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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
J Circular No. 7449*1
"

L

September 3, 1974

J

OFFERING OF TWO SERIES OF TREASURY BILLS
$2,600,000,000 of 91-Day Bills, Additional Amount, Series Dated June 13, 1974, Due December 12, 1974
(To Be Issued September 12, 1974)
$1,800,000,000 of 182-Day Bills, Dated September 12, 1974, Due March 13, 1975
T o A ll Incorporated Banks and Trust Companies, and O thers
Concerned, in the Second Federal R eserve D istrict:

F ollow in g is the text of a notice issued by the T reasury Department, released at 4 p.m. to d a y :
The Treasury Department, by this public notice, invites tenders
for two series o f Treasury bills to the aggregate amount of
$4,400,000,000, or thereabouts, to be issued September 12, 1974 as
fo llo w s :
91-day bills (to maturity date) in the amount of
$2,600,000,000, or thereabouts, representing an additional
amount o f bills dated June 13, 1974, and to mature
December 12, 1974 (C U S I P N o. 912793 V C 7 ), originally
issued in the amount o f $1,902,535,000, the additional
and original bills to be freely interchangeable.
182-day bills, for $1,800,000,000, or thereabouts, to be dated
September 12, 1974, and to mature M arch 13, 1975
(C U S I P No. 912793 V Z 6 ) .
The bills will be issued for cash and in exchange for Treasury
bills maturing September 12, 1974, outstanding in the amount of
$4,404,980,000, of which Government accounts and Federal Reserve
Banks, for themselves and as agents of foreign and international
monetary authorities, presently hold $2,907,835,000. These accounts
may exchange bills they hold for the bills now being offered at the
average prices o f accepted tenders.
The bills o f both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and
at maturity their face amount w ill be payable without interest.
They will be issued in bearer form in denominations of $10,000,
$15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value)
and in book-entry form to designated bidders.
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Daylight
Saving time, Monday, September 9, 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 mul­
tiples o f $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. It
is urged that tenders 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.
Banking institutions and dealers w ho make primary markets in
Government securities and report daily to the Federal Reserve
Bank o f N ew Y ork their positions with respect to Government
securities and borrow ings thereon may submit tenders for account

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 o f 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 com ­
pany.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, follow in g which public
announcement will be made by the Treasury Department o f the
amount and price range of accepted bids. O nly those submitting
competitive tenders will be advised of the acceptance or rejection
thereof. The Secretary of the Treasury expressly reserves the right
to accept o r 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 $ 200,000 or
less without stated price from any one bidder will be accepted in
full at the average price (in three decim als) of accepted com peti­
tive 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 12, 1974, in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing September 12, 1974. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for differ­
ences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
Under Sections 4 5 4 (b ) and 1221(5) of the Internal Revenue
Code of 1954, the amount of discount at which bills issued here­
under 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. A ccordingly, the owner o f 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 N o. 418 (current revision) and
this notice prescribe the terms o f the Treasury bills and govern
the conditions of their issue. Copies o f the circular may be obtained
from any Federal Reserve Bank or Branch.

T his Bank will receive tenders fo r both series up to 1 :3 0 p.m., Eastern Daylight Saving time, M onday, September
9, 1974, at the Securities Department of its H ead Office and at its Buffalo Branch. T ender form s for the respective
series are enclosed. Please use the appropriate form s to submit tenders and return them in the enclosed envelope marked
“ T ender for T reasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written
confirm ation; no tenders may be submitted by 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.
Results of the last weekly offering of Treasury bills (9 1 -day bills to be issued September 5, 1974, representing
an additional amount of bills dated June 6, 1974, maturing December 5, 197 4 ; and 182-day bills dated September 5,
1974, maturing March 6, 1975) are shown on the reverse side of this circular.




A l fr e d H

ayes,

President.
( over )

RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS
(TW O SERIES TO BE ISSUED SEPTEMBER 5, 1974)

Range of Accepted Competitive Bids

182 -D ay Treasury Bills
Maturing March 6,1975

pi-D ay Treasury Bills
Maturing December 5, 1974
Price

A pprox. equiv.
annual rate

A pprox. equiv.
annual rate

P rice

H igh .............. .....................................

97.725a

9.000%

L o w ................ .....................................
.....................................
A verage

97.661

9 .2 5 3 %

95.337b
95.288

97.683

9 .1 6 7 % 1

95.307

a Excepting three tenders totaling $3,075,000.

9 .2 2 4 %
9 .3 2 0 %
9 .2 8 3 % 1

b Excepting three tenders totaling $1,640,1

1 These rates are on a bank discount basis. The equivalent coupon issue yields are 9.51% for the 91-day bills, and 9.88% for
182-day bills.

(3 4 percent of the amount o f 91-day bills
bid for at the low price was accepted.)

(3 percent o f the amount o f 182-day bills
bid for at the low price was accepted.)

Total Tenders Applied for and Accepted (By Federal Reserve District)
18 2 -Day Treasury Bills
Maturing March 6, 1975

9 1 -Day Treasury Bills
Maturing Decem ber 5 , 1974
D istrict

B oston

Applied for

.......... ...............................
.... ...............................

N ew Y o rk

Philadelphia

...............................

Cleveland ...... ...............................
Richm ond .... ...............................
Atlanta .......... ...............................
Chicago

$

52,435,000
2,887,990,000
34,225,000
84,835,000
101,060,000

........ ...............................

42,760,000
223,565,000

...... ...............................

47,765,000

M inneapolis .. ...............................
Kansas City .. ...............................

20,350,000

Dallas ............. ...............................
San Francisco .............................

37,025,000
156,195,000

..................................

$3,740,555,000

S t. L ouis

T

otal

52,350,000

$

41,995,000
2,104,120,000
34,225,000
84,835,000
59,560,000

$

39,725,000

$

21,175,000

3,038,555,000
31,395,000

1,565,285,000
15,950,000

93,745,000
44,780,000

28,755,000

58,695,000

42,595,000

41,670,000

143,965,000
44,945,000
20,350,000

238,130,000

31,140,000
80,980,000

45,930,000

33,930,000

18,890,000

15,890,000

52,350,000
31,025,000

43,240,000

36,245,000

29,205,000

140,235,000

187,810,000

18,605,000
93,810,000

$2,800,200,000°

c Includes $516,810,000 noncompetitive tenders accepted at the average price,
d Includes $345,440,000 noncompetitive tenders accepted at the average price.




A ccepted

Applied for

A ccepted

$3,853,075,000

$2,000,460,000d


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102