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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States Circular No. 8483*1 December 29, 1978 Offering of $3,200,000,000 of 364-Day Treasury Bilis Dated January 9, 1979 7o /l///wcorpora?e(f FanAs anb 7ra.st Due January 8, 1980 an<7 OlAer^ CoMcerwc^, m lAe Jecowd Fe^erat Reserve Following is the text of a notice issued yesterday by the Treasury Department: The Department of the Treasury, by this public notice, invites tenders for approximately $3,200 million, of 364-day Treasury bills to be dated January 9, 1979, and to mature January 8, 1980 (CUSIP No. 912793 3C8). This issue will not provide new cash for the Treasury as the maturing issue is outstanding in the amount of $3,205 million. Additional amounts of the bills may be issued to Federal Reserve Banks as agents of foreign and international monetary authorities. The bills will be issued for cash and in exchange for Treasury bills maturing January 9,1979. The public holds $1,701 million of the maturing issue and $1,504 million is held by Federal Reserve Banks for themselves and as agents of foreign and international monetary authorities. Tenders from Federal Reserve Banks for themselves and as agents of foreign and international monetary authorities will be accepted at the weighted average price of accepted competitive tenders. The bills will be issued on a discount basis under competitive and noncompetitive bidding, and at maturity their par amount will be payable without interest. This series of bills will be issued entirely in book-entry form in a minimum amount of $10,000 and in any higher $5,000 multiple, 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 Standard time, Wednesday, January 3, 1979. 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 in and borrowings on such securities may submit tenders for account of customers, if the names of the customers and the amount for each customer are furnished. Others are only per mitted to submit tenders for their own account. Payment for the full par amount of the bills applied for must ac company all tenders submitted for bills to be maintained on the bookentry records of the Department of the Treasury. A cash adjustment will be made on all accepted tenders for the difference between the par pay ment 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 invest ment securities for bills to be maintained on the book-entry records of Federal Reserve Banks and Branches. 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. Competitive bidders will be advised of the acceptance or rejection of their tenders. The Secretaty of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and the Secretary's action 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 weighted average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders for bills to be maintained on the book-entry records of Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on January 9, 1979, in cash or other immediately available funds or in Treasury bills maturing January 9, 1979. 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 these bills are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capita! assets. Accordingly, the owner of these bills (other than life insurance companies) must include in his or her Federal income tax return, as ordinary gain or loss, the differ ence 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 will be received up to 1:30 p.m., Eastern Standard time, Wednesday, January 3, 1979, 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 from the Government Bond Division of this Bank. Tenders not requiring a deposit may be sub mitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Payment /br the Treasury bibs cannot be made by credit through the Treasury 7nx ant? Loan Account. Jett/emeut must be made in cash or other immediately avabab/e ^unds or in maturing Treasury bids. PAUL A. VOLCKER, President.
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