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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States Circular No. 7 5 8 4*1 March 11, 197S J [ OFFERING OF TWO SEMES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated November 4, 1974, Due June 19, 1975 (To Be Issued March 20, 1975) $2,500,000,000 of 182-Day Bills, Dated March 20, 1975, Due September 18, 1975 T o A ll Incorporated B a n k s and T r u s t C om panies, and O th ers C oncerned, in the S econd 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 reg a te am ount of $5,000,000,000, or thereabouts, to be issued M a rc h 20, 1975, as fo llo w s : 91-day bills ( to m a tu rity d a te ) in the am o u n t of $2,500,000,000, o r thereabouts, rep resen tin g an additional am ount of bills dated N ovem ber 4, 1974, and to m ature June 19, 1975 ( C U S I P N o. 912793 W Z 5 ), originally issued in the am ount of $1,500,835,000 (a n additional $2,001,545,000 w as issued on D ecem ber 19, 1974), the additional and o riginal bills to be freely interchangeable. 182-day bills, fo r $2,500,000,000, o r thereabouts, to be dated M arch 20, 1975, and to m ature Septem ber 18, 1975 ( C U S I P N o. 912793 X P 6 ) . T he bills will be issued for cash and in exchange fo r T re a su ry bills m atu rin g M arch 20, 1975, outstanding in the am ount of $4,405,760,000, of w hich G overnm ent accounts and F ed eral R eserve Banks, for them selves and as agents of foreign and intern atio n al m o n etary authorities, presently hold $2,676,335,000. T hese accounts m ay exchange bills they hold fo r the bills now being offered a t the average prices of accepted tenders. T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as herein after provided, and a t m atu rity th eir face am ount will be payable w ith o u t interest. T h ey will be issued in b e are r fo rm 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 book-entry form to designated bidders. T en d ers will be received a t F e d e ral R eserve B anks and B ran ch es up to the closing hour, o n e -th irty p.m., E a s te rn D ay lig h t S aving time, M onday, M a rch 17, 1975. T en d ers will not be re ceived a t the T re a su ry D epartm ent, W ash in g to n . E a c h ten d er m u st 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 u st be expressed on the basis of 100, w ith not m ore th an th ree decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. I t is u rg e d th a t tenders be m ade on the p rinted form s and fo rw ard ed in the special envelopes w hich will be supplied by F ed eral R eserve B anks o r B ranches on application therefor. B an king 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 borrow ings thereon m ay subm it tenders fo r account of custom ers, provided the nam es of the custom ers are set fo rth in such tenders. O th e rs will not be perm itted to subm it tenders except for th eir ow n account. T en d e rs w ill be received w ithout deposit from inco rp o rated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T en d ers from o thers m u st be accom panied by paym ent of 2 percent of the face am ount of T re a su ry bills applied for, unless the tenders a re accom panied by an express g u a ra n ty of paym ent by a n incorporated bank o r tru s t com pany. Im m ediately a fte r the closing hour, tenders w ill be opened a t the F e d e ral 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 h e S e c re ta ry of the T re a su ry e xpressly reserves the rig h t to accept o r re je c t any o r all tenders, in w hole o r in p a rt, and his action in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders fo r each issue fo r $200,000 o r less w ithout stated price from any one bidder will be accepted in full a t the av erag e price (in th ree decim als) of accepted com peti tive bids fo r 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 a rch 20, 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 a rch 20, 1975. C ash and exchange tenders will receive equal trea tm e n t. C ash ad ju stm e n ts will be m ade fo r d iffer 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 e r 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 a re excluded from consideration as capital assets. A ccordingly, the ow ner of T re a su ry bills (o th e r th an life insurance com panies) issued h ereunder 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 o r on subsequent purchase, and the am ount actually received eith er upon sale o r redem ption a t m a tu rity du rin g 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 la r 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 c irc u la r m ay be obtained from any F ed eral 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 17, 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 13, 1975, representing an additional amount of bills dated December 12, 1974, maturing June 12, 1975; and 182-day bills dated March 13, 1975, maturing September 11, 1975) are shown on the reverse side of this circular. A lfred H a y es , President. RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MARCH 13, 1975) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing June 12,1975 P rice High .......................... ................ Low ............................ ................ Average...................... ................ 98.587a 98.575 98.579 182-Day Treasury Bills Maturing September 11,1975 D iscount R a te In v estm e n t R a te 1 P rice D iscount R a te In v e stm e n t R a te 1 5.590% 5.637% 5.622% 5.76% 5.81% 5.80% 97.150 97.137 97.141 5.637% 5.663% 5.655% 5.90% 5.93% 5.92% 1 E q u iv a len t coupon issue yield. a E x c e p tin g one ten d er of $10,000. (47 percent of the amount of 91-day bills bid for at the low price was accepted.) (18 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) 91-Day Treasury Bills Maturing June 1 2 , 1975 $ $ 35,865,000 2,063,530,000 71,260,000 46,770,000 26,630,000 28,680,000 86,005,000 31,735,000 13,435,000 35,790,000 19,150,000 141,605,000 $ 33,585,000 4,203,190,000 84,130,000 95,805,000 27,800,000 23,845,000 279,130,000 32,585,000 34,865,000 20,710,000 24,865,000 662,005,000 Accepted $ 8,335,000 2,232,935,000 8,035,000 13,505,000 9,040,000 11,805,000 16,730,000 10,285,000 2,865,000 16,050,000 7,840,000 163,505,000 $4,509,565,000 $2,600,455,000b $5,522,515,000 $2,500,930,000° D istric t R eceived Boston ........................ ........... New York .................. ........... Philadelphia ................ ........... Cleveland .................... ........... Richmond.................... ........... Atlanta ........................ ........... Chicago........................ ........... St. Louis .................... ........... Minneapolis ................. ........... Kansas C ity ................. ........... Dallas .......................... ........... San Francisco ............. ........... T o t a l ............................... ........... 49,945,000 3,344,435,000 108,195,000 58,920,000 41,080,000 39,845,000 374,505,000 46,410,000 29,785,000 67,380,000 30,680,000 318,385,000 A ccepted b Includes $436,100,000 noncom petitive tenders from the public. c Includes $141,125,000 noncom petitive tenders from the public. 182-Day Treasury Bills Maturing September 11,1975 R eceived
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