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F ederal R eserve Bank of 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. 74-34
January 29, 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, inv ites ten ders for two series of T re a su ry bills to th e a g g reg ate a m o u n t
of $4,300,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry bills m a tu rin g F e b ru a ry 7, 1974, in th e a m o u n t of
$4,302,550,000, as follow s:
91-D A Y B IL L S ( to m a tu rity d a te ) to be issued F e b ru a ry 7, 1974, in th e a m o u n t of $2,500,000,000, or th e re ­
abouts, re p re se n tin g a n ad d itio n al a m o u n t of bills d a te d N o v e m b er 8 , 1973, a n d to m a tu re M a y 9, 1974
(C U S I P No. 912793 T L 0 ) , o rigin ally issued in th e a m o u n t of $1,800,915,000, th e a d d itio n a l a n d original
b ills to b e freely interchang eab le.
182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to b e d a te d F e b ru a ry 7, 1974, a n d to m a tu re A u g ust
(C U S I P No. 912793 U J 3 ) .

8

, 1974

T h e bills of b o th series will be issued on a d isco u nt 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 a s 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 will be p a y ab le w ithout in terest. T h e y will be issued in b e a re r form only, a n d in
d en om in atio ns 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 eserv e B a n k s a n d B ran ch es u p to th e closing ho ur, o n e -th irty p.m ., E a s te rn
D a y lig h t S aving T im e , M o n d ay , F e b ru a ry 4, 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 for a m in im u m of $10,000. T e n d e rs o ver $10,000 m u st be in m u ltip les of $5,000. I n 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 b e used. I t is u rg ed t h a t ten 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 envelopes 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 or B ran ches o n a p p lic a tio n therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for account of custo 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 ten ders. O th e rs th a n b a n k in g in stitu tio n s will n o t be 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 w ill b e receiv ed w ith o u t dep o sit fro m in co rp o ra ted b a n k s and tru s t co m pan ies a n d fro m respo n sible 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 be 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 b ills a p p lie d for, unless th e te n d e rs are a ccom panied b y an 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 will be op 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 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 p rice ran ge of acc ep te d bids. O nly
th o se su b m ittin g c o m p e titiv e ten d e rs w ill b e ad v ised of th e acceptance o r re je ctio n th ereof. T h e S e c retary of th e T re a su ry
ex p ressly reserv es th e rig h t to a cc ep t or re je c t a n y or all tend ers, in w hole or in p a rt, a n d his a ctio n in a n y such resp ect 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 each issue for $200,000 or less w ith o u t sta te d p rice from a n y
one b id d e r will b e a cc ep te d in fu ll a t th e av erage 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 te n d e rs in accordance w ith th e b id s m u st b e n a d 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
o n F e b ru a ry 7, 1974, in cash o r o th e r im m e d ia tely a v ailab le fu nd s or in a like face a m o u n t of T re a su ry bills m a tu rin g F e b ­
ru a ry 7, 1974. C ash a n d exchange ten d e rs will receive eq u al trea tm e n t. Cash a d ju stm e n ts will be m ad e for differences betw een 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 of th e new bills.
U n d e r Sections 4 5 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 disco 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 en th e bills are sold, re d ee m e d or otherw ise disposed of, a n d th e bills are
ex cluded fro m co n sid eratio n as c ap ital 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 reu n d e r m u st inclu d e 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 or on su b seq u en 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 r ity d u rin g th e tax 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 lar 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 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 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, February 4, 1974. Tenders
may 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 ccep ted T en d e rs
13-W eek B ills
26-W eek B ills
D u e M a y 2, 1974
D u e A u gu st 1, 1974
$6,395,535,000_________________________________T o ta l A p p lied F o r_________________________________ $3,941,160,000
$2,506,450,000_______________________
T o ta l A ccep ted___________________________________$1,800,390,000
P ric e
Y ield
P ric e
Y ield
98.040------------------- 7 .7 5 4 % -------------------------------H ig h ..... ......
96.210_____________7.497%
98.030_____________ 7 .7 9 3 % ____________________
X o w ______________ iL .9 6 .1 9 5 ___________ 7.526%
98.034---------------------7.778% ( 1 ) -------------------------A verage __________________ 96.200____________ 7 .516% ( 1 )
( 1 ) T h e s e rates are on a bank discount basis. T h e eq u iv ale n t coupon issue yield s are 8 .0 4 % for th e 1 3-w eek bills and 7 .9 2 % for
the 2 6 -w eek 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated February 7,1974

Maturing August 8, 1974

T o: F ed eral R e ser v e B ank, 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 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

$
$
$
$

()
a
()
a
()
a
@

---- y----------------¥
¥
¥
$

Prices should be
exp ressed on t h e
basis of 1 0 0 , w ith
not more than three
decimal places, e.g.,
99.925. F r a c tio n s
must not be used.

Is : ' ' TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR ARE ACCEPTABLE.
D e n o m in a tio n s D e s ire d
N u m b er of
pieces

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

M a tu rity V alue

_@ $

10,000 $_____________

-@ $

15,000_$______________

-@ $

50,000_$______________

□
□

P a y m e n t to b e m ad e by..

□

$ 100,000 $_____________

B y m a tu r in g bills
h eld by_

C h arge our re se r v e accou n t on p a y m e n t
d a te
D r a ft enclosed (Effectual delivery o f enclosed d r a f t

_@ $ 500,0 00 $______________
□

$ 1,000,000 $______________

shall be on la te st day which will p e rm it p re s e n tm e n t
in o rd e r to obtain irrevocably collected fu n d s on p a y ­
m e n t d ate)

D eliv e ry I n s tr u c tio n s :
□

H old in C u sto d y — G eneral A ccount

(S ub scrib er’s fu ll nam e or 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 ru st A cco u n t

□

P led g e to secu re T reasu ry T a x and
Loan A ccou n t

□

O ther------------------------------------------------

B y(A u th o rized official s ig n a tu re an d title )

(F o r th e a cco u n t of, if te n d e r is f o r a n 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 iddressed 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 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, th" form should he 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 that 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 trust companies or responsible and recognized dealers in in vest­
' 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 trust 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