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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gen t of the United States r Circular N o. 7 4 3 5 1 »■ A ugust 6, 1974 J OFFERING OF TW O SERIES OF TREASURY BILLS $2,800,000,000 of 91-Day Bills, Additional Amount, Series Dated May 16,1974, Due November 14,1 9 74 (To Be Issued August 15, 1974) $2,000,000,000 of 182-Day Bills, Dated August 15,1974, Due February 13, 1975 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. to d a y : T h e Treasury Department, by this public notice, invites ten ders fo r tw o series o f Treasury bills to the aggregate amount of $4,800,000,000, or thereabouts, to be issued August 15, 1974, as fo llo w s : 91-day bills (to maturity date) in the amount of $2,800,000,000, or thereabouts, representing an additional amount of bills dated M ay 16, 1974, and to mature Novem ber 14, 1974 (C U S IP N o. 912793 U Y 0 ), originally issued in the amount o f $1,902,325,000, the additional and original bills to be freely interchangeable. o f customers provided the names o f the customers are set forth in such tenders. Others will not be permitted to submit tenders except for their own account. Tenders w ill be received without de posit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent of 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. T he bills o f 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. They will be issued in bearer form in denominations o f $10,000. $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value) and in book-entry form to designated bidders. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Treasury Department o f the amount and price range of accepted bids. Only those submitting competitive tenders w ill 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 w ill 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 August 15, 1974, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing A ugust 15, 1974. Cash and exchange tenders will receive equal treatment. Cash adjustments w ill be made for differences between the par value of maturing bills accepted in exchange and the issue price o f the new bills. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Monday, August 12, 1974. Tenders w ill 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 o f competitive tenders the price offered must be expressed on the basis o f 100, with not more than three de cimals, e.g., 99.925. Fractions may not be used. It is urged that ten ders 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. 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 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. Banking institutions and dealers w ho 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 Treasury Department Circular this notice prescribe the terms o f the conditions o f their issue. Copies from any Federal Reserve Bank or 182-day bills, for $2,000,000,000, or thereabouts, to be dated August 15, 1974, and to mature February 13, 1975 (C U S I P N o. 912793 V V 5 ) . The bills w ill be issued for cash and in exchange for Treasury bills maturing August 15, 1974, outstanding in the amount of $4,400,755,000, o f which Government accounts and Federal Reserve Banks, for themselves and as agents o f foreign and international monetary authorities, presently hold $2,672,075,000. These accounts may exchange bills they hold for the bills now being offered at the average prices o f accepted tenders. N o. 418 (current revision) and the Treasury bills and govern o f the circular may be obtained Branch. T his Bank will receive tenders fo r both series up to 1 :30 p.m., Eastern Daylight Saving time, M onday, A ugu st 12, 1974, at the Securities Department of its H ead Office and at its Buffalo Branch. T end er form s for 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 Bills.” Tenders 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 of the last weekly offering of Treasury bills (91-d ay bills to be issued August 8, 1974, representing an additional amount of bills dated M ay 9, 1974, maturing November 7, 1 9 7 4 ; and 182-day bills dated A ugust 8, 1974, maturing February 6, 1975) are shown on the reverse side of this circular. A lfred H ayes, President. ( o ver ) RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED AUGUST 8, 1974) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing N ovem ber 7,1974 P rice 182-Day Treasury Bills Maturing February 6,1975 A p p rox. equiv. annual rate P rice A p p ro x . equiv. annual rate 8 .6 3 0 % ................................ ................ 98.091 7 .5 5 2 % 95.637a L o w ................................... ................ 97.813 8 .6 5 2 % 95.601 8 .701% ......................... ................ 97.850 8 .5 0 5 % ! 95.622 S .6 6 0 % 1 H ig h A verage a Excepting five tenders totaling $50,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 8 .81 % for the 91-day bills, and 9 .18 % for the 182-day bills. ( 7 percent of the amount of 91 -day bills bid for at the low price was accepted.) (85 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 N ovem ber 7,1974 B oston ........................................ $ 45,290,000 A pplied fo r A ccep ted A pplied fo r D istrict 182-Day Treasury Bills Maturing February 6,1975 $ 35,290,000 $ 31,845,000 A ccep ted $ 18,015,000 3,049,570,000 2,203,570,000 3,655,575,000 .................. ........... 30,580,000 30,580,000 44,675,000 14,430,000 Cleveland ......................... ........... 41,875,000 41,725,000 55,580,000 29,880,000 R ich m on d .................................. 43,730,000 31,730,000 90,415,000 23,090,000 ....................................... 37,665,000 37,665,000 43,160,000 24,510,000 ........................... ............ 145,550,000 89,550,000 319,305,000 206,875,000 St. L ouis ......................... ........... 43,450,000 37,320,000 58,240,000 25,040,000 N ew Y o r k .................................. Philadelphia Atlanta C hicago 1,554,505,000 .................. ........... 10,980,000 10,980,000 10,395,000 2,395,000 Kansas C i t y ................................ 34,350,000 34,000,000 26,800,000 26,170,000 .............................. ............ 31,545,000 24,545,000 39,955,000 15,955,000 San F r a n c i s c o ................ ........... 148,425,000 123,415,000 219,310,000 60,010,000 ........................ ........... $3,663,010,000 M inneapolis Dallas T otal $2,700,370,000b b Includes $418,060,000 noncompetitive tenders accepted at the average price. c Includes $282,775,000 noncompetitive tenders accepted at the average price. $4,595,255,000 $2,000,875,000'
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