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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 irc u la r N o. 74-56
F e b ru a ry 26, 1974

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following s ta te m e n t giving details of tw o 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, inv ites te n d e rs for tw o series o f T re a su ry b ills to th e a gg reg ate a m o u n t
of $4,300,000,000, or 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 M a rc h 7, 1974, in th e a m o u n t of
$4,320,325,000, as follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued M a rc h 7, 1974, in th e a m o u n t of $2,500,000,000, or th ere ab 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 b ills d a te d D e c em b er 6, 1973, a n d to m a tu re J u n e 6, 1974 (C U S I P
No. 912793 T Q 9 ) , o rig in ally issued in th e a m o u n t of $1,800,735,000, th e a d d itio n a l a n d original b ills to be
fre ely interch an g eab le.
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 M a rc h 7, 1974, a n d to m a tu re S e p te m b e r 5, 1974
( C U S I P No. 912793 U N 4 ).
T h e b ills of b o th series will b e issued 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
p rov 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 itho u t in terest. T h e y will b e 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 our, 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, M a rc h 4, 1974. T e n d e rs will n ot 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 b e for a m in im u m of $10,000. T e n d e rs ov er $10,000 m u st be in m u ltip le s of $5,000. I n th e case of c o m p e titiv e
te n d e rs th e price offered m u st be expressed o n 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 rg e d t h a t te n 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 env elo pes 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 or 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 g en erally m a y su b m it te n d e rs fo r accou n t of custo m ers p ro v id ed th e n a m e s of th e cu stom ers a re
set fo rth in such ten ders. 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 ex cep t for th e ir own 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 tru s t c o m p anies a n d fro m resp on sib le a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs from 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 su ry b ills a p p lie d for, un less th e te n d e rs a re a cc o m p an ied b y a n express g u a ra n ty of p a y m e n t by a n in co rp o ra ted b a n k or
tr u s t com pany.
I m 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 a n n o u n ce m en t will be 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 ge of 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 will be a d 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 reserv es th e rig h t to a c c e p t o r re je c t a n y or all ten d 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 reserv atio ns, 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
one b id d e r w ill be 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 a cc ep te d c o m p e titiv e bids fo r 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 acco rd an ce w ith th e b id s m u st be m ad e o r 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 M a rc h 7, 1974, in cash o r o th e r im m e d ia tely a v ailab le fu n d s or in a like face a m o u n t of T re a su ry bills m a tu rin g
M a rc h 7, 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 s tm e n ts will b e m ad e fo r differences betw een
th e p a r v alu e of m a tu rin g b ills a cc ep te d in exchange a n d th e issue p rice of th e new bills.
U n d e r S ections 4 54 ( 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 iscou n t a t w hich bills
issued h e re u n d e r a re sold is co nsid ered to accru e w hen th e bills a re sold, re d ee m e d o r o therw ise disposed of, a n d th e bills a re
e x cluded fro m c o n sid era tio n as c a p ita l a ssets. A ccordingly, th e ow ner of T re a su ry bills ( o th e r th a n life in su ran ce co m p a n 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 gain o r loss, th e difference b etw een th e p rice p a id for th e
bills, w h e th e r on original issue or on su b seq u e n t pu 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 o r re d e m p tio n a t
m a tu rity d u rin g th e tax 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 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 bills a n d
govern th e c o nd ition s 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 ran ch .

In ac c o rd a n c e with the a b o v e a n n o u n c e m e n t, ten d ers will b e received a t this b a n k a n d its b ranches a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y , March 4, 1974. Tenders m a y
not b e e n te re d by te le p h o n e .
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
2 6 -W eek B ills
D u e M a y 30, 1974
D u e A u g u st 29, 1974
$3,781,235,000________________________________ .T o ta l A p p lied F o r _________________________________$3,725,345,000
$2,500,140,000____________ _ __________________ .T o ta l A c c ep ted __________________ ___ _____ _______$1,800,280,000
_
P ric e
Y ie ld
P ric e
Y ield
98.198------------------- 7 .1 2 9 % ------------------------------------------ H ig h _______________________ 96.440_______ .____ 7.042%
98.170
7 .2 4 0 % ___________________________ L ow ____________________ ___ 96.413___________ 7.095%
_
98.183
7.18 8 % (1)_„_.--- ------------------------ A verage______________________ 96.420____________ 7.081% ( 1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 7.42% for the 13-week bills and 7.45% for
the 26-week bills.

(See 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 December 6,1973

Maturing June 6,1974

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 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.

NONCOMPETITIVE TENDER $______________________________________

JVOT TO EXCEED $200,000

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.

COMPETITIVE TENDERS

v
--------- \y
i---- ---V
-----------$
$
()
o
$
£
<)
a
$
@
$

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 ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Num ber of
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

M aturity Value

(5) $
(5) $

10,000 $
15,000 $

□

(5) $ 50,000 $
(5) $ 100,000 $
(5) $ 500,000 $

□
□
I

(5) $1,,000,000 $

By maturing bills
held by----- --------------------------------------Payment to be made by_
Charge our reserve account on payment
date
| Draft enclosed (Effectual delivery of enclosed d raft
shall be on latest day which will perm it presentm ent
in order to obtain irrevocably collected funds on pay*
m ent date)

Delivery Instructions:
□

Hold in Custody— General Account

(Subscriber’s full nam e or corporate title)

□

Hold in Custody— Investment Ac­
count

(Address)

□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account

□

Other___________________________

By.

( Authorized official signature and title)
(For the account of, if tender is fo r 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, communi­
cations relating to other m atters 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 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 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 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