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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 NIT E D S T A T E S

DALLAS, TE X A S 7 5 2 2 2

C ircu la r No. 74-58
F e b ru a ry 28, 1974

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your atten tio n is invited to the following s ta 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 vites te n d e rs for $1,800,000,000, o r th ere ab o u ts, of 36 4-day T re a su ry
bills fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g M a rc h 12, 1974, in th e a m o u n t of $1,790,265,000. T h e b ills of
th is series w ill be d a te d M a rc h 12, 1974, a n d will m a tu re M a rc h 11, 1975 ( C U S IP No. 912793 V H 6 ).
T h e bills 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 ro vided , 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 o u t in terest. T h e y w ill be issued in b e are r form only, a n d in d en 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 an 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 av in g T im e , W ed nesday , M a rc h 6, 1974. T e n d e rs will n o t be received a t th e T re a su ry D e p a rtm e n t, W ashing­
ton. E a c 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 ov er $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 b e expressed 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 ard ed in th e sp ecial envelopes
w hich will b e su p p lied b y th e F e d e ra l R e se rv e B a n k s or B ra n ch e s on a p p lic a tio n therefo 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 for acc o u n t of cu sto m ers p ro v id ed th e n am es o f th e cu stom ers a re
se t fo rth in such ten d ers. O th ers 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 e x ce p t fo r 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 rated b an k s a n d tr u s t co m pan ies a n d fro m respo n sible a n d recognized
d e ale rs in in v e s tm e n t securities. T e n d e rs from o th ers m u st be accom panied 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
t r u s t com pany.
I m m e d ia te ly a f te r th e closing hour, te n d e rs w ill b e 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 b e 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 price ra n g e of acc ep te d bids. O nly those
su b m ittin g c o m p e titiv e te n d e rs w ill b e a d vised of th e acc ep ta n ce or rejectio 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 e rs, in whole or 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 ation s, n o n c o m p e titiv e te n d e rs for $200,000 or less w ith o u t sta te d price fro m a n y one b id d e r w ill be
a cc ep te d in fu ll 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. S e ttle m e n t for a cc ep te d te n d e rs in accor­
d an ce w ith th e bids m u st be m ad e or 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 12, 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 12, 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 will b e m ad e for differences b e tw ee n th e p a r v a lu e of m a tu rin g bills a cc ep te d in exchange
a n d th e issue price of th e new bills.
U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) o f 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 nt a t w hich bills
issued h e re u n d e r a re sold is considered to accru e w hen th e bills are sold, re d ee m e d or o therw ise disposed of, a n d th e bills are
e x cluded from co n sid eratio n as c ap ital assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life in su rance co m p an ies)
issued h e re u n d e r m u st include in his incom e ta x re tu rn , as o rd in a ry 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 original issue or on su b seq u e n t pu rch ase, an d th e a m o u n t a c tu a lly receiv ed 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 for w hich th e re tu r n 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 nd itio n s of th e ir issue. C opies of th e circu lar m a y 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 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, ten d ers 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, W e d n e s d a y , March 6, 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

(S e e rev erse for te n d e r fo rm )

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

TENDER FOR TREASURY BILLS

364 DAYS TO MATURITY
Maturing March 11,1975

Dated March 12,1974
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 $.

.NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be
ex pressed on th e
C)
l
5
$
.
$
basis of 100, w ith
COMPETITIVE TENDERS
(a)
not more than three
$
decimal places, e.g.,
(n)
$
$
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.
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

Denominations Desired
N um ber of
P ie c e s

M a tu r ity V a lu e

(3)
(5)
(5)
@
@

$ 10,000
$ 15,000
$ 50,000
$ 100,000
$ 500,000
$1,,000,000

□
*
$$■
$$-

□

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

□

Charge our reserve account on payment
date
I I 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

□

Hold in Custody — Investment Ac­
count
Hold in Custody — Trust Account

□
□

Pledge to secure Treasury Tax and
Loan Account

□

( Subscriber’s full nam e or corporate title)
(Address)

By.

Other-----------------------------------------

(Authorized official signature and title)
(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, 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 (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