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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular L No. 6972 Tulv 18. July 18, 1972 I J O FFER IN G OF TWO SERIES OF TREASURY BILLS $2,300,000,000 of 91-Day Bills, A dditional A m ount, Series Dated A pril 27, 1972, Due O ctober 26, 1972 (To Be Issued Ju ly 27, 1972) $1,800,000,000 of 182-Day Bills, Dated Ju ly 27, 1972, Due Jan u ary 25, 1973 To A ll Incorporated B anks and T ru st Companies, and Others Concerned, in the Second Federal Reserve D istrict: F o llo w in g is th e te x t of a notice issu ed by th e T re a s u ry D e p a rtm e n t, released a t 4 p.m . to d a y : The T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate amount of $4,100,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing July 27, 1972, in the amount of $3,903,330,000, as follow s: 91-day bills (to m aturity date) to be issued July 27, 1972, in the amount of $2,300,000,000, or thereabouts, representing an additional amount of bills dated A pril 27, 1972, and to m ature October 26, 1972 (C U S IP No. 912793 P J 9 ), originally issued in the amount of $1,800,500,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,800,000,000, or thereabouts, to be dated July 27, 1972, and to m ature January 25, 1973 (C U S IP No. 912793 Q C 3). The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at m aturity their face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $ , , $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). 10000 Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Daylight Saving time, Monday, July 24, 1972. Tenders will not be received at the T reasury Departm ent, W ashington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in m ulti ples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of , 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. 100 Banking institutions generally may submit tenders for account of customers, provided the names of the customers are set forth in such tenders. O thers than banking institutions will not be per mitted 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 invest ment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or tru st company. 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 T reasury D epartm ent 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 T reasury 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 $ 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. Settlem ent for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 27, 1972, in cash or other im mediately available funds or in a like face amount of T reasury bills m aturing July 27, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for dif ferences between the par value of m aturing bills accepted in ex change and the issue price of the new bills. U nder 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, re deemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the dif ference between the price paid for the bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made. T reasury D epartm ent C ircular No. 418 (current revision) and this notice prescribe the terms of the T reasury bills and govern the conditions of their issue. Copies of the circular may be ob tained from any Federal Reserve Bank or Branch. 200,000 T h is B a n k w ill receive te n d e rs fo r b o th series u p to 1 :30 p.m ., E a s te rn D ay lig h t S av in g tim e, M o n d ay , J u ly 24, 1972, a t th e S e c u ritie s D e p a rtm e n t of its H e a d Office a n d a t its B uffalo B ran c h . T e n d e r fo rm s fo r th e resp ectiv e series a r e enclosed. P le a se use th e a p p ro p ria te fo rm s to su b m it te n d e rs an d re tu r n th e m in th e enclosed envelope m a rk e d “ T e n d e r fo r T re a s u ry B ills ( W e e k ly ) .” T e n d e rs n o t re q u irin g a d ep o sit m ay be su b m itte d by te leg rap h , su b je ct to w ritte n c o n firm a tio n ; no te n d e rs m ay be su b m itte d by telep h o n e. 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 immedi ately available funds or in maturing Treasury bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued July 20, 1972, representing an additional amount of bills dated April 20, 1972, maturing October 19, 1972; and 182-day bills dated July 20, 1972, maturing January 18, 1973) are shown on the reverse side of this circular. A lfred H a y es, President. ( over ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JULY 20, 1972) R a n g e o f A c c e p te d C o m p e titiv e B id s 9 1 -Day TreasuryBills Maturing October 19 , 1972 Price H ig h ...................................................... 182 -Day TreasuryBills Maturing January 18 , 1973 Approx. equiv. annual rate Price A pprox. equiv. annual rate 9 9 .0 1 5a 3.897% 97.774b 4.4 0 3 % L o w ......................................................... 98.996 3 .9 7 2 % 97.730 4 .490% A v e r a g e ................................................. 99.002 3 .9 4 8 % ! 97.748 4 .4 5 5 % ! a Excepting two tenders totaling $280,000. b Excepting one tender of $400,000. 1These rates are on a bank discount basis. The equivalent coupon issue yields are 4.04% for the 91-day bills, and 4.62% for the 182-day bills. (7 0 p erc en t of the a m o u n t of 9 1 -d ay bills bid fo r at th e low price w as accep ted .) (4 5 p erc en t of th e am o u n t of 182-day bills bid fo r a t th e low p rice w as accep ted .) T o ta l T e n d e rs A p p lie d f o r a n d A c c e p te d (B y F e d e r a l R e se rv e D is tric ts ) 9 1 -D ayTreasuryBills Maturing October 19, 1972 .............................. ............. B o sto n $ 23,730,000 Applied for Accepted Applied, for D istrict 182 -D ayTreasuryBills MaturingJanuary 18 ,1 9 7 3 $ 8,730,000 $ 16,710,000 Accepted $ 1,710,000 N ew Y o rk ....................... ............. 3,248,900,000 1,955,460,000 2,543,485,000 1,521,985,000 P h ila d e lp h ia ..................... ............. 14,590,000 14,590,000 27,195,000 7,195,000 C leveland ......................... ............. 21,220,000 21,115,000 8,385,000 8,385,000 7,435,000 7,330,000 3,330,000 10,145,000 R ich m o n d ......................... ............. 7,435,000 A tla n ta .............................. ............. 36,870,000 23,870,000 25,145,000 ............................ ............. 213,650,000 102,800,000 185,485,000 103,335,000 St. L o u is ......................... ............. 39,805,000 31,225,000 18,745,000 12,745,000 M in n eap o lis ..................... ............. 34,260,000 21,260,000 35,055,000 28,505,000 K a n sa s C ity ..................... ............. 45,910,000 35,910,000 21,790,000 11,790,000 D allas ................................. ............. 49,580,000 27,580,000 26,655,000 5,655,000 S a n F ra n c isc o ................ ............. 108,170,000 50,170,000 134,005,000 85,455,000 T o tal ................... ............. $3,844,120,000 C hicago $ 2 ,300,145,000c $3,049,985,000 e Includes $183,525,000 noncompetitive tenders accepted at the average price of 99.002. d Includes $82,115,000 noncompetitive tenders accepted at the average price of 97.748. $1,800,235,0 0 0 d
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