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F ederal R eserve Bank o f D allas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 75222 C ircu lar No. 74-10 J a n u a r y 8 , 1974 NEW OFFERING —- TREASURY BILLS All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of two issues of Treasury bills: T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in v ite s te n d e rs fo r two series of T re a su ry bills to th e ag g reg ate a m o u n t of $4,300,000,000, o r th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g Ja n u a ry 17, 1974, in th e a m o u n t of $4,302,825,000, as follow s: 91-D A Y B IL L S ( to m a tu r ity d a te ) to b e issued J a n u a ry 17, 1974, in th e a m o u n t of $2,500,000,000, or th e re abouts, re p rese n tin g a n a d d itio n a l a m o u n t of bills d a te d O cto b er 18, 1973, a n d to m a tu re A pril 18, 1974 ( C U S I P N o. 912793 T H 9 ) , orig inally issued in th e a m o u n t of $1,802,095,000, th e a d d itio n a l a n d original b ills to b e fre ely in terch an g eable. 182-D A Y B IL L S fo r $1,800,000,000, or th ere ab o u ts, to b e d a te d J a n u a r y 17, 1974, a n d to m a tu re J u ly 18, 1974 (C U S I P No. 912793 U F 1 ) . T h e b ills of b o th series will b e issued on a d isco u nt basis u n d e r co m p e titiv e a n d no n c o m p e titiv e b id d in g as h e re in a fte r prov ided, a n d a t m a tu rity th e ir face a m o u n t w ill b e p a y ab le w ith o ut in terest. T h e y will be issued in b e a re r fo rm only, a n d in deno m in atio 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 w ill b e re ce iv e d a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing h our, o n e -th irty p.m ., E a s te rn D a y lig h t Sav ing T im e , M on d ay, J a n u a ry 14, 1974. T e n d e rs will n o t be received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h te n d e r m u st be fo r a m in im u m of $10,000. T e n d e rs ov er $10,000 m u st be in m u ltip le s of $5,000. I n th e case of co m p etitiv e ten d e rs th e p rice offered m u st be expressed on th e basis of 100, w ith n o t m o re th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay n o t be used. I t is u rg ed t h a t te n d e rs b e m ad e on th e p rin te d form s a n d forw ard ed in th e special en v elop es w hich w ill b e su pp lied b y 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 th erefor. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs for acco un t of cu stom ers p ro v id ed th e nam es of th e custom ers a re se t fo rth in such tend 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 ex cep t fo r th e ir ow n account. T e n d e rs will b e receiv ed w ith o u t d ep o sit fro m in co rp o ra ted b a n k s and tr u s t co m pan ies a n d from resp on sib le a n d recognized dealers in in v estm e n t securities. T e n d e rs fro m o th ers m u st be a ccom p an ied 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 rea su ry bills a p p lie d for, unless th e te n d e rs a re a ccom p an ied b y a n express g u a ran ty of p a y m e n t b y a n in co rp o ra ted b a n k or tr u s t com pany. Im m e d ia te ly a fte r th e closing h our, te n d e rs will b e op en ed a t th e F e d e ra l R eserv e B a n k s a n d B ranches, follow ing w hich pu b lic an n o u n ce m en t will 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 p rice ran g e of acc ep te d bids. O nly those su b m ittin g c o m p e titiv e te n d e rs w ill be ad v ised of th e acceptance o r re je ctio n thereof. T h e S e c retary of th e T re a su ry expressly reserves 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 ers, in w hole or in p a rt, a n d h is actio n in a n y such re sp e c t shall be final. S u b je ct to th ese reservation s, no n c o m p e titiv e te n d e rs fo r each issue for $200,000 or less w ith o u t sta te d p ric e from a n y one b id d e r will be a cc ep te d in fu ll a t th e average p rice ( in th re e decim als) of acc ep te d co m p e titiv e b id s fo r th e resp ectiv e issues. S e ttle m e n t fo r a cc ep te d te n d e rs in accordance w ith th e bids m u st b e m ad e or co m p leted 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 ry 17, 1974, in cash or o th e r im m e d ia tely a v ailab le fu n d s or in a like face a m o u n t of T re a su ry b ills m a tu rin g J a n u a ry 17, 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 fo r difference b etw een th e p a r v alu e of m a tu rin g bills acc ep te d in exchange a n d th e issue p rice of th e new bills. U n d e r Sections 45 4 ( 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 isco u nt a t w hich bills issued h e reu n d e r a re sold is considered to accru e w h e n th e b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are excluded from c o nsideratio n as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su ran ce co m pan ies) issued h e reu n d e r m u st include in h is incom e tax re tu rn , as o rd in ary gain or loss, th e difference b e tw ee n th e p rice p a id fo r th e bills, w h e th er on original issue o r on su b seq u e n t pu rch ase, a n d th e a m o u n t a ctu a lly receiv ed e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e ta x a b le y e a r for w hich th e re tu rn is m ade. T re a su ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t rev 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 circu lar m a y b e o b ta in e d from a n y F e d e ra l R e se rv e B a n k o r B ranch. In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso, *Vjsfon and San Antonio up to twelve-thirty p.m.. Central Daylight Saving Time, Monday, January 14, 1974. Tenders not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m ount, R a n g e a n d A p p ro x im ate Y ield of A ccepted T e n d e rs 13-W eek B ills D u e A p ril 11, 1974 $3,617,195,000_________________ $2,500,165,000_________________ P ric e Y ield 98.092____________ 7 .5 8 4 % _____ 98.067____________ 7 .6 4 7 % -------98.075____________ 7 .615% ( 1 ) . - T o ta l A p p lied F o r______ — T o ta l A c c ep ted ________ ...H ig h -------------------Low ..Average. . 26-W eek Bills D u e J u ly 11, 1974 _________________ $3,594,580,000 _________________ $1,808,350,000 P ric e Y ield 96.198____________ 7.520% .9 6 .1 7 4 _____________7.568% .96.178 7.560% ( 1 ) ( 1 ) T h e s e rates are on a b ank discount basis. T h e eq u iv ale n t coupon issue y ie ld s are 7 .8 7 % for th e 1 3-w eek b ills and 7 .9 7 % for th e 2 6 -w e e k bills. (S e e reverse for tender form) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated October 18,1973 Maturing April 18,1974 T o : F ed era l R e se rv e B ank, S ta tio n K, D allas, T e x a s 75222 or — T h e --------------------------------------------- B ran ch El Paso 79999 Houston 77001 San Antonio 78295 (D ate) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of th e public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated. N O N C O M P E T IT IV E T E N D E R $__________________________________________ _NOT TO E X C E E D $ 2 0 0 ,0 0 0 Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average price (in three decimals) of accepted competitive bids. (<* C O M PETITIV E T E N D E R S ^ q. $ @ $ $ @ % $ (a) $ @ Prices should be exp ressed on t h e basis of 1 0 0 , w ith not more than th r e e decimal places, e .g ., 99.925. F r a c tio n s must not be used. $ - $ BSP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR ARE ACCEPTABLE. Denominations Desired Payment for this issue of bills cannot be made bv credit to Treasury Tax and Loan Account METHOD OF PAYMENT N u m b e r of pieeee M a tu rity V alue -@ $ 1 0 ,0 0 0 $ $ 15,000 $_ -@ $ 50,000 $_ $ 1 0 0 ,0 0 0 $_ -@ ? 500,000 $_ □ B y m a tu r in g b ills h eld by___________________________________ □ P a y m e n t to be m ade b y -------------------- _ _ □ C harge our r e ser v e accou n t on p a y m e n t date D r a ft enclosed (Effectual delivery o f enclosed d r a f t | $ 1,000,000 $_ I shall be on la te st day w hich w ill p e rm it p r e s e n tm e n t in o rd e r to o b ta in irrevocably collected fu nds on p a y m e n t date) D e liv e ry I n s tr u c tio n s : □ H old in C u sto d y — G eneral A ccou n t (S u b scrib er’s fu ll nam e o r co rp o ra te title) □ Hold in C u sto d y — I n v e stm e n t A c cou n t (A ddress) □ H old in C ustody — T ru st A cco u n t □ P le d g e to secu re T reasu ry T ax and Loan A cco u n t □ O ther------------------------------------------------ Rv (A u th o rized official s ig n a tu re an d title) (F o r th e acco u n t of, if te n d e r is fo r an o th e r subscriber) (A ddress) 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 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of th e 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, com m uni cations relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from th is 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 th e tender and the signing of the form by an officer of the corporation will be construed as a representation by him th at h e has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, w h o should sign in the form “-----, a copartnership, by-----------------------------------------------------------a member of the firm.” 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in v e s t ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity v a lu e ) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment b y an incorporated bank or trust company. 6 . If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury js material, the tender may be disregarded. (See reverse for announcement)
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