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FEDER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States j? C ircular No. 6 9 6 1 * 1 t June 23, 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 A pril 6, 1972, Due O ctober 5, 1972 (To Be Issued Ju ly 6, 1972) $1,800,000,000 of 182-Day Bills, D ated Ju ly 6, 1972, Due Jan u ary 4, 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 : T he 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 July , 1972, in the amount of $4,106,995,000, 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 July , 1972, in the amount of $2,300,000,000, or thereabouts, representing an additional amount of bills dated A pril , 1972, and to m ature October 5, 1972 (C U S IP No. 912793 P F 7 ), originally issued in the amount of $1,800,340,000, 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. T he 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 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 for the respective issues. Settlem ent for accepted tenders in accordance w ith the bids must be made or completed a t the F ederal Reserve Bank on July , 1972, in cash or other im mediately available funds or in a like face amount of T reasury bills m aturing July , 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. 6 6 6 182-day bills for $1,800,000,000, or thereabouts, to be dated July , 1972, and to m ature January 4, 1973 (C U S IP No. 912793 P Z 3 ). 6 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 without 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 value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving time, Friday, June 30, 1972. Tenders will not be received a t the T reasury Departm ent, W ashington. E ach 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 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 w ithout deposit from incorporated banks and tru st 200,000 6 6 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 ta x 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 a t m aturity during the taxable year for which the retu rn is made. T reasury D epartm ent C ircular No. 418 (cu rren t 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. Friday, June 30, 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 a y lig h t S av in g tim e, 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 resp e ctiv e series 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 r e tu r n th e m in th e en clo sed 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 a y be su b m itte d b y te le g ra p 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 itted by telep h o n e. 1972, a t 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. T h e re su lts of b id d in g fo r th e p rev io u s offerin g of T r e a s u ry bills, to be issu ed J u n e 29, 1972, w e re n o t av a il able a t th e tim e of p rin tin g th is c irc u la r; th o se re s u lts w ill be a n n o u n c ed a fte r release b y th e T r e a s u ry D e p a rtm e n t. A Closing date for receipt of tenders is F riday, June 30. lfred H a yes, President.
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