F E D E R A L R E S E R V E B A N K O F N E W Y O R KFiscal 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 All 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 re a su ry , by th is pub lic n o tice , inv itest 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 b i l l s t o b e d a t e d O c t o b e r 19, 1976, a n d t o m a t u r e O c t o b e r 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 in

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 i s s u e w i l l n o t p r o v i d e n e w m o n e y f o r t h e T r e a s u r y a s t h e

m a t u r i n g i s s u e i s o u t s t a n d i n g i n 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 t s a n d t h e F e d e r a l R e s e r v e B a n k s f o r t h e m ­s e l v e s a n d a s a g e n t s o f f o r e i g n a n d i n t e r n a t i o n a l m o n e t a r y a u t h o r i ­t i e s . A d d i t i o n a l a m o u n t s o f t h e b i l l s m a y b e i s s u e d t o F e d e r a l R e ­s e r v e B a n k s a s a g e n t s o f f o r e i g n a n d i n t e r n a t i o n a l m o n e t a r y a u ­t h o r i t i e s . T e n d e r s f r o m G o v e r n m e n t a c c o u n t s a n d t h e F e d e r a l R e ­s e r v e B a n k s f o r t h e m s e l v e s a n d a s a g e n t s o i f o r e i g n a n d i n t e r n a ­t i o n a l m o n e t a r y a u t h o r i t i e s w i l l b e a c c e p t e d a t t h e a v e r a g e p r i c e o f a c c e p t e d t e n d e r s .

T h e b ills w ill be issued on a d isco u n t b asis u n d e r com petitive an d noncom petitive b idd ing , and a t m a tu r ity th e ir face a m o u n t w ill be payab le w ith o u t in te re s t. T h e y w ill be issued in b e a re r fo rm in d en om ina tions o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu r i ty v a lu e ) , an d in b o o k -e n try fo rm to d esig n a ted b idders .

T e n d e r s w ill be received a t F e d e ra l R ese rv e B an k s an d B ra n ch e s and, fro m ind iv idua ls , a t th e B u re au of th e P u b lic D eb t, W a s h in g ­ton, D .C . 20226, up to 1 :30 p.m., E a s te rn D a y lig h t S a v in g tim e, W ednesday , O c to b e r 13, 1976. E ac h ten d e r m u st be fo r a m in im um of $10,000. T e n d e rs o v e r $10,000 m u st be in m u ltip le s o f $5,000. In th e case of com petitive ten d e rs th e p rice o ffered m u s t be e x ­p ressed on th e b asis o f 100, w ith n o t m o re th a n th re e decim als, e.g ., 99.925. F ra c tio n s m ay n o t be used.

B a n k i n g in s titu tio n s and d e a le rs w h i c h m ake p r i m a r y m a rk e ts in G o v ern m en t secu rities a n d re p o r t da ily to the F e d e ra l R ese rv e B an k of N e w Y o rk th e ir positions w ith re sp ec t to G o v ern m en t secu rities and b o rro w in g s th e re o n m ay subm it te n d e rs fo r acco u n t o f cu s to m ers p ro v id ed th e nam es of th e c u sto m e rs a re se t fo 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 ex cep t fo r th e ir ow n accoun t. T e n d e rs w ill be rece ived w ith o u t deposit fro m in c o rp o ra te d b an k s a n d t r u s t com panies a n d fro m

resp o n sib le a n d recogn ized d e a le rs in in v es tm en t secu rities . T e n d e rs fro m o th e rs m u st be accom panied by p ay m en t of 2 p e rce n t o f the face a m o u n t of b ills app lied fo r, u n less th e te n d e rs a re accom pan ied b y an e x p re ss g u a ra n ty of p ay m en t by a n in c o rp o ra te d b a n k o r t r u s t com pany.

P u b lic an n o u n cem en t w ill be m ade by th e D e p a r tm e n t o f th e T re a su ry of th e am o u n t an d price ra n g e of accep ted b ids. T h o se su b m ittin g com petitive ten d e rs w ill be ad v ised of th e accep tance o r re je c tio n th ereo f. T h e S e c re ta ry o f th e T re a s u ry e x p re ss ly r e ­se rv es the r ig h t to accep t o r r e je c t an y o r a ll ten d e rs , in w ho le o r in p a r t, an d h is ac tion in any such re sp ec t shall be final. S u b je c t to these re se rv a tio n s , noncom petitive te n d e rs fo r $500,000 o r less w ith o u t s ta te d p rice fro m any one b id d e r w ill be accep ted in fu ll a t th e a v e ra g e p rice ( in th ree d ec im als) of accep ted com petitive b ids. S e ttle m e n t fo r accep ted ten d e rs in acco rd an ce w ith th e b ids m ust be m ade o r com pleted a t the F e d e ra l R ese rv e B an k o r B ra n c h o r a t the B u re a u of the P u b lic D eb t on O c to b e r 19, 1976, in c ash o r o th e r im m ed ia te ly availab le funds o r in a like face a m o u n t of T re a s u ry b ills m a tu r in g O c to b e r 19, 1976. C ash an d ex ch a n g e te n ­d e rs w ill rece ive equal trea tm e n t. C ash a d ju s tm e n ts w ill be m ade fo r d ifferen ces be tw een the p a r va lue o f m a tu r in g b ills accep ted in e x ch a n g e a n d th e issue p rice of the new b ills.

U n d e r S ec tio n s 4 5 4 (b ) an d 1 2 2 1 (5 ) o f th e In te rn a l R evenue C ode of 1954, th e am o u n t of d isco u n t a t w h ich b ills issued h e re ­u n d e r a re so ld is considered to acc ru e w hen th e b ills a re sold, r e ­deem ed o r o th erw ise d isposed of, a n d th e b ills a re e x c lu d ed fro m co n sid e ra tio n as cap ita l asse ts. A c co rd in g ly , th e o w n e r o f b ills (o th e r th a n life in su ran ce co m p an ies) issued h e re u n d e r m u s t include in his F e d e ra l incom e ta x re tu rn , as o rd in a ry g a in o r loss, the d if­ference be tw een th e p rice paid fo r the bills, w h e th e r on o rig in a l issue o r on subsequen t p u rch ase , a n d th e a m o u n t a c tu a lly received e ith e r upon sale o r redem ption a t m a tu r i ty d u r in g the tax a b le y e a r fo r w h ich the r e tu rn is m ade.

D e p a r tm e n t of the T re a su ry C irc u la r N o . 418 ( c u r r e n t re v is io n ) a n d th is no tice p re sc rib e th e te rm s of th e T re a s u ry b ills an d g o v e rn th e co n d itio n s o f th e ir issue. C opies o f th e c irc u la r m ay be ob­ta in ed fro m any F e d e ra l R ese rv e B an k o r B ra n ch , o r fro m the B u re au of th e P u b lic D ebt.

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 aym en t for the T reasury bills cannot be m ade by credit through the T reasury T ax and Loan A ccount. S ettlem en t, m u st be m ade in cash or other im m ediately available funds or in m aturing T reasury bills.

P a u l A . V o lck er ,President.

(over)

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TENDER FOR 364-DAY TREASURY BILLS

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Dated October 19, 1976 Due October 18, 1977

To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States

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

......................................... —

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi­sions 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:

COMPETITIVE TENDER D o not fill in both Competitive and Noncompetitive tenders on one form NONCOMPETITIVE TENDER

$..................................................... (maturity value)or any lesser amount that may be awarded.Price: ...............................................per 100.

( P r ic e m u s t be e x p r e s s e d w i th n o t m o re th a n three decimal places, for example, 99.925)

$.................................................... (maturity value)(Not to exceed $500,000 for one bidder through all sources)

at the average price of accepted competitive bids.

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

P ieces D e n o m in a tio n M a tu r ity value □ 1. D e liv e r o v e r the c o u n te r to theu n d ersig n ed

□ 2. S h ip to th e u n d e rsig n ed

□ 3. H o ld in sa fekeep ing ( fo r m em ­b er b an k o n ly ) in—

□ In v e stm e n t A ccoun t

n G en era l A ccoun t

P a y m e n t w ill be m ade as fo l lo w s :

□ B y c h arg e to o u r re se rv e accoun t

□ B y cash o r check in immediatelyavailable funds on delivery

(Payment cannot be made through Treasury Tax and Loan Account)

□ 5. S pecia l in s tru c tio n s :

$ 10,000

15,000

50,000

100,000

500,000 □ T r u s t A ccoun t

□ 4. A llo tm e n t tra n s fe r (se e lis t a tta c h e d ) (No changes in delivery instructions

will be accepted)

1,000,000

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)

(Address—incl. City and State)

(Tel. No.) (Signature of subscriber or authorized signature)

(Title of authorized signer)(B a n k in g in s titu tio n s su b m ittin g te n d e rs fo r c u s to m e r a cco u n t m u s t lis t c u s to m e rs’ n am es o n lines below o r on a n a tta ch e d r id e r )

(Name of customer) (Name of customer)INSTRUCTIONS:

1. N o te n d e r fo r less th a n $10,000 w ill be considered , an d each ten d e r m u st be fo r a m u ltip le of $5,000 (m a tu r i ty v a lu e ) .2. O n ly b a n k in g in s titu tio n s , an d d e a le rs w ho m ak e p r im a ry m a rk e ts in G o v ern m en t secu rities an d re p o rt daily to th is B ank

th e ir po sitio n s w ith re sp ec t to G o v ern m en t secu rities a n d b o rro w in g s th ereo n , m ay subm it ten d e rs fo r cu sto m er a c c o u n t; in do ing so, th ey m ay conso lida te com petitive ten d e rs a t th e sa m e p r ic e and m ay conso lida te noncom petitive t e n d e r s , pro v id ed a lis t is a tta c h e d sh o w in g the nam e o f each b id d er a n d th e a m o u n t bid fo r his account. O th e rs w ill no t be p e rm itte d to subm it ten d e rs e x ce p t fo r th e ir ow n accoun t.

3. I f the p e rso n m ak in g th e ten d e r is a co rp o ra tio n , the ten d e r shou ld be signed by a n officer of the co rp o ra tio n a u th o riz e d to m ak e the ten d e r, an d the sig n in g of the te n d e r by a n officer of th e c o rp o ra tio n w ill be c o n stru ed as a re p re se n ta tio n by h im th a t he h as been so a u th o rize d . I f the ten d e r is m ade by a p a rtn e rsh ip , it shou ld be signed by am em ber o f th e firm , w h o shou ld s ign in th e fo rm ” .................................................................................................................... . a co p artn ersh ip , by............. .................... ............... ................................................... ....... . a m em ber o f the firm .”

4. T e n d e rs w ill be received w ith o u t deposit fro m in c o rp o ra te d b anks and t ru s t com panies and fro m responsib leand reco g n ized d ea le rs in in v es tm en t secu rities. T e n d e rs fro m o th ers m u st be accom panied by paym en t of 2 p e rcen t ofthe face a m o u n t o f T re a s u ry b ills app lied for, un less the te n d e rs a re accom panied by a n ex p ress g u a ra n ty of paym entby an in c o rp o ra te d b an k o r t r u s t com pany. A ll checks m u st be d ra w n to the o rd e r o f the F e d e ra l R eserv e B an k of N ewY o rk ; checks e n d o rsed to th is B a n k w ill no t be accepted .

5. I f th e lan g u a g e of th is ten d e r is ch an g ed in any re sp ec t, w hich , in the op in ion of the S e c re ta ry of the T re a su ry , is material, the tender may be disregarded.

Insert this tender in special envelope marked “Tender for

Treasury Bills”

Rtv. 3/76

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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. Additional copies are available upon request.

Circulars DivisionFEDERAL RESERVE BANK OF NEW YORKDigitized for FRASER

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