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F ederal R eserve

bank

of

Dallas

F I S C A L A G E N T O F T H E U NIT E D S T A T E S

DALLAS, TE X A S 7 5 2 2 2
C ircu la r No. 74-57
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 atten tion 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, in v ite s te n d e rs for tw o series of 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, o r th ere ab o u ts, for cash an 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 b e 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 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 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 IP
No. 912793 T Q 9 ) , origin ally issued in th e a m o u n t of $1,800,735,000, th e a d d itio n al a n d origin al bills to be
fre ely interchan 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 bo th series will b e issued on a d isco u nt 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 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 a b le w ith ou 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 w ill 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 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 ay , M a rc h 4, 1974. T e n d e rs w ill n o t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashin g to n . E ac h
te n d e r m u st be for a m in im u m of $10,000. T e n d e rs over $10,000 m u st be in m u ltip le s of $5,000. In 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 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 be used. I t is urged t h a t ten d e rs be m a d e on th e p rin te d form s a n d fo rw arded in th e special en velo p es 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 o r B ra n ch e s o n a p p lic a tio n th erefor.
B a n k in g in stitu tio n s gen erally m ay su b m it te n d e rs for acco u nt o f cu sto m ers p ro v id ed th e n am es of th e cu stom 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 will n o t b e p e rm itte d to su b m it te n d e rs ex cep t fo r th e ir ow n account.
T e n d e rs will b e receiv ed w ith o u t d ep o sit fro m in co rp o ra ted b a n k s and tr u s t co m p anies a n d from resp o nsib le a n d recognized
d ealers 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 acco 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 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 o r
tr u s t com pany.
Im m e d ia te ly a f te r th e closing ho ur, te n d e rs w ill be o p en 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 ranches, follow ing
w hich p u b lic a n n o u n ce m en t w ill 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 nly
tho se su b m ittin g c o m p e titiv e te n d e rs will be a dv ised of th e acceptance or re je ctio n thereof. 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 o r all ten d ers, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e c t shall be
final. S u b je c t to th ese reserv ation s, 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 b e a cc ep te d in full a t th e a v erag e p rice (in th re e d ecim als) of a cc ep te d c o m p e titiv e b ids 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 b id s m u st b e m ad e o r co 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 or 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 eq ual tre a tm e n t. C ash a d ju s tm e n ts will b e m ad e for differences b etw een
th e p a r value 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 Code of 1954 th e a m o u n t o f d isco un t a t w hich bills
issued h e re u n d e r a re sold is co nsid ered 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 bills a re
excluded fro m co n sid eratio n as c a p ita l a ssets. A ccordingly, th e o w ner of T re a su ry bills ( o th e r th a n life in su ran ce co 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 gain or loss, th e difference b etw een th e p rice p a id fo r th e
bills, w h e th e r on orig inal 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 ctu 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 rity d u rin g th e tax a b le y e a r for w hich th e re 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 rev 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
govern th e co n dition s of th e ir issue. C opies of th e circu lar m a y be 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 acco rd an ce with the 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 bran ch es 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 ay
n ot 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 ield 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 ug 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 e p te d _____________________ ______ _______$1,800,280,000
P ric e
Y iold
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 .188% ( 1 ) -------------------------------- JW e ra g e _____________________ 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 TREASURY BILLS

182 DAYS TO MATURITY
Dated March 7,1974

Maturing September 5,1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The---------------------------------------Branch
£1 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 a t the rate indicated.

NONCOMPETITIVE TENDER $____________________________________

.NOT 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

$
$
$
$
$

/7t\
(n)
(a )

_
(a )
------------ @

Prices should be
expressed 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.

£
$
*
£
$

0 3 ^ 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) $
(a) $

10,000 $
15,000 $

□

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

□

By maturing bills
held by-------------------------------------------Payment to be made by--------------------

□ Charge our reserve account on payment
date
| | D r a f t e n c l o s e d (Effectual delivery of enclosed draft
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 name 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 for another subscriber)

(Address)

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 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 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 tru st company.
6. If the lenguage 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