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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 7 7 2 8 \. October 9, 1975 J Offering of $2,090,000,000 of 364-Day Treasury Bills Dated October 21, 1975 Due October 19, 1976 To All Incorporated Banks and Trust Companies, and Others Concemed, in the Second Federal Reserve District: Following is the text of a notice issued today by the Treasury Department The Department of the Treasury, by this public notice, invites tenders for 364-day Treasury bills to be dated October 21, 1975, and to mature October 19, 1976 (CUSIP No. 912793 ZT6). The bills will be issued for cash and in exchange for Treasury bills maturing October 21, 1975. Tenders in the amount of $2,090 million, or thereabouts, will be accepted from the public, which holds $1,087 million of the maturing bills. Additional amounts of the bills may be issued at the average price of accepted tenders to Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, which hold $916 million of the maturing bills. The bills will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 bookentry form to designated bidders. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time Wednesday, October 15, 1975. Tenders will not be received at tl~e Treasury Department. \Vashington. 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 rec~ived without deposit from incorporated banks and trust compames 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. 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_ ~nd price range of ac~epted bids. Only those submitting competitive tenders will be adv1sed of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right _to ac~ept. or reject any or all tenders, in whole or in part. and h1s actiOn m any such respect shall be final. Subject to these reservations, noncompetitive tenders for $500,000 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 on October 21 197j, in cash or other immediately available funds or in a lik~ face amount of Treasury bills maturing October 21, 1975. Cash and exchange tenders will receive equal treatment. Cash adjust~ents will be !!lade for differences ~tween _the par value of maturing b1lls accepted 111 exchange and the 1ssue pnce of the new bills. Under Sections 454(b) and 1221 (5) of the Internal Revenue Code of 1954, the amount of discount at which bills issued hereunder 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 hereunder 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 prescibe 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. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, \Vednesday. October 15 1975 at the Secunt 1es Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side ot th 1s not 1ce to submtt a tender and return it in the enclosed envelope marked "Tender for Treasury Bills" Tt>nci<;>r.:: ~.,,t requmng a deposit may be submitted b:y telegraph. subject to written confirmation; no tenders may be submitted by telephone. Payment for the Treasury btlls cannot be made by credit through the Treasurv Tax and J nn>J Account. Settlement must be made m cash or other immediately available funds or in maturing Treasury bills. PAUL A. VOLCKER, President. (OVER) TENDER FOR 364-DAY TREASURY BILLS Dated October 21, 1975 To Due October 19, 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 : Do not fill in both Competitive and Noncompetitive tenders on one form COMPETITIVE TENDER $............................................................. (m aturity value) or any lesser amount that may be awarded. P ric e : .......................................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) NONCOMPETITIVE TENDER $............................................................. (m aturity value) (N ot to exceed $500,000 for 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 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 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) □ Investment Account 100,000 □ 5. Special instructions: □ General Account 500,000 □ Trust Account □ 4. Allotment transfer (see list attached) (No changes in delivery instructions will be accepted) 1,000,000 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— incl. City and State) (Tel. 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) (Nam e of customer) (Name of customer) INSTRUCTIONS: 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 York; 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.
@FedFRASER