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FED ER A L RESERVE BANK O F NEW YORK Fiscal Agen t of the United States r I Circular N o. 7 3 8 A p ril 30, 1974 4 "I J OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated February 7, 1974, Due August 8, 1974 (To Be Issued May 9, 1974) $1,800,000,000 of 182-Day Bills, Dated May 9, 1974, Due November 7, 1974 T o A ll Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserve D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. tod ay: The Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount of $4,300,000,000, or thereabouts, to be issued M ay 9, 1974, as fo llo w s : 91-day bills (to maturity date) in the amount of $2,500,000,000, or thereabouts, representing an additional amount o f bills dated February 7, 1974, and to mature August 8, 1974 (C U S I P N o. 912793 U J 3 ), originally issued in the amount of $1,802,470,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,800,000,000, or thereabouts, to be dated M ay 9, 1974, and to mature Novem ber 7, 1974 (C U S I P No. 912793 U X 2 ). The bills will be issued for cash and in exchange for Treasury bills maturing M ay 9, 1974, outstanding in the amount of $4,305,565,000, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,319,945,000. These accounts may exchange bills they hold for the bills now being offered at the average prices o f accepted tenders. 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 only, and in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Monday, M ay 6, 1974. 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 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 of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 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. The 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 reservations, 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) of accepted com peti tive 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 ay 9, 1974, in cash or other immedi ately available funds or in a like face amount of Treasury bills maturing M ay 9, 1974. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 4 5 4 (b ) and 1221(5) of the Internal Revenue Code of 1954, the amount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the owner of 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 N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, May 6, 1974, 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 May 2, 1974, representing an additional amount of bills dated January 31, 1974, maturing August 1, 1974; and 182-day bills dated May 2, 1974, maturing October 31, 1974) are shown on the reverse side of this circular. A lfred H a y e s , President. ( over ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MAY 2, 1974) Range of Accepted Competitive Bids pi-Day Treasury Bills Maturing August i, 1974 P rice High ................................................ Low ................................................... A v e ra g e............................................ 182 -Day Treasury Bills Maturing October 3 1 , 1974 A p p rox. equiv. annual rate 97.796a 97.712 97.748 A pprox. equiv. annual rate P rice 8.719% 9.051% 8.909% 1 95.633b 95.475 95.553 8.638% 8.951% 8.796% ! a Excepting two tenders totaling $155,000. b Excepting three tenders totaling $1,030,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 9.24% for the 91-day bills, and 9.33% for the 182-day bills. (49 percent of the amount of 91-day bills bid for at the low price was accepted.) (19 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) 182 -Day Treasury Bills Maturing October 31, 1974 pi-Day Treasury Bills Maturing August 1 , 1974 D istrict A pplied for Boston ........................ ............... $ 42,495,000 A ccepted $ 32,495,000 Applied for $ 21,255,000 A ccepted $ 11,255,000 New Y ork ................. ............... 2,579,375,000 2,079,775,000 2,117,995,000 1,530,395,000 Philadelphia ............... ............... 27,935,000 27,935,000 13,015,000 13,015,000 Cleveland ................... ............... 36,475,000 36,475,000 23,285,000 23,285,000 Richmond .................... ............... 30,835,000 30,835,000 22,345,000 22,345,000 Atlanta ........................ ............... 22,985,000 22,985,000 15,370,000 15,370,000 ...................... ............... 112,680,000 82,180,000 82,320,000 51,415,000 St. Louis ................... ................ 42,170,000 32,170,000 31,905,000 19,905,000 Minneapolis ............... ............... 7,680,000 7,680,000 3,235,000 3,235,000 29,880,000 29,880,000 20,400,000 20,400,000 Dallas .......................................... 24,155,000 24,155,000 12,245,000 12,245,000 San Francisco ............ ............... 134,415,000 94,865,000 100,620,000 78,570,000 ................. ............... $3,091,080,000 $2,501,430,000= $2,463,990,000 Chicago Kansas City ................ ............... T otal c Includes $390,510,000 noncompetitive tenders accepted at the average price. d Includes $195,795,000 noncompetitive tenders accepted at the average price. $1,801,435,000d
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