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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent of the United States r Circular No. 7 4 5 5 "l i» September 12, 1974 J Offering of $1,800,000,000 of 364-Day Treasury Bills Dated September 24, 1974 Due September 23, 1975 T o A ll Incorporated B anks and Trust Companies, and O thers Concerned, in the Second Federal R eserve 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 September 24, 1974, and to mature September 23, 1975 (C U S I P N o. 912793 W T 9 ). The bills will be issued for cash and in exchange for Treasury bills maturing September 24, 1974, outstanding in the amount of $1,802,240,000, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $925,385,000. These accounts may exchange bills they hold for the bills now being offered at the average price o f 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 w ill be issued in bearer form in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value) and in bookentry form to designated bidders. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Wednesday, September 18, 1974. Tenders will not be received at the Treasury Department, W ashington. Each tender must be fo r a minimum o f $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 o f 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 for their ow n account. 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 o f the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f 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 w ill 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 September 24, 1974, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 24, 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 ow ner o f 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 o f their issue. Copies o f the circular may be ob tained from any Federal Reserve Bank or Branch. T h k Bank will receive tenders up to 1 :30 p.m ., Eastern Daylight Saving time, W ed n esday, Septem ber 18, 1974 at the Securities Departm ent o f its H ead O ffice and at its B uffalo Branch Please use the form o n the reverse side of this notice to submit a tender and return it in the enclosed envelope marked T end er for T reasury Bills. T enders not remiirinfir a deposit may be submitted by telegraph, subject to written con firm ation ; no tenders m ay be submitted by T l nhone 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 m maturing Treasury bills. A lfr e d H a y e s , President. TENDER FOR 364-DAY TREASURY BILLS Dated September 24, 1974 To F ederal R eserv e Bank of N ew Due September 23, 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 T reasury 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 EN D ER $ .............................................................. (m aturity v a lu e ), or any lesser amount that m ay 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 sou rces) A t the average price o f accepted competitive bids. Su bject to allotment, please issue, deliver, and accept payment for the bills as indicated b e lo w : Pieces Denomination $ M aturity value □ 1. D eliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. H old in safekeeping (fo r mem ber bank on ly) in— 10,000 15,000 50,000 □ 100,000 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 (P aym en t cannot be made through Treasury T a x and Loan A ccou n t) Investment A ccount □ 500,000 □ 1,000,000 □ Totals 5. Special instructions: Trust A ccou nt 4. Allotm ent attached) transfer (see list /1T . . . . (™ ° changes in delivery instructions will be accepted) The undersigned (member bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned 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 (T el. 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 (m aturity va lu e). 2. O nly 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 accou nt; in doing so, they may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached show ing the name o f each bidder and the amount bid for his account. Others will not be permitted to submit tenders except for their ow n 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 o f the firm, w h o should sign in the form “ ............................................. ............................................................................................ . a copartnership, by ............................................................................................................. . a member o f the firm.” 4. Tenders w ill 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 o f 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 w ill 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 Treasury, is material, the tender may be disregarded.
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