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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