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FEDERAL R E S E R V E B A N K O F N E W Y O R K Fiscal Agent of the United States r Circular No.. 7 2 G 9 T L N ovem ber 13, 1973 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 90-Day Bills, Additional Amount, Series Dated Aug. 23,1973, Due Feb. 21,1974 (To Be Issued November 23, 1973) $1,800,000,000 of 181-Day Bills, Dated November 23, 1973, Due May 23, 1974 To All 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 o f Treasury bills to the aggregate amount of $4,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing November 23, 1973, in the amount o f $4,302,090,000, as fo llo w s : companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. 90-day bills (to maturity date) to be issued Novem ber 23, 1973, in the amount o f $2,500,000,000, or thereabouts, representing an additional amount o f bills dated August 23, 1973, and to mature February 21, 1974 ( C U S I P N o . 912793 S Z 0 ) , originally issued in the amount o f $1,801,540,000, 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, follow ing which public announcement will be made by the Treasury Department o f the amount and price range o f accepted bids. Only those submitting competitive tenders will be advised o f the acceptance or rejection thereof. T he 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) o f accepted competitive bids fo r the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on Novem ber 23, 1973, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing November 23, 1973. Cash and exchange tenders will receive equal treatment. Cash adjustments will 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. 181-day bills, for $1,800,000,000, or thereabouts, to be dated Novem ber 23,1973, and to mature M ay 23,1974 ( C U S I P N o. 912793 T N 6 ) . The bills o f 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 onlv, 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 Standard time, Monday, November 19, 1973. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in multiples o f $5,000. In the case o f competitive tenders the price offered must be expressed on the basis o f 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 form s 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 o f customers, provided the names o f the customers are set forth in such tenders. Others than banking institutions will not be per mitted to submit tenders except fo r 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 ) o f the Internal Revenue Code of 1954, the amount o f 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 o f 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 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 ob tained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Monday, November 19, 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 Tax 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 November 15, 1973, representing an additional amount of bills dated August 16, 1973, maturing February 14, 1974; and 182-day bills dated November 15, 1973, maturing May 16, 1974) are shown on the reverse side of this circular. A lfr e d H ayes, President. Please note that the current offering is fo r 90-d a y and 18 1 -d a y Treasury hills. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED NOVEMBER 15, 1973) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing February 14,1974 182-Day Treasury Bills Maturing May 16,1974 Price Approx. equiv. annual rate 97.865a 8.446% 95.772h 8.363% Low ................................................. 97.810 8.664% 95.749 8.409% A verage.......................................... 97.817 8.636% ! 95.763 8.381 % x High ............................................... Approx. equi annual rate Price a Excepting two tenders totaling $1,015,000. b Excepting one tender of $250,( 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 8 .95 % for the 91-day bills, and 8.87% for 182-day bills. (30 percent of the amount of 182-day bills bid for at the low price was accepted.) (34 percent of the amount of 91-day bills bid for at the low price was accepted.) Total Tenders Applied for am1 Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing February 14,1974 Accepted Applied for District B oston ....................................... $ 47,675,000 182-Day Treasury Bills Maturing May 16,1974 $ 31,675,000 Applied for $ 24,690,000 Accepted $ 8,500,000 New Y o r k ................................. 3,203,010,000 2,033,210,000 ............................ 21,315,000 21,315,000 31,405,000 6,405,000 Cleveland................................... 56,930,000 46,930,000 96,080,000 37,915,000 Richmond ................................. 19,310,000 19,310,000 14,845,000 11,135,000 Atlanta........................................ 20,925,000 20,925,000 13,635,000 13,185,000 260,425,000 72,425,000 571,890,000 125,875,000 St. L o u is ................................... 29,740,000 24,740,000 31,725,000 18,625,000 Minneapolis.............................. 124,700,000 116,700,000 46,030,000 32,030,000 Kansas C ity .............................. 36,775,000 31,775,000 26,140,000 21,140,000 39,725,000 18,225,000 31,995,000 9,495,000 183,705,000 63,105,000 395,440,000 39,880,000 Philadelphia San Francisco..................... T o tal ........................................ $4,044,235,000 $2,500,335,000'- CIncludes $347,785,000 noncompetitive tenders accepted at the average price, a Includes $161,440,000 noncompetitive tenders accepted at the average price. 3,056,160,000 1,476,255,000 $4,340,035,000 $1,800,440,000'1
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