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F E D E R A L R E S E R V E B A N K O F N E W YO R K Fiscal Agent of the United States I"Circular N o. 7 5 9 6 *1 L March 27, 1975 J Offering of $1,280,000,000 of 364-Day Treasury Bills Dated April 8, 1975 Due April 6, 1976 T o All Incorporated B a n k s and T r u s t Com panies, and O thers Concerned, in the Second F ederal R eserve D istric t: Following is the text of a notice issued today by the Treasury Department: T he D ep artm en t of the T re a su ry , by this public notice, invites tenders fo r 364-day T re a su ry bills to be dated A pril 8, 1975, and to m atu re A pril 6, 1976 ( C U S I P N o. 912793 Y H 3 ) . T h e bills will be issued for cash and in exchange fo r T re a su ry bills m atu rin g A p ril 8, 1975. T en d ers in the am ount of $1,280,000,000, o r thereabouts, will be accepted fro m the public, w hich holds $674,000,000 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 ed eral R eserve B anks for them selves and as agents of foreign and international m onetary au thorities, w hich hold $1,127,000,000 of the m atu rin g bills. T he 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 their face am ount will be payable w ith o u t interest. T hey will be issued in b earer 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 ers will be received a t F ed eral 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 aylight S aving time, W ednesday, A p ril 2, 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 ust be in m ultiples of $5,000. In the case of com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore than three 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 p rinted form s and forw arded in the special envelopes w hich will be supplied by F ed eral R eserve B anks or B ranches on application therefor. B anking 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 ed eral R eserve B ank of N ew Y o rk th eir positions w ith respect to G overnm ent securities and borrow ings thereon m ay subm it tenders for account of custom ers, provided the nam es of the custom ers are set fo rth in such tenders. O th ers will not be perm itted to subm it tenders except for th eir own account. T en d ers will be received w ithout deposit from incorporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T enders from oth 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 express g u a ran ty of paym ent by an incorporated bank o r tru st company. Im m ediately a fte r the closing hour, tenders will be opened at the F ed eral 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 will be advised of the acceptance o r rejection thereof. T he S e c retary 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 whole o r in part, and his action in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders for $200,000 o r less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decim als) of accepted com petitive bids. S ettlem ent fo r accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the F ed eral R eserve B ank on A pril 8, 1975, in cash o r o ther im m ediately available funds o r in a like face am ount of T re a su ry bills m atu rin g A pril 8, 1975. Cash and exchange tenders will receive equal treatm en t. C ash a d ju s t m ents will be m ade for 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 bills. U nder Sections 4 5 4 (b ) and 1221(5) of the In tern a l Revenue Code of 1954, the am ount of discount a t w hich bills issued h e re u nder are sold is considered to accrue w hen the bills a re sold, re deem ed or 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 than life insurance com panies) issued hereunder m ust include in his incom e ta x retu rn , as o rd in ary gain or loss, the dif ference betw een the price paid fo r the bills, w hether on original issue o r on subsequent purchase, and the am ount actually received eith er upon sale o r redem ption a t m atu rity d u rin g the taxable year for w hich the re tu rn is made. T re a su ry D ep artm en t C ircu lar 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 ed eral R eserve B ank o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Wednesday, April 2, 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. 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 ay es, President. ( o ver) TENDER FOR 364-DAY TREASURY BILLS Dated April 8, 1975 To Due April 6, 1976 Dated at F ed er a l R eserve B a n k of N e w Y o r k , 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 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 below: D o n o t fill in both C om petitive and N oncom petitive tenders on one fo rm COMPETITIVE TENDER $..........■:............................................ (maturity value) or any lesser amount that may be awarded. Price : ................................................. per 100. (P rice m u st be expressed w ith not m ore than three decim al places, fo r exam ple, 99.925) NONCOMPETITIVE TENDER $....................................................... (maturity value) ( N o t to exceed $200,000 fo r one bidder through 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 a tu rity value □ 10,000 1. D eliver over the counter to the undersigned □ 2. Ship to the undersigned P aym ent will be made as fo llo w s: □ By charge to our 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 (fo r m em ber bank only) in— 50,000 □ 100,000 (P a ym e n t cannot be made through T rea su ry T a x and Loan A cco u n t) Investm ent A ccount □ 5. Special in stru c tio n s: 500,000 □ 1,000,000 T ru s t A ccount □ 4. A llotm ent tran sfer (see list attach 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 subscriber— please print or type) Insert this tender in special envelope marked “ Tender for Treasury B ills” (Address— incl. City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) (B a n k in g institutions subm itting tenders for custom er account m u st list custom ers’ nam es on lines below o r on an attached rid er) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o ten d er for less than $10,000 will be considered, and each tender m ust be for an even m ultiple of $5,000 (m a tu rity v a lu e ). 2. O nly banking institutions, and dealers who m ake p rim ary m ark ets in G overnm ent securities and rep o rt daily to this Bank th eir positions w ith respect to G overnm ent securities and bo rro w in g s thereon, m ay subm it tenders for custom er account; 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 for his account. O th ers will not be perm itted to subm it tenders except fo r th eir own 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 corporation will be construed as a rep resen tatio n by him th at he has been so authorized. If the tender is m ade by a partnership, it should be signed by a m em ber of the firm, w ho should sign in the form “.............................................................................................................. , a copartnership, by ........................................................................................................ . a m em ber of the firm .” 4. T en d e rs will be received w ithout deposit from in corporated banks and tru st com panies and from responsible and recognized dealers in investm ent securities. T en d ers from others 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 express g u aran ty of paym ent by an inco rp o rated bank o r tru s t company. A ll checks m ust be d raw n to the order 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, which, in the opinion of the S ecretary of the T rea su ry , is m aterial, the ten d e r m ay be disregarded.
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