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F e d e r a l r e s e r v e Ba n k o f D a lla s
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
C ircu lar No. 74-62
M a rc h 5, 1974

NEW OFFERING — TREASURY BILLS
T All Banking Institutions and Others Concerned
o
in the Eleventh Federal Reserve District:
Your attention 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 of T re a su ry b ills to th e a g g 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 14, 1974, in th e a m o u n t of
$ 4 ,3 0 4 , 1 2 0 ,0 0 0 , as follows:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued M a rc h 14, 1974, in th e a m o u n t of $2,500,000,000, o r th ereab o u ts,
re p rese n tin g a n a d d itio n al a m o u n t of 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 IP
No. 912793 T R 7 ) , orig in 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 original b ills to be
freely interch an geab le.
182-D A Y B IL L S fo r $1,800,000,000, or 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 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 a s 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 ab le w ith ou t interest. T h e y will be 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 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 avin g T im e , M onday, M a rc h 11, 1974. T e n d e rs will 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 a c 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 o ver $10,000 m u st b e in m u ltip les of $5,000. I n 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 u rg ed 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 forw ard ed in th e special en v elop es 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 or B ran ch es on a p p lic a tio n th erefor.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs fo r accou n t of custom ers p ro v id ed th e n am es of th e custo m ers are
se t fo rth in such ten d ers. O th ers th a n b an 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 w ill b e received w ith o u t d e p o sit fro m in co rp o ra ted b ank s and tr u s t co m pan ies a n d fro m respo n sible a n d recognized
d ealers in in v e s tm e n t securities. T e n d e rs from o th ers m u st b e a cco m p anied 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 bills a p p lie d for, unless th e te n d e rs a re a cco m p an ied b y a n express g u a ran 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 our, 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 an 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 g e of a cc ep te d bids. O nly
those su b m ittin g c o m p e titiv e ten d e rs will b e ad v ised of th e acceptance o r re je ctio n th ereof. 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 cc ep t or re je c t a n y o r all ten ders, in w hole or in p a rt, a n d his actio n in a n y such re sp e c t shall be
final. S u b je c t to th ese reservations, no n c o m p e titiv e te n d e rs for each issue for $200,000 o r less w ith o u t sta te d p rice from a n y
one b id d e r will b e acc ep te d in full a t th e av erag e p rice ( in th re e decim als) of a cc ep te d co m p e titiv e bids fo r th e resp ectiv e
issues. S e ttle m e n t for acc ep te d te n d e rs in accordance w ith th e bids m u st 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 or o th e r im m e d ia tely av ailab le fu n d s or in a lik e face a m o u n t of T re a su ry bills m a tu rin g
M a rc h 14, 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 stm e n ts w ill be m ad e for differences betw een
th e p a r value of m a tu rin g bills a ccep ted in exchange a n d th e issue p rice of th e new bills.
U n d e r S ections 454 ( 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 of d isco u nt a t w hich bills
issued h e re u n d e r a re sold is co nsidered to accru e w hen th e b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are
excluded fro m co n sid eratio 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 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 for th e
bills, w h e th er on original issue or on su b seq u e n t p u rchase, 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 rity d u rin g th e tax a b le y e ar for 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 lar No. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e term s of th e T re a su ry bills a n d
govern th e c o n dition s of th e ir issue. C opies of th e circ u 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 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 ount, R a n g e a n d A p p ro x im ate Y ield of A ccep 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 lied 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 ield
P ric e
Y ield
98.091
7 .5 5 2 % ___________________________H ig h ______________________ 96.192...‘L L '.* .* ''.'..7 .5 3 2 %
98.048
7 .7 2 2 % ___________________________ L ow _______________________96.166_____________ 7.584%
98.060
7.675% ( 1 ) _____________________ A v erag e _____________________96.175_____________ 7 .566% ( 1 )
( 1 ) T h e s e rates are on a b ank d iscou nt basis. T h e eq u iv a le n t coupon issue y ie ld s are 7 .9 4 % for t h e 13 -w eek b ills a n d 7 .9 8 % for
t h e 2 6 -w eek bills.

( S e e 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 14,1974

Maturing September 12, 1974

T o: F ed era l R e ser v e B ank, S ta tio n K, D allas, T e x a s 75222

or —

T h e _ ------------------------------------------B ranch
El Paso 79999

Houston 77001

San Antonio 78295

(D ate)

P u r s u a n t to t h e p ro v is io n s o f T r e a s u r y D e p a r t m e n t C ir c u la r N o . 418 ( c u r r e n t re v is io n ) a n d t h e p r o v is io n s o f t h e
p u b lic a n n o u n c e m e n t is s u e d b y t h e T r e a s u r y D e p a r t m e n t , th e u n d e r s ig n e d o ffe rs to p u r c h a s e T r e a s u r y b ills in t h e a m o u n t
s h o w n b elow , a n d a g r e e s to p a y f o r t h e a m o u n t a llo tte d , o n o r b e f o r e t h e is s u e d a te , b y t h e m e th o d a n d a t t h e r a t e i n d ic a te d .

N O N C O M P E T IT IV E T E N D E R $__________________________________________

-N O T TO E X C E E D $ 2 0 0 ,0 0 0

Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will b e accepted in full at the average
price (in three decimals) of accepted competitive bids.

()
a

$

C O M PETITIV E T E N D E R S

$ .
¥

.

..

-

¥
¥

()
a

■■

¥

@

@

¥
¥

........

-

P r ic e s s h o u ld b e
e x p re s se d on th e
b a s i s o f 100, writh
n o t m o re th a n th r e e
d e c im a l p la c e s , e .g .,
9 9 .9 2 5 . F r a c t i o n s
m u s t n o t b e u sed.

T E N D E R S M A Y N O T B E A C C E P T E D B Y T E L E P H O N E . T E N D E R S B Y W IR E , I F R E C E IV E D B E F O R E T H E
C L O S IN G H O U R A R E A C C E P T A B L E .

Denominations Desired
N u m b e r of
pieces

P a y m e n t f o r t h is is s u e o f b ills c a n n o t b e m a d e b y
c r e d it to T r e a s u r y T a x a n d L o a n A c c o u n t

M a tu rity V alue

&

¥

m

¥

15,000 ¥

&

¥

&
m

M ETHOD OF PA YM ENT

10,000 ¥

□

B y m a tu r in g bills
held by--------------------------------------------------- -

50,000 ¥

□

P a y m e n t to be m ad e b y ------------------------

¥

100,000 ¥

□

¥

500,000 ¥

C harge our r e se r v e accou n t on p a y m e n t
d ate

| | D r a f t e n c l o s e d (Effectual delivery of enclosed d r a f t
sh all be on la te st day which will p e rm it p re s e n tm e n t
in o rd e r to o btain irrevocably collected funda on p a y ­
m e n t date)

(5) ¥ l ,000,000 ¥
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 ccount

(S u b scrib er’s fu ll nam e o r co rp o ra te title)

□

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

(A ddress)

□

Hold in C ustody — T r u st A ccou n t

□

P led g e to secu re T reasu ry T a x and
L oan A cco u n t

□

O ther_______________________________

By(A u th o rized official s ig n a tu re a n d title)

(F o r tb 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. N o t e n d e r f o r le s s t h a n $10,000 w ill b e c o n s id e r e d a n d e a c h t e n d e r o v e r $10,000 m u s t b e f o r a n a m o u n t in m u ltip le s o f
$5,000 ( m a t u r i t y v a lu e ) .
2. T e n d e r s s h o u ld b e f o r w a r d e d in a n e n v e lo p e c le a r l y a d d r e s s e d t o t h is b a n k o r a p p r o p r i a t e b r a n c h a s F is c a l A g e n t o f t h e
U n ite d S t a te s , w ith n o t a t i o n o n t h e e n v e lo p e r e a d i n g “ T E N D E R F O R T R E A S U R Y O F F E R I N G ” . S in c e e n v e lo p e s
r e c e iv e d w i t h t h i s le g e n d w ill n o t b e o p e n e d u n t il a f t e r t h e c lo s in g tim e sp e c ifie d in t h e p u b lic a n n o u n c e m e n t, c o m m u n i­
c a tio n s r e l a t i n g to o t h e r m a t t e r s s h o u ld n o t b e en clo se d . E n v e lo p e s f o r s u b m ittin g t e n d e r s m a y be o b ta in e d f r o m t h i s
b a n k o r a p p ro p ria te b ran ch .
3. A n y q u a lifie d o r c o n d itio n a l t e n d e r w ill b e r e je c te d .
4. I f a c o r p o r a tio n m a k e s t h e te n d e r , t h e f o r m s h o u ld b e s ig n e d b y a n officer o f t h e c o r p o r a tio n a u th o r i z e d to m a k e t h e
t e n d e r a n d t h e s i g n i n g o f t h e f o r m b y a n officer o f t h e c o r p o r a t i o n w ill b e c o n s tr u e d a s a r e p r e s e n t a t i o n b y h im t h a t h e
h a s b e e n so a u th o r iz e d . I f t h e t e n d e r is m a d e b y a p a r t n e r s h i p i t s h o u ld b e s ig n e d b y a m e m b e r o f t h e firm , w h o
s h o u ld s i g n in t h e f o r m " _______________________________ , a c o p a r tn e r s h ip , b y - -----------------------------------------------------------------a m e m b e r o f t h e fir m .”
5. T e n d e r s f r o m th o s e o t h e r t h a n i n c o r p o r a te d b a n k s a n d t r u s t c o m p a n ie s o r re s p o n s ib le a n d r e c o g n iz e d d e a le r s in i n v e s t ­
m e n t s e c u r it i e s w ill b e d i s r e g a r d e d , u n le s s a c c o m p a n ie d b y a d e p o s it o f 2 p e r c e n t o f t h e t o t a l a m o u n t ( m a t u r i t y v a lu e )
o f t h e T r e a s u r y b ills a p p lie d f o r , o r u n le s s t h e t e n d e r s a r e a c c o m p a n ie d b y a n e x p r e s s g u a r a n t y o f f u l l p a y m e n t b y a n
in c o r p o r a te d b a n k o r t r u s t c o m p a n y .
6. I f t h e la n g u a g e o f t h i s f o r m is c h a n g e d in a n y r e s p e c t, w h ic h , in th e o p in io n o f t h e S e c r e t a r y o f t h e T r e a s u r y is
m a t e r ia l , t h e t e n d e r m a y b e d is r e g a r d e d .

(See reverse for announcement)

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