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FED E R A L R ESER VE BANK O F NEW YORK
Fiscal Agent of the United States

r Circular No. 7 2 0 8 1
l- August 14, 1973
J

OFFERING OF TWO SERIES OF TREASURY B ILLS
$2,500,000,000 of 92-Day Bills, Additional Amount, Series Dated May 24,1973, Due November 23,1973
(To Be Issued August 23, 1973)
$1,800,000,000 of 182-Day Bills, Dated August 23, 1973, Due February 21, 1974
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 Treasury Department, released at 4 p.m. today:
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$4,300,000,000, or thereabouts, for cash and in exchange for T reas­
ury bills maturing August 23, 1973, in the amount of $4,302,280,000,
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 Treasury bills applied
for, unless the tenders are accompanied by an express guaranty of
payment by an incorporated bank or trust company.

92-day bills (to maturity date) to be issued August 23,
1973, in the amount of $2,500,000,000, or thereabouts,
representing an additional amount of bills dated May 24,
1973, and to mature November 23, 1973 (C U S IP No.
912793 S E 7 ), originally issued in the amount of
$1,700,955,000, 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 Treasury Department 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 Treasury 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 reserva­
tions, noncompetitive tenders for each issue for $200,000 or less
without stated price from any one bidder will be accepted in full
at the average price (in three decimals) of accepted competitive
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 August 23, 1973, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing
August 23, 1973. Cash and exchange tenders will receive equal
treatment. Cash adjustments will be made for differences between
the par value of maturing bills accepted in exchange and the issue
price of the new bills.

182-day bills, for $1,800,000,000, or thereabouts, to be dated
August 23, 1973, and to mature February 21, 1974
(C U S IP No. 912793 SZ 0 ).
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided,
and at maturity their face amount will be payable without 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 (maturity
value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Daylight
Saving time, Monday, August 20, 1973. Tenders will not be received
at the Treasury Department, Washington. Each tender must be
for a minimum of $10,000. Tenders over $10,000 must be in mul­
tiples of $5,000. In the case of competitive tenders the price offered
must be expressed on the basis of 100, with 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.
Banking institutions generally may submit tenders for account
of customers, provided the names of the customers are set forth
in such tenders. Others than banking institutions will not be per­
mitted to submit tenders except for their own account. Tenders
will be received without deposit from incorporated banks and trust

Under Sections 454(b) and 1221(5) of the Internal Revenue
Code of 1954, the amount of discount at which bills issued hereunder
are sold is considered to accrue when the bills are sold, redeemed
or otherwise disposed of, and the bills are excluded from considera­
tion as capital assets. Accordingly, the owner of Treasury 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 maturity during the taxable year for which
the return is made.
Treasury Department Circular No. 418 (current revision) and
this notice prescribe the terms of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be ob­
tained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 20,
1973, 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.” 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 T ax and Loan Account. Settlement must be made in cash or other immediately available funds
or in maturing Treasury bills.
Results of the last weekly offering of Treasury bills (91-day bills to be issued August 16, 1973, representing an
additional amount of bills dated May 17, 1973, maturing November 15, 1973; and 182-day bills dated August 16, 1973,
maturing February 14, 1974) are shown on the reverse side of this circular.
A lfred H a y e s ,
President.
Please note that the Treasury bills maturing November 23, 1973 will be 92-day bills.

( o ver )


RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS
(TW O SERIES TO BE ISSUED AUGUST 16, 1973)

Range of Accepted Competitive

Bids

91-Day Treasury Bills
Maturing November 15,1973

182-Day Treasury Bills
Maturing February 14,1974

Price

Approx. equiv.
annual rate

High .............................................

97.763a

8.850%

95.527b

8.848%

Low

97.720

9.020%

95.473

8.955%

97.731

S.976%1

95.479

S.943%1

.............................................

Average

.......................................

a Excepting four tenders totaling $170,000.
1

Price

Approx. equiv.
annual rate

b Excepting two tenders totaling $30,000.

These rates are on a bank discount basis. The equivalent coupon issue yields are 9 .31% for the 91-day bills, and 9 .50 % for the

182-day bills.

(80 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(91 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 15,1973

........................ ...........

Boston

$

32,165,000

Applied for

Accepted

Applied for

District

182-Day Treasury Bills
Maturing February 14,1974

$

22,165,000

$

24,095,000

Accepted

$

14,095,000

New York ..............................

3,131,590,000

2,085,590,000

2,901,460,000

1,479,040,000

Philadelphia................ ...........

27,730,000

27,730,000

15,445,000

15,445,000

Cleveland .................... ...........

47,765,000

37,765,000

72,085,000

42,085,000

R ichm ond.................... ...........

33,870,000

25,470,000

20,450,000

20,450,000

18,975,000

18,975,000

17,675,000

17,675,000

...................... ...........

253,765,000

139,165,000

336,455,000

46,530,000

St. Louis .................... ...........

32,135,000

27,635,000

67,730,000

37,630,000

Minneapolis ................ ...........

14,360,000

14,360,000

13,780,000

5,780,000

Kansas C it y ................ ...........

35,930,000

30,930,000

31,885,000

26,685,000

Dallas ......................................

45,840,000

23,340,000

39,965,000

15,465,000

San F ra n cisco.............. ..........

78,080,000

47,080,000

144,500,000

84,500,000

..........

$3,752,205,000

Atlanta ........................ ...........
Chicago

T otal

....................

$2,500,205,000°

c Includes $338,720,000 noncompetitive tenders accepted at the average price of 97.731.
d Includes $263,950,000 noncompetitive tenders accepted at the average price of 95.479.




$3,685,525,000

$1,805,380,000d