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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gen t of the United States TCircular No. 74461 August 23, 1974 u J O FFERING OF T W O SERIES OF T R E A SU R Y BILLS $ 2 ,8 0 0 ,0 0 0 ,0 0 0 of 91-Day Bills, Additional Amount, Series Dated June 6 ,1 9 7 4 , Due December 5 ,1 9 7 4 (To Be Issued September 5, 1974) $2 ,000 ,00 0,00 0 of 182-Day Bills, Dated September 5 ,1 9 7 4 , Due March 6 ,1 9 7 5 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F ollow in g is the text o f a n otice issued by the T reasury Department, released at 4 p.m. to d a y : T h e Treasury Department, by this public notice, invites ten ders fo r tw o series o f Treasury bills to the aggregate amount of $4,800,000,000, or thereabouts, to be issued September 5, 1974 as fo llo w s : 91-day bills (to maturity date) in the amount of $2,800,000,000, or thereabouts, representing an additional amount o f bills dated June 6, 1974, and to mature Decem ber 5, 1974 (C U S I P N o. 912793 V B 9 ) , originally issued in the amount o f $1,903,910,000, the additional and original bills to be freely interchangeable. o f customers provided the names o f the customers are set forth in such tenders. Others w ill not be permitted to submit tenders except for their own account. Tenders will be received without de posit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent of the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust company. T h e bills o f both series w ill be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. T h ey w ill be issued in bearer form in denominations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value) and in book-entry form to designated bidders. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Treasury Department o f the amount and price range o f accepted bids. Only those submitting com petitive tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reserva tions, noncompetitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) o f 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 5, 1974, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing September 5, 1974. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Friday, August 30, 1974. Tenders will not be re ceived at the Treasury Department, W ashington. Each tender must be for a minimum o f $10,000. Tenders over $ 10,000 must be in m ul tiples o f $5,000. In the case o f competitive tenders the price offered must be expressed on the basis o f 100, with not more than three de cimals, e.g., 99.925. Fractions may not be used. It is urged that ten ders be made on the printed form s and forw arded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Under Sections 4 5 4 (b ) and 1221(5) o f the Internal Revenue Code o f 1954, the amount o f 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 considera tion as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) 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 o r 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. Banking institutions and dealers w ho make primary markets in G overnment securities and report daily to the Federal Reserve Bank o f N ew Y o rk their positions with respect to Government securities and borrow ings thereon may submit tenders for account Treasury Department Circular this notice prescribe the terms o f the conditions o f their issue. Copies from any Federal Reserve Bank or 182-day bills, for $2,000,000,000, or thereabouts, to be dated September 5, 1974, and to mature M arch 6, 1975 (C U S I P N o. 912793 V Y 9 ) . T h e bills w ill be issued for cash and in exchange for Treasury bills m aturing September 5, 1974, outstanding in the amount of $4 407,040,000, o f which Government accounts and Federal Reserve Banks, fo r themselves and as agents o f foreign and international monetary authorities, presently hold $2,461,890,000. These accounts may exchange bills they hold for the bills now being offered at the average prices o f accepted tenders. N o. 418 (current revision) and the Treasury bills and govern o f the circular may be obtained Branch. T h is Bank w ill receive tenders fo r both series up to 1 :30 p.m., Eastern Daylight Saving time, Friday, August 30, T ender form s for the respective 1974t at the Securities Department of its H ead O ffice and at its B uffalo Branch. series are enclosed. Please use the appropriate form s to submit tenders and return them in the enclosed envelope marked “ T en d er fo r T reasu ry Bills.” T enders not requiring a deposit m ay be submitted by telegraph, subject to written con firm ation ; no tenders m ay be submitted b y 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. T h e results of bidding fo r the previous offering of T reasury bills, to be issued A ugust 29, 1974, were not available at the tim e of printing this circu la r; those results will be announced after release by the T reasury Department. A lfred H ayes, President. Closing date for receipt of tenders is Friday, August 30.
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