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

r Circular No. 7 9 5 0 "IL September 8, 1976 J

OFFERING OF TWO SERIES OF TREASURY BILLS

$2,100,000,000 of 91-Day Bills, Additional Amount, Series Dated June 17,1976, Due December 16,1976(To Be Issued September 16, 1976)

$3,100,000,000 of 182-Day Bills, Dated September 16, 1976, Due March 17, 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 T reasury

The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of$5 ,200 m ill io n , o r th e r e a b o u ts , to be is s u e d S e p te m b e r 16, 1976, a s follows :

9 1 -d a y b il ls ( t o m a tu r i ty d a t e ) in th e a m o u n t o f $2 ,1 0 0 m illio n , o r th e r e a b o u ts , r e p r e s e n t in g a n a d d i t io n a l a m o u n t o f b ills d a te d J u n e 17, 1976, a n d to m a tu r e D e c e m b e r 16, 1976 ( C U S I P N o . 912793 C 6 1 ) , o r ig in a l ly is s u e d in th e a m o u n t o f $3 ,203 m ill io n , th e a d d i t io n a l a n d o r ig in a l b il ls to be f re e ly in te r c h a n g e a b le .

182-day bills fo r $3,100 million, o r th e r e a b o u ts , to be dated S e p te m b e r 16, 1976, a n d to m a tu r e M a r c h 17, 1977 (CUSIP No. 912793 F27).

T h e b ills w ill be is s u e d fo r c a s h a n d in exchange for Treasury b ills m a tu r in g September 16, 1976, outstanding in the amount of $5,206 m illio n , o f w h ic h G o v e r n m e n t a c c o u n ts a n d F e d e r a l R e s e r v e Banks, for themselves and as agents of foreign and international m o n e ta r y a u th o r i t i e s , p r e s e n t ly h o ld $2 ,707 m ill io n . T h e s e a c c o u n ts nay exchange bills they hold for the bills now being offered at the iv e r a g e p r ic e s o f a c c e p te d te n d e r s .

i h e b ills o f b o th se r ie s w ill be is s u e d o n a d is c o u n t b a s is u n d e r co m p e titiv e a n d n o n c o m p e ti t iv e b id d in g a s h e r e in a f te r p ro v id e d , a n d it m a tu r i t y th e i r fa c e a m o u n t w ill be p a y a b le w i th o u t in te r e s t . T hey w ill be is s u e d in b e a r e r fo rm in d e n o m in a t io n s o f $10,000, >15,000, $50,000, $100 ,000 , $500 ,000 a n d $1 ,000 ,000 ( m a t u r i t y v a lu e ) in d in b o o k - e n t ry f o r m to d e s ig n a te d b id d e rs .

T e n d e r s w ill be re c e iv e d a t F e d e r a l R e s e r v e B a n k s a n d 1 r a n c h e s u p to th e c lo s in g h o u r , o n e - th i r ty p .m ., E a s t e r n D a y l ig h t s a v in g t im e , M o n d a y , S e p te m b e r 13, 1976. T e n d e r s w ill n o t b e r e ­ceived a t th e T r e a s u r y D e p a r tm e n t , W a s h in g to n . E a c h te n d e r m u s t ie fo r a m in im u m o f $10 ,000 . T e n d e r s o v e r $10 ,000 m u s t be in m ltip le s o f $5 ,000. I n th e c a s e o f c o m p e ti t iv e te n d e r s th e p r ic e f fe re d m u s t be e x p r e s s e d o n th e b a s is o f 100, w i th n o t m o re th a n i r e e d e c im a ls , e .g ., 99.925. F r a c t io n s m a y n o t be u se d . I t is u r g e d la t t e n d e r s be m a d e o n th e p r in te d f o rm s a n d f o r w a r d e d in th e p ec ia l e n v e lo p e s w h ic h w ill be su p p lie d by F e d e r a l R e s e r v e B a n k s r B r a n c h e s o n a p p l ic a t io n th e r e f o r .

B a n k in g in s t i tu t io n s a n d d e a le r s w h o m a k e p r im a r y m a r k e t s i G o v e r n m e n t s e c u r i t ie s a n d r e p o r t d a i ly to th e F e d e ra l . R e s e rv e a n k o f N e w Y o r k th e i r p o s it io n s w i th r e s p e c t to G o v e rn m e n t ■ curitics a n d b o r r o w in g s t h e r e o n m a y s u b m it t e n d e r s fo r a c c o u n t

Department, released yesterday:of 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. 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.

Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only 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 competi­tive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on September 16, 1976, in cash or other im- mediately available funds or in a like face amount of Treasury bills maturing September 16, 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 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 of Treasury bills (other than life insurance companies) issued hereunder must include in his 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.

treasury Department 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 obtainedfrom any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., E astern Daylight Saving time, M onday, September 3, 1976, at the Securities D epartm ent of its H ead Office and at its Buffalo Branch, len d e r forms for the respective •ries are enclosed. Please use the appropriate forms to subm it tenders and retu rn them in the enclosed envelope marked Fender for T reasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to w ritten con- •m ation; no tenders may be submitted by telephone. P a y m e n t f o r T r e a s u r y b i l l s c a n n o t b e m a d e b y c r e d i t th r o u g h e 7 r e a s u r y T a x a n d L o a n A c c o u n t . S e t t l e m e n t m u s t b e m a d e in c a sh o r o th e r im m e d ia t e ly available fu n d s o r h i a tu r in g T r e a s u r y b i lls .

Results of the last weekly offering of T reasury bills (91-day bills to he issued September 9, 197(>, representing an Iditional am ount of hills dated June 10, 1976, m aturing December 9, 1976; and 182-day bills dated September 9, 66 , m aturing M arch 10 , 1977 ) are shown on the reverse side of this circular.

a ] P a u l A. V g l c k e r ,

P resident.

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RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS

(TWO SERIES TO BE ISSUED SEPTEMBER 9, 1976)

H igh ..............................................Low ................................................Average .................... ..................

1 E q u iv a le n t c o u p o n - is s u e y ie ld .

Range of Accepted Competitive Bids

91 - D a y T r e a s u r y B i l l s M a t u r i n g D e c e m b e r 9, i p y 6

PriceDiscount

RateInvestment

Rate198.719 5.068% 5.20%98.711 5.099% 5.24%98.714 5.087% 5.23%

18 2 - D a y T r e a s u r y B i l l s M a t u r i n g M a r c h 10 , 1977

Discount InvestmentPrice Rate Ratet

97.310 5.321% 5.54%97.299 5.343% 5.57%97.304 5.333% 5.56%

(5 percent of the am ount of 91-day bills bid for a t the low price was accepted.)

(59 percent of the am ount of 182-day bills bid for at the low price was accepted.)

Total Tenders Received and Accepted (By Federal Reserve District)

9 1 - D a y T r e a s u r y B i l l s 18 2 - D a y T r e a s u r y B i l l sM a t u r i n g D e c e m b e r 9, 1976 M a t u r i n g M a r c h 10 , 1977

D is tr ic t Received Accepted Received Accepted

Boston .............................. ............. $ 38,695,000 $ 22,695,000 $ 57,345,000 $ 12,345,000New Y o r k .................... ..... . 3,281,150,000 1,794,400,000 6,818,600,000 2,576,770,000Philadelphia ................. ............. 30,620,000 30,620,000 40,740,000 30,240,000Cleveland .................................... 87,080,000 87,080,000 158,435,000 22,935,000Richmond.................... ............. 19,820,000 19,820,000 69,490,000 41,490,000Atlanta ........................... ............. 26,805,000 26,805,000 69,900,000 33,300,000Chicago........................... ............. 247,970,000 95,830,000 389,830,000 20,630,000St. L ouis ....................................... 44,565,000 28,665,000 72,185,000 27,830,000Minneapolis ................................ 32,550,000 29,700,000 62,320,000 3,765,000Kansas City ................. ............. 29,835,000 27,835,000 47,880,000 35,355,000

Dallas ............................. ............. 43,990,000 19,290,000 35,645,000 13,645,000

San Francisco .............. . ............. 295,800,000 118,600,000 886,625,000 582,370,000

T o t a l s ................... ....... $4,178,880,000 $2,301,340,000“ $8,708,995,000 $3,400,675,000**

a I n c lu d e s $343 ,470 ,000 n o n c o m p e ti t iv e t e n d e r s f ro m th e p u b lic . ^ I n c lu d e s $162 ,440 ,000 n o n c o m p e tit iv e te n d e r s f ro m th e p u b lic .

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(Closing date for receipt of this tender is Monday, September 13, 1976)

TENDER FOR 91-DAY TREASURY BILLS

Additional Amount, Ser ies Dated June 17, 1976, Maturing December 16, 1976

(To Be Issued September 16, 1976)

T o 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 at

19— _

P ursuan t to the provisions of T reasury D epartm ent C ircular No. 418 (curren t revision) and to the provi­sions of the public notice issued by the T reasury D epartm ent inviting tenders for the above-described I re a su ry Dills, the undersigned hereby offers to purchase such T reasury bills in the am ount indicated below, and agrees to make payment therefor a t your Bank on or before the issue date at the price indicated below :

C O M P E T IT IV E T E N D E R Do not fill in both Competitive and Noncompetitive tenders on one form N O N C O M PE T IT IV E TE N D E R

$................................................................ (m aturity value)or any lesser am ount that may be awarded.

Price : .......... ................. .............................per 100.(Price must be expressed with not more than three decimal places, far example, 99.925)

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

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

at the average price of accepted competitive bids.

Pieces Denomination Maturity value □ 1. D e liv e r o v e r th e c o u n te r to th eundersigned

□ 2, Ship to th e undersigned

□ 3. H o ld in s a fe k e e p in g ( f o r m e m ­ber bank only) in—

□ I n v e s tm e n t A c c o u n t

I- ! G e n e r a l Amount-

P a y m e n t w ill be m a d e a s f o l lo w s :

□ By charge to our reserve account□ B y c a s h or c h e c k in immediately

available funds on delivery( Payment cannot be made through Treasury Tax and Loan Account)

□ 5. Special instructions:

$ 10,000

15,000

50,000

100,000

500,000 □ Trust Account

□ 4. Allotment transfer (see list attached) (No changes in delivery instructions

will be accep ted )

1,000,000

Totals

T he undersigned (m em ber bank) hereby certifies that the T reasury bills which you are hereby instructed to dispose of in the m anner indicated in item 3 above are owned solely by the undersigned.

Insert th is tender in special envelope

m arked “Tender forTreasury B ills”

__

(Name of aubscriber—please print or type)

(Address—inch City and State)

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

(Title of authorized signer)

(Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider)

(Name o f customer) ( N a m e o f c u s to m e r )

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 d a i ly 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 a t th e sa m e p r ic e 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 by him that he has been so authorized. If the tender is made by a partnership it should be signed bv amember of the firm, who should sign in the form “.......................................................... ................................... ..... a co^rtffership, 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 of New York; 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.Rtv. 3/76 [ 38 J

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(Closing date for receipt of this tender is Monday, September 13, 1976)

TENDER FOR 182-DAY TREASURY RILLS

Dated September 16, 1976 Maturing March 17, 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 StatesDated a t ......................................................................................................................... . 19—

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 TENDERD o n o t f ill in b o th C o m p e ti t iv e an d N o n c o m p e ti t iv e te n d e r s on one fo r m

NONCOMPETITIVE TENDER

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

( P r ic e m u st be e x p r e s s e d w i th n o t m o re th an th ree d e c im a l p la c e s , f o r e x a m p le , 9 9 .9 2 5 )

Subject to allotment, please issue, deliver, and accept

$.......................................................... (maturity value)( N o t to e x c e e d $500 ,000 f o r one b id d e r th ro u g h a ll s o u r c e s )

at the average price of accepted competitive bids,

payment for the bills as indicated below:

Pieces Denomination Maturity value □ 1. Deliver over the counter to theundersigned

□ 2. Ship to the undersigned

□ 3. Hold in safekeeping (for mem­ber bank only) in—□ Investment Account

□ General Account

Payment will be made as follows:

□ By charge to our reserve account□ By cash or check in immediately

a v a ila b le fu n d s on delivery( P a y m e n t ca n n o t b e m a d e th ro u g h T r e a s u r y T a x a n d L o a n A c c o u n t)

$ 10,000

15,000

50,000

100,000 □ 5. Special instructions:

500,000 □ Trust Account

□ 4. Allotment transfer (see list attached) (N o changes in delivery instructions

will be accepted)

1,000,000

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 subscriber—please print or type)

(Address—incl. City and State)

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

(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 may consolidate competitive tenders a t th e sa m e p r ic e 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 by him that he has been so authorized. If the tender is made by a partnership, it should be signed by amember of 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 Dy 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 of New York; 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. _Rw. 3/76 E 38 ■*Digitized for FRASER

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