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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent o f the United States

I” C ir c u l a r

L

No.

74291

July 3 1 . 1 9 7 4

J

T R E A S U R Y F IN A N C IN G

To A ll B u n kin g Institutions, and Others Concerned,
in th e Second Federal R esenv District:

The following statement was made public today by the Treasury Department:
T he Treasury will auction to the p u blic next week up to $2.25 billion o f 33-m onth notes, up to $1.75
billion o f 6-year notes, and up to $400 m illion o f 8 -1 /2 % 2 4 -3 /4 year bonds. The rates for the notes will be announced
on Friday, August 2. A dditional am ounts o f the notes and bonds will be allotted to G overnm ent accou nts and the
Federal Reserve Banks in exchange for their holdings o f the maturing notes, which total $5.9 billion.
T he Treasury will also increase the am ount o f bills to be auctioned on August 5 and issued on A ugust 8 by $200
m illion. This is an am endm ent o f the announcem ent o f July 30.
These Treasury issues will provide funds for refunding the $4.3 billion o f notes held by the p u b lic m aturing on
August 15 and a portion o f the funds needed to cover the Treasury’s additional needs estimated to be approxim ately
$3.5 billion by the early part o f Septem ber. It is anticipated that additional funds will be raised by additions to the
regular weekly bill auctions and by issues o f other Treasury obligations having a maturity o f one year or less to meet
the balance o f Septem ber needs. T o the extent that additional special securities are issued by the Treasury to foreign
authorities, during the com in g weeks, the need for these short-term issues will be reduced.
The notes and bonds to be auctioned will be:
Treasury Notes o f Series D-1977 dated August 15, 1974, due M ay 15, 1977 (C U SIP No. 912827 D V D with
interest payable on N ovem ber 15, 1974, and thereafter on M ay 15 and Novem ber 15,
Treasury Notes o f Series B-1980 dated August 15, 1974, due August 15, 1980 (C U SIP No. 912827 D W 9 ) with
interest payable on February 15 and August 15, and
an additional am ount o f 8 -1 /2 % Treasury Bonds o f 1994-99 dated M ay 15, 1974, due M ay 15, 1999, callable
at the option o f the United States on any interest payment date on and after M ay 15, 1994 (C U SIP No.
912810 BR8) with interest payable on M ay 15 and Novem ber 15.
The notes and bonds will be issued in registered and bearer form in denom inations o f $1,000, $5,000, $10,000,
$100,000 and $1,000,000.
Tenders for the 33-m onth notes will be received up to 1:30 p.m .. Eastern Daylight Saving time, Tuesday, August
6. tenders for the 6-year notes will be received up to 1:30 p.m ., Eastern Daylight Saving time, W ednesday, August 7,
and tenders for the bonds will be received up to 1:30 p .m ., Eastern Daylight Saving time, Thursday, August 8 at any
Federal Reserve Bank or Branch and at the Bureau o f the Public Debt. W ashington, D .C. 20226; provided, however,
that noncom petitive tenders will be considered timely received if they are mailed to any such agency under a postm ark
no later than August 5 for the 33-m onth notes, August 6 for the 6-year notes, and August 7 for the bonds. Each
tender must be in the am ount o f $1,000 or a m ultiple thereof, and all tenders must state the price offered, if a
com petitive tender, or the term “ noncom petitive” , if a noncom petitive tender.
T he price on com petitive tenders for the notes and bonds must be expressed on the basis o f 100, with two
decim als, e.g., 100.00. Tenders at a price less than 99.51 for the 33-m onth notes, 98.51 for the 6-year notes, and 94.01
for the bon ds will not be accepted. Tenders at the highest prices will be accepted to the extent required to attain the
am ount offered. Successful com petitive bidders will be required to pay for the securities at the price they bid.
Noncom petitive bidders will be required to pay the average price o f all accepted com petitive tenders.




(Over)

Fractions may not be used in tenders. The notation “ T E N D E R F O R T R E A S U R Y N O TES (Series D -1977 or
B -1980)” or “ T E N D E R F O R T R E A S U R Y B O N D S ” should be printed at the bottom o f the envelopes in which the
tenders are subm itted.
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 noncom petitive tenders for
$500,000 or less for each issue will be accepted in full at the average price o f accepted com petitive tenders. The prices
may be 100.00. or m ore or less than 100.00.
C om m ercial banks, which for this purpose are defined as banks accepting dem and deposits, and dealers who
m ake prim ary markets in G overnm ent securities and report daily to the Federal Reserve Bank o f New Y ork their
positions with respect to G overnm ent securities and borrow ings thereon, may subm it tenders for the account o f
custom ers provided the names o f the custom ers 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 com m ercial and other banks for their own account, Federallyinsured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and
retirement and other pu blic funds, international organizations in which the United States holds m em bership, foreign
central banks and foreign States, dealers who m ake primary markets in G overnm ent securities and report daily to the
Federal Reserve Bank o f New Y ork their positions with respect to G overnm ent securities and borrowings thereon,
Federal Reserve Banks, and Governm ent accounts. Tenders from others must be accom panied by payment o f 5
percent o f the face am ount o f securities applied for.
Payment for accepted tenders must be com pleted on or before Thursday, August 15, 1974. Payments for the
bonds must include interest from M ay 15 to August 15, 1974, in the am ount o f $21.25 per $1,000 o f bonds allotted.
Payments must be m ade at the Federal Reserve Bank or Branch or at the Bureau o f the Public Debt in cash, 5 -5 /8 %
Treasury Notes o f Series B-1974, which will be accepted at par, or other funds im m ediately available to the Treasury
by that date. W here full payment is not com pleted in funds available by the payment date, the allotment will be
canceled and the deposit with the tender up to 5 percent o f the am ount o f securities allotted will be subject to
forfeiture to the United States.
The Treasury will construe as timely payment any check drawn to the order o f the Federal Reserve Bank or the
United States Treasury that is received at such bank or at the Treasury by Tuesday, August 13, 1974, provided the
check is drawn on a bank in the Federal Reserve District o f the bank or office to which the tender is submitted. Other
checks will constitute payment only if they are fully and finally collected by the payment date. Checks not so collected
will subject the investor’s deposit to forfeiture as set forth in the preceding paragraph. A check payable other than at
a Federal Reserve Bank received on the payment date will not constitute im m ediately available funds on that date.
C om m ercial banks are prohibited from m aking unsecured loans, or loans collateralized in whole or in part by the
securities bid for, to cover the deposits required to be paid when tenders are entered, and they will be required to
make the usual certification to that effect. O ther lenders are requested to refrain from m aking such loans.
All bidders are required to agree not to purchase or to sell, or to m ake any agreements with respect to the
purchase or sale or other disposition o f the securities bid for under this offerin g at a specific rate or price, until after
the closing hour for the receipt o f tenders for each particular issue.

As indicated in the above statement, the coupon rates for the two issues of notes will be announced on
Friday, August 2. You may call this Bank (Telephone No. 212-791-5823, 212-791-6616, or 212-791-5465) on the
afternoon of that date to ascertain those rates; other telephone inquires regarding this offering may be made by
calling Telephone No. 212-791-5823 or 212-791-6616.
If there is any doubt that tenders sent by mail will reach this Bank or its Branch as required above, bidders
should use other means of transmitting their tenders. The official offering circulars and tender forms will be
mailed to you as soon as possible.




ALFRED HAYES,
P resid en t.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102