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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent of the United States r Circular No. 7 4 4 IT U A ugust 15, 1974 J Offering of $1,800,000,000 of 364-Day Treasury Bills Dated August 27, 1974 Due August 26, 1975 T o A ll Incorporated Banks and T rust Companies, and O thers 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 to be dated August 27, 1974, and to mature August 26, 1975 ( C U S I P No. 912793 W S 1 ) . 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. The bills will be issued for cash and in exchange for Treasury bills maturing August 27, 1974, outstanding in the amount of $1,804,820,000, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $721,135,000. These accounts may exchange bills they hold for the bills now being offered at the average price of accepted tenders. 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 in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value) and in bookentry form to designated bidders. 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 August 27, 1974, in cash or other immediately available funds or in a like face amount of Treasury bills maturing August 27, 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. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Wednesday, August 21, 1974. Tenders will not be received at the Treasury Department, Washington. Each tender must be 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. Fractions 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. Banking institutions and dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of N ew Y ork 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 1 22 1(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 N o . 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 h is Bank will receive tenders up to 1 :30 p.m ., Eastern Daylight Saving time, W ednesday, A ugust 21, 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.” T enders 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. TENDER FOR 364-DAY TREASURY BILLS Dated August 27, 1974 To F ederal R eserv e Bank oe N ew Due August 26, 1975 Dated a t .................................... Y ork, Fiscal A gen t o f the U nited States. 19... Pursuant to the provisions o f T reasury provisions o f the public notice issued by the T reasury bills, the undersigned hereby offers and agrees to make payment therefor at you r Departm ent 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 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 TEN D ER $ .............................................................. (m aturity v a lu e), or any lesser amount that may be awarded. P r ic e : ....................................... per 100. (P r ic e 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 ITIV E TEND ER S .................................................................(maturity value). (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 b elow : Pieces Denomination $ Maturity value □ 1. Deliver over the counter to the undersigned Payment will be made as follow s: □ By charge to our reserve account □ 2. Ship to the undersigned □ By cash or check in immediately available funds on delivery □ 3. H old in safekeeping (for mem ber bank only) in— 10,000 15,000 50,000 □ Investment Account n General Account □ Trust Account 100,000 □ 500,000 1,000,000 □ 4. Allotment attached) transfer (see (P aym en t cannot be made through Treasury T a x and Loan A ccoun t) 5. Special instructions: list ( A'o changes in delivery instructions will be accepted) 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. (N am e of subscriber— please p rin t or type) Insert this tender (A ddress— please p rin t or type) in special envelope marked “ Tender (Tel. N o.) (S ig n atu re of subscriber or authorized signature) for Treasury Bills'’ (T itle of authorized signer) (Banking institutions submitting tenders for customer account m ust list customers’ names on lines below or on an attached rider) (N am e of Custom er) (N am e of Custom er) 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. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrowings 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 of 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 of the tender by an officer of the corporation will be construed as a represen tation 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, who 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 rec ognized dealers in investment securities. Tenders 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. A ll checks must be drawn to the order of the Federal Reserve Bank of N ew Y o r k ; checks endorsed to this Bank will not be accepted. _ 5. I f the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Ireasury, is material, the tender may be disregarded.
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