View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal r eserve 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

DALLAS, TEXAS 7 5 2 2 2

C ircu la r No. 74-36
J a n u a r y 31, 1974

NEW OFFERING — TREASURY BILLS

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

Your a tte ntio n is invited to the following s ta te m e n t giving d etails of a n issue of Treasury bills:
T h e T re a s u ry D e p a rtm e n t, b y th is p u b lic notice, in vites 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 fo r cash a n d in exchange for T re a su ry bills m a tu rin g F e b ru a ry 12, 1974, in th e a m o u n t of $1,801,085,000. T h e b ills of
th is series will be d a te d F e b ru a ry 12, 1974, a nd w ill m a tu re F e b ru a ry 11, 1975 (C U S I P N o. 912793 V G 8 ).
T h e bills w ill b e issued on a d isco un 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 vided , a n d a t
m a tu r ity 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 terest. T h e y will b e issued in b e a re r form only, a n d in d en o 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 will b e received a t F e d e ra l R e se rv e B an 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 S av in g T im e , W edn esd ay , F e b ru a ry 6, 1974. T e n d e rs will 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 ash ing ­
ton. E a c h te n d e r m u st b e fo r a m in im u m of $10,000. T e n d e rs ov er $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 rice offered m u st b e 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 e d t h a t te n d e rs be m a d e on th e p rin te d form s a n d fo rw arded in th e sp ecial envelopes
w hich will b e 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 ranch es o n a p p lic a tio n th erefor.
B a n k in g in stitu tio n s g en erally m a y s u b m it te n d e rs fo r a cc o u n t o f cu sto m ers p ro v id ed th e nam es of th e cu stom ers a re
se t fo rth in such ten d e rs. 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 own account.
T e n d e rs w ill b e re ce iv e d w ith o u t d e p o sit fro m in co rp o rated b a n k s a n d tr u s t co m pan ies a n d fro m respo n sible a n d recognized
d e ale rs 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 accom panied by p a y m e n t o f 2 p e rc e n t of th e face a m o u n t of
T re a s u ry bills a p p lie d for, un less th e te n d e rs a re accom p an ied 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 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
p u b lic a n n o u n ce m en t w ill 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 ran g e of a cc ep te d bids. O n ly th ose
su b m ittin g c o m p e titiv e te n d e rs w ill b e a d v ised of th e acc ep ta n ce or rejection th ereo f. 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 o r 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 his a ctio n in a n y such re sp e ct shall be final.
S u b je c t to th ese reservation s, n o n c o m p e titiv e te n d e rs for $200,000 or less w ith o u t sta te d price fro m a n y one b id d e r w ill be
a cc ep te d in fu ll a t th e a v erag e price (in th re e d ecim 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 an ce w ith th e bids m u st b e m ad e or c o m p le te d a t th e F e d e ra l R eserv e B a n k on F e b ru a ry 12, 1974, in cash or o th e r im m e d ia tely
av ailab le fu nd s o r in a like face a m o u n t of T re a su ry b ills m atu rin g F e b ru a ry 12, 1974; p ro v id ed, how ever, t h a t s e ttle m e n t fo r
te n d e rs s u b m itte d to th e F e d e ra l R eserv e B an k s of N ew Y ork, Chicago, a n d P h ila d e lp h ia , a n d to th e F e d e ra l R e se rv e B a n k
B ra n ch e s in B uffalo a n d D e tro it, m u st b e c o m p leted a t th ese B an k s a n d B ran ch es on F e b ru a ry 13, 1974, an d m u st include one
d a y ’s acc ru ed in te re st if se ttlm e n t is m ad e w ith o th e r th a n T re a su ry b ills m a tu rin g F e b ru a ry 12, 1974. C ash a n d exchange
te n d e rs w ill receiv e e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill b e m ad e for differences be tw ee n th e p a r v a lu e of m a tu rin g bills
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 4 5 4 ( b ) a n d 1221 ( 5 ) of 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 nt a t w hich bills
issued h e re u n d e r a re sold is co nsidered to accru e w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are
excluded fro m co n sid eratio n as c ap ital assets. A ccordingly, th e o w ner of T re a su ry b ills ( o th e r th a n life in su ran ce co m p an ies)
issued h e re u n d e r m u st inclu d e in his incom e ta x re tu rn , as o rd in ary gain o r 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 e r o n o riginal issue o r on su b seq u e n t pu rch ase, an 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 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 s u ry D e p a rtm e n t C ircu la r No. 4 1 8 ( 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 co n dition s of th e ir issue. C opies of th e circ u lar m a y be o b tain 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 ac c orda nc e with th e a b o v e a n n o u n c e m e n t, ten ders will b e received a t this b a n k a n d its bra nc he s 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 , February 6, 1974. Tenders
m a y not b e e n tere d by te le p h o n e .
Yours very truly,
P. E. Coldwell

President

(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 TREASURY BILLS

364 DAYS TO MATURITY
Maturing February 11,1975

Dated February 12,1974
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 $.

JNfOT 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
ex p ressed on the
f
t
()
d
$
b asis of 100, w ith
not more than three
$
decimal places, e.g.,
$
99.925. F ra c tio n s
must not be used.
■
$
$
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF 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

______ @
______ @
______@
______@
______@
______ @

M a tu rity V aluu

$ 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
m ent 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 m ay 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 trust 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