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FEDER AL RESERVE BANK OF NEW YORK Fiscal Agent of the United States ' Circular No. 6 9 1 3 '! March 14, 1972 j O FFE R IN G OF TWO SERIES OF TREASU RY BILLS $2,400,000,000 of 91-Day Bills, A dditional A m ount, Series D ated D ecem ber 23, 1971, Due Ju n e 22, 1972 (To Be Issued M arch 23, 1972) $1,800,000,000 of 182-Day Bills, D ated M arch 23, 1972, D ue Septem ber 21, 1972 To A ll Incorporated B anks and T rust Companies, and O thers Concerned, in the Second Federal Reserve D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: T he T reasury D epartm ent, by this public notice, invites tenders fo r two series of T reasu ry bills to the aggregate amount of $4,200,000,000, o r thereabouts, fo r cash and in exchange fo r T reasury bills m aturing M arch 23, 1972, in the amount of $3,909,510,000, as follow s: 91-day bills (to m aturity date) to be issued M arch 23, 1972, in the am ount of $2,400,000,000, or thereabouts, representing an additional amount o f bills dated Decem ber 23, 1971, and to m ature June 22, 1972 (C U S IP No. 912793 N G 7), originally issued in the am ount of $1,601,755,000 (an additional $204,310,000 was issued on M arch 6, 1972), the additional and original bills to be freely interchangeable. 182-day bills, fo r $1,800,000,000, or thereabouts, to be dated M arch 23, 1972, and to m ature September 21, 1972 (C U S IP No. 912793 P D 2 ). T he 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 w ithout interest. They will be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in invest ment securities. T enders from others must be accompanied by payment of 2 percent of the face amount of T reasu ry bills applied for, unless the tenders a re accompanied by an express guaranty of payment by an incorporated bank or tru st company. Immediately a fte r 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 o r rejection thereof. T he S ecretary o f the T reasury expressly reserves the right to accept o r 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 fo r each issue fo r $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competi tive bids fo r the respective issues. Settlem ent fo r accepted tenders in accordance with the bids must be made or completed a t the Federal Reserve Bank on M arch 23, 1972, in cash o r other im mediately available funds o r in a like face am ount of T reasury bills_ m aturing M arch 23, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made fo r d if ferences between the par value of m aturing bills accepted in ex change and the issue price of the new bills. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard time, Monday, M arch 20, 1972. Tenders will not be received at the T reasury Departm ent, W ashington. Each tender must be fo r a minimum of $10,000. Tenders over $10,000 must be in multi ples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions may not be used. I t is urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied by Federal Reserve Banks or B ranches on application therefor. U nder Sections 454(b) and 1221(5) o f the Internal Revenue Code of 1954, the am ount of discount a t 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, th e owner of T reasury bills (other than life insurance companies) issued hereunder must include in his income ta x return, as ordinary gain or loss, the d if ference between the price paid fo r the bills, w hether on original issue o r on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year fo r which the return is made. Banking institutions generally may submit tenders fo r account of customers, provided the names o f the customers are set fo rth in such tenders. O thers than banking institutions will not be per mitted to submit tenders except fo r their own account Tenders T reasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice prescribe the term s of the T reasu ry bills and govern the conditions of their issue. Copies of the circular may be ob tained from any Federal Reserve Bank o r Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, March 20, 1972, 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 (W eekly).” 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 (91-day bills to be issued March 16, 1972, representing an additional amount of bills dated December 16, 1971, maturing June 15, 1972; and 182-day bills dated March 16, 1972, maturing September 14, 1972) are shown on the reverse side of this circular. A lfred H ayes, President. ( o ver) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MARCH 16, 1972) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing June 15,1972 182-Day Treasury Bills Maturing September 14,1972 Price A pprox. equiv. annual rate Price A pprox. equiv. annual rate High ....................... ....................... 99.060 3.719% 97.903b 4.148% L o w ........................ 99.010 3.916% 97.861 4.231% A verage.................. ...................... 99.028 3.845%1 97.879 4.195%! aE xcepting one tender of $940,000. bExcepting two tenders totaling $800,000. JThese rates are on a bank discount basis. The equivalent coupon issue yields are 3.94% fo r the 91-day bills, and 4.35% for the 182-day bills. (60 percent of the amount of 91-day bills bid for at the low price was accepted.) (3 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 Districts) 91-Day Treasury Bills Maturing June 15,1972 District $ 18,690,000 Applied fo r Accepted Applied fo r Boston .......................... ........... 182-Day Treasury Bills Maturing September 14,1972 $ 8,690,000 $ 10,845,000 Accepted $ 845,000 New Y o r k .................... ........... 2,913,130,000 1,978,630,000 2,520,825,000 1,609,375,000 Philadelphia.................. ........... 31,100,000 24,330,000 7,255,000 7,255,000 Cleveland ...................... ........... 28,265,000 28,265,000 40,810,000 22,960,000 Richmond...................... ........... 11,885,000 11,885,000 2,420,000 2,420,000 Atlanta .......................... ........... 44,985,000 39,985,000 26,640,000 10,170,000 190,535,000 146,535,000 136,345,000 47,645,000 St. Louis .................................. 51,170,000 50,170,000 32,740,000 16,740,000 Minneapolis .............................. 17,820,000 7,820,000 15,320,000 6,765,000 Kansas C ity ................... ........... 36,570,000 36,570,000 23,425,000 18,225,000 ........... 35,165,000 19,365,000 28,860,000 6,860,000 81,660,000 47,860,000 169,975,000 50,875,000 Chicago ........................ ........... San F rancisco............... T o ta l....................... ........... $3,460,975,000 $2,400,105,000c $3,015,460,000 Clncludes $217,405,000 noncompetitive tenders accepted at the average price o f 99.028. dIncludes $80,285,000 noncompetitive tenders accepted at the average price of 97.879. $1,800,135,000d
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