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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 7 5 7 8 1 L March 4, 1975 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,600,000,000 of 91-Day Bills, Additional Amount, Series Dated December 12, 1974, Due June 12, 1975 (To Be Issued March 13, 1975) $2,500,000,000 of 182-Day Bills, Dated March 13, 1975, Due September 11, 1975 T o A ll Incorporated B a n ks and T r u s t C om panies, and O th ers C oncerned, in the Second F ederal R eserve D istric t: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: T he T re a su ry D epartm ent, by this public notice, invites tenders for tw o series of T re a su ry bills to the a g g re g a te am o u n t of $5,100,000,000, o r thereabouts, to be issued M arch 13, 1975, as fo llo w s: 91-day bills (to m a tu rity d a te ) in the am ount of $2,600,000,000, o r thereabouts, rep resen tin g an additional am ount of bills dated D ecem ber 12, 1974, and to m ature Ju n e 12, 1975 ( C U S I P N o. 912793 W N 2 ), o riginally issued in the am ount of $2,102,320,000, the additional and original bills to be freely interchangeable. 182-day bills, for $2,500,000,000, o r thereabouts, to be dated M arch 13, 1975, and to m atu re Septem ber 11, 1975 ( C U S I P No. 912793 X N 1 ). T he bills will be issued fo r cash and in exchange fo r T re a su ry bills m atu rin g M arch 13, 1975, o utstanding in the am ount of $4,607,810,000, of w hich G overnm ent accounts and F ed eral R eserve H anks, for them selves and as agents of foreign and international m o n etary au thorities, p resently hold $2,459,575,000. T hese accounts m ay exchange bills they hold fo r the bills now being offered a t the a v erag e prices of accepted tenders. T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as h e rein afte r provided, and a t m a tu rity th eir face am ount w ill be payable w ith o u t interest. T hey will be issued in b e are r form in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity value) and in b o ok-entry form to designated bidders. T en d e rs will be received a t F ed eral R eserve B anks and B ranches up to the closing hour, o n e -th irty p.m., E a s te rn D ay lig h t S aving tim e, M onday, M a rch 10, 1975. T en d ers will not be re ceived a t the T re a su ry D epartm ent, W ashington. E ac h tender m ust be for a m inim um of $10,000. T en d ers over $10,000 m u st be in m ul tiples of $5,000. In the case of com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore th an three decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. I t is urg ed th a t tenders be m ade on the prin ted form s and fo rw ard ed in the special envelopes w hich will be supplied by F e d e ral R eserve B anks or B ranches on application th ere fo r. B anking institutions and dealers w ho m ake p rim a ry m ark e ts in G overnm ent securities and re p o rt daily to the F ed eral R eserve B ank of N ew Y o rk th eir positions w ith respect to G overnm ent securities and b orrow ings thereon m ay subm it tenders fo r account of custom ers, provided the nam es of the custom ers a re set fo rth in such tenders. O th e rs will not be p erm itted to subm it tenders except for th eir own account. T en d ers will be received w ith o u t deposit from incorporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T en d ers from others m ust be accom panied by paym ent of 2 percent of the face am o u n t of T re a su ry bills applied for, unless the tenders a re accom panied by an express g u a ran ty of paym ent by an in corporated bank o r tr u s t com pany. Im m ediately a fte r the closing hour, tenders will be opened a t the F ederal R eserve B anks and B ranches, follow ing w hich public announcem ent will be m ade by the T re a su ry D ep artm en t of the am ount and price range of accepted bids. O nly those subm itting com petitive tenders will be advised of the acceptance o r rejection thereof. T he S e c retary of the T re a su ry e xpressly reserves the rig h t to accept o r re je ct any o r all tenders, in whole o r in p art, and his action in any such respect shall be final. S ub ject to these reservations, noncom petitive tenders for each issue fo r $200,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decim als) of accepted com peti tive bids for the respective issues. S ettlem ent fo r accepted tenders in accordance w ith the bids m ust be m ade o r com pleted a t the F ed eral R eserve B ank on M arch 13, 1975, in cash o r o th er im m ediately available funds o r in a like face am ount of T re a su ry bills m atu rin g M arch 13, 1975. Cash and exchange tenders will receive equal treatm en t. C ash ad ju stm en ts will be m ade fo r differ ences betw een the p a r value of m atu rin g bills accepted in exchange and the issue price of the new bills. U n d er Sections 4 5 4 (b ) and 1221(5) of the In tern a l Revenue Code of 1954, the am ount of discount a t w hich bills issued h e re under are sold is considered to accrue w hen the bills are sold, redeem ed o r otherw ise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the ow ner of T rea su ry bills (o th e r th an life insurance com panies) issued hereunder m ust include in his incom e ta x re tu rn , as o rd in ary gain o r loss, the difference betw een the price paid for the bills, w h eth er on original issue or on subsequent purchase, and the am ount actually received e ither upon sale o r redem ption a t m atu rity d uring the taxable year for w hich the re tu rn is m ade. T re a su ry D e p artm en t C ircu lar N o. 418 (c u rre n t revision) and this notice prescribe the term s of the T re a su ry bills and govern the conditions of th eir issue. Copies of the circ u la r m ay be obtained from any F ederal R eserve B ank o r B ranch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, March 10, 1975, 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 (91-day bills to be issued March 6 , 1975, representing an additional amount of bills dated December 5, 1974, maturing June 5, 1975; and 182-day bills dated March 6 , 1975, maturing September 4, 1975) are shown on the reverse side of this circular. A lfred H a y e s , President. ( o v er ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MARCH 6, 1975) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing June 5 , 1975 P rice 98.595a 98.567 98.575 High .... Low ..... Average 182-Day Treasury Bills Maturing September 4, 1975 D iscount R a te In v e stm e n t R a te 1 5.558% 5.669% 5.637% 5.73% 5.85% 5.81% P rice 97.128b 97.091 97.097 a E x ce p tin g tw o tenders to ta lin g $620,000. 1 E quiv alen t coupon issue yield. D iscount R a te In v estm e n t R a te 1 5.681% 5.754% 5.742% 5.95% 6.03% 6 .01% b E x ce p tin g tw o tenders totalin g $45,000. (100 percent of the amount of 91-day bills bid for at the low price was accepted.) (1 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted (By Federal Reserve District) p i-Day Treasury Bills Maturing June 5,19 75 D istrict R eceived Boston ........................ ........... New York .................. ........... Philadelphia ................ ........... Cleveland .................... ........... Richmond .................... ........... Atlanta ........................ ........... Chicago........................ .......... St. Louis ..................... ........... Minneapolis ................. ........... Kansas City ................. ........... Dallas .......................... ........... San Francisco ............. ........... T o t a l ............................... ........... R eceived A ccepted 57,965,000 2,982,175,000 97,625,000 49,205,000 34,810,000 30,430,000 180,325,000 36,285,000 52,860,000 54,230,000 22,650,000 197,790,000 $ 32,545,000 2,147,375,000 76,915,000 47,110,000 31,795,000 29,690,000 132,325,000 26,265,000 47,860,000 41,420,000 22,650,000 64,635,000 $ $3,796,350,000 $2,700,585,000° $4,767,670,000 $ c Includes $394,835,000 noncom petitive tenders from the public. d Includes $112,140,000 noncom petitive tenders from the public. 182-Day Treasury Bills Maturing September 4, 1975 28,875,000 3,549,115,000 119,175,000 132,200,000 28,210,000 35,890,000 191,825,000 25,825,000 29,435,000 17,400,000 15,900,000 593,820,000 A ccepted $ 7,445,000 1,870,545,000 15,175,000 12,690,000 11,700,000 16,390,000 79,825,000 8,600,000 5,465,000 12,105,000 8,900,000 451,770,000 $2,500,610,000d