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F ed er a l R eser ve Ba n k o f D allas
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. 74-41
February 5, 1974

NEW OFFERING — TREASURY BILLS
T All Banking Institutions and Others Concerned
o
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 ten d e rs for tw o series of T re a su ry bills to th e ag greg ate a m o u n t
o f $4,300,000,000, or th ere ab o u ts, for cash a n d in exchange for T re a su ry b ills 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 ­
abo u ts, re p re se n tin g a n a d d itio n al 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 ) , orig 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 freely in terchangeable.
182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to be d a te d F e b ru a ry 14, 1974, a n d to m a tu re A u gu st 15,
1974 (C U S I P No. 912793 U K 0 ).
T h e bills of b o th series will b e issued on a disco 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 e d , 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 itho u t in terest. T h e y will be issued in b e a re r form 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 will 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 S av in g T im e , M o n d ay , 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 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 ov er $10,000 m u st b e in m u ltip les of $5,000. In th e case of c o m p e titiv e
te n d e r s 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 ay
n o t b e used. I t is u rged th a t ten d e rs be 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 p plied
b y F e d e r a l R e se rv e B a n k s or 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 generally m a y su b m it te n d e rs for acco u nt of cu sto m ers p ro v id ed th e n am es of th e cu sto m ers a re
s e t fo rth in such tenders. 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 except for th e ir ow n account.
T e n d e r s will b e receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b a n k s and tr u s t co m p an ies a n d from responsible a n d recognized
d e a le rs in in v e s tm e n t securities. T e n d e rs fro m o th ers m u st be a ccom 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 r e a s u r y b ills a p p lie d for, unless th e te n d e rs a re acco m 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 or
t r u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will be o p en ed a t th e F e d e ra l R eserve B a n k s a n d B ranches, follow ing
w h ic h p u b lic an 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 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 w ill b e ad vised of th e acceptance or rejection thereof. T h e S e c re ta ry 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 tenders, 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 for each issue for $200,000 or less w ith o u t sta te d p rice fro m a n y
o n e b id d e r w ill b e acc ep te d in full a t th e av erag e p rice ( in th re e d e cim 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 accordance w ith th e b id s m u st b e 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
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 fu n d s or in a lik e face a m o u n t of T e ra su ry b ills m atu rin g F e b ­
r u a r y 14, 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 stm e n ts w ill be m ad e fo r differences b etw een th e
p a r v a lu e of m atu rin g bills 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
issu ed h e re u n d e r a re sold is co nsidered to accru e w h en th e b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are
e x clu d e d from c o n sideration as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insurance co m p anies)
issu ed h e re u 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 o r loss, th e difference betw een th e p rice p a id for th e
b ills, w h e th er on original issue or on su b seq u en t p u 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 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 rescrib e th e term s of th e T re a su ry bills a n d
g o v ern th e co n dition s of th e ir issue. C opies of th e circular m a y be o b ta in e d from a n y F e d e ra l R eserv e B a n k or B ranch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
*°uston and San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Monday, February 11, 1974. Tenders
"ay not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R an g e a n d A p p ro x im ate Y ie ld 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 9, 1974
D u e A ugust 8 , 1974
$4,499,960,000
.T o tal 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 ield
P ric e
Y ield
9 8 .2 5 3
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 51 % ( 1 ) -------------------------------- A v erag e ----------------- 1_________ 96.589_____________ 6.747% ( 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 y ield s are 7 .1 7 % for the 13-w eek bills and 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated February 14,1974

Maturing August 15, 1974

T o : F e d e r a l R e se r v e B an k , S ta tio n K, D a lla s, 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 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 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 $2 0 0 , 0 0 0 or less from any bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
/ $

t

$

@

$

$

@

$

@

$
$

?

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

^

... @

?

t

Prices should be
ex p ressed on th 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.

ttSP TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
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

(5) $

10,000 $

< $
3>

15,000 $

<® ?

50,000 $

(a)

?

□
□

100,000 ?

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

□

C harge ou r r e se r v e a cco u n t on p a y m e n t
d a te
I I D r a ft enclosed (Effectual delivery o f enclosed d r a f t

<® ? 500,000 $
@ ?1,,000,000 $

shall be on la te st day w hich w ill p e rm it p re s e n tm e n t
in o rd e r to o btain irrevocably collected fu n d s o n p a y ­
m e n t date)

D e liv e ry I n s tr u c tio n s :
□

H old in C u sto d y — G eneral A ccou n t

(S u b sc rib e r’s fu ll n a m 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 c­
cou n t

(A ddress)

□

H old in C u stod y — T r u st A cco u n t

□

P led g e to secu re T rea su ry T a x and
L oan A cco u 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 a cco 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 m ust 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, 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, 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 o f 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.

( e r v r ef ra n u c m n )
S e ees o n o n e e t


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102