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FEDERAL RESE RV E BAN K OF N E W YORK Fiscal A gent of the United States [ 79201 C ircular No, J u ly 16, 19 76 J Offering of $2,900,000,000 of 364-Day Treasury Bills Dated July 27, 1976 Due July 26, 1977 To All Incorporated, Batiks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued yesterday by the Treasury Department: T h e D e p a r t m e n t o f th e T r e a s u r y , b y th is p u b lic n o tic e , in v ite s t e n d e r s f o r $ 2 ,9 0 0 m illio n , o r th e r e a b o u t s , o f 3 6 4 - d a y T r e a s u r y b ills t o be d a te d J u l y 27, 1976, a n d to m a t u r e J u l y 2 6 , 1977 ( C U S I P N o . 9 1 2 7 9 3 H 2 5 ) . T h e b ills w ill b e is s u e d f o r c a s h a n d in e x c h a n g e f o r T r e a s u r y b ills m a t u r i n g J u l y 27, 1976. 1 h is is s u e w ill p r o v id e a b o u t $ 6 0 7 m illio n o f n e w m o n e y f o r th e 1 r e a s u r y a s th e m a t u r i n g is s u e is o u t s t a n d i n g in th e a m o u n t o f $ 2 ,2 9 3 m illio n , o f w h ic h $ 1 ,3 2 9 m illio n is h e ld b y t h e p u b lic a n d $ 9 6 4 m illio n is h e ld b y G o v e r n m e n t a c c o u n ts a n d th e F e d e r a l R e s e r v e B a n k s f o r th e m s e lv e s a n d a s a g e n t s o f f o r e i g n a n d i n t e r n a tio n a l m o n e t a r y a u t h o r i ti e s . A d d itio n a l a m o u n ts o f th e b ills m a y be is s u e d t o F e d e r a l R e s e r v e B a n k s a s a g e n t s o f f o r e i g n a n d i n t e r n a tio n a l m o n e t a r y a u t h o r i ti e s . T e n d e r s f r o m G o v e r n m e n t a c c o u n ts a n d t h e F e d e r a l R e s e r v e B a n k s f o r th e m s e lv e s a n d a s a g e n t s o f f o r e ig n a n d i n t e r n a t io n a l m o n e t a r y a u t h o r i ti e s w ill b e a c c e p te d a t th e a v e r a g e p r ic e o f a c c e p te d t e n d e r s . T h e b ills w ill b e is s u e d o n a d is c o u n t b a s is u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g a s h e r e i n a f te r p r o v id e d , a n d a t m a t u r i t y t h e i r fa c e a m o u n t w ill b e p a y a b le w i t h o u t i n t e r e s t . T h e y w ill be is s u e d in b e a r e r f o r m in d e n o m in a tio n s o f $ 1 0 ,0 0 0 , $ 1 5 ,0 0 0 , $ 5 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 a n d $ 1 ,0 0 0 ,0 0 0 ( m a t u r i t y v a l u e ) a n d i n b o o k e n t r y f o r m to d e s ig n a te d b id d e r s . T e n d e r s w ill b e r e c e iv e d a t F e d e r a l R e s e r v e B a n k s a n d Branches u p to th e c lo s in g h o u r , o n e - t h i r t y p .m ., E a s t e r n D a y l i g h t S a v i n g tim e , W e d n e s d a y , J u l y 21, 1976. T e n d e r s w ill n o t b e r e c e iv e d a t th e T r e a s u r y D e p a r t m e n t , W a s h i n g t o n . E a c h t e n d e r m u s t b e f o r a m in im u m o f $ 1 0 ,0 0 0 . T e n d e r s o v e r $ 1 0 ,0 0 0 m u s t b e in m u ltip le s o f $ 5 ,0 0 0 . I n t h e c a s e o f c o m p e titiv e t e n d e r s th e p r ic e o f f e r e d m u s t be e x p r e s s e d o n th e b a s is o f 100, w i t h n o t m o r e t h a n t h r e e d e c im a ls , e .g ., 9 9 .9 2 5 . F r a c t i o n s m a y n o t b e u s e d . I t is u r g e d t h a t t e n d e r s b e m a d e o n th e p r i n te d f o r m s a n d f o r w a r d e d in th e s p e c ia l e n v e lo p e s w h ic h w ill b e s u p p lie d b y F e d e r a l R e s e r v e B a n k s o r B r a n c h e s o n a p p lic a tio n t h e r e f o r . B a nking institutions and dealers w h o m ake p rim a ry m ark ets in G o v e r n m e n t s e c u r itie s a n d r e p o r t d a ily t o th e F e d e r a l R e s e r v e B a n k o f N e w Y o r k t h e i r p o s itio n s w i t h r e s p e c t to G o v e r n m e n t s e c u r itie s a n d b o r r o w i n g s t h e r e o n m a y s u b m it t e n d e r s f o r a c c o u n t o f c u s to m e r s , p r o v id e d th e n a m e s o f th e c u s t o m e r s a r e s e t f o r t h in s u c h t e n d e r s . O t h e r s w ill n o t b e p e r m i tt e d to s u b m it t e n d e r s e x c e p t f o r t h e i r o w n a c c o u n t. T e n d e r s w ill b e r e c e iv e d w i th o u t d e p o s it f r o m in c o r p o r a t e d b a n k s a n d t r u s t c o m p a n ie s a n d f r o m r e s p o n s ib le a n d r e c o g n iz e d d e a le r s in in v e s tm e n t s e c u r itie s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n ie d b y p a y m e n t o f 2 p e r c e n t o f th e fa c e a m o u n t o f T r e a s u r y b ills a p p lie d f o r , u n le s s th e te n d e r s arca c c o m p a n ie d b y a n e x p r e s s g u a r a n t y o f p a y m e n t b y a n i n c o r p o r a te d b a n k o r tr u s t com pany. I m m e d ia te l y a f t e r t h e c lo s in g h o u r , t e n d e r s w ill b e o p e n e d a t th e f e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o llo w in g w h ic h publica n n o u n c e m e n t w ill b e m a d e b y th e T r e a s u r y D e p a r t m e n t o f th e a m o u n t a n d p r ic e r a n g e o f a c c e p te d b id s . O n l y th o s e s u b m ittin g c o m p e titiv e t e n d e r s w ill b e a d v is e d o f t h e a c c e p ta n c e o r r e j e c t i o n th e r e o f . T h e S e c r e t a r y o f th e T r e a s u r y e x p r e s s l y r e s e r v e s th e r i g h t to a c c e p t o r r e j e c t a n y o r a ll t e n d e r s , in w h o le o r in p a r t, a n d h is a c t i o n in a n y s u c h r e s p e c t s h a ll b e fin a l. S u b j e c t to th e s e r e s e r v a t i o n s , n o n c o m p e titiv e te n d e r s f o r $ 5 0 0 ,0 0 0 o r le s s w i th o u t s t a te d p r ic e f r o m a n y o n e b id d e r w ill b e a c c e p te d in f u ll a t th e a v e r a g e p r ic e ( i n th r e e d e c im a ls ) o f a c c e p te d c o m p e titiv e b id s. S e t t l e m e n t f o r a c c e p te d t e n d e r s in a c c o r d a n c e w ith th e b id s m u s t b e m a d e o r c o m p le te d a t th e F e d e r a l R e s e r v e B a n k o n J u l y 27, 1976, in c a s h o r o t h e r im m e d ia te ly a v a ila b le f u n d s o r in a lik e fa c e a m o u n t o f T r e a s u r y b ills m a t u r i n g J u l y 27, 1976. C a s h a n d e x c h a n g e t e n d e r s w ill r e c e iv e e q u a l t r e a t m e n t . C a s h a d j u s t m e n ts w ill b e m a d e f o r d if f e r e n c e s b e tw e e n th e p a r v a lu e o f m a t u r in g b ills a c c e p te d in e x c h a n g e a n d t h e is s u e p r ic e o f t h e n e w b ills. U n d e r S e c tio n s 4 5 4 ( b ) a n d 1 2 2 1 ( 5 ) o f th e I n t e r n a l R e v e n u e C o d e o f 1954, th e a m o u n t o f d is c o u n t a t w h ic h b ills is s u e d h e r e u n d e r a r e s o ld is c o n s id e r e d to a c c r u e w h e n th e b ills a r e so ld , r e d e e m e d o r o t h e r w i s e d is p o s e d o f, a n d t h e b ills a r e e x c lu d e d f r o m c o n s i d e r a t i o n a s c a p ita l a s s e ts . A c c o r d in g ly , th e o w n e r o f T r e a s u r y b ills ( o t h e r t h a n life i n s u r a n c e c o m p a n ie s ) is s u e d h e r e u n d e r m u s t in c lu d e in h is in c o m e t a x r e t u r n , a s o r d i n a r y g a i n o r lo s s , th e d i f f e r e n c e b e tw e e n t h e p r ic e p a id f o r th e b ills , w h e t h e r o n o r ig in a l is s u e o r o n s u b s e q u e n t p u r c h a s e , a n d t h e a m o u n t a c t u a l l y r e c e iv e d e i t h e r u p o n s a le o r r e d e m p tio n a t m a t u r i t y d u r i n g th e t a x a b l e y e a r f o r w h ic h t h e r e t u r n is m a d e . T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 418 ( c u r r e n t r e v i s i o n ) a n d t h is n o tic e p r e s c ib e th e t e r m s o f th e T r e a s u r y b ills a n d g o v e r n th e c o n d itio n s o f t h e i r is s u e . C o p ie s o f th e c i r c u l a r m a y b e o b ta in e d f r o m a n y F e d e r a l R e s e r v e B a n k o r B r a n c h . This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Wednesday, July 21, 1976 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. P aul A. V olcker, President. ( over) TENDER FOR 364-DAY TREASURY BILLS Due July 26, 1977 Dated July 27, 1976 P R I V A C Y A C T S T A T E M E N T : T h e in d iv id u a l id en tifia b le in fo rm a tio n re q u ire d on t h is f o r m is n e c e ssa ry to p e r m it th e te n d e r to b e p ro c e s s e d a n d th e b ills to be issu e d , in a c c o rd a n c e w ith th e G e n e ra l R e g u la tio n s g o v e rn in g U n ite d S ta te s s e c u ritie s ( D e p a r tm e n t C irc u la r N o . 300) a n d th e R e g u la tio n s g o v e rn in g T r e a s u r y B ills ( D e p a r t m e n t C i r c u l a r N o . 4 1 8 ) . T h e tra n s a c tio n w ill n o t be co m p le te d u n le s s a ll re q u ir e d d a ta is fu rn ish e d . To F ederal R eserv e Bank of N ew Y Dated a t ..................................................... ........................................................ . 19__ ork, Fiscal Agent of the United States 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 C O M P E T IT IV E T E N D E R N O N C O M P E T IT IV E T E N D E R $........................................................ (maturity value) or any lesser amount that may be awarded. $....................................................... (maturity value) Price : ................................................. per 100. at the average price of accepted competitive bids, (Price m ust be expressed w ith not more than three (Not to exceed $500,000 for one bidder through all sources) decimal places, for example, 99.925) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ Maturity value □ 10,000 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned 15,000 Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds on delivery □ 3. Hold in safekeeping (for mem ber bank only) in— □ Investment Account 50,000 100,000 (Payment cannot be made through Treasury Tax and Loan Account) □ 5. Special instructions: □ General Account □ Trust Account 500,000 □ 4. Allotment transfer (see list attached) 1,000,000 (No 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) In sert th is ten der in special en velope m a rk ed “T en d er for T rea su ry B ills” (Address—incl. City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) ( B a n k i n g i n s t i t u t i o n s s u b m i t t i n g te n d e rs fo r c u s to m e r a c c o u n t m u s t lis t c u s to m e rs ’ n a m e s o n lin e s b e lo w o r o n a n a tta c h e d r id e r ) ........................................... ( Name of custome r )............................................ <Name of customer) IN S T R U C T IO N S : 1. N o t e n d e r f o r le s s t h a n $ 1 0 ,0 0 0 w ill b e c o n s id e r e d , a n d e a c h t e n d e r m u s t b e f o r a m u ltip le o f $ 5 ,0 0 0 ( m a t u r i t y v a l u e ) . 2. O n ly b a n k i n g in s t i t u t i o n s , a n d d e a l e r s w h o m a k e p r i m a r y m a r k e t s in G o v e r n m e n t s e c u r itie s a n d r e p o r t d a ily to t h i s B a n k t h e i r p o s itio n s w i t h r e s p e c t to G o v e r n m e n t s e c u r itie s a n d b o r r o w i n g s th e r e o n , m a y s u b m it te n d e r s f o r c u s to m e r a c c o u n t ; in d o in g so , th e y m a v c o n s o lid a te c o m p e titiv e t e n d e r s at the same price a n d m a y c o n s o lid a te n o n c o m p e titiv e te n d e r s , p r o v id e d a l is t is a t t a c h e d s h o w in g th e n a m e o f e a c h b id d e r a n d t h e a m o u n t b id f o r h is a c c o u n t. O t h e r s w ill n o t b e p e r m i tt e d t o s u b m it t e n d e r s e x c e p t f o r t h e i r o w n a c c o u n t. 3 I f t h e p e r s o n m a k i n g t h e t e n d e r is a c o r p o r a ti o n , th e t e n d e r s h o u ld b e s ig n e d b y a n o ffic e r o f th e c o r p o r a ti o n a u t h o r i z e d to m a k e th e t e n d e r , a n d th e s ig n in g o f th e t e n d e r b y a n o ffic e r o f th e c o r p o r a ti o n w ill b e c o n s t r u e d a s a r e p r e s e n t a t i o n b y h im t h a t h e h a s b e e n so a u t h o r i z e d . I f th e t e n d e r is m a d e b y a p a r t n e r s h i p , i t s h o u ld b e s ig n e d b y a m e m b e r o f th e firm , w h o s h o u ld s ig n in th e f o r m “...............................; ......................- ....................................................................... a c o p a r t n e r s h i p , b y ........................................................................................................................ . a m e m b e r o f th e f ir m .” 4 T e n d e r s w ill b e r e c e iv e d w i th o u t d e n o s it f r o m i n c o r n o r a t e d b a n k s a n d t r u s t c o m p a n ie s a n d f r o m r e s p o n s ib le a n d r e c o g n iz e d d e a le r s in in v e s tm e n t s e c u r itie s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n ie d b y p a y m e n t o f 2 p e r c e n t of th e fa c e a m o u n t o f T r e a s u r y b ills a p p lie d f o r , u n le s s th e t e n d e r s a r e a c c o m p a n ie d b y a n e x p r e s s g u a r a n t y o f p a y m e n t b y a n i n c o r p o r a t e d b a n k o r t r u s t c o m p a n y . A ll c h e c k s m u s t be d r a w n to th e o r d e r o f th e F e d e r a l R e s e r v e B a n k o f New Y o r k ; c h e c k s e n d o r s e d to th is B a n k w ill n o t b e a c c e p te d . 5. I f th e l a n g u a g e o f th is t e n d e r is c h a n g e d in a n y r e s p e c t, w h ic h , in th e o p in io n o f th e S e c r e t a r y o f th e T r e a s u r y , is material, the tender may be disregarded. Rev. 3/76
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