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F ederal R eserve Bank 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. 74-61
M arch 5, 1974

NEW OFFERING — TREASURY BILLS
t o All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Yourattention 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 ite s ten d e rs fo r tw o series o f T re a su ry bills to th e ag g reg a te a m o u n t
of $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 M a rc h 14, 1974, in th e a m o u n t of
$4,304,120,000, a s follow s:
9 1-D A Y B IL L S (to m a tu rity d a te ) to b e issued M a rc h 14, 1974, in th e a m o u n t o f $2,500,000,000, or th ereab o u ts,
re p re se n tin g a n a d d itio n al a m o u n t o f bills d a te d D e c em b er 13, 1973, a n d to m a tu re J u n e 13, 1974 (C U S I P
No. 912793 T R 7 ) , o rigin ally issued in th e a m o u n t of $1,801,295,000, th e a d d itio n a l a n d origin al b ills to b e
fre ely interch an g eab le.
182-D A Y B IL L S fo r $1,800,000,000, o r th ere ab o u ts, to be d a te d M a rc h 14, 1974, a n d to m a tu re S e p te m b e r 12,
1974 ( C U S I P No. 912793 U P 9 ) .
T h e b ills of b o th series w ill b e issued o n 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 a s 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 w ill b e p a y ab le w itho u t i n te r e s t T h e y will b e issued in b e a re r fo rm 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 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 n d a y , M a rc h 11, 1974. T e n d e rs w ill 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
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 b e in m u ltip le s o f $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 s t be expressed on th e b asis 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 a y
n o t be used. I t is u rg e d t h a t te n d e rs b e m a d e on th e p rin te d fo rm s a n d fo rw ard ed in th e special en v elop es w hich will b e sup 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 therefor.
B a n k in g in stitu tio n s generally m a y su b m it te n d e rs for acco un t o f c u sto m ers p ro v id ed th e n a m e s o f th e c u sto m ers are
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 w ill n o t b e p e r m 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 b e re ce iv e d 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 c o m pan ies a n d fro m resp o n sib 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 b e a ccom p an ied b y p a y m e n t of 2 p e rc e n t o f th e face a m o u n t of
T re a su ry bills a p p lie d for, u nless th e te n d e rs a re a cco 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 or
tr u s t com pany.
Im m e d ia te ly a f te r th e closing h ou r, te n d e rs w ill 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 ranches, follow ing
w hich p u b lic an n o u n ce m en t w ill be m a d 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 ra n g e of a cc ep te d bids. O nly
those s u b m ittin g c o m p e titiv e te n d e rs w ill b e ad v ised of th e accep tan ce o r re je c tio n th ere o f. T h e S e c re ta ry o f th e T re a su ry
expressly reserves th e rig h t to a c c e p t o r r e je c t a n y o r a ll ten d e rs, in w hole or in p a rt, a n d h is 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 fo r each issue for $200,000 o r less w ith o u t sta te d p ric e fro m a n y
one b id d er w ill b e a cc ep te d in fu ll a t th e av 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 b id s for th e re sp e ctiv 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 s t b e 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 14, 1974, in cash o r o th e r im m e d ia te ly a v ailab le fu n d s o r in a like face a m o u n t o f T re a su ry b ills m a tu rin g
M a rc h 14, 1974. C ash a n d exchange te n d e rs w ill receive eq u al tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences betw een
th e p a r v alue 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 ectio n s 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e C ode o f 1954 th e a m o u n t o f d isco u n t a t w hich bills
issued h e re u n d e r a re sold is co nsid ered to a cc ru e w h en th e b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e b ills a re
excluded fro m c on sid eratio n a s c ap ital assets. A ccordingly, th e o w ner o f T re a su ry b ills (o th e r th a n life in su ra n ce c o m p an ies)
issued h e re u n d e r m u s t in clu d e in h is 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 er o n o rig inal issue o r on su b seq u e n t p u rc h 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 rity d u rin g th e ta x 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 N o. 41 8 (c u r re 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
govern th e c o nd itio n s of th e ir issue. C o p ies of th e circ u lar m a y b e o b ta in e d from 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, March 11, 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 ield o f A c c ep ted T e n d e rs
13-W eek B ills
26-W eek B ills
D u e J u n e 6, 1974
D u e S e p te m b e r 5, 1974
$3,316,460,000
.T o ta l A p p lie d F o r _________________________________ $4,362,260,000
$2,500,015,000__________________________________.T o ta l A c c ep ted ___________________________________ $1,803,345,000
P ric e
Y ie ld
P ric e
Y ield
98.091------------------ 7 .5 5 2 % -------------------------------------------H ig h _______________________ 96.192____________ 7 .532%
98.048------------------ 7 .7 2 2 % ------------------------------------------- Low ________________________96.166____________ 7 .584%
98.060------------------ 7 .67 5 % ( 1 ) ---------------------------------A verage______________________ 96.175____________ 7 .5 6 6% ( 1 )
( 1 ) T h e s e rates are o n a b ank d iscou nt basis. T h e eq u iv ale n t coupon issue y ie ld s are 7 .9 4 % for th e 1 3 -w eek b ills an d 7 .9 8 % for
th e 2 6 -w e e k bills.

( S ee 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
D a te d D ecem b er 1 3 ,1 9 7 3

Maturing June 13,1974

T o : F e d e r a l R e se r v e B ank, S ta tio n K, D a lla s, T e x a s 75222
or —
T h e --------------------------------------------- B ranch
El 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 $__________________________________________

JNOT TO E X C E E D $20 0,0 00

Noncompetitive tenders for $2 0 0 , 0 0 0 or less from any bidder, without stated price, will be accepted in full at the average
price (m three decimals) of accepted competitive bids.

$

C O M P E 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 c tio n s
must not be used.

(n)

$

(ffl

$

fn)

$
$
$

835“ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
N u m b e r 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 alu e

@ $

10,000 $.

@ $

15,000 $.

@ $

50,000 $.

@ $

100,000 $.

@ $

500,000 $.

□

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

□

P a y m e n t to b e m a d e b y ------------------------

□

C h arge our r e se r v e a cco u n t on p a y m e n t
d a te
[ | D r a ft enclosed (E ffectual delivery o f enclosed d r a f t

@ $1 ,0 00,000 $

sh all be on la te st day w hich w ill p e rm it p re s e n tm e n t
in o rd e r to ob tain irrevocably collected fu n d s on p a y ­
m e n t d ate)

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 ccou n t

(S u b scrib er's fu ll n a m e o r c o rp o ra te title)

□

H old in C u sto d y — I n v e stm e n t A c ­
co u n t

(A ddress)

□

H old in C u stod y — T r u s t A ccou n t

□

P le d g e to secu re T r e a su r y T a x and
L oan A c c o u n t

□

O th er_______________________________

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 will be considered and each tender over $10,000 m ust 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 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 oi 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.

( e r v r ef ra n u c m n )
S e ees o n o n e e t


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102