The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent o f the United States
Circular No. 838^1
July 14, 1978
Offering of $3,340,000,000 of 364-Day Treasury Bills
Dated July 25, 1978
Due July 24, 1979
7o A///wcorporatecf RanAs awb Trust Companies. and Others
Concerned, in tAe Second Tedera/ Reserve Darner.*
Foilowing is the text o f a notice issued yesterday by the Treasury Departm ent:
The Department of the Treasury, by this public notice, invites tenders
for $3,340 million, or thereabouts, of 364-day Treasury bills to be
dated July 25, 1978, and to mature July 24, 1979 (CUSIP No. 912793
Z41). The bills, with a limited exception, will be available in book-entry
form only, and will be issued for cash and in exchange for Treasury bills
maturing July 25, 1978.
The issue will provide $302 million new money for the Treasury as the
maturing issue is outstanding in the amount of $3,038 million, of which
$1,793 million is held by the public and $1,245 million is held by Govern
ment accounts and the Federal Reserve Banks for themselves and as agents
of foreign and international monetary authorities. Additional amounts of
the bills may be issued to Federal Reserve Banks as agents of foreign and
international monetary authorities. Tenders from Government accounts
and the Federal Reserve Banks for themselves and as agents of foreign
and international monetary authorities will be accepted at the average
price of accepted tenders.
The bills will be issued on a discount basis under competitive and non
competitive bidding, and at maturity their par amount will be payable
without interest. Except for definitive bills in the $100,000 denomination,
which will be available only to investors who are 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 in book-entry form on the records
either of the Federal Reserve Banks and Branches, or of the Department
of the Treasury.
Tenders will be received at Federal Reserve Banks and Branches and at
the Bureau of the Public Debt, Washington, D.C. 20226, up to 1:30 p.m.,
Eastern Daylight Saving time. Wednesday, July 19, 1978. Form PD
4632-1 should be used to submit tenders for bills to be maintained on the
book-entry records of the Department of the Treasury.
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 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 o f 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.
Payment for the full par amount o f the bills applied for must
accompany all tenders submitted for bills to be maintained on the
book-entry records of the Department of the Treasury. A cash adjustment
will be made for the difference between the par payment submitted and
the actual issue price as determined in the auction.
No deposit need accompany tenders from incorporated banks and trust
companies and from responsible and recognized dealers in investment
securities, for bills to be maintained on the book-entry records of Federal
Reserve Banks and Branches, or for definitive bills, where authorized. A
deposit of 2 percent of the par amount of the bills applied for must
accompany tenders for such bills from others, unless an express guaranty
of payment by an incorporated bank or trust company accompanies the
tenders.
Public announcement will be made by the Department of the Treasury
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 $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 for bills to be maintained on the
records of Federal Reserve Banks and Branches must be made or
completed at the Federal Reserve Bank or Branch on July 25, 1978, in
cash or other immediately available funds or in Treasury bills maturing
July 25, 1978. 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 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 o f bills (other than life insurance
companies) issued hereunder must include 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 a 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 Circulars, Public Debt Series— Nos. 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 circulars and tender
forms may be obtained from any Federal Reserve Bank or Branch, or
from the Bureau of the Public Debt.
Tenders wil! be received up to 1:30 p .m ., Eastern Daylight Saving time, W ednesday, July 19, 1978 at the Securities
Departm ent o f this Bank's Head Office, at our Buffalo Branch, or at the Bureau o f 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 from the Government Bond Division o f this Bank. Tenders not requiring a deposit may be sub
mitted by telegraph, subject to written confirm ation; no tenders may be submitted by telephone. Paym ent ^br the
Treasayy bd/s cannot be made by credit throagh the 7reasayy 7a x and Loan /le co a n t. iSett/ement m ast be made tn cash
or other immediately avadab/e ^ands or in mntnrtng Treasayy bids.
PA U L A. V O L C K E R ,
President.
GB 64.1 (R ev. 6 /7 7 )
I M P O R T A N T — T h is is a standard form . Its terms are subject to change at any tim e by the Treasury. This
tender w ill be construed as a bid to purchase the securities for which the Treasury has outstanding an in
vitation for tenders on the date received by the Fed eral Reserve B ank of New Y o r k or its B uffalo B ranch.
TENDER FOR 12-M ONTH B O O K -E N T R Y T R E A SU R Y BILLS
(For Use in Subscribing Through a Financial Institution)
Do Not Use This Form /o r Direct Subscriptions to the Treasury
T o FEDERAL RESERVE BANK OF NEW YORK,
Dated at
Fiscal A gent of the United States
P R IV A C Y A C T S T A T E M E N T : The individually identifiable information required on this form is necessary to permit the tender to be processed and the bills to be
issued, in accordance with the General Regulations governing United States book-entry Treasury Bills (Department Circular No. 26-76, Public Debt Series). The
transaction will not be completed unless all required data is furnished.
N ew York, N .Y . 10045
19.
Pursuant and subject to the provisions of Treasury Department Circulars N o. 2 6 -7 6 and N o. 27-7 6 , Public
Debt Series, and to the provisions of the public notice issued by the Treasury Department inviting tenders for
the current offering of 12-month Treasury bills, the undersigned hereby offers to purchase such currently of
fered 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 b elow :
C O M P E T IT IV E T E N D E R
Do WOt / l / / !W 6 o ( / t C o W i / c f l f l V C a w d
Yowctww/'Niftvf (?wdff.y on owe /ortw
N O N C O M P E T IT I V E T E N D E R
$ ....................................................................... (maturity value)
$...................................................................... (maturity value)
or any lesser amount that may be awarded.
/N o t (o exceed #300/700 /or owe 6idder (/trow^/t a// JowrceD
P ric e : .......................................................... per 100.
('Price wwjt &e e-r^re-McJ wit/i no? wore fAaw (/tree
f/ertwto/ /*/ace.f, /or c-vow/ie, 99.923)
at the average price of accepted competitive bids.
Subject to allotment, please issue and accept payment for the bills as indicated below:
Safekeeping or Delivery Instructions
/N o c/tdMges toil/ be accepted)
Book-Entry—
D 1. Hold in safekeeping at FRB NY (for member bank oniy) in
ED Investment Account
ED General Account
ED Trust Account
D 2. Hold as collateral for Treasury Tax and Loan Account*
ED 3. Wire t o .......................................................................................
(Exact Receiving Bank Wire Address/Account)
Definitive—
D 4. Issue in definitive formf (in $100,000 denominations only) and—
ED Deliver over the counter to the undersigned
ED Ship to the undersigned
Payment Instructions
Payment will be made as foliows:
ED By charge to our reserve account
ED By cash or check in immediately
available /wwdj
ED By surrender o f eligible maturing
securities
ED By charge to my correspondent bank
(Name of Correspondent)
/ Daymcwt cawwot be made tbroMpb
Tfea^Mry Ta-v awd Doaw ^4ceoMwt)
* The undersigned certifies that the allotted securities w ill be owned solely by the undersigned.
f This tender is submitted by the undersigned f o r ........................................................................................, which is required by law
or regulation ( .......................................... ........................................... ) to hold or pledge securities in definitive form. (Separate tender
forms must be submitted for each such entity.)
ItMcri t/hs tender
tn envelope
m arked "T e n d e r /o r
Treasury B id s "
(Banking institutions submitting tenders for customer account must list customers' names on lines below or on an attached rider)
IN S T R U C T IO N S :
1. N o 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 may consolidate competitive tenders at t/n? yamc
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 that such officer has been so authorized. If the tender is made by a partnership, it should be signed by a
member o f 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 o f New
Y o r k ; and personal checks should be certified. 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