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FED ER A L RESERVE BANK O F N EW YORK Fiscal Agent of the United States I”Circular No. 7577*1 i February 27, 1975 J Offering of $1,130,000,000 of 364-Day Treasury Bills Dated March 11, 1975 Due March 9, 1976 T o A l l Incorporated B a n k s and T r u s t C om panies, and O th ers C oncerned, in the S econd F ederal R eserve D istric t: Following is the text of a notice issued today by the Treasury Department: T h e D ep artm en t of the T rea su ry , by this public notice, invites tenders fo r 364-day T re a su ry bills to be d ated M arch 11, 1975, and to m atu re M arch 9, 1976 ( C U S I P No. 912793 Y G S ). T he bills will be issued for cash and in exchange fo r T re a su ry bills m atu rin g M a rch 11, 1975. T en d e rs in the am ount of $1,130,000,000, o r thereabouts, will be accepted from the public, w hich holds $729,000,000 of the m atu rin g bills. A dditional am ounts of the bills m ay be issued a t the average price of accepted tenders to G overnm ent accounts and F ederal R eserve B anks, for them selves and as agents of foreign and intern atio n al m onetary authorities, w hich hold $1,072,000,000 of the m atu rin g bills. T h e bills will be issued on a discount basis under com petitive and noncom petitive bidding as h e rein afte r provided, and a t m atu rity th eir face am ount will be payable w ith o u t interest. T h ey w ill be issued in b e are r form in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity v alue) and in booke n try form to designated bidders. T en d e rs will be received a t F e d e ral R eserve B anks and B ranches up to the closing hour, o n e -th irty p.m., E a s te rn D ay lig h t S a v in g tim e, W ednesday, M arch 5, 1975. T en d e rs will not be re ceived a t the T re a su ry D epartm ent, W ashington. E ac h tender m ust be fo r a m inim um of $10,000. T en d ers over $10,000 m u st be in m ultiples of $5,000. In the case of com petitive tenders the price offered m ust be e xpressed on the basis of 100, w ith not m ore than th ree decim als, e.g., 99.925. F ra c tio n s m ay not be used. I t is urged th a t tenders be m ade on the prin ted form s and fo rw ard ed in the special envelopes w hich will be supplied by F ed eral R eserve B anks o r B ranches on application therefor. B a nk ing institutions and dealers w ho m ake p rim a ry m ark ets in G overnm ent securities and re p o rt daily to the F e d e ral R eserve B ank of N ew Y o rk th eir positions w ith respect to G overnm ent securities and b orrow ings thereon m ay subm it tenders fo r account of custom ers, provided the nam es of the custom ers a re set fo rth in such tenders. O th e rs will not be p erm itted to subm it tenders e x cep t fo r th eir ow n account. T en d ers will be received w ithout deposit from incorporated banks and tr u s t com panies and from responsible and recognized dealers in investm ent securities. T en d ers from o th ers m ust be accom panied by paym ent of 2 percent of the face am ount of T re a su ry bills applied for, unless the tenders are accom panied by an e x p ress g u a ra n ty of paym ent by an incorporated bank o r tru s t com pany. Im m ediately a f te r the closing hour, tenders will be opened a t the F e d e ral R eserve B anks and B ranches, follow ing w hich public announcem ent will be m ade by the T re a su ry D ep artm en t of the am ount and price range of accepted bids. O nly those subm itting com petitive tenders w ill be advised of the acceptance o r rejection thereof. T h e S e c re ta ry of the T re a su ry expressly reserves the rig h t to accept o r re je c t any o r all tenders, in w hole o r in part, and his action in any such respect shall be final. S u b je ct to these reservations, noncom petitive tenders fo r $200,000 o r less w ithout stated price fro m any one bidder will be accepted in full a t the av erage price (in th ree decim als) of accepted com petitive bids. S ettlem ent for accepted tenders in accordance w ith the bids m ust be m ade o r com pleted a t the F e d e ral R eserve B ank on M arch 11, 1975, in cash o r o th er im m ediately available funds or in a like face am ount of T re a su ry bills m atu rin g M a rch 11, 1975. C ash and exchange tenders will receive equal treatm en t. C ash a d ju s t m ents w ill be m ade fo r differences betw een the p a r value of m a tu r ing bills accepted in exchange and the issue price of the new bill*. U nder Sections 4 5 4 (b ) and 1221(5) of the In te rn a l Revenue Code of 1954, the am ount of discount a t w hich bills issued h e re under are sold is considered to accrue w hen the bills are sold, re deem ed o r otherw ise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the ow ner of T rea su ry bills (o th e r th an life insurance com panies) issued h ereunder m ust include in his incom e ta x re tu rn , as o rd in ary g ain o r loss, the dif ference betw een the price paid fo r the bills, w h eth er on original issue o r on subsequent purchase, and the am ount actually received eith e r upon sale o r redem ption a t m atu rity d u rin g the taxable year fp r w hich the re tu rn is made. T re a su ry D e p artm en t C ircu la r N o. 418 (c u rre n t revision) and this notice prescribe the term s of the T re a su ry bills and govern the conditions of th eir issue. Copies of the c irc u la r m ay be ob tained from any F e d e ral R eserve B ank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Wednesday, March 5, 1975, 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. P aym en t for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlem ent m ust be made in cash or other im m ediately available funds or in maturing Treasury bills. A lfred H a yes, President. (ov*») TENDER FOR 364-DAY TREASURY BILLS Dated March 11, 1975 To F ederal R eserve Bank of N ew Y Due March 9, 1976 Dated at ork, Fiscal Agent of the United States. 19_ 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 T reasury 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 below : D o not fill in both C om petitive and N o n co m p etitive tenders on one fo rm COMPETITIVE TENDER $............................................................. (m aturity value) or any lesser amount that may be awarded. P ric e : .......................................................per 100. (P rice m u st be expressed ivith not m ore than three decim al places, fo r exam ple, 99.925) NONCOMPETITIVE TENDER $.............................................................. (m aturity value) ( N o t to exceed $200,000 fo r one bidder th ro u g h all sources) at the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below Pieces D enom ination $ M atu rity value □ 10,000 1. D eliver over the counter to the undersigned □ 2. Ship to the undersigned P ay m en t will be m ade as fo llo w s: □ By charge to ou r reserve account □ By cash o r check in im m ediately available fu n d s on delivery 15,000 □ 3. H o ld in safekeeping (foi“ m em ber bank only) in— 50,000 □ 100,000 (P a ym e n t cannot be m ade through T rea su ry T a x and L o a n A c c o u n t) Investm ent A ccount □ 500,000 5. Special in stru ctio n s: □ T ru s t A ccount 1,000,000 □ 4. A llotm ent tran sfer (see list a ttach ed ) (N o changes in delivery instructions w ill be accepted) T o tals 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 lubscriber—please print or type) Insert this tender in special envelope marked “Tender for Treasury Bills" (Address—incl. City and State) (Tel. No.) (Sirnature of subscriber or authorized sifnature) (Title of authorized signer) (B an k in g institutions subm itting tenders for custom er account m u st list cu sto m ers’ nam es on lines below o r on a n attach ed rid e r) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender fo r less th an $10,000 will be considered, and each tender m ust be fo r an even m ultiple of $5,000 (m atu rity v alu e). 2. O nly banking institutions, and dealers who m ake p rim ary m ark ets in G overnm ent securities and re p o rt daily to th is B ank th eir positions w ith respect to G overnm ent securities and b o rrow ings thereon, m ay subm it tenders fo r custom er acco u n t; in doing so, they m ay consolidate com petitive tenders at the sam e price and m ay consolidate noncom petitive tenders, provided a list is attach ed show ing the name of each bidder and the am o u n t bid fo r his account. O th ers will not be perm itted to subm it tenders except for th eir ow n account. 3. If the person m aking the tender is a corporation, the tender should be signed by an officer of the corporation authorized to m ake the tender, and the signing of the ten d er by an officer of the co rp o ratio n will be construed as a representation by him th at he has been so authorized. If the tender is m ade by a p artnership, it should be signed by a m em ber of the firm, w ho should sign in the form “ ................................................................................................................ a co partnership, by ......................................................................................................... a m em ber of the firm .” 4. T en d ers will be received w ithout deposit from in corporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T en d ers from o thers m ust be accom panied by paym ent of 2 p ercent of the face am ount of T re a su ry bills applied for, unless the tenders are accom panied by an ex p ress g u a ran ty of paym ent by an in corporated bank o r tru st company. A ll checks m ust be d raw n to the o rd e r of the F ed eral R eserve B ank of N ew Y o rk ; checks endorsed to this B ank will not be accepted. 5. If the language of this tender is changed in any respect, w hich, in the opinion of the S e c retary of the T rea su ry , is m aterial, the ten d er m ay be disregarded.
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