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FE D E R A L R ES ER V E BANK O F NEW YORK Fiscal A gen t of the United States r Circular No. 7 3 3 6 "1 U February 5, 1974 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated November 15, 1973, Due May 16, 1974 (To Be Issued February 14, 1974) $1,800,000,000 of 182-Day Bills, Dated February 14, 1974, Due August 15, 1974 T o A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice issued by the T reasu ry Department, released at 4 p.m . to d a y : T he Treasury Department, by this public notice, invites tenders fo r tw o series o f Treasury bills to the aggregate amount o f $4,300,000,000, or thereabouts, fo r cash and in exchange fo r Treasury bills maturing February 14, 1974, in the amount o f $4,309,420,000, as f o llo w s : companies and from responsible and recognized dealers in invest ment securities. Tenders from 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 February 14, 1974, in the amount o f $2,500,000,000, or thereabouts, representing an additional amount o f bills dated N ovem ber 15, 1973, and to mature M ay 16, 1974 (C U S I P No. 912793 T M 8 ) , originally issued in the amount o f $1,801,370,000, the additional and original bills to be freely interchangeable. Immediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcement w ill be made by the Treasury D epartment o f the amount and price range o f accepted bids. O nly those submitting competitive tenders will be advised o f the acceptance or rejection thereof. The Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reserva tions, noncom petitive tenders fo r each issue fo r $200,000 o r 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 Reserve Bank on February 14, 1974, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing February 14^ 1974. Cash and exchange tenders will 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 February 14, 1974, and to mature A ugust 15, 1974 (C U S I P N o. 912793 U K 0 ). T he bills o f both series w ill be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount w ill be payable without interest. Th ey w ill be issued in bearer form only, and in denominations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, M onday, February 11, 1974. Tenders w ill not be re ceived at the Treasury Department, W ashington. Each tender must be fo r a minimum o f $10,000. Tenders over $10,000 must be in mul tiples 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 js urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders fo r account o f customers, provided the names o f the customers are set forth in such tenders. Others than banking institutions w ill 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 1221(5) o f the Internal Revenue Code o f 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 o f, and the bills are excluded fro m considera tion as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder must include in his incom e tax return, as ordinary gain or loss, the difference between the price paid fo r 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 fo r 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 m ay be ob tained from any Federal Reserve Bank or Branch. T h is Bank will receive tenders fo r both series up to 1 :30 p.m ., Eastern D aylight Saving time, M on day, February 11, 1974, at the Securities Department o f its H ead Office and at its B uffalo Branch. T ender form s fo r the respective series are enclosed. Please use the appropriate form s to submit tenders and return them in the enclosed envelope marked “ T ender fo r T reasury B ills.” T enders not requiring a deposit may be submitted by telegraph, subject to written con firm ation ; no tenders m ay be submitted by telephone. Payment fo r 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 o f the last w eekly offerin g o f Treasury bills (9 1 -d a y bills to be issued F ebruary 7, 1974, representing an additional amount o f bills dated N ovem ber 8, 1973, m aturing M ay 9, 1974; and 182-day bills dated F ebruary 7, 1974, m aturing A ugust 8, 1974) are shown on the reverse side o f this circular. A lfred H ayes, President. ( over) RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED FEBRUARY 7, 1974) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing M ay 9,1974 P rice H ig h .. ... 98.253 98.237 A verage 98.243 L ow 182-Day Treasury Bills Maturing August 8,1974 A p p ro x . equiv. annual rate P rice 6 .9 1 1 % A p p rox. equiv. annual rate 9 6 .6 18a 96.567 96.589 6 .9 7 5 % 6.951 % 1 6 .6 9 0 % 6 .7 9 1 % 6.747% * a E xcepting one tender o f $3,140,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.17% fo r the 91-day bills, and 7.08% fo r the 182-day bills. (4 8 percent o f the amount o f 91-day bills bid fo r at the low price was accepted.) (45 percent o f the amount o f 182-day bills bid fo r at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing M ay 9,1974 District B oston A ccep tcd A pplied f o r ............................. ........... $ 89,460,000 182-Day Treasury Bills Maturing August 8,1974 $ 24,030,000 A pplied f o r $ 45,805,000 A ccep tcd $ 12,905,000 N ew Y o rk .................................. 3,519,270,000 2,061,825,000 2,250,790,000 1,461,335,000 P h ila d e lp h ia .................... ........... 63,595,000 28,440,000 9,530,000 9,530,000 Cleveland ......................... ......... 42,655,000 35,095,000 23,500,000 22,690,000 R ich m on d ....................... ......... 44,795,000 26,795,000 27,250,000 16,030,000 Atlanta .............................. ......... 41,705,000 27,105,000 21,625,000 13,810,000 ........................... ......... 286,485,000 79,335,000 199,560,000 90,060,000 St. L ou is ......................... ......... 70,720,000 45,510,000 45,845,000 30,345,000 .................... ......... 28,425,000 21,425,000 25,520,000 21,520,000 Kansas C i t y .................... ......... 45,585,000 30,665,000 23,330,000 22,485,000 Dallas ................................ ......... 42,415,000 20,415,000 35,395,000 13,395,000 224,850,000 100,550,000 145,955,000 86,655,000 C hicago M inneapolis San F rancisco ................ T otal ...................... ......... $4,499,960,000 $2,501,190,000b b Includes $404,320,000 noncompetitive tenders accepted at the average price, c Includes $202,000,000 noncompetitive tenders acccpted at the average price. $2,854,105,000 $ 1,800,760,000c
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