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F ederal reserve Bank of Dallas
F I S 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, TE X A S 7 5 2 2 2
C ircu la r N o. 74-53
F e b ru a ry 20, 1974

OFFERING
TREASURY BILL — TAX ANTICIPATION SERIES
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your atte n tio n is invited to the following sta te m e n t giving details of a n issue 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 ers fo r $1,500,000,000 or th ere ab o u ts, of 46 -d ay T re a su ry
b ills ( to m a tu rity d a te ) , to b e issued on M a rc h 4, 1974, on 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 as
h e re in a fte r pro v id ed . T h e se b ills will re p re se n t 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 e r 1, 1973, to m a tu re A p ril 19, 1974
( C U S I P No. 912793 U C 8 ) o rig in ally issued in th e a m o u n t of $2,007,185,000 ( a n a d d itio n a l $1,001,915,000 w as issued N ov em ­
b e r 30, 1 9 7 3 ). T h e a d d itio n a l a n d o rigin al b ills w ill b e fre ely interchangeable. T h e y w ill be a cc ep te d a t face v a lu e in p a y m e n t
of incom e tax es d ue on A p ril 15, 1974, a n d to th e e x te n t th e y a re n o t p re se n te d fo r th is p u rp o se th e face a m o u n t of th ese
bills w ill be p a y ab le w ith o u t in te re st a t m a tu rity . T a x p a y e rs d esiring to a p p ly th ese b ills in p a y m e n t of A p ril 15, 1974, incom e
tax es m a y su b m it th e b ills to a F e d e ra l R e se rv e B a n k o r B ran ch or to th e Office of th e T re a su re r of th e U n ite d S ta te s, W ashin g ­
ton, n o t m o re th a n fifteen d ay s befo re t h a t d ate. I n th e case of bills s u b m itte d in p a y m e n t of incom e tax es of a co rp o ratio n th e y
shall be acco m p an ied b y a d u ly c o m p le te d F o rm 503 a n d th e office receiv in g th ese ite m s will effect th e d e p o sit on A p ril 15, 1974.
In th e case of bills s u b m itte d in p a y m e n t of incom e taxes of all o th er tax p ay ers, th e office receiving th e bills will issue re ce ip ts
th ere fo r, th e original of w hich th e ta x p a y e r shall su b m it on or befo re A p ril 15, 1974, to th e In te rn a l R e v e n u e Service C e n te r
D ire c to r for th e D is tric t in w hich such tax es are p ay able. T h e b ills 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 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 , T u esd ay , F e b ru a ry 26, 1974. T e n d e rs will n o t be 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 b e fo r a m in im u m of $10,000. T e n d e rs over $10,000 m u st b e in m u ltip le s of $5,000. In th e case o f c o m p e titiv e
te n d e rs th e p rice offered m u st b e ex p ressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s
m ay n o t be used. I t is u rg e d t h a t te n d e rs b e m ad e on th e p rin te d fo rm s a n d fo rw a rd ed in th e special en velo pes 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 ra n ch e s o n a p p lic a tio n th erefo 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 fo r a cc o u n t o f c u stom ers p ro v id ed th e n a m e s of th e cu sto m ers a re
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 for 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 fro m in co rp o ra ted b a n k s a n d tr u s t c o m p an ies a n d fro m respo n sible a n d recognized
dealers 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 cc o m 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 re a s u ry b ills a p p lie d for, un less th e te n d e rs a re acco m p an ied b y a n ex press 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 o r
tr u s t co m pany.
A ll b id d ers a re re q u ire d to a g ree n o t to p u rc h ase or to sell, o r to m a k e a n y a g ree m e n ts w ith re sp e ct to th e p u rc h ase
or sale o r o th e r d isp o sitio n of a n y b ills b id for u n d e r th is offering a t a specific r a te or p rice, u n til a f te r o n e -th irty p.m ., E a s te rn
D a y lig h t S av ing T im e , T u esd ay , F e b ru a ry 26, 1974.
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 e n ed a t th e F e d e ral R e se rv e B a n k s a n d B ran ches, follow ing w hich
p u b lic a n n o u n c e m e n 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 ran g e o f a cc ep te d bids. O n ly th o se
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 o r re je ctio n thereo f. T h e S e c retary of th e T re a s u ry expressly
reserves th e rig h t to a c c e p t or re je c t a n y o r all ten ders, in whole o r in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e final.
S u b je c t to th ese reservatio ns, n o n c o m p e titiv e te n d e rs for $300,000 o r less w ith o u t s ta te d price fro m a n y one b id d e r will be
a cc ep te d in full a t th e av era g e p rice ( in th re e d e cim 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
acco rd ance w ith th e b id s m u st b e m a d e o r c o m p le te d a t th e F e d e ral R eserv e B a n k in cash or o th e r im m e d ia tely a v ailab le fu n d s
on M a rc h 4, 1974. A n y qualified d e p o sita ry w ill b e p e rm itte d to m ak e se ttle m e n t b y c re d it in its T re a su ry T a x a n d L oan
a cco u n t for T re a s u ry b ills a llo tte d to it for itself a n d its custom ers.
U n d e r S ections 4 5 4 ( b ) a n d 1221 ( 5 ) o f 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 o f d isco u nt a t w hich b ills issued
h e re u n d e r a re sold is con sidered to accrue w h en th e bills a re sold, re d ee m e d o r otherw ise disposed of, a n d th e b ills a re excluded
from c o n sid era tio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insuran ce c o m p a n ies) issued h ere­
u n d e r m u st in clu de in his incom e ta x re tu rn , as o rd in ary gain or 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 original issue o r on su b seq u e n t p u rch ase, a n d th e a m o u n t a c tu a lly received 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 r e tu rn is m ade.
T re a s u ry D e p a rtm e n t C ircu la r 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 o f th e T re a s u ry b ills a n d
govern th e c on d itio n s of th e ir issue. C opies of th e c irc u lar m ay 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 ran ch.

In a c c o rd a n c e with th e a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio, up to tw elve-thirty p.m., Central Daylight Saving Time, Tuesday, February 26, 1974. Tenders
m a y not b e e n te re d b y te le p h o n e .
Yours very truly,
P. E. Coldwell

President

(See reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on April 15,1974

TENDER FOR ADDITION TO TREASURY BILLS
TAX ANTICIPATION SERIES
Dated November 1,1973

46 DAYS TO MATURITY Maturing A

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 to the
provisions of the public announcement, as shown on reverse side, as 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 I T I V E T E N D E R $____________________________________N O T T O E X C E E D $300,000
Noncompetitive tenders for $300,000 or less from any one bidder, without stated price, will be accepted in full at the aver­
age price (in three decimals) o f accepted competitive bids.
/ __________________ 0 ____________ £_______________________
1
_
------------------------— ^ ------------------v----------------------------------C O M P E T I T I V E T E N D E R S \ $__________________ @ ___________ $_______________________
1 a
m
r ----------------------------- " ----------------- *--------------------------------------------------------------@ ------------------ $----------------------------------^

Prices should be
ex p ressed on th e
basis of 100, 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 ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Denominations Desired

N um ber of
P ie c e s

METHOD OF PAYMENT

M a tu r ity V a lu e s

□

(5) $
< $
®
(3) $

50,000 $...........
(3) $ 100,000 a
< $ 500,000 $_______________
fl>
(S' $1 ,000,000 $------------------------

By charge to our Treasury Tax and Loan Account

□

10,000 $--------------------Si
15,000 v

Payment to be made by.......................................................

.....................................
(Name of Bank)
□

By charge to our reserve account on payment date.

□

By d raft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date).

We certify that wj, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other dis­
position of any bills on this issue at a specific rate or price,
until after one-thirty p.m., E astern Daylight Saving Time, Tues­
day, February 26, 1974.

□
□
□
□
.__.

Hold in Custody — General Account
Hold in Custody Investment Account

(Subscriber’s full name or corporate title)

__________________________________________________

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan A
c
c
o
u
n

(Address)

„
By-----------------------------------------------------------------------(Authorized official signature and title)

t

__________________________________________________

,v

(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, communications
relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested 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 tru st 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