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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States
[■ Circular No. 7 7 3 3 1
L October 17, 1975
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$3,000,000,000 of 91-Day Bills, Additional Amount, Series Dated July 31, 1975, Due January 29, 1976
(To Be Issued October 30,1975)
$3,200,000,000 of 182-Day Bills, Dated October 30, 1975, Due April 29, 1976
'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 Treasury Department, released at 4 p.m. to d ay :
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$6,200,000,000, or thereabouts, to be issued October 30, 1975, as
follows:
91-day bills (to maturity date) in the amount of
$3,000,000,000, or thereabouts, representing an additional
amount of bills dated July 31, 1975, and to mature
January 29, 1976 (CUSIP No. 912793 YR1), origi­
nally issued in the amount of $2,902,425,000, the addi­
tional and original bills to be freely interchangeable.
182-day bills, for $3,200,000,000, or thereabouts, to be dated
October 30, 1975, and to mature April 29, 1976
(CUSIP No. 912793 ZE9).
The bills will be issued for cash and in exchange for Treasury
bills maturing October 30, 1975, outstanding in the amount of
$5,604,435,000, of which Government accounts and Federal Reserve
Banks, for themselves and as agents of foreign and international
monetary authorities, presently hold $2,708,785,000. These accounts
may exchange bills they hold for the bills now being offered at the
average prices of 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.
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Daylight
Saving time, Friday, October 24, 1975. Tenders will not be re­
ceived at the Treasury Department, Washington. Each tender must
be for a minimum of $10,000. Tenders over $10,000 must be in mul­
tiples of $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 forms and forwarded in the special
envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Banking institutions and dealers who make primary markets in
Government securities and report daily to the Federal Reserve
Bank of New York their positions with respect to Government
securities and borrowings 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 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.
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 competi­
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 October 30, 1975, in cash or other im­
mediately available funds or in a like face amount of Treasury
bills maturing October 30, 1975. 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 454(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. 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 obtained
from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Friday, October 24,
1975, 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 c o n ­
firmation; 110 tenders may be submitted by telephone. Paym ent 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.
The results of bidding for the previous offering of T reasury bills, to be issued October 23, 1975 were not avail­
able at the time of printing this circular; those results will be announced after release by the Treasury Department.
P

[44]




aul

A. V

olcker,

President.

Closing date for receipt of tenders is Friday , O ctober 24.