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F ederal R eserve Bank o f Dallas 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 Circular No. 74-11 January 8, 1974 NEW OFFERING — TREASURY BILLS To 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 vites ten d e rs fo r tw o 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, for 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 rity 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, o r th e re ab o uts, re p re se 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 No. 912793 T H 9 ) , o rigin ally issued in th e a m o u n t of $1,802,095,000, th e a d d itio n al a n d original bills to be freely in terchan g eab le. 182-D A Y B IL L S to r $1,800,000,000, or th ere ab o u ts, to be d a te d J a n u a ry 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 o n 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 ro v id ed , 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 itho u t in terest. 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 w ill b e receiv ed 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 hour, o n e -th irty p.m ., E a s te rn D a y lig h t Sav ing T im e , M o nd ay, J a n u a r y 14, 1974. T e n d e rs w ill n o t b e receiv ed 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 o ver $10,000 m u st b e in m u ltip le s of $5,000. I n th e case of c o m p e titiv e ten d e rs th e p rice offered m u st be expressed on th e basis o f 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 b e used. I t is u rg e d t h a t te n d e rs b e m ad e o n th e p rin te d form s a n d forw ard ed in th e special env elo pes w hich w ill b e sup p 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 o n a p p lic a tio n therefo r. B a n k in g in stitu tio n s g en erally m a y su b m it te n d e rs fo r accou n t of cu sto m ers p ro v id ed th e n am es of th e cu sto m ers a re se t fo rth in such tend ers. O th e rs th a n b an 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 fo r th e ir ow n account. T e n d e rs w ill b e receiv ed w ith o u t d ep o sit from in co rp o ra ted b a n k s and tr u s t co m p an ies a n d fro m resp o nsib le a n d recognized d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st b e a cco m pan 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 re a su ry bills a p p lie d for, unless th e te n d e rs a re a cco m pan 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 f te r th e closing hour, te n d e rs w ill b e o p en ed a t th e F e d e ra l R e se rv 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 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 p rice ran ge of a cc 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 o f th e acceptance or re je ctio n th ereo f. 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 cc ep t or re je c t a n y o r all 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 fo r each issue for $200,000 or less w ith o u t sta te d p rice from any one b id d e r will b e a cc ep te d in fu ll a t th e averag e p rice ( in th re e d ecim als) of acc ep te d c o 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 acc ep te d ten d e rs in acco rd an ce w ith th e b id s m u s t 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 17, 1974, in cash o r o th e r im m e d ia te ly a v ailab le funds o r in a like face a m o u n t o f T re a su ry bills 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 receiv e eq u al tre a tm e n t. C ash a d ju stm e n ts will b e m ad e fo r difference b etw een th e p a r v a lu e of m a tu rin g b ills acc ep te d in exchange a n d th e issue p rice o f th e new bills. U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) o f th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of d isco u n t a t w hich bills issued h e re u n d e r a re sold is co nsidered to accru e w h e n th e b ills are sold, re d ee m e d o r otherw ise disposed of, a n d th e bills a re excluded fro m c o nsid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insuran ce com p an ies) issued h e re u n d e r m u s t in clud e in his incom e ta x re tu rn , a s o rd in ary gain or loss, th e difference b e tw ee n th e p ric e p a id fo r th e bills, w h e th e r on orig in al issue or on su b seq u e n t p u rchase, a n d th e a m o u n t a c tu a lly received e ith e r u p o n sale or 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 r n is m ade. T re a su ry D e p a rtm e n t C ircu lar No. 418 (c u r re n t rev isio n ) a n d th is notice, pre sc rib e th e te rm s of th e T re a su ry b ills a n d govern th e co nd itio n s of th e ir issue. C opies of th e circu lar m ay b e o b ta in e d fro m 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, Houston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, January 14, 1974. Tenders may not be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m o un t, R a n g e a n d A p p ro x im ate Y ield of A ccep ted T e n d e rs _ 13-W eek B ills 26-W eek B ills D u e A p ril 11, 1974 D u e J u ly 11, 1974 $3,617,195,000 .T o ta l A p p lied F o r— $3,594,580,000 $2,500,16-,,000___________________________ T o ta l A ccep ted . ___________________ $1,808,350,000 P ric e Y ield P ric e Y ield 98.092 7 .5 8 4 % ___U U » . __________________ H igh. _____ ...9 6 .1 9 8 _____________ 7.520% 98.067 7 .6 4 7 % -----------...Low_______ ________________96.174____________ 7.568% 98.075 7 .6 1 5% ( 1 ) --------------------------------A verage. * 1 . 4 _________________ 9 6.178______ 7 .560% ( 1 ) ( 1 ) T h ese rates are on a b ank d iscount basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .8 7 % for th e 1 3 -w eek b ills an d 7 .9 7 % for t h e 2 6 - w e e k b i ll s . ( 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 TREASURY BILLS 182 DAYS TO MATURITY Dated January 17, 1974 Maturing July 18, I 9 7 4 T o: F ed era l R e se r v e Bank, S ta tio n K, D allas, T e x a s 75222 or — T h e --------------------------------------------- B ranch 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 PE T IT IV E T E N D E R $__________________________________________ JSTOT 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 < $$ sp @ (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 $ ¥ ¥ $ ¥ m ust not be used. m * TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H F CLOSING HOUR ARE ACCEPTABLE. Denominations Desired N u m b er of pieces M a tu rity V alue @ ¥ 10,000 $ $ 15,000 $. @ ¥ 50,000 $. @ ¥ 100,000 $. ---------- @ ¥ 500,000 $. - Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT (a) □ B y m a tu r in g b ills held by---------------------------------------------- □ P a y m e n t to be m ad e by_ □ C harge our r e se r v e a ccou n t on p a y m e n t d ate |~| D r a ft enclosed (Effectual delivery of enclosed d r a f t $1,000,000 $. shall be on la te st day which will p e rm it p r e s e n tm e n t in o rd e r to ob tain irrevocably collected fu nds o n j>a v _ m e n t d ate) D eliv e r y I n s tr u c tio n s : □ H old in C u sto d y — G eneral A ccount (S u b scriber's fu ll nam e o r co rp o ra te title) □ H old in C u sto d y — In v e stm e n t A c cou n t (A ddress) □ H old in C ustody — T r u st A ccou n t □ P le d g e to secu re T reasu ry T a x and L oan A cco u n t □ O ther----------------------------------------------- B y- (A u thorized 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 a n o th e r su b scrib er) (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 m ultiples of $5,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f 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, com m uni cations relating to other matters 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 m ake the tender and the signing of the form by an officer of the corporation will be construed as a representation by him t h a t he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who , a copartnership, by------------------------------------------------------------, should sign in the form “______ a member of the firm.” 5. Tenders from those other than incorporated banks andtrust 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 T reasury is ’ material, the tender may be disregarded. (See reverse for announcement)
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