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F ederal R eserve Ban k o f Dallas
FISCAL. 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. 74-75
March 19, 1974

NEW OFFERING — TREASURY BILLS
To All Banking Institutions and Others Concerned
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 ites ten d e rs for tw o series of T re a su ry bills to th e agg regate a m o u n t
o f $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 28, 1974, in th e a m o u n t of
$4,326,545,000, 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 28, 1974, in th e a m o u n t of $2,500,000,000, or th ereabo u ts,
re p rese n tin g a n ad d itio n al a m o u n t of bills d a te d D e c em b er 27, 1973, a n d to m a tu re J u n e 27, 1974 (C U S IP
No. 912793 T T 3 ) , originally issued in th e a m o u n t o f $1,801,745,000, th e a d d itio n al a n d original bills to be
fre ely interchang 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 28, 1974, a n d to m a tu re S e p te m b e r 26,
1974 ( C U S IP No. 912793 U R 5 ) .
T h e bills of b o th series will be 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 ab le w ith o ut interest. T h e y will be issued in b e are 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 be received a t F e d e ra l R e serv e B an k s a n d B ranch 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 aving T im e , M o n day , M a rc h 25, 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 ov er $10,000 m u st b e in m u ltip les of $5,000. In th e case of c o m p e titiv e
te n d e rs th e price 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 b e used. I t is urged t h a t ten d e rs be m ad e on th e p rin te d form s an d forw ard ed in th e special envelopes w hich w ill b e su p plied
b y F e d e ra l R e se rv e B an k s or B ranch es o n a p p lic atio n th erefor.
B a n k in g in stitu tio n s gen erally m ay su b m it ten d e rs for account of custom ers p ro v id ed th e nam es of th e custom ers are
set fo rth in such ten ders. 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 ten d e rs ex cep t for th e ir own account.
T e n d e rs w ill be received w ith o u t dep o sit fro m in co rp o ra ted b an ks and tru s t com p anies an d from respo n sible a n d recognized
d e ale rs in in v estm e n t securities. T e n d e rs from o th ers m u st be accom pan 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 s u ry bills a p p lie d for, unless th e ten d e rs a re acco m p anied 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
t r u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e o pen ed a t th e F e d e ra l R e serv e B a n k s a n d B ranches, follow ing
w h ich 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
th o se su b m ittin g co m p e titiv e ten d e rs w ill b e a d vised of th e acceptance or rejectio n thereof. T h e S e c retary of th e T re a su ry
expressly reserves th e rig h t to a cc ep t or re je c t a n y or all ten ders, 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, 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 price 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 averag e p rice ( in th re e decim als) of acc ep te d c o m p e titiv e bid s for th e resp ectiv e
issues. S e ttle m e n t for 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 28, 1974, in cash or o th e r im m e d ia tely a v ailab le fun 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 28, 1974. C ash a n d exchange ten d e rs will receive eq u al 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 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 Sections 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 d iscou n t a t w hich bills
issued h e re u n d e r are 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 are
excluded fro m co n sid eratio n as cap 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 ran ce com p an ies)
issued h e re u n d e r m u st include in his incom e tax re tu rn , as o rd in ary gain o r loss, th e difference betw een th e p rice p a id for th e
b ills, w h e th er on original issue or on su b seq u e n t purchase, 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 r ity d u rin g th e tax a b le y ear fo r w hich th e r e 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 rev isio n ) a n d th is notice, p rescrib e th e term s of th e T re a su ry bills a n d
govern th e co n dition s of th e ir issue. C opies of th e circular m ay be o b tain e d from a n y F e d e ra l R e se rv e 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 25, 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 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 20, 1974
D u e S e p te m b e r 19,1974
$3,763,235,000
.T o ta l A p p lied F o r _________________________________ $3,072,290,000
$2,500,120,000__________________________________-T o tal A c c ep ted ___________________________________$1,800,260,000
P ric e
Y ield
P ric e
Y ield
98.003
7 .9 0 0 % __________________________ H ig h _______________________ 96.085____________ 7.744%
97.953
8 .0 9 8 % ___________________________L ow ________________________95.994____________ 7.924%
97.966
8.047% ( 1 ) -------------------------------- A v erag e --------------------------------- 96.015____________ 7.882% ( 1 )
( 1 ) T h ese rates are on a b ank d iscount basis. T h e eq u iva len t coupon issue yie ld s are 8 .3 3 % for th e 13 -w eek b ills and 8 .3 2 % for
th 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 28,1974

Maturing September 26,1974

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 $__________________________________________

_NOT TO E X C E E D $200,000

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.

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

?
$
$
*$

@
()
a
()
a
@

$
.|
$
%

■

- -

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 raction s
must not be used.

S S r 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 $_________________

□

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 harge our r e se rv e accou n t on p a y m e n t
d ate
D r a ft enclosed (E ffectual delivery o f enclosed d ra ft

@ $ 500,000 $_________________
|

@ $1,000,000 $_________________

I

s h all be on la te st day w hich w ill p e rm it p re sen tm en t
in o rd er 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 In str 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 am 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 ­
c ou 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 rea su ry T a x and
Loan A ccou n t

□

O ther_______________________________

By(A u th o rized official s ig n a tu re a n d title )
(F o r tbe a cco u n t of. i f te n d e r is fo r a n o th e r su bscrib 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.
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 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