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F ederal reserve Bank of Dallas
F IS C A L A G E N T O F T H E UNIT ED S T A T E S

D AL L A S, T E X A S 7 5 22 2

C ircu la r No. 74-2
J a n u a r y 3, 1974

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your atten tio n is invited to the following s ta te m e n t giving details of a n issue of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y th is pu b lic notice, in v ites te n d e rs for $1,800,000,000, or th ere ab o u ts, of 36 4-day T re a su ry
b ills for cash a n d in exchange for T re a su ry bills m a tu rin g J a n u a r y 15, 1974, in th e a m o u n t of $1,803,975,000. T h e bills of
th is series w ill b e d a te d J a n u a r y 15, 1974, a n d w ill m a tu re J a n u a ry 14, 1975 (C U S I P No. 912793 V F 0 ) .
T h e bills w ill be issued on a d isco u n t basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r p rov id ed , a n d a t
m a tu rity th e ir face a m o u n t w ill be p a y a b le w ith o u t in te re st. T h e y will b e issued in b e a re r fo rm only, a n d in d e n o m in a tio n s of
$10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu r ity v a lu e ).
T e n d e rs will b e re ce iv e d a t F e d e ra l R e se rv e B an ks a n d B ra n ch e s u p to th e closing hour, o n e -th irty p.m ., E a s te rn
D a y lig h t Savin g T im e , W ed n esday , J a n u a ry 9, 1974. T e n d e rs w ill n o t b e re ce iv e d a t th e T re a s u ry D e p a rtm e n t, W ashing­
ton. E a c h te n d e r m u s t b e fo r a m in im u m of $10,000. T e n d e rs over $10,000 m u st b e in m u ltip le s of $5,000. In th e case of
c o m p e titiv e te n d e rs th e p ric e offered m u st b e expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925.
F ra c tio n s m a y n o t b e used. I t is u rg e d t h a t te n d e rs b e m ad e on th e p r in te d form s a n d fo rw a rd ed in th e special envelopes
w hich w ill be su p p lied b y th e F e d e ra l R e se rv e B a n k s o r B ran ch es on a p p lic a tio n therefo r.
B a n k in g in stitu tio n s g e n era lly m a y su b m it ten d e rs fo r a cc o u n t of c u sto m ers p ro v id ed th e n a m e s of th e c u stom ers a re
se t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s will n o t b e p e rm itte d to su b m it te n d e rs e x ce p t for th e ir ow n account.
T e n d e rs w ill b e receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b an ks a n d tr u s t c o m p anies a n d fro m respo n sible a n d recognized
dealers in in v e s tm e n t securities. T e n d e rs fro m o th ers m u st b e accom panied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of
T re a su ry b ills a p p lie d for, un less th e te n d e rs a r e a cco m p anied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k o r
tr u s t com pany.
Im m e d ia te ly a f te r th e closing h our, te n d e rs w ill b e o p e n ed a t th e F e d e ra l R e se rv e B an ks a n d B ran ch es, follow ing w hich
p u b lic a n n o u n ce m en t w ill be m ad e b y th e T re a su ry D e p a rtm e n t of th e a m o u n t a n d price ran ge of acc ep te d bids. O nly those
s u b m ittin g c o m p e titiv e te n d e rs will be ad v ised of th e a cc ep ta n ce o r rejection th ereof. T h e S e c re ta ry of th e T re a su ry expressly
reserv es th e rig h t to a c c e p t or re je c t a n y or a ll ten d e rs, in w hole o r in p a rt, a n d h is actio n in a n y such re sp e ct shall be final.
S u b je c t to th ese reservations, n o n c o m p e titiv e te n d e rs for $200,000 o r less w ith o u t sta te d p rice from a n y one b id d e r will be
a cc ep te d in fu ll a t th e a v erag e p rice ( in th re e d e cim als) of a cc ep te d c o m p e titiv e bids. S e ttle m e n t fo r a cc ep te d te n d e rs in accor­
d a n ce w ith th e b id s m u st be m ad e or c o m p le te d a t th e F e d e ra l R e se rv e B a n k on J a n u a r y 15, 1974, in cash o r o th e r im m e d ia tely
a v ailab le fu n d s o r in a like face a m o u n t of T re a su ry bills m a tu rin g J a n u a ry 15, 1974. C ash a n d exchange te n d e rs will receive
e q u al tre a tm e n t. C ash a d ju stm e n ts w ill be m ad e for differences be tw ee n th e p a r v alu e of m a tu rin g b ills a cc ep te d in exchange
a n d th e issue p rice of th e new bills.
U n d e r S ections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d iscou n t a t w hich b ills
issued h e re u n d e r a re sold is considered to accru e w h en th e bills a re sold, re d ee m e d or o therw ise disposed of, a n d th e bills a re
e x cluded fro m co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry b ills (o th e r th a n life in su rance com p an ies)
issued h e re u n d e r m u st in clu de in his incom e tax re tu rn , as o rd in a ry gain or loss, th e difference betw een th e p rice p a id fo r th e
bills, w h e th er on orig in al issue or on su b seq u e n t pu rch ase, and th e a m o u n t a ctu a lly received e ith e r u p o n sale or re d em p tio n
a t m a tu r ity d u rin g th e ta x a b le y e a r fo r w hich th e re tu r n is m ade.
T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u r re n t re v isio n ) a n d th is notice, p rescribe th e te rm s of th e T re a su ry bills
a n d govern th e co nd itio n s of th e ir issue. C opies of th e circ u lar m a y be o b ta in e d fro m a n y F e d e ra l R eserv e B a n k or B ranch.

In acc o rd a n c e with the a b o v e a n n o u n c e m e n t, tenders will b e received a t this b a n k a n d its b ranch es a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, W e d n e s d a y , J a n u a r y 9, 1974. Tenders
m a y not b e en te re d by te le p h o n e .
Yours very truly,
P. E. Coldwell
President

(S e e rev erse for te n d e r fo rm )

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

364 DAYS TO MATURITY
Dated January 15,1974

Maturing January 14,1975

T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The____________________________ Branch
El Paso 79999 Houston 77001 San Antonio 78295

(Date)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NONCOMPETITIVE TENDER $_

_NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be
expressed on th e
()
a
$
I
s
b asis of 100, w ith
COMPETITIVE TENDERS ?
@
not more than three
?
decimal places, e.g.,
1
$
$
99.925. F ra c tio n s
must not be used.
*
$
......................
@
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IP RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

Denominations Desired
Number of
Pieces

Maturity Value

(a)
(3)
(d>
<>
5
(5>

? 10,000
$ 15,000
$ 50,000
? 100,000
$ 500,000
<® *1 ,000,000

$$*

□
□
□

$*

□

By maturing bills
held by------------------------------------------Payment to be made by-------------------Charge our reserve account on payment
date
Draft enclosed (Effectual delivery of enclosed d raft
shall be on latest day which will perm it presentm ent
in order to obtain irrevocably collected funds on pay­
ment date)

Delivery Instructions:
□

Hold in Custody — General Account

□

Hold in Custody — Investment Ac­
count

□

Hold in Custody — Trust Account

□

Pledge to secure Treasury Tax and
Loan Account

□

Other___________________________

(Subscriber’s full name or corporate title)
(Address)

By(Authorized official signature and title)
(F o r the account of, if tender is for another subscriber)
(Address)

IMPORTANT

1 No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multiples of
.

$5,000 (m aturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. Envelopes for submitting tenders may be obtained from this
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation^ makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him th at he
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “........................................................., a copartnership, by...........................................................................,
a member of the firm”.
5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.
(See reverse for announcement)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102