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FED ER A L RESER VE BANK O F NEW YORK Fiscal Agent of the United States r C ir c u la r No. 7 3 9 6 "I L M ay 22, 1974 J Offering of $1,800,000,000 of 364-Day Treasury Bills Dated June 4, 1974 Due June 3, 1975 I'o A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second icderal R eserve D istrict: F ollow ing is the text of a notice issued today by the T reasury D epartm ent: The Treasury Department, by this public notice, invites tenders $1 ,S<)().(M)().<)()(>, or thereabouts, of 364-day Treasury bills to be dated June 4, 1974, and to mature June 3, 1975 ( C U S I P No. 912793 V 1.7 ). 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. I lie bills will be issued for cash and in exchange for Treasury maturing June 4, 1974, outstanding in the amount of $ I,S(M),8 4 0 ,0 0 0 , o f which (iovernment accounts and Federal Reserve Hanks, lor themselves and as agents of foreign and international monetary authorities, presently hold $1,024,495,000. These accounts may exchange bills they hold for the bills now being offered at the average price of accepted tenders. 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 $200,000 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 on June 4, 1974, in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 4, 1974. Cash and exchange tenders will receive equal treatment. Cash adjust ments will be made for differences between the par value of matur ing bills accepted in exchange and the issue price of the new bills. foi bills 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. They 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 (maturity value). lenders will be received at Federal Reserve Banks and I tranches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Wednesday, May 29, 1974. 'fenders will not be received at the Treasury Department, Washington. Each tender must he for a minimum of $10,000. Tenders over $10,000 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., 99.925. Fractious 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 Federal Reserve Banks or Branches on application therefor. Hanking institutions and dealers who make primary markets in (iovernment securities and report daily to the Federal Reserve Hank of New York their positions with respect to Government securities and borrowings thereon may submit tenders for account of customers, provided the names of the customers are set forth in such tenders. Others will not be permitted 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 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. 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 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 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 ob tained from any Federal Reserve Bank or Branch. T his Rank will receive tenders up to 1 :30 p.m.. Eastern Daylight Saving time, W ednesday, M ay 29, 1974, at the Securities Department o f its H ead 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 “ T end er for Treasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirm ation; no tenders may be submitted by telephone, raym cn t for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Set Ilenient must be made in cash or other immediately available funds or in maturing Treasury bills. A lfred H ayes, President. ( over) TENDER FOR 364-DAY TREASURY BILLS Dated June 4, 1974 To F e d e ra l R eserve B a n k o f N ew Due June 3, 1975 Dated at Y ork , Fiscal A gen t o f the United States. 1 9 ... Pursuant to the provisions of Treasury provisions o f the public notice issued by the Treasury bills, the undersigned hereby offers and agrees to make payment therefor at you r Department Circular N o. 418 (current revision) and to the Treasury Department inviting tenders for the above described to purchase such Treasury bills in the amount indicated below, Bank on or before the issue date at the price indicated b elow : D o not fill in both Competitive and C O M P E T IT IV E T E N D E R Noncom petitive tenders on one form $ .............................................................. (m aturity v a lu e), or any lesser amount that may be awarded. P r i c e : ....................................... per 100. ( Price must be expressed with not more than three decimal places, for example, 99.925) N O N C O M P E T IT IV E T E N D E R S .................................................................(m aturity value). (N o t to exceed $200,000 for 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 b e lo w : 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. Hold in safekeeping (for ac count of member bank only) 4. Allotment transfer (see list attached) 5. Special instructions: Payment will be made as follows: □ □ 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 will be accepted) (Payment cannot be made through Treasury Tax and Loan Account) Totals T h e 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 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 (Name of Customer) below or on an attached rider) (Name of Customer) INSTRUCTIONS: 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 banking institutions will not be permitted to submit tenders except lor their own account. Hanking institutions subm itting tenders for custom er account may consolidate competitive tenders at the same price and m ay consolidate noncompetitive tenders, provided a list is attached show ing the name of each bidder, the amount bid for his account, and method of payment. F orm s for this purpose will be furnished upon request. 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 representation 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 of the firm, w ho should sign in the form “ .......................................................................................................... . a copartnership, by ....................................................................................................... a m em ber o f the firm .” 4 T en ders will be received without deposit from incorporated banks and trust com panies and from respon sible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of ? .,crt.lcnt of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. A ll checks must be drawn to the order of the Federal Reserve Bank of N e w Y o r k ; checks endorsed to this Bank will not be accepted. r jf t^ c language of this tender is changed in any respect, which, in the opinion of the Secretary of the T re a su ry , is material, the tender m ay be disregarded.
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