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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States r Circular No. 6 8 0 4 ~1 t September 21, 1971 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated July 1, 1971, Due December 30, 1971 (T o Be Issued September 30, 1971) $1,600,000,000 of 182-Day Bills, Dated September 30, 1971, Due March 30, 1972 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text o f a notice issued by the Treasury Department, released at 4 p.m. today: The Treasury Department, by this public notice, invites tenders for two series o f Treasury bills to the aggregate amount of $3,900,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 30, 1971, in the amount o f $5,502,863,000, as follow s: companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued September 30, 1971, in the amount o f $2,300,000,000, or thereabouts, representing an additional amount o f bills dated July 1, 1971, and to mature December 30, 1971 (C U S IP No. 912793 M F0), originally issued in the amount of $1,600,535,000, the additional and original bills to be freely interchangeable. 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 o f the amount and price range o f accepted bids. Only 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 fo r $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) o f accepted competi tive bids for the respective issues. Settlement fo r accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on September 30, 1971, in cash or other im mediately available funds or in a like face amount o f Treasury bills maturing September 30, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made fo r d if ferences between the par value o f maturing bills accepted in ex change and the issue price o f the new bills. 182-day bills, for $1,600,000,000, or thereabouts, to be dated September 30, 1971, and to mature March 30, 1972 (C U S IP No. 912793 M U 7). 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 will be payable without interest. They will be issued in bearer form only, and in denominations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). 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 27, 1971. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in multiples 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 forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account o f customers, provided the names o f the customers are set forth in such tenders.^ Others 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 Under Sections 454(b) and 1221(5) o f 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, re deemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, 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 d if ference 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 o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be ob tained from any Federal Reserve Bank or Branch. This Bank will receive tenders fo r both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, Septem ber 27, 1971, at the Securities Department o f its Head Office and at its Buffalo Branch. Tender form s fo r the respec tive series are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed envelope marked “ Tender for Treasury Bills (W e e k ly ).” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Payment fo r 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 o f the last weekly offering o f Treasury bills (91-day bills to be issued September 23, 1971, representing an additional amount o f bills dated June 24, 1971, maturing December 23, 1971; and 182-day bills dated September 23, 1971, maturing March 23, 1972) are shown on the reverse side o f this circular. A lfred H a y e s , President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED SEPTEMBER 23, 1971) R ange o f A ccepted Com petitive Bids 91 -Day Treasury Bills Maturing December 23,1971 182-Day Treasury Bills Maturing March 23 ,1 97 2 Price Approx. equiv. annual rate Price A pprox. equiv. annual rate 98.810a 4.708% 97.508 4.929% Low ........................... ............. 98.793 4.775% 97.454 5.036% A v e r a g e .......................... ............. 98.801 4.743%! 97.476 4.993%1 .............................. ............. H igh a Excepting two tenders totaling $70,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.88% for the 91-day bills, and 5.21% for the 182-day bills. (91 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (100 percent o f the amount o f 182-day bills bid for at the low price was accepted.) T o tal Tenders A p p lie d for and A ccepted (B y Federal Reserve Districts) 91 -Day Treasury Bills Maturing December 23,1971 Boston Accepted Applied for District .......................... ........... $ 28,085,000 182-Day Treasury Bills Maturing March 23,1 97 2 $ 14,100,000 Applied for $ 13,445,000 Accepted $ 3,445,000 N ew Y ork ................... ........... 2,497,190,000 1,714,315,000 1,907,635,000 1,261,635,000 P h iladelphia................. ........... 30,565,000 14,565,000 7,080,000 7,080,000 Cleveland ..................... ........... 37,075,000 36,575,000 34,175,000 29,175,000 R ic h m o n d ..................... ........... 17,995,000 12,995,000 7,435,000 4,435,000 Atlanta .......................... ........... 57,170,000 26,540,000 24,782,000 15,782,000 ....................... ........... 334,000,000 233,010,000 180,525,000 119,525,000 St. L o u i s ........................ ........... 46,975,000 31,680,000 27,225,000 21,225,000 Minneapolis ................. ........... 36,640,000 22,640,000 24,445,000 14,445,000 Kansas C i t y ................. ........... 51,435,000 37,710,000 25,675,000 17,675,000 Dallas ............................ ........... 37,780,000 15,180,000 30,315,000 8,315,000 San Francisco ............. ........... 176,535,000 140,970,000 116,320,000 97,320,000 ........... $3,351,445,000 Chicago T otal .................. $2,300,280,000b $2,399,057,000 Includes $253,365,000 noncom petitive tenders accepted at the average price o f 98.801. c Includes $106,877,000 noncompetitive tenders accepted at the average price o f 97.476. $1,600,057,000°
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