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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 5 "I December 3, 1974 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,800,000,000 of 91-Day Bills, Additional Amount, Series Dated September 12, 1974, Due March 13, 1975 (To Be Issued December 12, 1974) $2,100,000,000 of 182-Day Bills, Dated December 12, 1974, Due June 12, 1975 T o A ll Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. tod ay: Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Stand ard time, M onday, D ecem ber 9, 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 forw arded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. of 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 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 accom panied 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. Only 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) 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 Decem ber 12, 1974, in cash or other im mediately available funds or in a like face amount o f Treasury bills maturing Decem ber 12, 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. U nder 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. 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 Treasury Department Circular this notice prescribe the terms of the conditions of their issue. Copies from any Federal Reserve Bank or The Treasury Department, by this public notice, invites tenders tor tw o series o f Treasury bills to the aggregate amount of $4,900,000,000, or thereabouts, to be issued Decem ber 12, 1974, as fo llo w s : 91-day bills (t o maturity date) in the amount of $2,800,000,000, o r thereabouts, representing an additional amount o f bills dated September 12, 1974, and to mature M arch 13, 1975 (C U S I P N o. 912793 V Z 6 ) , origi nally issued in the amount of $1,805,935,000, the addi tional and original bills to be freely interchangeable. 182-day bills, for $ 2, 100,000, 000, or thereabouts, to be dated D ecem ber 12, 1974, and to mature June 12, 1975 (C U S I P N o . 912793 W N 2 ) . The bills w ill be issued for cash and in exchange for Treasury bills maturing Decem ber 12, 1974, outstanding in the amount of $4,713,950,000, o f which Government accounts and Federal Reserve Banks, fo r themselves and as agents o f foreign and international monetary authorities, presently hold $2,231,930,000. These accounts may exchange bills they hold for the bills now being offered at the average prices o f accepted tenders. T he bills of 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 w ill be issued in bearer form in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value) and in book-entry form to designated bidders. N o. 418 (current revision) and the Treasury bills and govern of the circular may be obtained Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, December 9, 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 ynaturing Treasury bills. Results of the last weekly offering of Treasury bills (91-d ay bills to be issued December 5, 1974, representing m additional amount of bills dated September 5, 1974, maturing March 6, 1 9 7 5 ; and 182-day bills dated December 5, 1974, maturing June 5, 1975) are shown on the reverse side of this circular. A lfred H a y e s , President. ( over) RESULTS OF LA ST W E E K L Y OFFERING OF T R E A SU R Y BILLS (TWO SERIES TO BE ISSUED DECEMBER 5, 1974) Range of Accepted Competitive Bids 9 1 -Day Treasury Bills Maturing March 6, 1975 P rice H igh ................................................ L ow ............................... .................. Average .......................................... 182 -Day Treasury Bills Maturing June 5 , 1975 A pprox. equiv. annual rate P rice A pprox. equiv. annual rate 7 . 350% 7.750% 7.524% ! 96.214 96.168 96.176 7.489% 7.580% 7.564% ! 98.142a 98.041 98.098 a E xcepting tw o tenders totaling $150,000. 1 These rates are on a bank discount basis. The equivalent cou pon issue yields are 7.78% for the 91-day bills, and 7.97% for the 182-day bills. (94 percent of the amount of 91-day bills bid for at the low price was accepted.) (32 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve District) 9 1 -Day Treasury Bills Maturing March 6, 1975 Applied, for D istrict Boston ....................... ................ New Y ork ................ ................ Philadelphia ............ ................ ............ Cleveland .................. Richmond ................ .............. Atlanta ....................... ............. Chicago ..................... ............. St. Louis .................... ............ Minneapolis .............. .......... Kansas City .............. Dallas ................ ................ San Francisco .... ................ 48,675,000 2,751,320,000 45,075,000 59,940,000 36,925,000 34,540,000 146,730,000 36,105,000 5,980,000 40,160,000 31,175,000 152,630,000 ................... ................ $3,389,255,000 T otal $ A ccep ted $ 48,675,000 2,163,920,000 45,075,000 59,940,000 36,925,000 34,540,000 145,230,000 36,105,000 5,980,000 40,160,000 31,175,000 152,630,000 $2,800,355,000b b Includes $463,340,000 noncompetitive tenders accepted at the average price. c Includes $238,900,000 noncompetitive tenders accepted at the average price. 18 2 -Day Treasury Bills Maturing June 5, 1975 A pplied fo r $ 25,835,000 2,952,830,000 12,025,000 36,255,000 17,600,000 19,960,000 125,950,000 30,710,000 5,360,000 27,900,000 17,635,000 544,095,000 $3,816,155,000 A ccepted $ 15,835,000 1,638,410,000 12,025,000 36,255,000 16,600,000 19,260,000 36,635,000 18,210,000 5,360,000 23,895,000 12,635,000 265,910,000 $2,101,030,000