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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. 74-68
March 12, 1974

NEW OFFERING — TREASURY BILLS
T A Banking Institutions and Others Concerned
o IS
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, inv ites ten d e rs for tw o series of T re a su ry bills to th e ag gregate a m o u n t
of $4,300,000,000, or th ereab 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 21, 1974, in th e a m o u n t of
$4,305,165,000, 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 21, 1974, in th e a m o u n t of $2,500,000,000, or 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 ecem b er 20, 1973, a n d to m a tu re J u n e 20, 1974 ( C U S IP
No. 912793 T S 5 ) , o riginally issued in th e a m o u n t of $1,799,045,000, th e a d d itio n al a nd original bills to be
freely in terchang 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 21, 1974, a n d to m a tu re S e p tem b e r 19,
1974, ( C U S IP No. 912793 U Q 7 ).
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 as h e re in a fte r
pro v id ed , a n d a t m a tu rity th e ir face a m o u n t w ill be p a y ab 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 rity v a lu e ).
T e n d e rs will b e received a t F e d e ra l R e serv 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 Sav ing T im e , M o n day , M a rc h 18, 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 ashington. 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 ust be in m u ltip les of $5,000. In th e case of co 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 ore 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 urg ed th a t ten d e rs b e m ad e on th e p rin te d form s an d forw arded in th e special envelopes w hich w ill be su p p lied
b y F e d e ra l R e serv e B a n k s or B ran ch es o n 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 ten d e rs for account of custom ers p ro v id ed th e n am es of th e cu stom ers are
set fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s w ill 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 an k s and tru s t com p an ies a n d from resp on sib le a n d recognized
dealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st be 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 acco m p an ied b y an 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
tru s t com pany.
Im m e d ia te ly a fte r th e closing hour, ten d e rs will be o p en ed a t th e F e d e ra l R eserve B an 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 acc ep te d bids. O nly
those su b m ittin g co m p e titiv e ten d e rs w ill be a d v ised of th e acceptance or rejectio n thereof. T h e S ec 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 or all tenders, 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 reservations, no 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 er w ill b e acc ep te d in full a t th e averag e p rice ( in th re e decim als) of acc ep te d co m p e titiv e bid s for th e resp ectiv e
issues. S e ttle m e n t fo r acc ep te d ten d e rs in accordance w ith th e bids m u st be m ad e or co m p leted a t th e F e d e ra l R e serv e B a n k
on M a rc h 21, 1974, in cash or o th e r im m e d ia tely a v ailab le fu nd 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 21, 1974. C ash a n d exchange ten d e rs w ill receive eq ual tre a tm e n t. C ash a d ju stm e n ts will be m ad e for differences b etw een
th e p a r v alue of m a tu rin g bills acc ep te d in exchange a n d th e issue price 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 en u e C ode of 1954 th e a m o u n t of discou n t a t w hich bills
issued h e re u n d e r a re sold is considered to accrue w hen th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re
excluded from c o 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 anies)
issued h e re u n d e r m u st inclu d 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 en t p u rch ase, a n d th e a m o u n t a ctu a lly receiv ed e ith e r u p o n sale or re d e m p tio n a t
m a tu rity d u rin g th e tax a b le y ear 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 ircular No. 418 (c u rre n t rev isio n ) a n d th is notice, prescrib e th e term s of th e T re a su ry b ills a n d
govern th e conditions of th e ir issue. C opies of th e circu lar m ay be o b tain e d from a n y F e d e ra l R eserve B a n k or 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 18, 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 13, 1974
D u e S e p te m b e r 12, 1974
$5,174,445,000________________________________ .T o ta l A p p lied F o r _________________________________ $3,447,265,000
$2,501,750,000__________________________________ .T o ta l A c c ep ted ___________________________________ $1,800,605,000
P ric e
Y ield
P ric e
Y ield
98.003
7 .9 0 0 % -----------------------------------------H ig h ________________________ 96.160____________ 7.596%
97.995
7 .9 3 2 % __________________________ -Low________________________ 96.123____________ 7 .669%
97.998
7.920% ( 1 ) ____________________ -A verage______________________ 96.139____________ 7.637% ( 1 )
( 1 ) T h ese rates are on a bank d iscount basis. T h e eq u iva len t coupon issue y ie ld s are 8 .1 9 % for th e 13 -w eek b ills and 8 .0 5 % 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 21,1974

Maturing September 19, 1974

T o : F ed era l R e se r 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)

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 $__________________________________________

N O T TO E X C E E D $20 0,000

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 (in three decimals) of accepted competitive bids.
^
$
T

@

$
Y

$
»

@
\sr

1
$

$

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

@

Prices should be
exp 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.

%

$
*

■

■"
—

23F3 TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
N u m b er 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 alue

-@ $

10,000 $

@ ?

15,000 $

@ $
@ $

□

B y m a tu r in g b ills
held b y----------------------------------------------------

50,000 $

□

P a y m e n t to be m ad e by_

100,000 $

□

C harge our r e ser v e a ccou n t on p a y m e n t
d ate
D r a ft enclosed (E ffectual delivery o f enclosed d r a f t

@ % 500,000 ?
I I

@ $l;,000,000 $

s h 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 o b 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 nam e o r c o rp o ra te title)

□

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

(A ddress)

□

H old in C u stod y — T r u st A cco u n t

□

P le d g e to secu re T reasu ry T a x and
Loan A cco u n t

□

O ther—---------------------------------------------

By(A u thorized official s ig n a tu re a n d title )
(F o r th e acc o u n t of, if te n d e r is fo r a n o th e r subscrib er)

(A ddress)

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 (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.
8 . 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 in vest­
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 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.

(See reverse for announcement)

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