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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r C ircular No. 6 9 5 3 ~ l t Ju n e 13, 1972 J O FFE R IN G OF TW O SERIES O F TREASU RY BILLS 5,300,000,000 of 91-Day Bills, A dditional A m ount, Series D ated M arch 23,1972, Due Septem ber 21,1972 (To Be Issued Ju n e 22, 1972) $1,800,000,000 of 182-Day Bills, Dated Ju n e 22, 1972, Due D ecem ber 21, 1972 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 Departm ent, by this public notice, invites tenders for tw o 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 June 22, 1972, in the amount of $4,206,785,000, as follow s: 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. 91-day bills (to m aturity date) to be issued June 22, 1972, in the amount of $2,300,000,000, or thereabouts, representing an additional am ount of bills dated M arch 23, 1972, and to m ature September 21, 1972 (C U S IP No. 912793 P D 2 ), originally issued in the amount of $1,800,975,000, 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 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 rig h t 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 w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted competi tive bids for the respective issues. Settlem ent for accepted tenders in accordance w ith the bids must be made or completed at the Federal Reserve Bank on June 22, 1972, in cash or other im mediately available funds or in a like face amount of Treasury bills m aturing June 22, 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 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, the 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 dif 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 m aturity during the taxable year for which the retu rn is made. T reasury D epartm ent Circular No. 418 (current revision) and this notice prescribe the term s 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. 182-day bills for $1,800,000,000, or thereabouts, to be dated June 22,1972, and to m ature December 21,1972 (C U S IP No. 912793 P R 1 ). 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. T hey 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 v a lu e ). Tenders will be received a t Federal Reserve Banks and B ranches up to the closing hour, one-thirty p.m., E astern D aylight Saving time, Monday, June 19, 1972. Tenders will not be received a t 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 , w ith not more than three decimals, e.g., 99.925. Fractions may not be used. It js 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. 10 0 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 m itted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and tru st 200 0,00 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 r n D ay lig h t S av in g tim e, M onday, J u n e 19, 1972, a t th e S ecu rities 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 respective se rie s a re enclosed. P lea se u se th e a p p ro p ria te fo rm s to su b m it te n d e rs a n 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 r e 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 c t to w ritte n co n firm a tio n ; no te n d e rs m a y be su b m itte d by telephone. P ent for th Treasury b ca n t b aym e ills n o e m b credit through th T ade y e reasury Tax and L A oan ccount. Settlem m st b m d in ca o o er im edi ent u e a e sh r th m a a a b funds or in m tely v ila le aturing T reasury b ills. Results of the last weekly offering of Treasury bills (91-day bills to be issued June 15, 1972, representing an additional amount of bills dated March 16, 1972, maturing September 14, 1972; and 182-day bills dated June 15, 1972, maturing December 14, 1972) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 15, 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 91-D yTreasuryB a ills M aturingSeptem 14,1972 ber 182-D yT a reasuryB ills M aturingD ber14,1972 ecem P rice A pprox. equiv. annual rate Price A pprox. equiv. annual rate 99.050 3 .7 5 8 % 97.905 4 .1 4 4 % .................................... ................. 99.031 3 .8 3 3 % 97.866 4 .2 2 1 % A v e r a g e ............................. ................. 99.040 3 .7 9 8 % x 97.883 4 .1 8 7 % ! H ig h Low .................................. ................. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 3.89% for the 91-day bills, and 4.34% for the 182-day bills. (3 0 p e rc e n t of th e am o u n t of 9 1 -d ay bills b id fo r a t th e low p rice w as ac c e p te d .) (21 p e rc e n t of th e a m o u n t of 182-day bills b id fo r a t th e low p rice w as a c ce p te d .) 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 ) 91-D T ay reasuryB ills M aturingSeptem 14,1972 ber B o sto n ....................................... .......... $ 24,115,000 Applied for A ccepted A pplied for D istrict 182-D yT a reasuryB ills M aturingD ber14,1972 ecem $ 9,115,000 $ 23,110,000 Accepted $ 8,110,000 N e w Y o r k ............................... .......... 3,041,890,000 1,926,040,000 2,680,530,000 1,531,080,000 .......................... .......... 15,965,000 15,475,000 24,210,000 4,210,000 C le v e la n d .................................. .......... 29,635,000 29,610,000 15,915,000 10,495,000 ............................... .......... 9,565,000 9,565,000 2,410,000 2,410,000 A t l a n t a ....................................... .......... 35,155,000 17,655,000 34,470,000 15,940,000 C hicago .................................... .......... 226,875,000 169,375,000 175,225,000 103,425,000 S t. L o u i s .................................. .......... 40,145,000 27,835,000 25,670,000 15,670,000 25,300,000 19,600,000 25,690,000 19,690,000 K a n sa s C i t y ............................. .......... 38,280,000 28,530,000 28,950,000 18,555,000 D a l l a s ......................................... .......... 46,330,000 15,530,000 34,980,000 6,980,000 S a n F r a n c i s c o ........................ .......... 92,985,000 31,775,000 133,755,000 64,520,000 .................... .......... $3,626,240,000 P h ila d e lp h ia R ich m o n d M in n e a p o lis ............................. .......... T otal $2,300,105,0 0 0 a a Includes $187,350,000 noncompetitive tenders accepted at the average price of 99.040. b Includes $89,380,000 noncompetitive tenders accepted at the average price of 97.883. $3,204,915,000 $1,801,085,000b
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