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F ederal R e s e rv e B a n k o f Dallas
F I S C A L A G E N T O F T H E U NIT E D S T A T E S

D AL L A S, T E X A S 7 5 2 2 2
C ircu lar No. 74-24
J a n u a r y 22, 1974

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following s ta te m e n t 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 for two series of T re a su ry b ills to th e agg regate a m o u n t
of $4,300,000,000, or th ere ab o u ts, fo r cash a n d in exchange for T re a su ry b ills m a tu rin g J a n u a ry 31, 1974, in th e a m o u n t of
$4,312,435,000, as follow s:
91-D A Y B IL L S ( to m a tu r ity d a te ) to be issued J a n u a r y 31, 1974, in th e a m o u n t of $2,500,000,000, o r th e re ­
abouts, re p re se n tin g a n a d d itio n a l a m o u n t of b ills d a te d N o v e m b er 1, 1973, a n d to m a tu re M a y 2, 1974
(C U S I P No. 912793 T K 2 ) , o rig inally issued in th e a m o u n t of $1,801,125,000, th e a d d itio n a l a n d original
b ills to be fre ely in terch an geab le.
182-D A Y B IL L S for $1,800,000,000, o r th ere ab o u ts, to b e d a te d J a n u a ry 31, 1974, a n d to m a tu re A u g ust 1, 1974
(C U S I P No. 912793 U H 7 ) .
T h e b ills of b o th series w ill b e issued on a d isc o 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 bid 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 will be p a y a b le w itho u t in terest. T h e y will be 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 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 ra n ch e s 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 in g T im e , M o n day , J a n u a ry 28, 1974. T e n d e rs will n o t be 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 b e for 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. In th e case of co m p e titiv e
te n 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 a y
n o t be used. I t is u rg ed t h a t te n d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special env elo pes w hich w ill b e su p p lied
b y F e d e ra l R e se rv e B a n k s or B ran ch es on a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs fo r acco u n t of cu stom ers p ro v id ed th e n am es of th e c u sto m ers a re
se t fo rth in such tenders. O th e rs th a n b a n k in g in stitu tio n s w ill n o t b e p e rm itte d to su b m it te n d e rs ex cep t for th e ir ow n account.
T e n d e rs will be receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b an k s and tr u s t co m p anies a n d fro m resp on sib le a n d recognized
dealers in in v e stm e n t securities. T e n d e rs from o th ers m u st be a cco m 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 re a su ry b ills a p p lie d for, unless th e te n d e rs a re a cc o m 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.
I m 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 e n 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 p u b lic a n n o u n ce m en t will b e 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 ra n g e of acc ep te d bids. O nly
tho se su b m ittin g c o m p e titiv e te n d e rs will b e ad v ised of th e accep tan ce o r re je ctio n thereo f. T h e S e c re ta ry of th e T re a su ry
exp ressly reserv es th e rig h t to a c c e p t or re je c t a n y or all ten d ers, 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 b e
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 each issue fo r $200,000 or less w ith o u t sta te d p rice fro m a n y
o ne b id d er w ill b e a cc ep te d in full a t th e av erag e p ric e ( in th re e d e cim als) of acc ep te d c o m p e titiv e b ids for th e resp ectiv e
issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e b id s m u st be 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 31, 1974, in cash or o th er im m e d ia tely a v ailab le fu n d s o r in a lik e face a m o u n t of T re a su ry bills m a tu rin g Ja n u a ry
31, 1974. C ash a n d exchange te n d e rs w ill receive e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r difference be tw ee n th e
p a r v alu 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 ) 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 o f d iscount a t w hich bills
issued h e re u n d e r a re sold is considered to accrue w h en th e bills are sold, re d ee m e d o r otherw ise disposed of, a n d th e b ills a re
excluded 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 ran ce co m pan ies)
issued h e re u n d e r m u st inclu d e in h is incom e ta x re tu rn , as o rd in a ry gain o r loss, th e difference b e tw ee n th e p rice p a id for th e
bills, w h e th e r on orig in al issue o r on su b seq u en t pu rch ase, a n d th e a m o u n t a ctu a lly re ce iv e d e ith e r u p o n sale or re d e m p tio n a t
m a tu r ity d urin g th e tax a b le y e ar fo r 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 lar No. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s of th e T re a su ry bills a n d
govern th e c o n dition s of th e ir issue. C o pies of th e c irc u lar m a y be 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 a c cordan ce with the a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its branches a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y , J a n u a r y 28, 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
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u nt, R a n g e a n d A p p ro x im ate Y ie ld of A ccep ted T e n d e rs
13-W eek B ills
2 6-W ee k Bills
D u e A p ril 25, 1974
D u e J u ly 25, 1974
$4,220,895,000_________________________________ T o ta l A p p lied F o r.________________________________ $4,172,055,000
$2,500,460,000__________________________________.T o ta l A ccep ted ___________________________________ $1,800,115,000
P ric e
Y ie ld
P ric e
Y ield
97.993
7 .9 4 0 % ----------------------------------------- H ig h _______________________ 96.051____________ 7.811%
97.977
8 .0 0 3 % ----------------------------------------- X o w ___________________ _ ..96.044_____________7.825%
_
97.979
7 .995% ( 1 ) ---------------------------------A verage______________________96.047____________ 7.819% ( 1 )
( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 8.27% for the 13-week bills and 8.25% for
the 2 6 -week bills.

(See 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 November 1,1973

Maturing May 2, 1974

To: 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 $______________________________________

JNOT TO EXCEED $200,000

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.
( q,

COMPETITIVE TENDERS

$
$
$
$

fn )
(n )
(a )

-

@

^ (j.Prices shouldbe
exp ressed on the
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

*
$
$
$

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Number of
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

M aturity Value

(a) $
(a) $

10,000 $
15,000 $

□

(® ? 50,000 $
(a> $ 100,000 $
(a) $ 500,000 $

□
□

(a) $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 draft
shall be on latest day which will perm it presentment
in order to obtain irrevocably collected funds on pay­
m ent date)

Delivery Instructions:
□

Hold in Custody— General Account

(Subscriber’s full name or corporate title)

□

Hold in Custody— Investment Ac­
count

(Address)

□
□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account
Other___________________________

By-

(Authorized official signature and title)
(For 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 (maturity 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 officerof 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 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
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 (m aturity 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