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F E D E R A L R ESER VE BAN K O F N EW YO RK Fiscal Agent of the United States Circular No. 8 0 6 1 1 February 25, 1977 J Offering of $3,105,000,000 of 364-Day Treasury Bills Dated March 8, 1977 Due March 7, 1978 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: The Department of the Treasury, by this public notice, invites book-entry records of the Department of the Treasury. A cash tenders for $3,105 million, or thereabouts, of 364-day Treasury bills adjustment will be made for the difference between the par pay to be dated March 8, 1977, and to mature March 7, 1978 (CUSIP ment submitted and the actual issue price as determined in the No. 912793 M45). The bills, with a limited exception, will be auction. available in book-entry form only, and will be issued for cash and No deposit need accompany tenders from incorporated banks and in exchange for Treasury bills maturing March 8, 1977. trust companies and from responsible and recognized dealers in This issue will not provide new money for the Treasury as the investment securities, for bills to be maintained on the book-entry maturing issue is outstanding in the amount of $3,105 million, of records of Federal Reserve Banks and Branches, or for definitive which $1,904 million is held by the public and $1,201 million is held bills, where authorized. A deposit of 2 percent of the par amount by Government accounts and the Federal Reserve Banks for them of the bills applied for must accompany tenders for such bills from selves and as agents of foreign and international monetary authori others, unless an express guaranty of payment by an ineorpprated ties. Additional amounts of the bills may be issued to Federal bank or trust company accompanies the tenders. Reserve Banks as agents of foreign and international monetary Public announcement will be made by the Department of the authorities. Tenders from Government accounts and the Federal Reserve Banks for themselves and as agents of foreign and inter Treasury of the amount and price range of accepted bids. Those national monetary authorities will be accepted at the average price submitting competitive tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves of accepted tenders. the right to accept or reject any or all tenders, in whole or in part, The bills will be issued on a discount basis under competitive and his action in any such respect shall be final. Subject to these noncompetitive bidding, and at maturity their par amount will be and noncompetitive tenders for $500,000 or less without payable without interest. Except for definitive bills in the $100,000 reservations, stated price from any one bidder will be accepted in full at the denomination, which will be available only to investors who are average price (in three decimals) of accepted competitive bids. able to show that they are required by law or regulation to hold securities in physical form, this series of bills will be issued entirely Settlement for accepted tenders for bills to be maintained on the in book-entry form on the records either of the Federal Reserve records of Federal Reserve Banks and Branches must be made or Banks and Branches, or of the Department of the Treasury. completed at the Federal Reserve Bank or Branch on March 8, 1977, in cash or other immediately available funds or in Treasury Tenders will be received at Federal Reserve Banks and Branches bills maturing March 8, 1977. Cash adjustments will be made and at the Bureau of the Public Debt, Washington, D.C. 20226, up to 1 :30 p.m., Eastern Standard time, Wednesday, March 2, 1977. for differences between the par value of maturing bills accepted in Form PD 4632-1 should be used to submit tenders for bills to be exchange and the issue price of the new bills. maintained on the book-entry records of the Department of the Under Sections 454(b) and 1221(5) of the Internal Revenue Treasury. Code of 1954 the amount of discount at which bills issued hereunder Each tender must be for a minimum of $10,000. Tenders over are sold is considered to accrue when the bills are sold, redeemed $10,000 must be in multiples of $5,000. In the case of competitive or otherwise disposed of, and the bills are excluded from considera tenders, the price offered must be expressed on the basis of 100, tion as capital assets. Accordingly, the owner of bills (other than with not more than three decimals, e.g., 99.925. Fractions may not life insurance companies) issued hereunder must include in his Federal income tax return, as ordinary gain or loss, the difference be used. the price paid for the bills, whether on original issue or on Banking institutions and dealers who make primary markets in abetween subsequent purchase, and the amount actually received either upon Government securities and report daily to the Federal Reserve sale or redemption at maturity during the taxable year for which Bank of New York their positions with respect to Government securities and borrowings thereon may submit tenders for account the return is made. of customers, provided the names of the customers are set forth Department of the Treasury Circulars, Public Debt Series—Nos. in such tenders. Others will not be permitted to submit tenders 26-76 and 27-76, and this notice, prescribe the terms of these Treasury bills and govern the conditions of their issue. Copies of the except for their own account. Payment for the full par amount of the bills applied for must circulars and tender forms may be obtained from any Federal Re accompany all tenders submitted for bills to be maintained on the serve Bank or Branch, or from the Bureau of the Public Debt. Tenders will be received up to 1 :30 p.m., Eastern Standard time, Wednesday, March 2, 1977 at the Securities Department of this Bank’s Head Office, at our Buffalo Branch, or at the Bureau of the Public Debt. The enclosed form should be used for submitting tenders through a financial institution. Forms for submitting tenders directly to the Treasury are available in the Government Bond Division of this Bank. 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 a u l A . V o lc k e r , President. February 25, 1977 u NOTICE Forms for submitting tenders for 52 -week Treasury bills directly to the Treasury will no longer be enclosed with the monthly offering circular. They will continue to be available in the Government Bond Division of this Bank. Government Bond Division Federal Reserve Bank of New York (Enc. Cir. No. 8061)
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