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FEDERAL RESERVE BANK OF NEW
YORK
Fiscal Agent of the United States
Circular No. 7 9 7 2 1
October 18, 1976 J
OFFERING OF TWO SERIES OF TREASURY BILLS
$2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated July 29, 1976, Due January 27, 1977
(To Be Issued October 28, 1976)
$3,500,000,000 of 182-Day Bills, Dated October 28, 1976, Due April 28, 1977
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
Following is the text of a notice issued by the Treasury Department, released yesterday:
The Department of the Treasury, by this public notice, invites
tenders for two series of Treasury bills to the aggregate amount of
$6,ODD million, or thereabouts, to be issued October 28, 1976, as
follows:
91-day bills (to maturity date) in the amount of
$2,5(J0 million, or thereabouts, representing an additional
amount of bills dated July 29, 1976, and to mature
January 27, 1977 (CUS1F No. 912793 E36), originally
issued in the amount of $3,006 million, the additional
and original bills to be freely interchangeable.
182-day bills, for $3,500 million, or thereabouts, to be dated
October 28, 1970, and to mature April 28, 1977 (CUSIF
No. 912793 F84).
The bills will be issued for cash and in exchange for Treasury
bills maturing October 28, 1976, outstanding in the amount of
$6,U04 million, of which Government accounts and Federal Reserve
Banks, tor themselves and as agents of foreign and international
monetary authorities, presently hold $2,752 million. These accounts
may exchange bills they hold for the bills now being offered at the
average prices of accepted tenders.
The bills will be issued on a discount basis under competitive
and noncompetitive bidding, 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 book-entry form to designated
bidders.
Tenders will be received at Federal Reserve Banks and Branches
and, from individuals, at the Bureau of the Public Debt, Washing
ton.’ D.C. 20226, up to 1 :30 p.m., Eastern Daylight Saving time,
Friday, October 22, 1976. 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.
Banking institutions and dealers which make primary markets
m 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
This Bank will receive tenders for both series up to
1
such tenders. Others will not be permitted to submit tenders except
for their own account. 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
bills applied for, unless the tenders are accompanied by an express
guaranty of payment by an incorporated bank or trust company.
^Public announcement will be made by the Department of the
1 reasury of the amount and price range of accepted bids. Those
submitting competitive tenders will be advised of the acceptance or
rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part,
and his action in any such respect shall be final. Subject to these
reservations, noncompetitive tenders for each issue 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 competi
tive bids for the respective issues, Settlement for accepted tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank or Branch or at the Bureau of the Public
Debt on October 28, 1976, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing October 28,
1976. Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price 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 here
under 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 bills
(other than life insurance companies) issued hereunder must in
clude in his Federal 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.
Department of the Treasury Circular No. 418 (current revision)
and this notice prescribe the terms of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be obtained
froni any Federal Reserve Bank or Branch, or from the Bureau of
the Public Debt.
:30 p.m., Eastern Daylight Saving time Friday October pp
1976, at the Securities Department of its Head Office and at its Buffalo Branch Tender forms for he respective series
ire enclosed. Please use the appropriate forms to submit tenders and return thetn in the enclosed enveloped marked
Tender for Treasury Bills Tenders not requiring a deposit may be submitted by telegraph, subject to written conrmnat.on; no tenders may be submitted by telephone. Payment for Treasury bills cannot be made by credit throunh
m t I Z ^ T r e I ^ y abmsL °m
CC°"nL Se,Hement must be made «'» cash or other immediately available funds or 1
The results of bidding for the previous offering of Treasury bills, to be issued October 2 1 , 1976* were not available
•t the time of printing this circular; those results will be announced after release by the Treasury Department.
4 4]
P a u l A . V olcker,
P re sid e n t.
Closing date for receipt of tenders is Friday, October 22.
11
IMPORTANT-Closing date for receipt of this tender is F riday , October 22, 1976
TENDER FOR 91-DAY TREASURY BILLS
Additional Amount, Series Dated July 29, 1976, Maturing January 27, 1977
(To Be Issued October 28, 1976)
To
F
R
ederal
eser v e
B
a n k of
N
ew
Y
Dated a t ........................... .......
ork,
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
$.................................................... (maturity value)
or any lesser amount that may be awarded.
Price : ............................... .............per 100.
(Price
be expressed with not more
must
th an three
NONCOMPETITIVE TENDER
$.................................................... (maturity value)
(Not 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:
Pieces Denomination
c o m p le te d u n le s s all re q u ire d d a ta is fu rn ish e d .
$
Maturity value
10,000
15,000
□ 1. Deliver over the counter to the
undersigned
Payment will be made as follows:
□
By charge to our reserve account
□ 2. Ship to the undersigned
□
By cash or check in
available funds
□ 2. Hold in safekeeping (for mem
ber bank only) in—
50,000
100,000
□ Investment Account
□ General Account
500,000
□ Trust Account
1,000,000
im m e d ia te ly
on delivery
{Payment cannot be made through
T reasury T ax and Loan A ccou nt)
□
5. S p ecial in str u c tio n s:
□ 4. Allotment transfer (see list attached)
( N o ch a n g es in d e liv e r y in s tr u c tio n s
w ill be a c c e p te d )
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.
(Nsme of subscriber—please print or type)
In se rt th is te n d e r
in sp e c ia l e n v e lo p e
m a r k e d “ T e n d e r fo r
T re a s u ry B ills ”
(Address—incl. City and State)
(Tel. No.)
(Signature of subscriber or authorized sifnature)
(Title of authorized signer)
(Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider)
(Name of customer)
(Name of customer)
INSTRUCTIONS:
1. No tender for less than $10,000 will be considered, and each tender must be for a 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 m ay co n s o lid a te Competitive tenders at the sa m e Price a n d m a y co n s o lid a te n o n c o m n c t i l i v e t en d ers, p r o v i d e d a
list is attached showing the name ot each bidder aod the amount hid for his account. Others will not be permitted to submit
tenders except for their own account
„
., a copartnership, by
.......... - .............. •••••....... .................................. .. . a member of the firm.
4
Tenders will be received without deposit from incorporated banks and trust companies and from responsible
recognized dealers in investment securities. Tenders from others must be accompanied By payment of 2 percent of
ou- face amount of Treasury bills apjmed for, unless the tenders are accompanied bj an express guaranty A payment
y A ";
S y ’. n l r S o T h i i X r X 'n 'o t l"
i .n l W r l l l ,t e 13 S
Rev. 3/76
d"*Wn '°
° rd...... f
^ fA ^ S 2 r t e i S ri '' e" “ any r' iPeCt' wbkh- in "*
Federal R' Mrve Bank "f N*»
°f the S tm u r r a the Treasury.
t 4*
IMPORTANT-Closing date for receipt of this tender i3 Friday. October 22, 1976
TENDER FOR 182-DAY TREASURY BILLS
Dated October 28, 1976
To F ederal R eserve Bank
Maturing April 28, 1977
of
N ew Y ork,
Dated at
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
$............................................... ..... (maturity value)
or any lesser amount that may be awarded.
Price: ...............................................per 100.
(Price must be expressed with not more than three
NONCOMPETITIVE TENDER
$.................................................... (maturity value)
(Not to exceed $500fi00 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:
Pieces Denomination
$
Maturity value
10,000
□ 1. Deliver over the counter to the
undersigned
□ 2. Ship to the undersigned
15,000
□ 3. Hold in safekeeping (for mem
ber bank only) in—
50,000
□ Investment Account
100,000
□ 5. Special instructions:
S3
rt
•©
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)
500,000
□ Trust Account
1,000,000
□ 4. Allotment transfer (see list attached)
(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.
Insert this tender
in special envelope
marked “Tender for
Treasury Bills**
(Name of eubecriber—please print or type)
(Addreae—incl. City and State)
(Tel. No.)
(Signature of subscriber or authorised signature)
(Title of authorised signer)
(Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider)
(Name of customer)
..............................(N ^ 'e of
...................................... ..
IN S T R U C T IO N S :
1. No tender for less than $10,000 will be considered, and each tender must be for a multiple of $5,000 (maturity value).
.. ■2‘ 9*"ly banl?ug 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.
^
^ !he Person making the tender is a corporation, the tender should be signed by an officer of the corporation
authorized to make the render, 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 c c ^ r t S i p by
4.
Tenders will be received without deposit from incorporated banks and trust companies and from responsible
arid recognized dealers m 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
York*1; c h e X ^ l o ^ o T h i r B i n k T K o . bl1 a ^ d ™ * * dri"Vn '°
is material.'the tender ^ay'bedisreg^dei?
R «.3/7 6
reSP' C*’ which-
" * r °f
*he
* " " • »*”“ <* * »
ot th'
»f <*« Treasury,
[44
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