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FEDERAL RESERVE B AN K OF NEW YO R K Fiscal Agent of the United States f Circular No. 7 2 0 0 1 L July 3 1 , 1 9 7 3 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 o f 91-Day Bills, Additional Amount, Series Dated May 10, 1973, Due November 8, 1973 (T o Be Issued August 9, 1973) $1,800,000,000 o f 182-Day Bills, Dated August 9,1973, Due February 7,1974 T o A ll In corpora ted Banks and Trust Com panies, and O thers C on cern ed, in the S econ d Federal R eserv e D istrict: Following is the text o f a notice issued by the Treasury Department, released at 4 p.m. today: T h e T reasu ry Department, by this public notice, invites tenders fo r tw o series o f Treasu ry bills to the aggregate amount o f $4,300,000,000, o r thereabouts, fo r cash and in exchange fo r T reas ury bills m aturing A u gust 9, 1973, in the amount o f $4,305,425,000, as f o llo w s : com panies and from responsible and recognized dealers in invest ment securities. Tenders fro m others must be accom panied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued A u gust 9, 1973, in the amount o f $2,500,000,000, o r thereabouts, represent ing an additional amount o f bills dated M a y 10, 1973, and to m ature N ovem ber 8, 1973 ( C U S I P N o . 912793 S C I ) , originally issued in the amount o f $1,801,695,000, the additional and original bills to be freely interchangeable. Im m ediately a fter the closin g hour, tenders w ill be opened at the Federal Reserve Banks and Branches, fo llow in g which public announcement w ill be made by the Treasu ry Department o f the amount and price range o f accepted bids. O nly those submitting com petitive tenders w ill be advised o f the acceptance o r rejection thereof. The Secretary o f the Treasury expressly reserves the right to accept o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reserva tions, noncom petitive tenders f o r each issue fo r $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) o f accepted com petitive bids fo r the respective issues. Settlement fo r accepted tenders in accordance with the bids must be made or com pleted at the Federal R eserve Bank on A u gust 9, 1973, in cash or other im mediately available funds o r in a like face amount o f T reasu ry bills maturing A ugust 9, 1973. Cash and exchange tenders w'ill receive equal treatment. Cash adjustments w ill be made fo r differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. 182-day bills, fo r $1,800,000,000, or thereabouts, to be dated A u gu st 9, 1973, and to mature February 7, 1974 (C U S I P N o . 912793 S X 5 ). T h e bills o f both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their face amount will be payable without interest! T h ey w ill be issued in bearer fo rm only, and in denominations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ). T en ders w ill be received at Federal R eserve Banks and B ranches up to the closin g hour, one-thirty p.m., Eastern D aylight S avin g time, M on day, A ugust 6, 1973. Tenders will not be received at the T reasu ry Department, W ashington. Each tender must be f o r a minimum o f $10,000. Tenders over $10,000 must be in m ul tiples o f $5,000. In the case o f com petitive tenders the price offered must be expressed on the basis o f 100, with not m ore than three decim als, 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 w hich w ill be supplied by Federal R eserve Banks or B ranches on application th erefor. Banking institutions generally may submit tenders fo r account o f custom ers, provided the names o f the custom ers are set forth in such tenders. O thers than banking institutions will not be per m itted to submit tenders except fo r their ow n account. Tenders w ill be received w ithout deposit fro m incorporated banks and trust U nder Sections (4 5 4 (b ) and 1221(5) o f the Internal Revenue C ode o f 1954, the am ount o f discount at w hich bills issued here under are sold is considered to accrue when the bills are sold, re deemed or otherwise disposed o f, and the bills are excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (oth er than life insurance com panies) issued hereunder must include in his incom e tax return, as ordinary gain or loss, the differ ence between the price paid fo r the bills, w hether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year fo r which the return is made. T reasury Dqpartment Circular N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be obtained fro m any Federal Reserve Bank or Branch. This Bank will receive tenders for both series u nto 1 ^™ r* r u* c • 1973, at the Securities Department o f its Head O ffice and i daylightSaving time, Monday, August 6, s e rie s are enclosed. P leaseT e the appropriate f o r m t o l u t o i t t ^ r t ^ d ' “ T * ° r *he “ Tender for Treasury Bills." Tenders not requTrine a £ o o T I f Sd e,nVelope marked confirmation; no tenders may be submitted bv telephone P avm m / f /?U T ' &< . ’ subject to written through the Treasury Tax and Loan Account Settlement must be made r,easur'!. 1 ■' can,in! be made by credit or in maturing Treasury bills. settlement must be made m cash or other mimedmtely available funds Results o f the jast weekly offering o f Treasury bills (91-day bills to be issued August 2,1973, representing anaddi t.onal amount o f bills dated May 3 1973, maturing November 1, 1973; and 182-day bills dated August 2 1973 maturing Januaiy 31, 1974) are shown on the reverse side ot this circular. maturing A lfred H ayes, President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED AUGUST 2, 1973) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing November 1,1973 182-Day Treasury Bills Maturing January 31,1974 P rice A p p ro x . Equiv. Annual R ate P r ice A p p ro x . Equiv. A nnual R ate ............................................ 97.915 8.248% 95.732 8.442% Low .............................................. 97.888 8.355% 95.708 8.490% A v e ra g e ........................................ 97.897 8.320%1 95.715 8.476%! High 1 These rates are on a bank discount basis. Th e equivalent coupon issue yields are 8.62% fo r the 91-day bills, and 8.98% fo r the 182-day bills. (53 percent of the amount of 91-day bills bid for at the low price was accepted.) (10 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 November 1,1973 A ccep ted Applied f o r D istrict $ Boston ............................ 32,180,000 182-Day Treasury Bills Maturing January 31,1974 $ 22,180,000 Applied fo r $ 21,100,000 A ccepted $ 10,950,000 3,093,845,000 2,016,445,000 2,688,270,000 1,344,175,000 .................. 43,810,000 23,785,000 13,960,000 11,505,000 ...................... 36,110,000 35,960,000 71,460,000 30,805,000 Richmond ...................... 32,055,000 30,055,000 19,700,000 19,690,000 Atlanta .......................... 15,670,000 15,670,000 19,775,000 17,515,000 Chicago .......................... 276,240,000 166,890,000 278,740,000 152,995,000 St. L o u i s ........................ 52,725,000 33,755,000 67,630,000 26,030,000 21,075,000 8,135,000 21,805,000 3,805,000 Kansas C it y ................... 30,970,000 27,970,000 34,120,000 24,905,000 Dallas ............................. 35,370,000 23,400,000 33,015,000 12,515,000 San F ra n cisco............... 125,495,000 96,025,000 116,140,000 45,340,000 New Y o r k ...................... Philadelphia Cleveland M inneapolis.................... T otal ........................ ____ $3,795,545,000 $2,500,270,000® $3,385,715,000 a Includes $308,210,000 noncom petitive tenders accepted at the average price o f 97.897. t> Includes $233,005,000 noncom petitive tenders accepted at the average price o f 95.715. $1,700,230,000b