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FE DE RAL R E SE R V E BANK OF N E W YORK Fiscal Agent of the United States r Circular No. 7 2 2 8 *1 u September 11, 1973 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated June 21, 1973, Due December 20, 1973 (To Be Issued September 20, 1973) $1,800,000,000 of 182-Day Bills, Dated September 20, 1973, Due March 21, 1974 To A ll Incorporated Banks and Trust Companies, and Others 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 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 Treasury bills maturing September 20, 1973, in the amount of $4,302,420,000, as fo llo w 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. 91-day bills (to maturity date) to be issued September 20, 1973, in the amount of $2,500,000,000, or thereabouts, representing an additional amount of bills dated June 21, 1973, and to mature December 20, 1973 ( C U S I P No. 912793 S J 6 ), originally issued in the amount of $1,700,870,000, 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 September 20, 1973, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 20, 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 September 20, 1973, and to mature March 21, 1974 ( C U S I P No. 912793 T D 8 ). 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, September 17, 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 multiples 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 4 5 4 (b ) and 1 22 1(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, September 17, 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. P a y m e n t fo r the T rea su ry bills can n ot he m ade b y cred it th rou gh the T re a su ry T a x and L oan A c co u n t. S e ttle m e n t m u st be m ad e in cash or o th er im m e d ia tely available fu n d s or in m a tu rin g T re a su ry bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued September 13, 1973, representing an additional amount of bills dated June 14, 1973, maturing December 13, 1973; and 182-day bills dated September 13, 1973, maturing March 14, 1974) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED SEPTEMBER 13, 1973) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing December i j . 1973 Price High ................... .......................... Low .................... .......................... A verage.............. ........................... a Excepting one tender 182-Day Treasury Bills Maturing March 14, 1974 Approx. equiv. annual rate 97.786a 97.714 97.721 Price 8.759% 9.044% 9.016%! Approx. equiv. annual rate 95.503b 95.485 95.490 of $20,000. 8.895% 8.931% 8.921%! b Excepting five tenders totaling $1,561 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 9 .35% for the 91-day bills, and 9 .47 % fo 182-day bills. (69 percent of the amount of 91-day bills bid for at the low price was accepted.) (58 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 December 13,1973 District Applied for Boston ............... ..................... $ 40,735,000 182-Day Treasury Bills Maturing March 14, 1974 Applied for Accepted $ 30,735,000 $ 31,820,000 Accepted $ 14,770,000 New York ......... ..................... 3,109,495,000 1,969,740,000 3,343,060,000 1,477,670,000 Philadelphia ....... ...................... 83,880,000 63,880,000 18,540,000 13,460,000 Cleveland ............ ..................... 40,235,000 40,235,000 67,295,000 36,780,000 Richmond ............ ..................... 43,535,000 35,535,000 27,665,000 16,365,000 Atlanta ................ ..................... 25,420,000 24,250,000 21,860,000 18,800,000 Chicago .............. ..................... 260,700,000 98,875,000 307,135,000 78,435,000 ............ 42,875,000 32,730,000 51,535,000 25,955,000 Minneapolis ........ 31,085,000 29,225,000 29,435,000 4,185,000 Kansas City ........ 55,315,000 43,240,000 43,065,000 26,435,000 Dallas .................. 40,870,000 21,870,000 55,755,000 13,255,000 San Francisco .... 176,935,000 109,935,000 229,045,000 74,205,000 $3,951,080,000 $2,500,250,000 $4,226,210,000 $1,800,315,000! St. Louis ............ T o t a l ......... .. . CIncludes $370,800,000 noncompetitive tenders accepted at the average price, d Includes $242,320,000 noncompetitive tenders accepted at the average price.
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