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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular N o. 7 0 3 2 1 L November 6, 1972 J O FFE R IN G OF TW O SERIES OF TREASURY BILLS $2,400,000,000 of 91-Day Bills, A dditional A m ount, Series D ated A ugust 17,1972, Due F eb ru ary 15,1973 (To Be Issued N ovem ber 16, 1972) $1,900,000,000 of 182-Day Bills, D ated N ovem ber 16, 1972, D ue May 1 7,1973 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the T reasury 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 reasury bills to the aggregate am ount of $4,300,000,000, or thereabouts, fo r cash and in exchange for T reasury bills m aturing November 16, 1972, in the am ount of $4,101,725,000, 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 am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank o r tru st company. 91-day bills (to m aturity date) to be issued November 16, 1972, in the am ount of $2,400,000,000, or thereabouts, representing an additional amount of bills dated A ugust 17, 1972, and to m ature February 15, 1973 (C U S IP No. 912793 Q F ), originally issued in the amount of $1,800,285,000, the additional and original bills to be freely interchangeable. 182-day bills, fo r $1,900,000,000, o r thereabouts, to be dated November 16,1972, and to m ature M ay 17, 1973 (C U S IP No. 912793 Q U 3). Immediately a fte r the closing hour, tenders will be opened at the Federal Reserve Banks and B randies, following which public announcement will be made by the I reasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting competitive tenders will be advised of the acceptance o r rejection thereof. T he Secretary of the T reasury expressly reserves the rig h t 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 $ 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 fo r the respective issues. Settlem ent fo r accepted tenders in accordance w ith the bids must be made o r completed at the Federal Reserve B ank on November 16, 1972, in cash o r other im mediately available funds o r in a like face amount of T reasury bills m aturing November 16, 1972. Cash and exchange tenders will re ceive equal treatm ent. Cash adjustm ents will be made fo r differ ences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. 6 T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face am ount 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 atu rity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Stand ard time, Monday, November 13, 1972. Tenders will not be received at the T reasury Department, W ashington. Each tender must be fo r a minimum of $10,000. T enders over $10,000 m ust be in mul tiples 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 form s 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 m ay submit tenders fo r account of customers, provided the names of 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 will be received w ithout deposit from incorporated banks and tru st 200 0,00 U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the am ount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed or otherw ise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the ow ner of T reasury bills (o th er 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 or on subsequent purchase, and the am ount actually received either upon sale o r redemption a t m aturity during the taxable year fo r which the retu rn is made. T reasu ry D epartm ent C ircular No. 418 (current 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 B ank or Branch. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Monday, November 13, 1972, at the Securities Department o f 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 confirmation; no tenders may be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury T a x and Loan Account. Settlem ent m ust be made in cash or other immediately available funds or in maturing Treasury bills. The results o f bidding for the previous offering of Treasury bills, to be issued November 9, 1972, were not avail able at the time o f printing this circular; those results will be announced after release by the Treasury Department. A lfred H ayes, President.
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