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FED ER AL RESERVE BANK OF NEW YORK Fiscal A gent of the United States I- C ir c u la r N o. 7 5 2 5 1 D ecem b er 13, 1974 J L OFFERING OF TWO SERIES OF TREASURY BILLS !,600,000,000 of 91-Day Bills, Additional Amount, Series Dated September 26, 1974, Due March 27, 1975 (To Be Issued December 26, 1974) $2,000,000,000 of 182-Day Bills, Dated December 26, 1974, Due June 26, 1975 T o A ll Incorporated Banks and Trust Companies, and Others 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: Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Stand ard time, Friday, Decem ber 20, 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 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 form s and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. 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 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 o f 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 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 decimals) of accepted competi 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 26, 1974, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing Decem ber 26, 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) o f 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 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 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 for tw o series o f Treasury bills to the aggregate amount of $4,600,000,000, or thereabouts, to be issued Decem ber 26, 1974, as fo llo w s : 91-day bills (to maturity date) in the amount of $2,600,000,000, or thereabouts, representing an additional amount of bills dated September 26, 1974, and to mature M arch 27, 1975 (C U S I P N o. 912793 W B 8 ) , originally issued in the amount of $1,800,305,000, the additional and original bills to be freely interchangeable. 182-day bills, for $2,000,000,000, or thereabouts, to be dated Decem ber 26, 1974, and to mature June 26, 1975 (C U S I P N o. 912793 W Q 5 ) . The bills w ill be issued for cash and in exchange for Treasury bills maturing Decem ber 26, 1974, outstanding in the amount of $4,601,080,000, o f which Government accounts and Federal Reserve Banks, fo r themselves and as agents o f foreign and international monetary authorities, presently hold $2,799,600,000. 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 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, Friday, December 20 . 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 imist be made in cash or other immediately available funds or in maturing Treasury bills. The results of bidding for the previous offering of Treasury bills, to be issued December 19, 1974, were not available at the time o f printing this circular; those results will be announced after release by the Treasury Department. A lfred H a y e s, President. Closing date for receipt of tenders is Friday, December 20.
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