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FED E R A L R ESER VE BANK O F NEW YORK Fiscal A gent of the United States r Circular No. 73691 L March 28, 197* J Offering of $1,800,000,000 of 364-Day Treasury Bills Dated April 9, 1974 Due April 8, 1975 T o A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text of a notice issued today by the T reasury D epartm ent: The Treasury Department, by this public notice, invites tenders for $1,800,000,000, or thereabouts, of 364-day Treasury bills for cash and in exchange for Treasury bills maturing A pril 9, 1974, in the amount o f $1,801,775,000. The bills of this series will be dated A pril 9, 1974, and will mature A pril 8, 1975 (C U S I P N o. 912793 V J 2 ). 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. Th ey 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving time, W ednesday, A pril 3, 1974. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for a minimum of $10,000’. Tenders over $10,000 must be in multiples o f $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., 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 o f 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 of 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 will 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. O nly those submitting competitive tenders will be advised o f the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves 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, 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 decim als) o f accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on A pril 9, 1974, in cash or other immediately available funds or in a like face amount of Treasury bills maturing April 9, 1974. 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 o f the Treasury bills and govern the conditions of their issue. Copies of the circular may be ob tained from any Federal Reserve Bank or Branch. T his Bank will receive tenders up to 1 :30 p.m ., Eastern Daylight Saving time, W ednesday, A p ril 3, 1974, at the Securities Department o f its H ead Office and at its B uffalo Branch. Please use the form on the reverse side of this notice to submit a tender and return it in the enclosed envelope marked “ T ender fo r T reasury B ills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirm ation; 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 364-DAY TREASURY BILLS Dated A p r il 9 , 1 9 7 4 T o F ed er al R eserve B a n k of N ew D ue A p r il 8 , 1 9 7 5 Y Dated a t ..................................... ork. Fiscal A gen t o f the United States. 1 9 .. Pursuant to the provisions o f Treasury provisions o f the public notice issued by the Treasury bills, the undersigned hereby offers and agrees to make payment therefor at your Department Circular N o. 418 (current revision) and to the Treasury Department inviting tenders for the above described to purchase such T reasury bills in the amount indicated below, Bank on or before the issue date at the price indicated b e lo w : D o not fill in both Com petitive and N oncom petitive tenders on one form C O M P E T IT IV E T E N D E R $ .............................................................. (m aturity v a lu e), or any lesser amount that may be awarded. P r i c e : ....................................... per 100. (P rice must be expressed ivith not m ore than three decimal places, for exam ple, 99.925) N O N C O M P E T IT IV E T E N D E R $ .................................................................(m aturity valu e). (N o t to exceed $200,000 fo r one bidder through all sources) A t 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 ; □ By charge to our reserve account □ By cash or check in immediately available funds on delivery 500,000 1,000,000 (No changes in delivery instructions wui oe accepteaj (Payment cannot be made through Treasury Tax and Loan Account) Totals T he undersigned (m em ber bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are ow ned solely by the undersigned. (Name o f subscriber—please print or type) Insert this tender in special envelope marked “Tender (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 (maturity value). 2. O thers than bankin g institutions will not be perm itted to subm it tenders except for their ow n account. B anking institutions subm itting tenders for cu stom er accou nt m ay con solidate com petitive tenders at the same price and m ay con solida te n on com petitive tenders, provided a list is attached sh ow in g the name o f each bidder, the am ount bid for his accou nt, and m ethod o f paym ent. F orm s for this pu rpose will be furnished upon request. 3. If the person m akin g the tender is a corp ora tion , the tender should be signed by an officer o f the corporation a uthorized to make the tender, and the sign ing o f the tender by an officer of the corp ora tion will be construed as a r e p r e s e n ta tio n by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a m em ber o f the firm, w h o should sign in the form “ ......................................................................................................a copartnership, by ......................................................................................................... . a m em b er o f the firm .” 4. T e n d ers w ill be received w ithout deposit from in corp ora ted banks and trust com panies and from resp on sible and re co g n ize d dealers in investm ent securities. T en d ers from oth ers m ust be a ccom pa n ied b y paym ent of 2 percent o f the face am ount 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 pan y. ‘A ll ch ecks must be draw n to the ord er o f the Federal R eserve B a n k "of N e w Y o r k ; ch eck s en d orsed to this Bank w ill not be accepted. 5. If the language o f this tender is ch a n ged in any respect, w hich, in the opinion o f the S ecretary o f the T reasu ry, is m aterial, the tender m ay be disregarded.
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