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F E D E R A L R E S E R V E BA N K O F NEW YO R K Fiscal Agen t of the United States r Circular No. 7 4 1 1 k June 25, 1974 ] OFFERING OF TWO SERIES OF TREASURY BILLS $2,600,000,000 of 90-Day Bills, Additional Amount, Series Dated April 4, 1974, Due October 3, 1974 (To Be Delivered July 5, 1974) $1,900,000,000 of 181-Day Bills, Delivered July 5, 1974, Due January 2, 1975 T o A ll Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserve 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 : The Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount of $4,500,000,000, or thereabouts, to be delivered July 5,1974, as fo llo w s : 90-day bills (to maturity date) in the amount of $2,600,000,000, or thereabouts, representing an additional amount o f bills dated A pril 4, 1974, and to mature O ctober 3, 1974 (C U S I P N o. 912793 U S 3 ), originally issued in the amount of $1,809,585,000 (an additional $100,065,000 was issued on June 5, 1974), the additional and original bills to be freely interchangeable. 181-day bills, for $1,900,000,000, or thereabouts, to be de livered July 5, 1974, and to mature January 2, 1975 (C U S I P N o. 912793 V P 8 ) . The bills will be issued for cash and in exchange for Treasury bills maturing July 5, 1974, outstanding in the amount of $4,303,815,000, o f which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,424,425,000. These accounts may exchange bills they hold for the bills now being offered at the average prices o f accepted tenders. The bills of both series w ill 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. T hey 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 (maturity 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, July 1, 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 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 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 and dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank o f N ew Y ork their positions with respect to Government securities and borrow ings thereon may submit tenders for account o f customers provided the names of the customers are set forth in such tenders. Others w ill not be permitted to submit tenders except for their ow n account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f 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. O nly those submitting competitive tenders will be advised o f 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 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) of 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 July 5, 1974, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 5, 1974. Cash and exchange tenders w ill receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price o f 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 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 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 of the circular may be obtained from any Federal Reserve Bank or Branch. T his Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, M onday, July 1, 1974, at the Securities Department of its H ead Office and at its Buffalo Branch. T en d er 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 for T reasury B ills.” T enders not requiring a deposit may be submitted by telegraph, subject to written confirm 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 weekly offering of T reasury bills (9 1 -d a y bills to be issued June 27, 1974. representing an additional amount of bills dated M arch 28, 1974, maturing September 26, 1974; and 182-day bills dated June 27, 1974, m aturing Decem ber 26, 1974) are shown on the reverse side o f this circular. A lfred H a y e s, President. P le a s e n o te th at th e c u r r e n t o ffe r in g is f o r 9 0 -d a y a n d 1 8 1 -d a y T r e a s u r y b ills . ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 27, 1974) R a n ge o f A c c e p te d C om p e titiv e B ids 91-Day Treasury Bills Maturing September 26, 1974 182-Day Treasury Bills Maturing Decem ber 26, 1974 P rice A p p rox. equiv. annual rate ................................ ................ 98.064 7.6 5 9 % 9 6 .0 18a 7.876% L o w .................................. ................ 97.993 7 .9 4 0 % 95.904 8 .102% 7.841 % x 95.954 8 .0 0 3 % ! H igh A v e r a g e ........................... P rice A p p rox. equiv. annual rate a E xcepting one tender o f $675,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 8.11% for the 91-day bills, and 8.46% for the 182-days bills. (1 7 percent o f the amount of 91-day bills bid for at the low price was accepted.) (9 2 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 District) 91-Day Treasury Bills Maturing September 26, 1974 D istrict Applied, for B o s t o n ............................. ......... N ew Y o r k $ 41,075,000 182-Day Treasury Bills Maturing Decem ber 26, 1974 A pplied for A ccepted $ 31,075,000 $ 25,675,000 A ccepted $ 15,675,000 ........................... ......... 3,244,695,000 2,116,695,000 2,505,065,000 1,487,065,000 ......................... ......... 27,010,000 26,950,000 9,830,000 9,830,000 .... 49,780,000 44,770,000 26,010,000 21,010,000 .............................. ....... 52,970,000 41,970,000 33,415,000 30,115,000 ........................... ......... 33,785,000 33,685,000 23,715,000 23,665,000 C hicago .................................. ......... 209,380,000 135,750,000 186,420,000 166,920,000 St. L o u i s ................................ ......... 46,165,000 28,165,000 40,365,000 26,205,000 ......................... ......... 18,545,000 18,545,000 13,180,000 13,180,000 Kansas City ......................... ......... 30,405,000 30,255,000 24,575,000 24,335,000 ..................................... ......... 30,615,000 22,615,000 22,540,000 13,540,000 69,610,000 105,735,000 68,735,000 Philadelphia C le v e la n d ................................ R ichm ond Atlanta M inneapolis Dallas San F rancisco T otal ................ ......... 140,440,000 ...................... ......... $3,924,865,000 $2,600,085,000b b Includes $424,730,000 noncompetitive tenders accepted at the average price. c Includes $218,915,000 noncompetitive tenders accepted at the average price. $3,016,525,000 $1,900,275,000°
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