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FED E R A L R ESER VE BANK O F NEW YORK Fiscal A gen t of the United States r Circular No. 7 3 5 6 L March 12, 1974 ] OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated December 20, 1973, Due June 20, 1974 (To Be Issued March 21,1974) $1,800,000,000 of 182-Day Bills, Dated March 21, 1974, Due September 19, 1974 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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 21, 1974, in the amount of $4,305,165,000, 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 o f 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 21, 1974, in the amount of $2,500,000,000, or thereabouts, repre senting an additional amount of bills dated Decem ber 20, 1973, and to mature June 20, 1974 (C U S I P N o. 912793 T S 5 ) , originally issued in the amount o f $1,799,045,000, 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 of accepted bids. Only those submitting competitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary o f 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 21, 1974, in cash or other immediately available fluids or in a like face amount o f Treasury bills maturing M arch 21, 1974. Cash and exchange tenders w ill receive equal treatm ent Cash adjustments w ill 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 21, 1974, and to mature September 19, 1974 (C U S I P N o. 912793 U Q 7 ). 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 w ill 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 (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, Monday, M arch 18, 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 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 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 for their own account. Tenders will 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 of their issue. Copies from any Federal Reserve Bank or N o. 418 (current revision) and the Treasury bills and govern of the circular may be obtained Branch. T h is Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, M onday, M arch 18, 1974, at the Securities Departm ent o f its H ead Office and at its Buffalo 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 Bills.” T enders not requiring a deposit m ay 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 of the last weekly offering of T reasury bills (9 1 -d a y bills to be issued M arch 14, 1974, representing an additional am ount o f bills dated D ecem ber 13, 1973, m aturing June 13, 1974; and 182-day bills dated M arch 14, 1974, m aturing Septem ber 12, 1974) are shown on the reverse side o f this circular. A lfred H ayes, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MARCH 14, 1974) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing June 13, 1974 182-Day Treasury Bills Maturing September 12, 1974 Approx. equiv. annual rate Price Price Approx. equiv. annual rate 98.003a 7.9 0 0 % 96.160b 7.596% L o w .................................. ................ 97.995 7.9 3 2 % 96.123 7 .66 9% A v e r a g e ............................ ................ 97.998 7 .9 2 0 % 1 96.139 7 .6 3 7 % 1 High ................................ ................ a E xcepting tw o tenders totaling $80,000. b E xcepting tw o tenders totaling $2,710,000. 1 These rates are on a bank discount basis. T he equivalent coupon issue yields are 8.19% for the 91-day bills, and 8.05% for the 182-day bills. (7 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (8 percent of 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 June 13, 1974 Accepted Applied for District $ 46,380,000 182-Day Treasury Bills Maturing September 12, 1974 $ 29,010,000 Applied for $ 29,460,000 Accepted $ 12,210,000 N ew Y o r k ............................ 4,227,230,000 2,109,460,000 2,592,255,000 1,389,535,000 Philadelphia ......................... 63,925,000 29,385,000 35,305,000 10,305,000 85,275,000 41,115,000 55,465,000 24,390,000 R ic h m o n d .............................. 54,595,000 27,635,000 40,770,000 30,195,000 Atlanta ................................... 30,845,000 27,040,000 24,250,000 18,365,000 C h i c a g o .................................. 242,560,000 59,160,000 356,875,000 151,865,000 St. L o u i s ................................ 51,475,000 29,315,000 41,030,000 17,060,000 M inneapolis ......................... 51,485,000 33,185,000 21,315,000 11,315,000 Kansas C i t y ....................... 48,205,000 33,390,000 31,675,000 25,610,000 Dallas ................................ 53,015,000 18,365,000 34,000,000 13,000,000 219,455,000 64,690,000 184,865,000 96,755,000 Cleveland .............................. San F r a n c i s c o ..................... T otal ............................ $5,174,445,000 $2,501,750,000° CIncludes $419,380,000 noncompetitive tenders accepted at the average price. Includes $222,390,000 noncompetitive tenders accepted at the average price. $3,447,265,000 $1,800,605,000”