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FEDERAL RESERVE BANK OF N E W YORK Fiscal A gent of the United States r Circular No. 7 4 - 5 8 't L September 17, 1974 -I Auction of $2 Billion of 2 -Year Treasury Notes of Series J-1976 To A ll Banking Institutions, and Others Concerned, in the Second Federal R eserve D istrict: As announced in our Circular No. 7456, dated September 16, 1974, the Treasury will sell at auction, on Tuesday, September 24, under competitive and noncompetitive bidding, $2 billion of 2-year Treasury Notes of Series J-1976, dated September 30, 1974, due September 30, 1976. The terms of the offering are set forth in Treasury Department Circular No. 11-74, Public Debt Series, dated September 16, 1974, a copy of which is printed on the following pages. This Bank will receive tenders up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, September 24, 1974, at the Securities Department of its Head Office and at its Buffalo Branch, except that non competitive tenders mailed to this Bank or its Branch postmarked no later than Monday, September 23, will be considered timely. Please use the enclosed tender form to submit a tender, and return it in the enclosed envelope marked “Tender for Treasury Notes or Bonds.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by tele phone. Settlement for accepted tenders may be made in cash, 6% Treasury Notes of Series E-1974, or other immediately available funds; settlement cannot by made by credit in Treasury Tax and Loan Accounts. If payment is made by check, the check must be a certified personal check or an official Bank check, payable on its face to the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. The method of auction to be used for this issue of notes will differ from that used for previous auctions of Treasury securities. Competitive tenders for these new notes must be expressed in terms of an annual yield in two decimal places, e.g., 8.47, rather than in terms of a price, as has been the procedure in other auctions. Tenders at the lowest yields, and noncompetitive tenders, will be accepted to the extent required to attain the $2.0 billion offered. After a determination is made as to which tenders are accepted, a coupon yield will be determined to the nearest % of 1 percent necessary to make the average accepted price 100.00 or less. That will be the rate of interest that will be paid on all of the notes. Based on such interest rate, the price on each competitive tender allotted will be determined and each successful competitive bidder will pay the price corresponding to the yield he bid. Price calculations will be carried to two decimal places on the basis of price per hundred, e.g., 99.92, and the determinations of the Secretary of the Treasury shall be final. Tenders at a yield that will produce a price less than 99.51 will not be accepted. Telephone inquiries regarding this offering may be made by calling Telephone No. 212-791-5823, 212-791-6616, or 212-791-5465. A lfred H ayes, President. UNITED STATES OF AMERICA TREASURY NOTES OF SERIES J-1976 D a ted and bearing interest from Septem ber 30, 1974 departm ent c ir c u l a r Public Debt Series — No. 11-74 Due September 30, 1976 D E PA R TM E N T O F TH E TREASU RY, O ffice o f the Secretary, W ashington, Septem ber 16,1974. I. IN V IT A T IO N F O R T E N D E R S 1. T h e Secretary o f the T reasury, pursuant to the authority o f the S econ d L ib e rty B o n d A ct, as a m en ded, invites tenders on a y ie ld basis fo r $2,000,000,000, or thereabouts, o f notes o f th e U n ited States, d e sign a ted T reasury N otes o f Series J-1976. T h e inter est rate fo r the notes w ill b e determ in ed as set forth in S ection III, paragraph 3, h ereof. S om e o f th e notes m a y b e allotted b y the Secretary o f the T reasury to G ov ern m en t accou nts and F ed era l R eserve Banks at the average p rice o f a cce p te d tenders in exch ange fo r T reasury notes m aturing S eptem ber 30, 1974. T en d ers w ill b e re ce iv e d u p to 1:30 p .m ., Eastern D a y lig h t Saving tim e, T uesday, S ep tem ber 24, 1974, u n d er com p etitiv e and n on com p etitiv e b id d in g , as set forth in S ection III h ereof. T h e 6 p ercen t Treasury N otes o f Series E-1974, m aturing S ep tem b er 30, 1974, w ill b e a cce p te d at par in p aym en t, in w h o le or in part, to the extent tenders are a llotted b y the Treasury. H. D E S C R IP T IO N O F N O TE S 1. T h e notes w ill b e d a ted S ep tem b er 30, 1974, an d w ill bear interest from that date, p a y a b le sem i annually on M a rch 31, 1975, S ep tem b er 30, 1975, M a rch 31, 1976, and S ep tem ber 30, 1976. T h e y w ill m ature S ep tem ber 30, 1976, and w ill n ot b e su bject to call fo r red em p tion p rior to maturity. 2. T h e in co m e d e riv e d fro m the notes is su b ject to all taxes im p osed u nder the Internal R even u e C o d e o f 1954. T h e notes are su b ject to estate, inheritance, g ift or oth er excise taxes, w h eth er F ed era l or State, b u t are exem p t from all taxation n o w or hereafter im p o se d on the p rin cip a l or interest th e re o f b y any State, o r any o f the possessions, o f the U n ited States, o r b y any lo ca l taxing authority. 3. T h e notes w ill b e a cce p ta b le to secure deposits o f p u b lic m oneys. T h e y w ill n ot b e a cce p ta b le in p ay m en t o f taxes. 4. B earer notes w ith interest co u p o n s attached, an d notes registered as to p rin cip a l and interest, w ill b e issued in d en om in ations o f $10,000, $100,000 and $1,000,000. B ook-en try notes w ill b e available to elig ib le b id d ers in m ultiples o f those am ounts. Inter ch an ges o f notes o f differen t denom inations and o f co u p o n and registered notes, and the transfer o f registered notes w ill b e perm itted. 5. T h e notes w ill b e su bject to the general regu la tions o f the D ep artm en t o f the Treasury, n o w or h ereafter prescrib ed , govern in g U nited States notes. H I. TENDERS AND ALLOTM ENTS 1. T enders w ill b e re ce iv e d at F ed eral R eserve Banks and B ranches and at the Bureau o f the P u b lic D e b t, W a sh in gton , D . C. 20226, u p to the closin g hour, 1:30 p.m ., Eastern D a y lig h t Saving time, T u es day, S eptem ber 24, 1974. E ach ten der m ust state the fa c e am ount o f notes b id for, w h ich m ust be $10,000 or a m ultiple th ereof, and the y ie ld desired, ex cep t that in the case o f n on com p etitiv e tenders the term “ n o n com p etitiv e” should b e used in lieu o f a yield. In the case o f com p etitive tenders, the yield must b e expressed in terms o f an annual yield , with tw o decim als, e.g., 8.47. N on com p etitiv e tenders from any on e b id d e r m ay n ot e x ce e d $500,000. 2. C om m ercial banks, w h ich fo r this pu rp ose are d efin ed as banks a ccep tin g d em an d deposits, and dealers w h o m ake prim ary markets in G overn m en t securities and report daily to the F ederal R eserve Bank o f N e w Y ork their positions w ith respect to G overn m en t securities and b orrow in gs thereon, m ay subm it tenders fo r a ccou n t o f custom ers p ro v id e d the nam es o f the custom ers are set forth in such tenders. Others w ill not b e perm itted to subm it tenders ex cep t fo r their ow n account. T enders w ill b e receiv ed w ith ou t d ep osit from banking institutions fo r their ow n accou nt, F ederally-in su red savings and loan as sociations, States, p olitica l subdivisions or instru mentalities th ereof, p u b lic p en sion and retirem ent and oth er p u b lic funds, international organizations in w h ich the U nited States holds m em bership, foreign central banks and foreig n States, dealers w h o m ake prim ary markets in G overn m en t securities and report daily to the F ed eral R eserve Bank o f N e w Y ork their positions w ith respect to G overn m en t securities and b orrow in g s thereon, and G overn m en t accounts. T enders from others must b e a ccom p a n ied b y p a y m ent (in cash or 6 p ercen t T reasury N otes o f Series E -1974 w h ich w ill b e a cce p te d at p a r) o f 5 percen t o f the fa ce am ount o f notes a p p lied for. 3. Im m ed ia tely after the closin g h ou r tenders w ill b e o p en ed , fo llo w in g w h ich p u b lic announcem ent w ill b e m a d e b y th e D ep artm en t o f the Treasury o f the am ount and y ie ld range o f a cce p te d bids. T h ose subm itting com p etitiv e tenders w ill b e advised o f the a ccep ta n ce or rejection thereof. In con sid erin g the accep tan ce o f tenders, those w ith the low est yields w ill b e a ccep ted to the extent req u ired to attain the am ount offered. T enders at the highest a cce p te d yield w ill b e prorated if necessary. A fter the d e term ination is m ad e as to w h ich tenders are a ccep ted , an interest rate w ill b e established at the nearest Vs o f on e p ercen t necessary to m ake the average a ccep ted p rice 100.00 or less. T hat w ill b e the rate o f interest that w ill b e p a id on all o f the notes. Based on such interest rate, the p rice on each c o m p etitive tender allotted w ill b e d eterm in ed and each successful com p etitiv e b id d e r w ill b e req u ired to p a y the p rice co rresp on d in g to the y ield b id . P rice ca l culations w ill b e carried to tw o decim al p laces on the basis o f p rice p er h u n dred, e.g., 99.92, and the d e term inations o f the Secretary o f the T reasury shall b e final. T h e Secretary o f the T reasury expressly reserves the right to a ccep t or reject any or all tenders, in w h ole or in part, in clu d in g the right to accep t m ore or less than $2,000,000,000 o f tenders, and his action in any such resp ect shall b e final. S u bject to these reservations, n on com p etitiv e tenders fo r $500,000 or less w ith ou t stated y ield from any on e b id d e r w ill b e a cce p te d in fu ll at the average p rice (in tw o d ecim a ls) o f a cce p te d com p etitiv e tenders. 4. A ll b id d ers are requ ired to agree not to purchase or sell, o r to m ake any agreem ents w ith respect to the pu rchase or sale or other disposition o f any notes o f this issue at a sp ecific rate or p rice, until after 1:30 p.m ., Eastern D a y lig h t Saving tim e, T uesday, Septem ber 24, 1974. 5. C om m ercial banks in subm itting tenders w ill b e requ ired to certify that th ey have no ben eficial inter est in any o f the tenders they enter fo r the a ccou n t o f their custom ers, and that their custom ers have no ben eficial interest in the banks’ tenders fo r their ow n accounts. IV . a cash adjustm ent w ill b e m a d e to or req u ired o f the b id d e r fo r any d ifferen ce b e tw e e n the fa c e am ount of notes subm itted and the am ount p a y a b le on the notes allotted. 2. D eliv ery o f notes in bearer form w ill b e m ad e on o r a b ou t O cto b e r 8, 1974. Purchasers o f bearer notes m ay ele ct to re ce iv e interim receip ts on Sep tem ber 30, 1974, w h ich w ill b e exch a n g ea ble for the notes w h en available at any F ed era l R eserve Bank or Branch or at the B ureau o f the P u b lic D eb t, W ash in gton , D . C. 20226. T h e interim receipts m ust b e returned at the expense and risk o f the h older. V. A SSIG N M E N T O F R E G IS T E R E D N O TE S 1. R egistered notes ten d ered as deposits and in p aym en t fo r notes allotted h ereun der are n ot re q u ired to b e assigned if the notes are to b e registered in the same nam es and form s as appear in th e regis trations or assignments o f the notes surrendered. S pecific instructions fo r the issuance and d eliv ery o f the notes, signed b y the ow n er or his au th orized representative, must a ccom p a n y the notes presented. O therw ise, the notes should b e assigned b y the regis tered payees o r assignees th ereof in a cco rd a n ce w ith the general regulations gov ern in g U n ited States se curities, as hereinafter set forth. N otes to b e registered in nam es and form s differen t from those in the in scrip tions or assignments o f the notes p resen ted sh ou ld b e assigned to “ T h e Secretary o f the T reasury fo r T reas u ry N otes o f Series J-1976 in the nam e o f (n a m e and taxpayer id en tify in g n u m b e r ).” I f notes in co u p o n form are desired, the assignm ent sh ou ld b e to “ T h e Secretary o f the T reasury fo r c o u p o n T reasury N otes o f Series J-1976 to b e d eliv ered t o ....................................” N otes ten dered in p aym en t should b e su rrendered to the F ederal R eserve Bank or B ranch or to the Bureau o f the P u b lic D e b t, W ash in gton , D . C. 20226. T h e notes m ust b e d elivered at the expense and risk o f the holder. PA Y M E N T F O R A N D D E L IV E R Y O F N O TE S 1. Settlem ent fo r a cce p te d tenders in a ccord a n ce w ith the bids m ust b e m ade or co m p le te d on or b e fo re S eptem ber 30, 1974, at the F ed eral R eserve Bank or Branch or at the Bureau o f the P u b lic D eb t, W a sh in g ton, D . C. 20226, in cash, 6 p ercen t T reasury N otes o f Series E-1974 (interest cou p on s dated S eptem ber 30, 1974, should b e d e ta c h e d ) or oth er funds im m ediately available b y that date. Paym ent w ill not b e d eem ed to have b een co m p le te d w h ere registered notes are requ ested if the appropriate id en tifyin g num ber as requ ired on tax returns and other d o c u ments subm itted to the Internal R even u e Service (a n in d ivid u a l’s social security n um ber or an em p loyer identification n u m b e r) is not furnished. In every case w h ere full paym en t is n ot com p leted , the p a y m ent w ith the ten d er up to 5 p ercen t o f the am ount of notes allotted shall, u p on declaration m ade b y the S ec retary o f the Treasury in his discretion, be fo rfe ited to the U nited States. W h e n paym en t is m ade w ith notes, VI. G E N E R A L PR O V ISIO N S 1. As fiscal agents o f the U n ited States, F ed eral R eserve Banks are a u th orized and req u ested to re ce iv e tenders, to m ake such allotm ents as m ay b e p rescrib ed b y the Secretary o f th e T reasury, to issue such notices as m ay b e necessary, to rece iv e p aym en t fo r and m ake d eliv ery o f notes on fu ll-p a id tenders allotted, and they m ay issue interim receipts p en d in g d elivery o f the definitive notes. 2. T h e Secretary o f the T reasury m ay at any tim e, or from tim e to tim e, p rescrib e su pplem en tal or am en datory rules and regulations g ov ern in g the offer ing w h ich w ill b e com m u n ica ted p ro m p tly to the F ederal R eserve Banks. W IL L IA M E. SIM O N , Secretary of the Treasury. IM P O R T A N T — Closing time for receipt of this tender is 1:30 p.m., Tuesday, September 24,1974. T E N D E R FOR TREASURY NOTES O F SERIES J-1976 Dated September 30 ,1 9 7 4 Due September 3 0 ,1976 F e d e r a l R eserve B ank o f N e w Y o rk , Dated at F iscal A ge n t o f the U n ited States, N e w York, N . Y. 10045 1974 Pursuant to the provisions o f T reasu ry D ep a rtm en t C ircular N o. 11-74, P u b lic D e b t Series, dated S ep tem ber 16, 1974, the u n d ersign ed h e re b y offers to purchase U n ited States o f A m erica T reasu ry N otes o f Series J-1976 in the am ount in d ica te d b e lo w , and agrees to m ake p a ym en t th erefor at you r Bank on or b e fo re the issue date at the p rice a w a rd ed on this tender. C O M P E T IT IV E T E N D E R Do not fiU in both Competitive and Noncompetitive tenders on one form N O N C O M P E T IT IV E T E N D E R $ ............................................................. (m a tu rity v a lu e ), or any lesser am ou n t that m a y b e aw arded. (N ot to ex cee d $500,000 for one bidder through all sources) Y i e l d : ........... at the average p rice o f a cce p te d com p etitive bids. $ ............................................................. ( m aturity v a lu e ) ( Yield must b e expressed with n ot m ore than tw o decim al places, for exam ple, 8 .47) S u bject to allotm ent please issue, deliver, an d a cce p t paym en t fo r the notes as in d ica ted b e lo w and on the reverse side ( i f registered notes are d esired, p lease also co m p le te sch ed u le on reverse s id e ): Pieces D enom ination Maturity value 10,000 $ 100,000 □ 1. D eliver over the counter to the undersigned Paym ent w ill b e m ade as follow s: □ By charge to our reserve account □ 2. Ship to the undersigned □ □ 3. H old in safekeeping (fo r m em ber bank o n ly ) in — By cash or check in im m ediately available funds on delivery □ By surrender o f 6 % Treasury Notes o f Series E -1974 □ □ □ 1, 000,000 □ 4. Investment A ccou nt General A ccount Trust A ccou nt □ 5. Special instructions: H old as collateral tor treasury Tax and Loan A ccou nt* (N o changes in d elivery instructions will b e a ccep ted ) Totals * T h e undersigned certifies that the allotted notes w ill be ow n ed solely by the undersigned. W e h ereby agree not to buy or to sell, or to make any agreem ents with respect to the purchase or sale or other disposition o f any notes o f this issue at a specific rate or price, until after one-thirty p.m., Eastern D aylight Saving time, Tuesday, S eptem ber 24,1974. ( If a com m ercial bank is subscribing for its own accou nt or for account o f customers, the follow in g certifications are m ade a part o f this ten der.) W e H e r e b y C e r t i f y that w e h ave re ce iv e d tenders fro m ou r custom ers in the am ounts set o p p osite the cu stom ers’ nam es on the list w h ich is m ad e a part o f this tender; that there has b e e n p a id to us b y each su ch cu stom er as req u ired b y the official offerin g circular, n ot su b je ct to w ith draw al until after allotm ent, n ot less than 5 p ercen t o f the am ount b id fo r; that w e have n ot m a d e u nsecured loans, or loans collateralized in w h o le or in part b y the notes b id for, to su p p ly the am ounts o f such paym ents to any o f such custom ers; that w e h ave n o ben eficial interest in the tenders o f su ch custom ers; and that n on e o f our custom ers has any ben eficial interest in the am ount b id fo r ou r o w n accou nt. W e F u r t h e r C e r t i f y that tenders re ce iv e d b y us, if any, fro m oth er com m ercia l banks fo r their ow n a ccou n t and fo r the a ccou n t o f their custom ers have b een en tered w ith us u nder the same con ditions, agree m ents, and certifications as set forth in this form . __ ____ Insert this tender in special envelope marked “Tender for Treasury ■mj , t, j n Notes or Bonds (Name of subscriber — please print or type) (Address — please print or type) (Tel. N o.) ........................................... . .............................................................................................................. ( Signature of subscriber or authorized signature) (Title of authorized signer) IM P O R T A N T — Banks submitting tenders for customer account must indicate names and amounts desired by each on a separate list attached hereto. IN S T R U C T IO N S : 1. valu e). N o tender for less than $10,000 will be considered and each tender must b e for an even multiple o f $10,000 (m aturity 2 . Only banking institutions, and dealers w ho make primary markets in Governm ent securities and report daily to this Bank their positions with respect to Governm ent securities and borrowings thereon, may submit tenders for customer account; in doing so, they may consolidate com petitive tenders at the sam e yield and may consolidate noncom petitive tenders’, p rovided a list is attached showing the name o f each bidder and the amount bid for his account. Others wall not be permitted to subm it tenders except for dieir ow n account. 3. If the person making the tender is a corporation, the tender should be signed by an officer o f d ie corporation author ized 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 b y a partnership, it should be signed by a m em ber o f the firm, w ho should sign in the form “ ............................ ...................................................................... , a copartnership, b y .................................... ........................................................ a m em ber o f the firm.” 4. Tenders w ill be received without deposit from com m ercial and other banks for their own account, Federally-insured savings and loan associations, States, political subdivisions or instrumentalities thereof, pu b lic pension and retirement and other p u b lic funds, international organizations in w'hich the United States holds m em bership, foreign central banks and foreign States, dealers w h o make primary markets in G overnm ent securities and report daily to the Federal Reserve Bank o f N ew York their positions with respect to G overnm ent securities and borrow ings thereon, and G overnm ent accounts. Tenders from others must be accom panied b y paym ent o f 5 percent o f the face amount o f securities applied for. All checks must b e drawn to the order o f the Federal Reserve Bank o f N ew York; checks endorsed to this Bank w ill not be accepted. 5. I f the language o f this tender is changed in any respect, w hich, in the opinion o f the Secretary o f the Treasury Is material, the tender may be disregarded. SCHEDULE FOR ISSUE OF REG ISTERED TREASURY NO TES OF SERIES J-1976 SUBSCRIPTION NO. F O R F R B USE O N L Y D E L IV E R Y IN ST R U C T IO N S S U B S C R IB E R 1 j DELIVER OVER THE COUNTER S IG N A T U R E _ | I SHIP TO SUBSCRIBER TRANS. ACCOUNTING DATE 05 Q OTHER INSTRUCTIONS: ISSUE AGENT 12 ADDRESS LOAN CODE <s: o o ?r a> 3 ZIP REGISTRATION N O . OF PIECES INSTRUCTIONS NAME(S) DENOM. 34 10.000 38 100.000 42 SERIAL NOS. (LEAVE BLANK) A MO U N T FOR FRB USE ONLY v- O 05 CD tn> 3 Co 05 < TO cr 3. 0> ct> CL o CD w p H to •Q 1.000,000 > I ID OR S.S. NO. a H to SL ADDRESS 8 s: ZIP NAME(S) 99 TOTAL 34 10.000 38 100.000 42 1.000,000 3 3g T3 TR CASE NO. c cr H M C/3 MM -1 o n> O £ CD 2 ID OR S.S. NO. J2 o i-T ADDRESS ZIP NAME(S) 99 TOTAL 34 10.000 3ft 100.000 •: TR CASE NO. NAME(S) 99 1.000,000 TR. .CASE NO. total 34 10,000 38 100.000 42 1.000,000 ID OR S.S. NO. ADDRESS ZIP NAME(S) 99 TR. CASE NO. total 34 10,000 42 1.000.000 100.000 ID OR S.S. NO. * ADDRESS ZIP 99 total □ TR. CASE NO. CL P C /3 o o^ po p Ml o M o d" 3" o > M > o cr a> bo □ □ X X X O ADDRESS ZIP P 00 □ ID OR S.S. NO. S (T O CL O * Ml P t/i O O -« O^ v> P p" a> ?? <X' T> p h — * T3 Ml S’ O M & H H 8° r1 > o fD- <‘ CD M □ □ a 2- u 2<’ a> n rt- O ~ 3. M c cr CL ^ ^ $ cr a> o 2- S’ TO S 'I B* s, * O r-t- 33 °^ m p P p -. a 2 & D • rP-t< v— r-f 0> 5- K o >■* 3 so <-*■ © 13 ft> tJ2 C CD C/3 rt* ft ecr 2L o3
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