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FED E R A L R ESER V E BANK O F NEW YORK Fiscal A gen t of the United States r Circular No. 7 3 4 8 T L February 26, 1974 J OFFERING OF TWO SERIES OF TREASURY BILLS $ 2 ,5 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y Bills, Additional Amount, Series Dated December 6 , 1 9 7 3 , Due June 6 , 1 9 7 4 (To Be Issued March 7,1974) $1,800,000,000 of 182-Day Bills, Dated March 7, 1974, Due September 5, 1974 T o A ll Incorporated Banks and T rust Companies, and O thers 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 reasury Department, released at 4 p.m. tod a y : T he Treasury Department, by this public notice, invites ten ders for tw o 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 M arch 7, 1974, in the amount o f $4,320,325,000, as fo llo w s : companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by pay ment of 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f pay ment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued M arch 7, 1974, in the amount of $2,500,000,000, or thereabouts, repre senting an additional amount of bills dated Decem ber 6, 1973, and to mature June 6, 1974 (C U S I P N o. 912793 T Q 9 ) , originally issued in the amount o f $1,800,735,000, the additional and original bills to be freely interchange able. 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 h e 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 decim als) o f 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 M arch 7, 1974, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing M arch 7, 1974. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. 182-day bills, for $1,800,000,000, or thereabouts, to be dated M arch 7, 1974, and to mature September 5, 1974 (C U S I P N o. 912793 U N 4 ). T he bills o f both series will be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They w ill be issued in bearer form only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu 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, M onday, M arch 4, 1974. Tenders will not be re ceived at the Treasury Department, W ashington. Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in mul tiples o f $5,000. In the case of 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 forms 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 for account o f 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 w ill be received without deposit from incorporated banks and trust Under Sections 4 5 4 (b ) and 1221(5) of 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 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 this notice prescribe the terms o f the conditions o f their issue. Copies from any Federal Reserve Bank or N o. 418 (current revision) and the Treasury bills and govern o f the circular may be obtained Branch. T h is Bank w ill receive tenders fo r both series up to 1 :30 p.m., Eastern Daylight Saving time, M onday, M arch 4, 1974, at the Securities Departm ent of 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 reasu ry B ills.” T enders not requiring a deposit may be submitted by telegraph, subject to written con firm ation ; 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 o f the last w eekly offering o f T reasury bills ( 9 1 -day bills to be issued February 28, 1974, representing an additional amount o f bills dated N ovem ber 29, 1973, m aturing M ay 30, 1974; and 182-day bills dated F ebruary 28, 1974, m aturing A ugu st 29, 1974) are shown on the reverse side of 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 28, 1974) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing M ay 30, 1974 182-Day Treasury Bills Maturing August 29, 1974 A p p rox. equiv. annual rate P rice P rice A p p ro x . equiv. annual rate 7 .042% L o w ................................... ................ 98.170 7.2 4 0 % 96.413 7.09 5% A v e r a g e ............................ ................ 98.183 7 .1 8 8 % x 96.420 tH 96.440b t-H 7. 129% ................................ ................ 00 o 98.198a H ig h a E xcepting tw o tenders totaling $30,000. b Excepting two tenders totaling $520,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.42% for the 91-day bills, and 7.45% for the 182-day bills. (1 9 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (1 2 percent o f the amount o f 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 M ay 30, 1974 D istrict $ 45,740,000 Applied for A ccepted A pplied for B o s t o n ..................................... 182-Day Treasury Bills Maturing August 29, 1974 $ 34,930,000 $ 33,360,000 A ccepted $ 10,310,000 N ew Y o r k ........................... 3,012,355,000 1,967,355,000 3,039,715,000 1,610,885,000 P h ila d e lp h ia ......................... 52,765,000 27,765,000 36,490,000 11,490,000 Cleveland .............................. 46,515,000 46,515,000 55,690,000 15,585,000 R ic h m o n d .............................. 51,915,000 45,105,000 44,830,000 24,500,000 Atlanta ................................... 25,305,000 25,305,000 12,840,000 11,920,000 C h ic a g o ................................... 227,445,000 127,345,000 272,695,000 39,445,000 55,340,000 42,340,000 43,635,000 17,135,000 23,655,000 19,655,000 18,115,000 3,965,000 42,565,000 34,485,000 30,915,000 22,865,000 33,020,000 19,965,000 26,390,000 11,510,000 164,615,000 109,375,000 110,670,000 20,670,000 St. L o u i s ................................ M inneapolis ......................... Kansas C i t y ......................... Dallas ..................................... San Francisco ..................... T otal ........................... $3,781,235,000 $2,500,140,000c c Includes $412,570,000 noncompetitive tenders accepted at the average price. <1 Includes $175,680,000 noncompetitive tenders accepted at the average price. $3,725,345,000 $1,800,280,000J