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F ederal R eserve Ba n k o f 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. 74-51
February 19, 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 ites te n d e rs for tw o series o f T re a su ry b ills 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 b ills m a tu rin g F e b ru a ry 28, 1974, in th e a m o u n t of
$ 4 ,3 0 3 , 1 8 0 ,0 0 0 , as 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 o f $2,500,000,000, or th e re ­
a b o u ts re p rese n tin g a n a d d itio n al 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 origin al
b ills to b e fre ely interch an g eable.
182-D A Y B IL L S fo r $1,800,000,000, or th e re a b o u ts to b e d a te d F e b ru a ry 28, 1974, a n d to m a tu re A u g ust 29,
1974 ( C U S I P No. 912793 U M 6 ).
T h e b ills o f b o th series will b e issued o n 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 a s 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 b e p a y a b le w ith o ut in terest. T h e y w ill 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 hour, 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 a y , F e b ru a ry 25, 1974. T e n d e rs will n o t b e received a t th e T re a su ry D e p a rtm e n t, W ashington. E ac h
t e 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 v e r $10,000 m u st b e in m u ltip le s o f $5,000. I n 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 o n th e b asis o f 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 be m a d e o n th e p rin te d fo rm s a n d forw ard ed in th e special en v elop es w hich w ill b e su p p lied
b y F e d e r a 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 erefor.
B a n k in g in stitu tio n s g en erally m a y su b m it te n d e rs for acco u n t o f custo m ers p ro v id ed th e n am es of th e c u stom ers a re
s e t fo rth in such ten d ers. 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 fo r th e ir ow n account.
T e n d e rs w ill be receiv ed w ith o u t d e p o sit from in co rp o ra ted b a n k s and tr u s t c o 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 a cco m p an ied b y 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 b ills a p p lie d for, unless th e te n d e rs a re a cco m p an ied b y a n express g u a ran 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
t r u s t co m pany.
I m 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 e n 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 will b e m ad e b y th e T re a su ry D e p a rtm e n t o f th e a m o u n t a n d p rice ra n g e o f a cc ep te d bids. O nly
th o se su b m ittin g c o m p e titiv e te n d e rs will b e ad v ised of th e acceptance o r re je ctio n th ereo f. T h e S e c re ta ry of th e T re a su ry
ex pressly reserv es th e rig h t to a cc ep 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 a c tio n in a n y such re sp e ct shall be
final. S u b je c t to th ese reserv atio n s, n o n c o m p e titiv e te n d e rs for each issue fo r $200,000 or 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 acc 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 fo r th e respective
issues. S e ttle m e n t fo r a cc ep te d te n d e rs in acco rd an ce w ith th e b id s m u st b e m ad e o r 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 r u a r y 28, 1974, in cash or o th e r im m e d ia tely a v ailab le fu n ds o r in a like face a m o u n t of T re a su ry b ills m a tu rin g F e b ­
r u a r y 28, 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 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 a lu e o f m a tu rin g b ills acc ep te d in exchange a n d th e issue p rice of th e n ew bills.
U n d e r S ectio ns 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 d isco u n t a t w hich b ills
issu ed h e re u n d e r a re sold is considered to accru e w hen th e b ills a re sold, re d ee m e d o r otherw ise disposed of, a n d th e bills are
ex clu d ed fro m c o 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)
issu ed h e re u n d e r m u st in clu d e in h is 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 price p a id for th e
b ills, w h e th e r on original issue o r o n su b seq u en t p urch 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 r ity d u rin g th e tax a b le y e a r fo r w hich th e re tu r n 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 re sc rib e th e te rm s of th e T re a su ry b ills a n d
g o vern th e co nd itio n s of th e ir issue. C o pies of th e circu 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
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ou n t, R a n g e a n d A p p ro x im ate Y ie ld of A c c ep 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 ield
P ric e
Y ield
98.230------------------ 7 .0 0 2 % ------------------------H ig h ____________ 96.580________
6 .7 6 5%
98.219-------------------7 .0 4 6 % .-------------------------L ow _____________ 96.558____________ 6.808%
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 ank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .2 4 % fo r th e 13 -w eek b ills a n d 7 .1 3 % for
th 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated February 28,1974

Maturing August 29, 1974

T o : F ed 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
£1 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 $200 ,00 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.

fn)
fn)

$

$

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

$
$
$

@

Prices should be
ex p ressed on th e
basis of 1 0 0 , with
not more than three
decimal places, e.g.,
99.925. F ra ctio n s
m ust not be used.

$

t

fa)

$
$

S W TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
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

<> $
a

10,000 $

&

$

15,000 $

(5) $
(5) ?

□

B y m a tu r in g bills
h eld b y ----------------------------------------------------

50,000 $

□

P a y m e n t to b e m ad e b y _______________

100,000 ?

□

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

(5) $ 500,000 $
|

(5) $1 ,000,000 ?

I

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 ord er to o btain irrevocably collected fu n d s on p a y ­
m e n t date)

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 cco u 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 — I n v e stm e n t A c­
c ou n t

(A ddress)

□

H old in C ustody — T r u s t A cco u 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 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 w ill 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 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