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F e d e r a l R eser v e Ba n k o f D a lla s
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. 74-40
February 5, 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 v ite s te n d e rs for 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 for T re a su ry bills m a tu rin g F e b ru a ry 14, 1974, in th e a m o u n t of
$4,309,420,000, as follows:
91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued F e b ru a ry 14, 1974, in th e a m o u n t of $2,500,000,000, or th e re ­
ab ou ts, re p rese 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 15, 1973, a n d to m a tu re M a y 16, 1974
(C U S I P No. 912793 T M 8 ) , o rig inally issued in th e a m o u n t of $1,801,370,000, th e a d d itio n a l a n d original
bills to b e fre ely interch 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 F e b ru a ry 14, 1974, a n d to m a tu re A u g ust 15,
1974 ( C U S IP No. 912793 U K 0 ).
T h e bills of b o th series will be issued on a d isco un t basis u n d e r c o m p e titiv e a n d no n c o m p e titiv e b id d in g a s h e re in a fte r
pro v 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 ab le w ith ou t in terest. T h e y will be issued in b e a re r form only, a n d in
den 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 w ill be 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 h our, o n e -th irty p.m ., E a s te rn
D a y lig h t Saving T im e , M o n d a y , F e b ru a ry 11, 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 ashington. E a c 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 v 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 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 ten d e rs be m ad e on th e p rin te d form s a n d fo rw arded in th e special envelopes 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 o r B ran ch es on a p p lic a tio n therefo r.
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 account of cu sto m ers p ro v id ed th e n am es o f th e cu stom ers a re
set 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 be p e rm itte d to su b m it ten d e rs ex cep t for th e ir ow n account.
T e n d e rs w ill b e received w ith o u t d e p o sit from in co rp o ra ted b an ks and tr u s t com p anies a n d from 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 be a cco m p anied 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 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 h our, te n d e rs w ill b e o p 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 p u b lic an n o u n ce m en t w ill b e m a d 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
th o se su b m ittin g c o m p e titiv e ten d e rs will b e adv 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 reserv es th e rig h t to a c c e p t or re je c t a n y or all tend ers, in w hole o r in p a rt, a n d his 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
o ne b id d e r will be a ccep ted in full a t th e av erage p rice ( in th re e d e cim als) of acc ep te d c o m p e titiv e bids for th e resp ectiv e
issues. S e ttle m e n t for acc ep te d ten d e rs in accordance w ith th e bids m u st 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
o n F e b ru a ry 14, 1974, in cash or o th er im m e d ia tely av ailab le funds or in a lik e face a m o u n t of T e ra su ry bills m a tu rin g F e b ­
ru a ry 14, 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 will be m ad e for differences b etw een th e
p a r v alue of m a tu rin g bills a ccep ted in exchange a n d th e issue p rice of th e new bills.
U n d e r S ectio n s 45 4 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en 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 reu n d e r are sold is considered to accru e w hen 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 con sid eration as cap ital assets. A ccordingly, th e ow ner of T re a su ry b ills (o th e r th a n life insurance co m p anies)
issued h e re u n d e r m u st in clu de in his incom e tax re tu rn , as o rd in ary gain o r loss, th e difference b etw een 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 e n t p u rchase, a n d th e a m o u n t a c tu 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 du 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 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 c on d itio ns of th e ir issue. C opies of th e circu lar m ay 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 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 11, 1974. Tenders
may not be entered by telephone.
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 ield of A ccep ted T e n d e rs
13-W eek B ills
26-W eek B ills
D u e M a y 9, 1974
D u e A u gu st 8 , 1974
$4,499,960,000
_Total A p p lied F o r_________________________________ $2,854,105,000
$2,501,190,000__________________________________ T o ta l A c c ep ted ___________________________________$1,800,760,000
P ric e
Y ie ld
P ric e
Y ield
98.253------------------ 6 .9 1 1 % — ------------------------H ig h ___
.....96.618_____________6 .690%
98.237------------------ 6 .9 7 5 % --------------------------L ow _____________96.567____________ 6 .791%
98.243 ------------------ 6 .9 5 1% ( 1 ) ----------------------------------A v erag e________
96.589
6 .74 7 % ( 1 )
( 1 ) T h e s e 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 .1 7 % for th e 1 3 -w eek b ills a n d 7 .0 8 % for
th e 2 6 -w eek bills.

(S e e reevrse 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
Maturing May 16, 1974

Dated November 15, 1973
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 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 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.

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.

^
(a)
(ri)
(n)

$
$
$

C O M PETITIV E T E N D E R S

I

¥

.

t
¥

@

¥

Prices should be
exp ressed on th e
basis of 1 0 0 , 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
N um ber 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

(5) ¥

10,000 $

(5) ¥

15,000 ¥

(® ¥

50,000 $

<® ¥

100,000 ¥

□
□

B y m a tu r in g bills
held b y---------------------------------------------------P a y m e n t to b e m ad e b y -------------------- ---- -

□

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 o f enclosed d ra ft

(® ¥ 500,000 $
¥ l ,000,000 $

shall be on la te s t day which will p e rm it p re s e n tm e n t
in order to o b tain irrevocably collected fun d s o n p a y ­
m en t d ate)

D e liv 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 scrib er’s fu ll nam e o r c o rp o ra te title)

□
~

H old in C u sto d y — In v e stm e n t A ccount

(A ddress)

□

H old in C ustody — T ru st A ccou n t

□

P led ge to secu re T rea su ry T ax and
Loan A ccou n t

□

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

By_

(A u th o rized official s ig n a tu re a n 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 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 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, 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 w ill 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 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 invest­
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