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FEDERAL RESERVE

BANK O F N EW YORK

Fiscal Agent of the United States

[

Circular No. 7 9 6 6 1
October 8,1976 J

Offering of $3,062,000,000 of 364-Day Treasury Bills
Dated October 19, 1976

Due October 18, 1977

To A ll Incorporated Banks 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 tm 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 $ 3 ,0 6 2 m i l l i o n , o r t h 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
to

be

d a te d

O c to b e r

19, 1976,

and

to

m a tu re

O c to b e r

b ills

18, 1977

( C U S I P N o . 912793 H 5 8 ) . T h e b i l l s w i l l b e i s s u e d f o r c a s h a n d i n
e x c h a n g e f o r T r e a s u r y b i l l s m a t u r i n g O c t o b e r 19, 1976.
T h i s is s u e w ill n o t p r o v id e n e w m o n e y f o r th e T 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 t h e a m o u n t o f $ 3 ,9 6 2 m i l l i o n , o f
w h i c h $1,945 m i l l i o n i s h e l d b y t h e p u b l i c a n d $1,117 m i l l i o n i s h e l d
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 fo r th e m ­
s e lv e s a n d a s a g e n ts o f f o r e ig n a n d in t e r n a t io n a l m o n e ta r y a u t h o r i ­
tie s . A d d itio n a l a m o u n ts o f th e b ills m a y b e is s u e d to F e d e r a l R e ­
serv e

B anks

as

a g e n ts

of

fo re ig n

and

in te rn a tio n a l

m o n e ta ry

au­

th o ritie s . T e n d e r s f ro m G o v e rn 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 rv e B a n k s fo r th e m s e lv e s a n d a s a g e n ts o i f o re ig n a n d in te r n a ­
tio n a l m o n e ta ry
a c c e p te d

a u t h o r iti 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

te n d e rs .

T h e b ills w ill be issu e d o n a d isc o u n t b a sis 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 n d a t m a tu r ity th e ir face a m o u n t w ill
be p a y ab le w ith o u t in te re s t. T h e y w ill be issu e d in b e a r e r fo rm in
d e n o m in a tio n s o f $10,000, $15,000, $50,000, $100,000, $500,000 a n d
$1,000,000 ( m a tu r ity v a lu e ) , a n d in b o o k -e n try fo rm to d e sig n a te d
b id d ers.
T e n d e r s w ill be re ce iv e d a t F e d e ra l R e se rv e B a n k s a n d B ra n c h e s
and , fro m in d iv id u a ls, a t th e B u re a u of th e P u b lic D e b t, W a s h in g ­
ton, D .C . 20226, up to 1 :3 0 p.m ., E a s te r n D a y lig h t S a v in g tim e,
W ed n e sd a y , O c to b e r 13, 1976. E a c h te n d e r m u st be fo r a m in im u m
of $10,000. T e n d e r s o v e r $10,000 m u s t be in m u ltip le s o f $5,000.
I n th e case of c o m p e titiv e te n d e rs th e p ric e o ffe re d m u s t b e e x ­
p re sse d o n th e b a sis o f 100, w ith n o t m o re th a n th r e e d e cim als,
e.g ., 99.925. F r a c tio n s m ay n o t be used.
B a n k i n g in s titu tio n s a n d d e a le rs w h i c h m a k e p r i m a r y m a r k e ts
in G o v e rn m e n t s e c u ritie s a n d r e p o r t d a ily to th e F e d e r a l R e se rv e
B a n k o f N e w Y o r k t h e ir p o sitio n s w ith re s p e c t to G o v e rn m e n t
s e c u ritie s an d b o rro w in g s th e re o n m ay su b m it te n d e rs f o r a c c o u n t
o f c u s to m e rs p ro v id e d th e n a m e s of th e c u s to m e rs a r e s e t f o r th
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 t t e d t o s u b m i t t e n d e r s
e x c e p t fo r th e ir o w n a c c o u n t. T e n d e r s w ill be re c e iv e d w ith o u t
d e p o sit fro m in c o rp o ra te d b a n k s a n d t r u s t c o m p a n ies a n d fro m

re sp o n sib le a n d re c o g n iz e d d e a le rs in in v e s tm e n t s e c u ritie s. T e n d e rs
fro m o th e r s m u s t be acc o m p a n ied b y p a y m e n t of 2 p e rc e n t o f th e
face a m o u n t o f b ills a p p lie d fo r, u n le s s th e te n d e rs 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 ty of p a y m e n t by a n in c o rp o ra te d b a n k o r
t r u s t c o m p an y .
P u b lic a n n o u n c e m e n t w ill be m ad e b y th e D e p a r tm e n t o f th e
T r e a s u r y of th e a m o u n t a n d p rice ra n g e of a cc ep te d b id s. T h o s e
s u b m ittin g c o m p e titiv e te n d e rs w ill be a d v is e d of th e a cc e p ta n c e
o r re je c tio n th e re o f. T h e S e c r e ta r y o f th e T r e a s u r y e x p r e s s ly r e ­
s e rv e s th e r ig h t to a cc ep t o r r e je c t a n y o r a ll te n d e rs , in w h o le o r
in p a r t, a n d h is a c tio n in a n y su c h re s p e c t sh a ll be final. S u b je c t
to th e s e re s e rv a tio n s , n o n c o m p e titiv e te n d e rs fo r $500,000 o r less
w ith o u t s ta te d p ric e fro m a n y one b id d e r w ill be a c c ep te d in fu ll a t
th e a v e ra g e p ric e (in th re e d e c im a ls ) of a c c e p te d c o m p e titiv e b id s.
S e ttle m e n t f o r a c c ep te d te n d e rs in a c c o rd a n c e w ith th e b id s m u st
be m ad e o r co m p le te d a t th e F e d e r a l R e se rv e B a n k o r B r a n c h o r
a t th e B u re a u o f th e P u b lic D e b t on O c to b e r 19, 1976, in c a s h o r
o th e r im m e d ia te ly a v a ila b le fu n d s o r in a lik e face a m o u n t of
T r e a s u r y b ills m a tu r in g O c to b e r 19, 1976. C a sh a n d e x c h a n g e te n ­
d e rs w ill re ce iv e eq u al tre a tm e n t. C a sh a d ju s tm e n ts w ill be m ad e
fo r d iffe re n c e s b e tw ee n th e p a r v a lu e o f m a tu r in g b ills a c c e p te d in
e x c h a n g e a n d th e issu e p ric e of th e n ew 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 te r n a l R e v en u e
C ode o f 1954, th e a m o u n t of d isc o u n t a t w h ic h b ills issu e d h e r e ­
u n d e r a r e so ld is c o n sid e re d to a c c ru e w h e n th e b ills a r e sold, r e ­
d e em ed o r o th e rw is e d isp o sed of, a n d th e b ills a r e e x c lu d e d fro m
c o n s id e ra tio n a s c a p ita l a sse ts. A c c o rd in g ly , th e o w n e r o f b ills
( o t h e r th a n life in su ra n c e c o m p a n ie s) issu e d h e r e u n d e r m u s t in clu d e
in his F e d e ra l incom e ta x re tu rn , a s o r d in a r y g a in o r loss, th e d if­
fe re n c e b e tw e e n th e p ric e p a id fo r th e bills, w h e th e r on o rig in a l
issu e o r o n su b seq u e n t p u rc h a s e , a n d th e a m o u n t a c tu a lly re ce iv e d
e ith e r u p o n sale o r re d e m p tio n a t m a tu r ity d u r in g th e ta x a b le y e a r
fo r w h ic h th e r e tu r n is m ade.
D e p a r tm e n t of th e T r e a s u r y C ir c u la r N o . 418 ( c u r r e n t r e v is io n )
a n d th is n o tic e p re s c rib e th e te r m s of th e T r e a s u r y b ills a n d g o v e rn
th e c o n d itio n s o f th e ir issue. C opies o f th e c ir c u la r m a y be o b ­
ta in e d fro m a n y F e d e ra l R e se rv e B a n k o r B ra n c h , o r fro m th e
B u re a u of th e P u b lic D e b t.

This Bank will receive tenders up to 1:30 p.m., Eastern Daylight Saving time, Wednesday, October 13, 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. P a y m e n t fo r the T rea su ry bills cannot be m ade b y cred it through the T rea su ry T a x and L o a n A ccount.
S e ttle m e n t, m u st be m ade in cash or oth er im m ed ia tely a vailable fu n d s or in m atu rin g T rea su ry bills.




P aul A. V

olcker,

President.
( over)

TENDER FOR 364-DAY TREASURY BILLS
Dated October 19, 1976

To

F

ederal

R eserve B a n k

of

N

ew

Due October 18, 1977
Y

Dated a t .............................................................

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:
D o not fill in both Competitive and
Noncompetitive tenders on one form

COMPETITIVE TENDER

$..................................................... (maturity value)
or any lesser amount that may be awarded.
Price: ...............................................per 100.
( P r i c e m u s t b e e x p r e s s e d w i t h n o t m o r e th a n

three

NONCOMPETITIVE TENDER

$.................................................... (maturity value)
(N ot to exceed $500,000 for one bidder through all sources)

at the average price of accepted competitive bids.

decimal places, for example, 99.925)

Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below:
P ie ce s

D e n o m in a tio n

M a tu r ity v a lu e

1. D e liv e r o v e r th e c o u n te r to th e
u n d e rsig n e d

P a y m e n t w ill be m ad e a s f o l lo w s :
□

B y c h a rg e to o u r re s e rv e a cc o u n t

□

2. S h ip to th e u n d e rsig n e d

□

□

$

□

3. H o ld in s a fe k e e p in g ( f o r m em ­
b e r b a n k o n ly ) in—

immediately
available funds o n d e liv e ry
(Payment cannot be made through
Treasury Tax and Loan Account)

10,000
15,000
50,000

□

1,000,000

□

G e n e ra l A c c o u n t

□

500,000

In v e s tm e n t A c c o u n t

n

100,000

B y c a s h o r c h ec k in

T ru s t A ccount

□

5. S p e c ia l in s tr u c tio n s :

4. A llo tm e n t tr a n s f e r (s e e lis t a tta c h e d )

(No changes in delivery instructions
will be accepted)

T o ta ls

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)
C Q

Insert this tender
in special envelope
marked “Tender for
Treasury Bills”

(Address—incl. City and State)
(Tel. No.)

(Signature of subscriber or authorized signature)
(Title of authorized signer)

I

( B a n k in g in s titu tio n s s u b m ittin g te n d e rs f o 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 )

a § §
•Oj3\5

III
•a v «

v0l t
PM
tr U *
g«S
W js °
H .ts Z

< *u
H vJS
rf) O 3
Sg
s | d
^ rt g

U .5 £

<

. Jg

c s£
g |B

(Name of customer)

(Name of customer)

INSTRUCTIONS:
1.
2.

N o te n d e r f o r less th a n $10,000 w ill be c o n sid ere d , a n d e a c h te n d e r m u s t be f o r a m u ltip le of $5,000 ( m a tu r ity v a lu e ) .
O n ly b a n k in g in s titu tio n s , a n d d e a le rs w h o m a k e p r im a r y m a rk e ts in G o v e rn m e n t s e c u ritie s a n d r e p o rt d aily to th is B a n k
th e ir p o sitio n s w ith re s p e c t to G o v e rn m e n t se c u ritie s a n d b o r r o w in g s th e re o n , m a y su b m it te n d e rs fo r c u sto m e r a c c o u n t; in
d o in g so, th e y m a y c o n so lid a te c o m p e titiv e te n d e rs a t th e s a m e p r ic e a n d m ay c o n so lid a te n o n c o m p e titiv e t e n d e r s , p ro v id e d a
lis t is a tta c h e d sh o w in g th e n a m e o f e a c h b id d e r a n d th e a m o u n t bid fo r his acc o u n t. O th e r s w ill n o t be p e rm itte d to su b m it
te n d e rs e x c e p t fo r th e ir o w n a cc o u n t.
3. I f th e p e rs o n m a k in g th e te n d e r is a c o rp o ra tio n , th e te n d e r sh o u ld be sig n e d by a n officer of th e c o rp o ra tio n
a u th o riz e d to m a k e th e te n d e r, a n d th e sig n in g o f th e t e n d e r by a n officer of th e c o rp o ra tio n w ill be c o n s tru e d a s a
re p re s e n ta tio n by h im t h a t he h a s been so a u th o riz e d . I f th e te n d e r is m ad e by a p a rtn e rs h ip , it sh o u ld be sig n e d by a
m em b e r o f th e firm , w h o sh o u ld sig n in th e fo rm ” .................................................................................................................... . a c o p a rtn e rs h ip , by
............. .................... ............... ................................................... ....... . a m e m b e r o f th e firm .”
4. T e n d e r s w ill be re ce iv e d w ith o u t
d e p o sit fro m in c o rp o ra te d b a n k s a n d t r u s t co m p an ies a n d fro m resp o n sib le
an d re c o g n iz e d d e a le rs in in v e s tm e n t se c u ritie s. T e n d e rs fro m o th e rs
m u s t be acc o m p a n ied by p a y m e n t o f 2 p e rc e n t of
th e
face a m o u n t o f T r e a s u r y b ills a p p lie d fo r, u n le ss th e te n d e rs a re acc o m p a n ied by a n e x p re s s g u a r a n ty of p ay m e n t
by
a n in c o rp o ra te d b a n k o r t r u s t co m p an y . A ll c h ec k s m u st be d ra w n to th e o r d e r o f th e F e d e ra l R e se rv e B a n k o f N e w
Y o r k ; c h ec k s e n d o rs e d to th is B a n k w ill n o t be a ccep ted .
5. I f th e la n g u a g e of th is te n d e r is c h a n g e d in a n y re s p e c t, w h ich , in th e o p in io n of th e S e c r e ta r y of th e T r e a s u r y ,
is material, the tender may be disregarded.
Rtv. 3/76




NOTICE

October lU, 1976
Circular No. 7967, announcing an offering of 91-day and 182-day
Treasury bills to be auctioned October 18, 1976, was mailed to you yesterday.
Inadvertently, the tender forms for this offering were not enclosed with the
circular.
Enclosed is a copy of the forms.
upon request.




Additional copies are available

Circulars Division
FEDERAL RESERVE BANK OF NEW YORK


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102