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FED ER AL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r L Circular No. 7 5 1 11 November 26, 1974 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,800,000,000 of 91-Day Bills, Additional Amount, Series Dated September 5, 1974, Due March 6, 1975 (To Be Issued December 5, 1974) $2,100,000,000 of 182-Day Bills, Dated December 5, 1974, Due June 5, 1975 T o A ll In corporated Banks and T rust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Follow ing 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 $4,900,000,000, or thereabouts, to be issued D ecem ber 5, 1974, as fo llo w s : 91-day bills (to maturity date) in the amount of $2,800,000,000, o r thereabouts, representing an additional amount o f bills dated September 5, 1974, and to mature M arch 6, 1975 (C U S I P N o. 912793 V Y 9 ) , orig i nally issued in the amount of $2,005,370,000, the addi tional and original bills to be freely interchangeable. 182-day bills, for $2, 100,000,000, or thereabouts, to be dated Decem ber 5, 1974, and to mature June 5, 1975 (C U S I P N o. 912793 W M 4 ) . The bills w ill be issued for cash and in exchange for Treasury bills maturing Decem ber 5, 1974, outstanding in the amount of $4,709,640,000, o f which Government accounts and Federal Reserve Banks, fo r themselves and as agents o f foreign and international monetary authorities, presently hold $2,332,360,000. 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 com petitive 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 of $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. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Stand ard time, Monday, Decem ber 2, 1974. Tenders v/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 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 forw arded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. 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 o rk 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 will not be permitted to submit tenders except for their own 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 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 com pany. 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 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 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 decimals) o f 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 Decem ber 5, 1974, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing Decem ber 5, 1974. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differ ences between the par value o f 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 Standard time, Monday, December 2, 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 con firmation; 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 (90-day bills to be issued November 29, 1974, representing an additional amount of bills dated August 29, 1974, maturing February 27, 1975; and 181-day bills dated November 29, 1974, maturing May 29, 1975) are shown on the reverse side of this circular. A lfred H a y e s, / President. ( over) RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 29, 1974) Range of Accepted Competitive Bids 90-Day Treasury Bills Maturing February 27,1975 P rice High ....................... .............. Low ........................ .............. Average .................. .............. 98.185 98.158 98.168 18 1 -Day Treasury Bills Maturing May 29,1975 A pprox. equiv. annual rate P rice A p p rox. equiv. annual rate 7.260% 7.368% 7.328%* 96.320 96.281 96.295 7.319% 7.397% 7.369%! 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.57% for the 90-day bills, and 7.76% for the 181-day bills. (56 percent of the amount of 90-day bills bid for at the low price was accepted.) (9 percent of the amount of 181-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve District) 90-Day Treasury Bills Maturing February 27 ,1975 D istrict Applied for A ccepted 18 1 -Day Treasury Bills Maturing May 29,1975 Applied for A ccepted Boston .................... .......... New York ............... .......... Philadelphia ............ .......... Cleveland ................. .......... Richmond .......................... Atlanta ............................... Chicago ................... .......... St. Louis ................. _____ Minneapolis ............. ........... Kansas City .............. .......... Dallas ...................... .......... San Francisco ........... .......... $ 45,465,000 3,278,590,000 36,150,000 61,435,000 36,700,000 53,310,000 242,900,000 57,675,000 12,995,000 43,780,000 32,815,000 206,660,000 $ 32,995,000 2,283,655,000 35,375,000 51,195,000 31,800,000 42,170,000 97,400,000 29,625,000 4,540,000 39,550,000 20,515,000 131,460,000 $ 26,820,000 2,645,950,000 42,050,000 40,940,000 17,815,000 25,100,000 262,555,000 35,060,000 12,830,000 35,650,000 23,835,000 171,850,000 $ ......... $4,108,475,000 $2,800,280,000a $3,340,455,000 $2,100,270,000b T otal d Includes ................... $492,430,000 noncompetitive tenders accepted at the average price. b Includes $246,865,000 noncompetitive tenders accepted at the average price. 16,720,000 1,698,875,000 22,050,000 30,940,000 17,785,000 20,950,000 108,545,000 19,760,000 11,010,000 27,250,000 16,535,000 109,850,000
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