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F ederal R eserve Bank 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 N o 74-50
February 19, 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 ten d e rs for two series of T re a su ry bills to th e ag g reg a te a m o u n t
o f $4,300,000,000, o r th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g F e b ru a ry 28, 1974, in th e a m o u n t of
$4,303,180,000, a s follow s:
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 28, 1974, in th e a m o u n t of $2,500,000,000, o r th e re ­
a b o u ts re p rese n tin g a n a d d itio n a l a m o u n t of bills d a te d N o v e m b er 29, 1973, a n d to m a tu re M a y 30, 1974
( C U S I P No. 912793 T P 1 ) , o rig in ally issued in th e a m o u n t of $1,797,645,000, th e a d d itio n a l a n d original
b ills to b e freely interch ang eable.
182-D A Y B IL L S fo r $1,800,000,000, o r th e re a b o u ts to be d a te d F e b ru a ry 28, 1974, a n d to m a tu re A u gu st 29,
1974 (C U S I P N o. 912793 U M 6 ).
T h e b ills of b o th series w ill b e issued o n a d isco 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 a s h e re in a fte r
p ro v id ed, a n d a t m a tu rity th e ir face a m o u n t will b e p a y a b le w itho u t i n te r e s t 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 ou r, 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 nd ay, F e b ru a ry 25, 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 ov er $10,000 m u st b e in m u ltip le s of $5,000. I n th e case o f c o m p e titiv e
te n d e rs th e p ric e 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 ten d e rs b e m ad e on th e p rin te d form s a n d fo rw ard ed in th e special en velo p es w hich will 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 o n 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 for acco un t of c u stom ers p ro v id e d th e n a m e s of th e cu sto m ers are
se t fo rth in such tend ers. 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 e x ce p t fo r th e ir ow n a c c o u n t
T e n d e rs will be re ce iv e d w ith o u t dep o sit fro m in co rp o ra ted b a n k s and tr u s t c o m p anies a n d fro m resp o nsib le 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 e rs m u st b e 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, u n less th e te n d e rs a re a cco m p an ied b y a n express g u a ra n ty o f 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 co m pany.
Im m e d ia te ly a f te r th e closing h our, te n d e rs will b e o p ened 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 an n o u n ce m en t will be 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 ra n g e of a cc ep te d bids. O nly
th ose s u b m ittin g c o m p e titiv e te n d e rs w ill b e ad v ised of th e acceptance o r re je ctio n thereo 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 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 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 fo r each issue fo r $200,000 o r less w ith o u t sta te d p rice fro m a n y
one b id d e r w ill b e a cc ep te d in full a t th e a v 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 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 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 e se rv e B a n k
on F e b ru a ry 28, 1974, in cash or o th e r im m e d ia te ly av ailab le fu n d s or in a lik e 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 28, 1974. C ash a n d exchange ten d e rs will 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 fo r differences b e tw ee n th e
p a r v alu e of m a tu 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 S ectio ns 45 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 o f disco u n t a t w hich b ills
issued h e re u n d e r a re sold is co n sidered to accru e w h en th e b ills are sold, re d ee m e d o r o therw ise disposed of, a n d th e bills are
e x cluded fro m co n sid eratio n a s 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 insuran ce c o m p an ies)
issued h e re u n d e r m u st in clud e in his incom e tax re tu rn , as o rd in ary g ain 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 o riginal issue o r on su b seq u e n t pu rch ase, 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 o r re d e m p tio n a t
m a tu rity d u rin g th e ta x a b le y e a r 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 rescribe th e te rm s of th e T re a su ry b ills a n d
govern th e co n d itio n s of th e ir issue. C opies of th e circ u lar m a y b e 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 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 25, 1974. Tenders
biay 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 e n d e rs
13-W eek B ills
26-W eek B ills
D u e M a y 23, 1974
D u e A ugust 22, 1974
$4,132,445,000
T o ta l A p p lied F o r________
$3,535,965,000
$2,501,500,000__________________________________.T o ta l A c c ep ted ___________
$1,800,110,000
P ric e
Y ie ld
P ric e
Y ie ld
9 8.23 0 ____________7 .0 0 2 % - .- ______________
H ig h _____________ 96.580____________ 6 .76 5 %
98.219 ____________ 7 .0 4 6 % __________________
L ow ______________96.558____________ 6 .8 0 8%
98.226 ____________ 7 .0 1 8 % __________________________ A verage______________________ 96.569_____________6 .7 8 7 % ( 1 )
( 1 ) T h e s e rates are o n a b a n k d iscou nt basis. T h e eq u iv ale n t coupon issue y ie ld s are 7 .2 4 % for th e 13 -w eek b ills an d 7 .1 3 % for
t h e 2 6 -w e e k 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 ADDITION TO TREASURY BILLS

91 DAYS TO MATURITY
Dated November 29,1973

Maturing May 30, 1974

T o: F ed e r a 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 P E T IT IV E T E N D E R $__________________________________________

-N O T TO E X C E E D $2 00,000

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.
(£

^
$

$

(a)
<
ft>
(a)

$

@

$

$

C O M PE T IT IV E T E N D E R S

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.

$

$

U gf’ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
N u m b e r 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 ?

(® $
<> $
5

<> $
5

P a y m e n t to be m ad e b y-------------------------

□

100,000 $

B y m a tu r in g bills
held b y----------------------------------------------------

□

50,000 $

(® ?

□

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 of enclosed d r a f t

15,000 $

500,000 $

&

n

I I

,000,000 $

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

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 nam e o r 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)

□

Hold in C ustody — T r u st A ccou n t

□

P le d g e to secu re T rea su ry T a x and
L oan A ccou n t

□

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

By-

(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 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 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, 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 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