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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 7 0 6 4 1. December 22, 1972 ] OFFERING OF TWO SERIES OF TREASURY BILLS $2,400,000,000 of 91-Day Bills, Additional Amount, Series Dated October 5, 1972, Due April 5, 1973 (To Be Issued January 4, 1973) $1,900,000,000 of 182-Day Bills, Dated January 4, 1973, Due July 5, 1973 To A ll Incorporated B anks and T ru st 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: The T reasury Departm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate amount of $4,300,000,000, or thereabouts, for cash and in exchange for T reas ury bills m aturing January 4, 1973, in the amount of $4,099,380,000, as follows: 91-day bills (to m aturity date) to be issued January 4, 1973, in the amount of $2,400,000,000, or thereabouts, representing an additional amount of bills dated Octo ber 5, 1972, and to m ature A pril 5, 1973 (C U S IP No. 912793 Q N 9), originally issued in the am ount of $1,800,475,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,900,000,000, or thereabouts, to be dated January 4, 1973, and to m ature July 5, 1973 (C U S IP No. 912793 R J7 ). T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter pro vided, and at m aturity their face amount will be payable without interest. They will be issued in bearer form only, and in denomina tions of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard time, Friday, December 29, 1972. Tenders will not be received at the T reasury Departm ent, W ashington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of , with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged th at tenders be made on the printed forms and forwarded in the special enve lopes which will be supplied by Federal Reserve Banks or Branches on application therefor. 100 B anking 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 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 trust company. 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 Departm 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 without 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. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 4, 1973, in cash or other im mediately available funds or in a like face amount of T reasury bills maturing January 4, 1973. Cash and exchange tenders will re ceive equal treatm ent. Cash adjustm ents will be made for differ ences between the par value of m aturing bills accepted in exchange 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 at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of T reas ury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the difference 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 return is made. 200,000 T reasury Departm ent C ircular No. 418 (current revision) and this notice prescribe the terms of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Friday, December 29, 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 confirmation; 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. The results of bidding for the previous offering of Treasury bills, to be issued December 28, 1972, were not avail able at the time of printing this circular; those results will be announced after release by the Treasury Department. A lfr ed H a y es, President. Closing date for receipt of tenders is F riday, D ecem ber 29.
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