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FED ER A L RESER VE BANK O F N E W YORK Fiscal Agent of the United States [ Circular No. 7 6 0 0 1 April 1, 1975 J Special Offering of $1,500,000,000 of 292-Day Treasury Bills Dated April 14, 1975 Due January 31, 1976 T o A ll Incorporated B a n k s and T r u st Companies, and O thers Concerned, in the Second F ederal R eserve D istric t: Following is the text of a notice issued March 31 by the Treasury Department: T he D ep artm en t of the T rea su ry , by this public notice, invites tenders from the public fo r $1,500,000,000, o r thereabouts, of 292-day T re a su ry bills, to be issued on a discount basis under com petitive and noncom petitive bidding as herein after provided. A n additional am ount of the bills m ay be issued a t the average price of accepted tenders to G overnm ent accounts and to F ed eral R eserve B anks for them selves and as agents of foreign and in ternational m onetary authorities. T he bills of this series will be dated A pril 14, 1975, and will m ature Ja n u a ry 31, 1976 ( C U S I P No. 912793 Y L 4 ) w hen the face am ount will be payable w ithout interest. T hey will be issued in b e are r and book-entry form in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T en d ers 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 aylight S aving time, T uesday, A pril 8, 1975. T en d ers will not be received a t the T re a su ry D epartm ent, W ash in g to n . E ach tender m ust be for 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 printed 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 prim ary m ark ets in G overnm ent securities and rep 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 b o rrow 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 e rs will not be perm itted to subm it tenders except for their own account. 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 percent of the face am ount of T re a su ry bills applied for, unless the tenders are ac com panied by an ex p ress g u a ran ty of paym ent by an incorporated bank or tru s t company. Im m ediately a fte r the closing hour, tenders will be opened a t 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 w ill 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 w hole o r in p art, and his action in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders fo r $200,000 o r less w ithout stated price from any one bidder will be accepted in full a t the average price (in th ree decim als) of accepted com petitive bids. Settlem ent for accepted tenders in accordance w ith the bids m ust be made o r com pleted a t the F ed eral R eserve B ank in cash or o th er im m ediately available funds on A pril 14, 1975. U n d er 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 when the bills are sold, redeem ed o r otherw ise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the ow ner of T re a su ry bills (o th e r th an life insurance com panies) issued h e re under m ust include in his income ta x retu rn , as o rd in ary gain or loss, the difference betw een the price paid for the bills, w h eth er on original issue or on subsequent purchase, and the am ount actually received eith er upon sale o r redem ption a t m atu rity du 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 No. 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 circ u la r m ay be obtained 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, Tuesday, April 8, 1975, at the Se curities 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. A lfred H a y es, President. ( ov er ) TENDER FOR 292-DAY TREASURY BILLS Dated April 14, 1975 To Due January 31, 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 not fill in both C om petitive and N onco m p etitive 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 □ 1. D eliver over the counter to the undersigned 10,000 P ay m en t will be m ade as fo llo w s: □ 2. Ship to the undersigned □ By charge to o ur 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 b er bank only) in— 50,000 □ (P a ym e n t cannot be made through T rea su ry T a x and L oan A cco u n t) Investm ent A ccount 100,000 □ 5. Special in stru ctio n s: PI G eneral A ccount 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 m arked “T en der for T reasury B ills” (Address— incl. City and State) (Tel. N o.) (Signature of subscriber or authorized signature) (T itle of authorized signer) ................. (B a n k in g institutions subm itting tenders fo r custom er account m u st list cu sto m ers’ nam es on lines below o r on an attached rid er) (Name of customer) ................................................VVf................... ................................................... (N am e of customer) IN S T R U C T IO N S : (maturity °value *" $1° ’°00 * “ be and must “ “ « en multiple of *5,000 . 2ban k in g institutions, an d dealers who m ake p rim a ry m ark ets in G overnm ent securities and re p o rt dailv tn thic R i th e ir positions w ith respect to G overnm ent securities and b o rro w in g s thereon m av subm it tenders /I t y S Bar!k doing so, they m ay consolidate com petitive tenders at the sam e ^ / a n d ™ list is a ttach ed show ing the nam e of each bidder and the a m o u n t bid for his account O th ers will S i ^ u -a tenders except fo r th e ir ow n account. account, u tn e r s will not be perm itted to subm it 3. I f the person m aking the ten d er is a corporation, the tender should be au th o rized to m ake the tender, and the signing of the ten d e r by a n officer of re p resen tatio n by him th a t he has been so authorized. I f the ten d er is m ade bv m em ber of the firm, w ho should sign in the form “.......................................... ... ... ........................................................................................................., a m em ber of the firm .” 4. T en d ers will be received w ithout deposit from inco rp o rated and recognized dealers in investm ent securities. T en d ers fro m others the face am ount of T re a s u ry bills applied for, unless the ten d ers are by an inco rp o rated bank o r tru s t com pany. All checks m ust be draw n Y o rk ; checks endorsed to this B ank will not be accepted. is m f,e r",/fte ^ ^ siened bv an n f W r the corporation will £ ,c orp,o ratlon a oartn ersh in it ch n £ ons.t rue(j as a p a rtn e rsh ,p > !t should be signed by a ........................................’ a coPa rtn *rship, by banks and tru st com panies and from resoonsible m ust be accomoanier) hv r o resP°n siDle a c c o m p a n ie d b f an e x L s f ^ r ^ L F ™ °f to the o rd e r of the F ederal i S e r v e R a n i r e a e r a l K eserve B ank of N ew Whi‘ h' ^ ^ °Pini°n °* S ' Cretary the
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