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FEDERAL RESERVE BANK OF N E W YORK Fiscal A gent of the United States r Circular No. 7 4 2 3 L July 19, 1974 Offering of $1,500,000,000 of 44-Day Tax Anticipation Treasury Bills Dated August 7, 1974, Due September 20, 1974 T o A ll Incorporated Banks and T rust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice issued July 18 by the T reasury D epartm ent: T he Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 44-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. T he bills of this series will be dated A ugust 7, 1974, and will mature September 20, 1974 (C U S I P N o. 912793 W X 0 ) . They will be accepted at face value in payment o f income taxes due on September 15, 1974, and to the extent they are not presented for this purpose the face amount o f these bills w ill be payable without interest at maturity. Taypayers desiring to apply these bills in payment o f September 15, 1974 income taxes m ay submit the bills to a Federal Reserve Bank or Branch or to the Bureau o f the Public Debt, W ashington, D. C. 20226, not more than fifteen days before that date. In the case o f bills submitted in payment o f income taxes of a corporation they shall be accom panied by a duly com pleted F orm 503 and the office receiving these items w ill effect the deposit on September 15, 1974. In the case o f bills submitted in payment of income taxes o f all other taxpayers, the office receiving the bills w ill issue receipts therefor, the original o f which the taxpayer shall submit on or before September 15, 1974, to the D istrict D irector o f Internal Revenue for the D istrict in w hich such taxes are payable. The bills will be issued in bearer form , and in book-entry form to designated bidders, in denomina tions o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Thursday, August 1, 1974. Tenders will not be received at the Treasury Department, W ashington. Each tender must be fo r 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, and dealers w ho make primary markets in Government securities and report daily to the Federal Reserve Bank o f N ew Y o rk their positions with respect to Government securities and borrow ings thereon, may submit tenders for account o f customers, provided the names of the customers are set forth in such tenders. Others will not be permitted to submit tenders except fo r their ow n account. Tenders w ill 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 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. 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 oir other disposition of any bills of this issue at a specific rate or price, until after one-thirty p.m., Eastern Daylight Saving time, Thursday, August 1, 1974. 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 of the acceptance or rejection thereof. The Secretary o f 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 $300,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) 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 August 7, 1974. A ny qualified depositary will be permitted to make settlement by credit in its Treasury T a x and Loan A ccount for Treasury bills allotted to it for itself and its customers. U nder Sections 4 5 4 (b ) and 1221(5) o f 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. A ccordingly, the owner o f Treasury bills (other than life insurances 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. Treasury Department Circular this notice prescribe the terms of the conditions of their issue. Copies from any Federal Reserve Bank or N o. 418 (current revision) and the Treasury bills and govern of the circular may be obtained Branch. T his Bank w ill receive tenders up to 1 :30 p.m ., E astern Daylight Saving time, T hursday, A ugust 1, 1974, at the Securities Departm ent o f its H ead Office and at its B u ffa lo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in the enclosed envelope marked “ T end er for Treasury B ills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirm ation; they may not be submitted by telephone. Settlement for accepted tenders must be made on or before A ugust 7, 1974, in cash or other im mediately available funds, except that any qualified depositary may make settlement by credit in its T reasu ry T a x and L oan A ccou n t for T reasury bills allotted to it fo r itself and its customers. A l fr e d H ayes, President. 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. TENDER FOR 44-DAY T A X ANTICIPATION TREASURY BILLS Dated August 7, 1974, Due September 20, 1974 T o F e d eral R eserve B a n k of N e w Y F iscal A gen t o f the U nited States. ork Dated at ............................................................. , 1974 Pursuant to the provisions o f Treasury Departm ent Circular N o. 418 (cu rren t revision) and to the p rov i sions o f the public notice issued by the T reasury Departm ent inviting tenders fo r the above-described T reasury bills, the undersigned hereby offers to purchase such T reasury bills in the amount indicated below, and agrees to make payment therefor at you r 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 EN D ER $ ............................................................... (m aturity v a lu e), or any lesser amount that may be awarded. P r ic e : ........................................................... per 100. (P rice must be expressed with not m ore than three decimal places, fo r exam ple, 99.925) N O N C O M P E T IT IV E T EN D ER $ ................................................................. (m aturity value) (N o t to exceed $300,000 for one bidder through all sources) at the average price o f accepted competitive 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, Thursday, August i, 19 74 . Su bject to allotment, please issue, deliver, and accept paym ent for the bills as indicated b elow : Pieces Denomination $ M aturity value □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping (fo r mem ber bank only) in— Payment will be made as fo llo w s : □ B y charge to our reserve account □ By cash or check in immediately available funds on delivery □ By credit in Treasury T a x and Loan Account, for which A d vice o f Deposit (b elow ) is submitted herewith 10,000 15,000 50,000 □ Investment A ccount □ General A ccount □ Trust A ccount 100,000 500,000 □ 1,000,000 Totals □ 5. Special instructions: 4. H old as collateral for Treasury T a x and Loan Account (N o changes in delivery instructions will be accepted) T h e undersigned (m em ber bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose o f in the manner indicated in items 3 and 4 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 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 (m aturity valu e). 2. Only banking institutions, and dealers w ho make primary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrow ings thereon, may submit tenders for customer account; in doing so, they may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name o f each bidder and the amount bid for his account. Others will not be permitted to submit tenders except for their own account. 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 o f the tender by an officer o f 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 member of the firm, w ho 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 o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. A ll checks must be drawn to the order o f the Federal Reserve Bank o f N ew Y o r k ; 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 T o F ederal R eserve B a n k of N e w Y Fiscal A gen t o f the U nited States. ork , W e will deposit on A ugu st 7, 1974 to you r credit in the T reasury T a x and L oan A ccou n t on our books, to be held subject to withdrawal on demand, an amount equal to the purchase price o f the bills allotted to us on our tender for 44-day tax anticipation T reasu ry bills, dated A ugu st 7, 1974, due Septem ber 20, 1974. (Name of Depositary) By ...................... Address (Authorized signature(s) required) (City and State)
@FedFRASER