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F E D E R A L R E SER V E BANK O F NEW YORK Fiscal A gen t of the United States rCircular No. 7 3 3 9 ~ l February 8, 1974 -I OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated November 23, 1973, Due May 23, 1974 (To Be Issued February 21, 1974) $1,800,000,000 of 182-Day Bills, Dated February 21, 1974, Due August 22, 1974 T o A ll In corporated Banks and Trust Companies, and Concerned, in the Second Federal R eserv e District: Others F ollow in g is the text o f a notice issued by the T reasu ry Departm ent, released at 4 p.m. tod a y : T h e 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 21, 1974, in the amount o f $4,253,610,000, as f o 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 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 21, 1974, in the amount o f $2,500,000,000, or thereabouts, representing an additional amount o f bills dated N ovem ber 23, 1973, and to mature M ay 23, 1974 (C U S I P No. 912793 T N 6 ) , originally issued in the amount o f $1,800,415,000, 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 in g which public announcement w ill be made by the Treasury Department 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. T he 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. Subject to these reserva tions, noncom petitive tenders fo 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 competitive bids f o r the respective issues. Settlement fo r accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on February 21, 1974, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing February 21, 1974. 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. 182-day bills, fo r $1,800,000,000, or thereabouts, to be dated February 21, 1974, and to mature A ugust 22, 1974 ( C U S I P N o. 912793 U L 8 ). T he bills o f both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at maturity their face amount w ill be payable without interest. T h ey will 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 D aylight Saving time, Friday, February 15, 1974. Tenders will 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 com petitive 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 forw arded in the special envelopes which w ill 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 will not be per mitted to submit tenders except fo r their own account. Tenders w ill be received without deposit fro m 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 of, and the bills are excluded from considera tion as capital assets. A ccordin gly, the owner 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 may 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, Friday, February 15, 1974, at the Securities Departm ent 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 en d er 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 inade 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. T h e results o f bidding fo r the previous offerin g o f T reasu ry bills, to be issued F ebruary 14, 1974, were not avail able at the time o f printing this circu la r; those results will be announced after release by the T reasu ry Department. A lfred H ayes, President. C losin g date fo r re ce ip t o f tenders is Friday, February 15.