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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States j" Circular No. 7 4 8 01 1- October 16, 1974 J Special Offering of $1,500,000,000 of 227-Day Treasury Bills Dated November 4, 1974 Due June 19, 1975 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F ollow in g is the text of a notice issued O ctober 15 by the Treasury Departm ent: The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 227-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated November 4, 1974, and will mature June 19, 1975 (C U SIP No. 912793 WZ5) when the 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 book-entry form to designated bidders. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, October 29, 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 New York 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 from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are ac companied by an express guaranty of payment by an incorporated bank or trust company. 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 in cash or other immediately available funds on November 4, 1974. Under Sections 454(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, redeemed 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 here under 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 No. 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 obtained from any Federal Reserve Bank or Branch. T h is Bank will receive tenders up to 1 :30 p.m ., Eastern Standard time, Tuesday, O ctober 29, 1974, at the Se curities Departm ent of its H ead Office and at its B uffalo Branch. Please use the form on the reverse side o f this notice to submit a tender and return it in the enclosed envelope marked “ T ender for T reasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirm ation; no tenders may be submitted by telephone. Paym ent 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. A lfred H ayes, President. ( over) TENDER FOR 227-D A Y T R E A SU R Y BILLS Dated November 4, 1974 To F ederal R eserve B a n k of N ew Due June 19, 1975 Dated at Y ork, F iscal A gen t o f the U nited States. 1974 Pursuant to the provisions o f Treasury D epartm ent Circular N o. 418 (cu rren t revision) and to the p rovi sions o f the public notice issued by the T reasury Department 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 : Do not fill in both Competitive and Noncompetitive tenders on one form C O M P E T IT IV E T E N D E R N O N 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. $ ................................................................. (m aturity value) (Not to exceed $200,000 for one bidder through all sources) P rice : ...........................................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) A t the average price o f accepted com petitive bids. Su bject to allotment, please issue, deliver, and accept paym ent for the bills as indicated b elow : Pieces Denomination $ Maturity value □ 1. Deliver over the counter to the undersigned 10,000 □ 2. Ship to the undersigned 15,000 □ 3. Hold in safekeeping (for mem ber bank only) in— 50,000 □ Investment Account 100,000 Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds on delivery (Payment cannot be made through Treasury Tax and Loan Account) □ 5. Special instructions: □ General Account 500,000 □ Trust Account 1,000,000 □ 4. Allotment transfer (see list attached) Totals (No changes in delivery instructions will be accepted) T he 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 item 3 above are ow ned solely by the undersigned. (Name o f subscriber—please print or type) Insert this tender (Address— please print or type) in special envelope marked “ Tender for Treasury Bills” (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 ST R U C T IO N S: 1. No 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 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, 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 recognized 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. All checks must be drawn to the order of the Federal Reserve Bank of New Y ork; 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.
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