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FED ER A L RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular N o. 7 5 1 8 *1 L December S, 1974 J Offering of $2,000,000,000 of 364-Day Treasury Bills Dated December 17, 1974 Due December 16, 1975 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued today by the Treasury Department: T he Treasury Department, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 364-day Treasury bills to be dated D ecem ber 17, 1974, and to mature Decem ber 16, 1975 (C U S I P N o. 912793 W W 2 ) . The bills w ill be issued for cash and in exchange for Treasury bills maturing Decem ber 17, 1974, outstanding in the amount of $1,802,550,000, o f which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $1,277,825,000. These accounts may exchange bills they hold for the bills now being offered at the average price o f accepted tenders. The bills w ill be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided, and at maturity their face amount w ill 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. Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, W ednesday, Decem ber 11, 1974. Tenders will not be re ceived 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 o f 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 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 o f Treasury bills applied for, unless the tenders are accompanied 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, follow ing which public announcement will 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 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 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 December 17, 1974, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing Decem ber 17, 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 of 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 owner of 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 of the circular may be o b tained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1:30 p.m., Eastern Standard time, Wednesday, December 11, 1974, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this notice to submit a tender and return it in the enclosed envelope marked “ Tender for Treasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; 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 a y e s , President. ( oveh) TENDER FOR 364-DAY TREASURY BILLS Dated December 17, 1974 To F ed er a l R eserv e B a n k of N ew Due December 16, 1975 Dated at Y ork, Fiscal Agent of the United States. 1974 Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions of the public notice issued by the Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated b elow : 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 TE N D E R $............................................................ (maturity value), or any lesser amount that may be awarded. Price: ....................................................... per 100. (P r ic e must be expressed with not m ore than three decimal places, fo r example, 99.925) N O N C O M PE TITIV E TEN D ER $............................................................. (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 below : Pieces Denomination Maturity value □ 1. Deliver over the counter to the undersigned Payment will be made as follow s: □ B y 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 (fo r mem ber bank on ly) in— 10,000 $ 15,000 50,000 100,000 □ Investment A ccount □ General Account □ Trust A ccount (Paym ent cannot be made through Treasury T a x and Loan A ccou n t) □ 500,000 1,000,000 □ 5. Special instructions: 4. Allotm ent transfer (see list attached) (N o changes in delivery instructions will be accepted) Totals 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. (Name of subscriber— please print or type) Insert this tender in special envelope marked “Tender for Treasury Bills” (Address— please print or type) (T el. N o.) (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 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 valu 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 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 o f 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 o f 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 o f the firm, w ho should sign in the form “ ............................- ............................. ............................................. . a copartnership, by ........................................................................................................................ a member o f 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. A ll checks must be drawn to the order o f the Federal Reserve Bank o f New Y o r k ; 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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