern Daylight Saving time, Tuesday, M arch 26, 1974. Im m ediately after the closing hour, tenders w ill be opened at tlie Federal Reserve Banks and Branches, follow in g w hich pu blic announcem ent w ill be made b y the Treasury Department o f the amount and price range o f accepted bids. O nly those subm itting com petitive tenders w ill be advised o f the acceptance or rejection thereof. T he 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 b e 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 a ccepted 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 m ediately available funds on M arch 29, 1974. Any qualified depositary w ill be perm itted to make settlement b y credit in its Treasury Tax and L oan A ccou n t for 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 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 D epartm ent Circular No. 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 w ill receive tenders up to 1:30 p.m ., Eastern D a y lig h t Saving time, T uesday, M arch 26, 1974, at the Securities D epartm 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, and return it in the e n closed e n v elop e m arked “ T en d er fo r T reasury Bills.” T enders n ot requ irin g a d ep osit m ay b e subm itted b y telegraph, su bject to written confirm ation; th ey m ay not b e su bm itted b y telephon e. Settlem ent fo r a cce p te d tenders must be m ade on or b efore M arch 29, 1974, in cash or oth er im m ed iately available funds, ex cep t that any qu alified depositary m ay m ake settlem ent b y credit in its T reasury T ax and L o a n A c co u n t fo r Treasury bills allotted to it fo r itself and its custom ers. A l fr e d H a y e s , President ( over) IM P O R T A N T — 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. TE N D E R FOR 84-DAY T A X A N TIC IPATIO N TREASURY BILLS, A D D IT IO N A L A M O U N T Dated November 30, 1973, Due June 21, 1974, To Be Issued March 29,1974 Dated at T o F e d e r a l R eserve B a n k o f N e w Y o r k , Fiscal A gen t o f the U n ited States. 1974 Pursuant to the provisions o f T reasury D epartm 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 epartm en t inviting tenders fo r the a b ov e-d escrib ed T reasury bills, the u ndersigned h ereb y offers to pu 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 you 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 not fill in both C om petitive and N on com p etitive tenders on on e 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 atu rity v a lu e ). (N ot to ex cee d $500,000 for on e bidder through all sources) P rice: .................................... p er 100. at the average p rice o f a cce p te d com p etitive bids. ( Price must b e expressed with not m ore than three decim al places, for exam ple, 9 9 .92 5 ) W e hereby agree not to buy or to sell, or to make any agreem ents 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, March 26,1974. _________ Su bject to allotm ent, please issue, deliver, and a cce p t paym ent fo r the bills as in d ica ted b e lo w : Pieces Denom 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 on ly )* 50,000 □ 4. H old as collateral for Treasury 100,000 □ 5. Special instructions: $ 10,000 Payment w ill be made 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 ccou nt, for w hich A dvice o f D eposit (b e lo w ) is subm itted herewith 500,000 1,000,000 ( N o changes in delivery instructions will he a c c e p te d ) Totals T he undersigned certifies that the allotted bills w ill be 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. N o.) ( Signature of subscriber or authorized signature) ( T i t l e o f a u th o rize d s ig n e r ) (Banking institutions subm itting tenders for customer account must list customers’ names on lines b elow or on an attached rider) (N a m e o f cu s to m e r) (N a m e o f cu s to m e r) 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 (m aturity va lu e). 2. Others than banking institutions w ill not b e perm itted to subm it tenders except for their ow n account. Banks subm itting tenders for customer account m ay consolidate com petitive tenders at the same price and may consolidate non com petitive tenders, provided a list is attached show ing the name o f each bidder, the amount b id for his account, and method o f payment. Forms for this purpose w ill b e furnished on request. 3. I f 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 b e 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 b e drawn to the order o f the Federal Reserve Bank o f N ew York; checks endorsed to this Bank w ill not b e accepted. 5. If 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 a n k o f N e w Y o rk , F iscal A gen t o f the U n ited States. W e w ill d ep osit on M arch 29, 1974 to you r cred it in the Treasury Tax and L oan A cco u n t on our books, to b e h eld su bject to w ith draw al on dem an d, an am ount equ al to the purchase p rice o f the bills allotted to us on our tender for 84-d ay tax anticipation Treasury bills, additional am ount, dated N ov em b er 30, 1973, due June 21, 1974, to b e issued M arch 29, 1974. (Name of Depositary) By (Authorized signature(s) required) Address ( City and State)
@FedFRASER