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FEDERAL RESERVE BANK OF NEW YORK
Fiscal A gent of the United States

r Circular No. 7 5 0 0 1
L November 12, 1974 J

OFFERING OF TWO SERIES OF TREASURY BILLS
>2,800,000,000 of 91-Day Bills, Additional A_mount, Series Dated August 22, 1974, Due February 20, 1975
(To Be Issued November 21,1974)
$2,100,000,000 of 182-Day Bills, Dated November 21, 1974, Due May 22, 1975
T o A ll Incorporated Banks and Trust Companies, and O thers
Concerned, in the Second Federal R eserv e D istrict:

Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today:
The Treasury Department, by this public notice, invites tenders
for tw o series o f Treasury bills to the aggregate amount of
$4,900,000,000, or thereabouts, to be issued Novem ber 21, 1974, as
fo llo w s :
91-day bills (to maturity date) in the amount of
$2,800,000,000, o r thereabouts, representing an additional
amount of bills dated August 22, 1974, and to mature
February 20, 1975 (C U S I P N o. 912793 V W 3 ) , orig i­
nally issued in the amount o f $2,001,830,000, the addi­
tional and original bills to be freely interchangeable.

o f 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 com ­
pany.

Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Stand­
ard time, M onday, Novem ber 18, 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 o f 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 forms and forw arded in the special
envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.

Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, follow ing 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 o f 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 $200,000 or
less without stated price from any one bidder w ill 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 Novem ber 21, 1974, in cash or other im ­
mediately available funds or in a like face amount of Treasury
bills maturing Novem ber 21, 1974. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for differ­
ences between the par value o f 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 o f 1954, the amount o f 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 of 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 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.

Banking institutions and dealers who make primary markets in
Government securities and report daily to the Federal Reserve
Bank of N ew Y ork their positions with respect to Government
securities and borrow ings thereon may submit tenders for account

Treasury Department Circular
this notice prescribe the terms of
the conditions of their issue. Copies
from any Federal Reserve Bank or

182-day bills, for $ 2,100,000,000, or thereabouts, to be dated
Novem ber 21, 1974, and to mature M ay 22, 1975 (C U S I P
N o. 912793 W K 8 ) .
The bills will be issued for cash and in exchange for Treasury
bills maturing Novem ber 21, 1974, outstanding in the amount of
$4,708,580,000, of which Government accounts and Federal Reserve
Banks, for themselves and as agents o f foreign and international
monetary authorities, presently hold $2,597,285,000. These accounts
may exchange bills they hold for the bills now being offered at the
average prices o f accepted tenders.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and
at maturity their face amount will 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.

N o. 418 (current revision) and
the Treasury bills and govern
of the circular may be obtained
Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, November 18
1974, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective
series are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed envelope marked
“ Tender for Treasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written con­
firmation; 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-d ay bills to be issued November 14, 1974, representing
an additional amount of bills dated August 15, 1974, maturing February 13, 197 5 ; and 182-day bills dated November
14, 1974, maturing M ay 15, 1975) are shown on the reverse side of this circular.




A

lfred

H

a y e s

,

President.
( over)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED NOVEMBER 14, 1974)

Range of Accepted Competitive Bids
9 1 -Day Treasury Bills
Maturing February 13 , 1975
P rice

High .................................................
Low ...................................................
Average ..........................................

182 -Day Treasury Bills
Maturing May 15 , 1975

A pprox. equiv.
annual rate

P rice

7.560%

98.089a
98.073
98.078

A pprox. equiv.
annual rate

96.192b
96.173
96.182

7.623 %
7 .6 0 4 % !

a E xcepting tw o tenders totaling $5,200,000.

7.532%
7.570%
7.552%*

b E xcepting one tender of $20,000.

1 These rates are on bank discount basis. The equivalent coupon issue yields are 7.86% for the 91-day bills, and 7.96% for the
182-day bills.

(36 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(9 percent of the amount of 182-day bills
bid for at the low price was accepted.)

Total Tenders Applied for and Accepted (By Federal Reserve District)
91 -Day Treasury Bills
Maturing February 13, 1975
D istrict

T

otal

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

$

44,250,000
3,484,815,000
60,065,000
69,565,000
63,640,000
48,815,000
366,980,000
48,490,000
9,930,000
54,320,000
44,150,000
196,190,000

$4,491,210,000

$

30,465,000
2,245,030,000
59,550,000
63,855,000
42,070,000
38,160,000
117,400,000
25,490,000
3,670,000
31,180,000
28,750,000
115,600,000

$2,801,220,000°

c Includes $466,665,000 noncompetitive tenders accepted at the average price,
d Includes $274,720,000 noncompetitive tenders accepted at the average price.




A pplied for

A ccepted

Applied, for

Boston .......................... .............
New Y ork ................... ..............
Philadelphia ................ .............
Cleveland ...................... .............
Richmond .................... .............
Atlanta ........................... .............
Chicago ......................................
St. Louis ....................... ............
Minneapolis .................. .............
Kansas City .................. .............
Dallas ............................. ............
San Francisco .............. ............

182 -Day Treasury Bills
Maturing May 15 , 1975

$

32,285,000
3,031,225,000
43,680,000
66,345,000
49,095,000
36,600,000
249,305,000
46,760,000
8,715,000
42,860,000
32,450,000
213,690,000

$3,853,010,000

A ccepted

$

22,205,000
1,787,820,000
43,680,000
41,075,000
20,645,000
20,525,000
70,805,000
21,060,000
2,715,000
23,870,000
16,850,000
29,340,000

$2,100,590,000d

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