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FED ER A L RESERVE BANK O F N EW YORK Fiscal Agent of the United States Circular No. 7 6 1 5 April 22, 1975 [ T J OFFERING OF TWO SERIES OF TREASURY BILLS $2,700,000,000 of 91-Day Bills, Additional Amount, Series Dated January 30, 1975, Due July 31, 1975 (To Be Issued May 1, 1975) $2,700,000,000 of 182-Day Bills, Dated May 1, 1975, Due October 30, 1975 T o A ll Incorporated B a n k s and T r u s t C om panies, and O thers 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 h e T re a su ry D epartm ent, by this public notice, invites tenders fo r tw o series of T re a su ry bills to the a g g reg a te am ount of $5,400,000,000, o r thereabouts, to be issued M ay 1, 1975, as fo llo w s : 91-day bills (to m atu rity d a te ) in the am ount of $2,700,000,000, o r thereabouts, rep resen tin g an additional am ount of bills dated J a n u a ry 30, 1975, and to m atu re Ju ly 31, 1975 ( C U S I P N o. 912793 X G 6 ), originally issued in the am ount of $2,301,365,000, the additional and original bills to be freely interchangeable. 182-day bills, for $2,700,000,000, o r thereabouts, to be dated M ay 1, 1975, and to m atu re O ctober 30, 1975 (C X JSIP N o. 912793 X V 3 ). 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 ay 1, 1975, o utstanding in the am ount of $4,597,975,000, of w hich G overnm ent accounts and F ed eral R eserve B anks, fo r them selves and as agents of foreign and international m o n etary authorities, presently hold $2,643,165,000. T hese accounts m ay exchange bills they hold fo r the bills now being offered a t the av erag e prices of accepted tenders. T h e bills of both series will be issued o n 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 earer 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 w ill 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 av in g time, M onday, A p ril 28, 1975. T en d ers w ill not be re ceived a t the T re a su ry D epartm ent, W ashington. E ach tender m ust be fo r a m inim um of $10,000. T en d ers over $10,000 m ust 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 three decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. I t is urged th a t ten d ers 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 e d e ral R eserve B anks or B ranches on application therefor. B a nking institutions and dealers w ho m ake p rim a ry m ark ets 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 thereo n 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 ers will be received w ithout deposit fro m incorporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T en d ers fro m others m ust 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 are accom panied by an e x p ress g u a ran ty of paym ent by an incorporated bank o r tru s t com pany. Im m ediately a fte r the closing hour, tenders will be opened a t the F ed eral R eserve B anks and B ranches, follow ing w hich public announcem ent will be made 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 ecretary of the T re a su ry expressly reserves the rig h t to accept o r re je ct any o r all tenders, in w hole 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 w ill 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 Federal R eserve B ank on M ay 1, 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 ay 1, 1975. C ash and exchange tenders will receive equal treatm ent. C ash ad ju stm en ts will be m ade for 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 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 heueunder m ust include in his income ta x retu rn , as o rd in ary g ain o r loss, the difference betw een the price paid for the bills, w hether 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 atu rity du rin g the taxable year fo r w hich the re tu rn is made. T re a su ry D epartm ent C ircu lar No. 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 their issue. Copies of the circ 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, April 28, 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 T reasury 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 April 24, 1975, representing an additional amount of bills dated January 23, 1975, m aturing July 24, 1975; and 182-day bills dated April 24, 1975, m aturing October 23, 1975) are shown on the reverse side of this circular. [is] A lfred H ay es , President. ( over ) j RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED APRIL 24, 1975) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing July 24, 1975 High ........................... .................. Low ............................... .................. A v e rag e ......................... .................. 182-Day Treasury Bills Maturing October 23, 1975 P rice D iscount R a te In v e stm e n t R a te 1 P rice D iscount R ate In v estm e n t R a te 1 98.597 98.560 98.571 5.550% 5.697% 5.653% 5.72% 5.88% 5.83% 96.977 96.906 96.933 5.980% 6 . 120% 6.27% 6.42% 6.36% 6.067% 1 E q u iv a len t coupon issue yield. (60 percent of the amount of 91-day bills bid for at the low price was accepted.) (37 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 July 24, 1975 R eceived D istrict Boston ........................... ............. New York .................... ............. Philadelphia .................. ............. Cleveland ...................... ............. R ich m o n d...................... ............ Atlanta ........................... ............ C hicago........................... ............ St. Louis ....................... ............ Minneapolis .................. ............ Kansas C ity ................... ............ Dallas ............................. ............ San Francisco .............. ............ T otal ............................ ............ $ 26,465,000 3,352,150,000 28,880,000 60,665,000 41,700,000 34,665,000 172,105,000 51,990,000 24,965,000 42,895,000 32,220,000 223,260,000 $4,091,960,000 A ccepted $ 26,465,000 2,093,350,000 28,880,000 55,665,000 40,155,000 33,665,000 168,605,000 42,190,000 24,965,000 37,895,000 31,220,000 117,260,000 $2,700,315,000a a Includes $400,895,000 noncom petitive tenders from the public, b Includes $150,420,000 noncom petitive tenders from the public. 182-Day Treasury Bills Maturing October 23, 1975 R eceived $ 7,015,000 3,297,565,000 6,565,000 72,610,000 33,155,000 47,410,000 286,135,000 30,335,000 21,060,000 19,540,000 25,070,000 219,575,000 $4,066,035,000 A c cepted $ 7,015,000 2,109,665,000 6,565,000 62,610,000 27,155,000 40,410,000 266,485,000 23,705,000 15,800,000 15,970,000 25,070,000 99,575,000 $2,700,025,000b
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