View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal R eserve Bank

of

Dallas

F I S C A L A G E N T O F T H E UNIT ED S T A T E S

DALLAS, TE X A S 7 5 2 2 2
C ircu la r No. 74-76
M a rc h 20, 1974

OFFERING
TREASURY BILL — TAX ANTICIPATION SERIES
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your a tte n tio n is invited to th e 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 v ites te n d e rs for $2,500,000,000, or th ere ab o u ts, of 8 4-day T re a su ry
bills (to m a tu r ity d a te ) , to be issued on M a rc h 29, 1974, 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 vid ed . T h e se bills will re p re se n t a n a d d itio n a l a m o u n t of bills d a te d N o v e m b er 30, 1973, to m a tu re J u n e 21, 1974
(C U S I P No. 912793 V N 3 ) o rig inally issued in th e a m o u n t of $1,999,750,000. T h e a d d itio n al a n d origin al bills will be freely
in terch an g eab le. T h e y w ill b e a cc ep te d a t face v alu e in p a y m e n t of incom e tax es d ue on J u n e 15, 1974, a n d to th e e x te n t th e y
a re n o t p re se n te d for th is p u rp o se th e face a m o u n t of th ese bills w ill be p a y ab le w ith o u t in te re st a t m a tu rity . T a x p a y e rs desiring
to a p p ly th ese bills in p a y m e n t of J u n e 15, 1974, incom e taxes m ay su b m it th e bills to a F e d e ra l R e se rv e B a n k or B ra n ch or to th e
Office of th e T re a su re r of th e U n ite d S tates, W ash in gto n, n o t m o re th a n fifteen days before t h a t date. I n th e case of bills
s u b m itte d in p a y m e n t of incom e tax es of a c o rp o ratio n th e y shall be acco m p an ied b y a d u ly c o m p leted F o rm 503 a n d th e office
receivin g th ese item s will effect th e d e p o sit o n Ju n e 15, 1974. In th e case of bills s u b m itte d in p a y m e n t of incom e tax es of all
o th e r tax p ay ers, th e office receiv in g th e b ills will issue receip ts th erefo r, th e original of w hich th e tax p a y e r shall su b m it on or
b efo re J u n e 15, 1974, to th e In te rn a l R e v e n u e Service C e n te r D irector for th e D istric t in w hich such taxes a re pay ab le. T h e
b ills w ill be issued in b e a re r fo rm only, a n d in d en om 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 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 h o ur, o n e -th irty p.m ., E a s te rn D a y ­
lig h t S aving T im e , T u esd ay , M a rc h 26, 1974. T e n d e rs will n ot b e received a t th e T re a su ry D e p a rtm e n t, W ashington. E ach
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 le s 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 b e expressed o n th e basis o f 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 ed t h a t te n d e rs be m a d e on th e p rin te d form s a n d fo rw ard ed in th e sp ecial env elo pes 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 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 g enerally m a y su b m it te n d e rs for a cc o u n t of custo m ers p ro v id ed th e n am es of th e custo m ers a re
se t 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 rm 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 will b e received w ith o u t d ep o sit fro m in co rp o ra ted b an k s a n d tr u s t c om pan ies a n d fro m resp on sible a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st b e a cc o m p an 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 te n d e rs a re a cc o m p an ied b y a n express g u a ra n ty o f 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 co m pany.
A ll b id d ers a re re q u ire d to ag ree n o t to p u rc h ase o r to sell, o r to m ak e a n y a g ree m e n ts w ith re sp e ct to th e p u rc h ase
o r sale or o th e r d isp o sitio n of a n y b ills b id for u n d e r th is offering a t a specific r a te o r price, u n til a f te r 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 , T u esd ay , M a rc h 26, 1974.
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 e n ed a t th e F e d e ra l R e se rv e B an 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 will be m ad e b y th e T re a su ry D e p a rtm e n t o f th e a m o u n t a n d p rice ran ge of a cc ep te d bids. O nly those
su b m ittin g c o m p e titiv e te n d e rs will b e ad v ised of th e acc ep ta n ce o r rejectio n th ereo f. T h e S e c retary of th e T re a su ry expressly
reserves th e rig h t to a c c e p t o r re je c t a n y o r all ten d e rs, in w hole o r 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 atio ns, n o n c o m p e titiv e te n d e rs for $500,000 or less w ith o u t sta te d p rice from a n y one b id d er will be
a cc ep te d in full a t th e a verag e p rice ( in th re e d ecim als) of a cc ep te d c o m p e titiv e bids. S e ttle m e n t fo r a cc ep te d te n d e rs in
a ccordance w ith th e bids m u st b e 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 in cash or o th er im m e d ia tely av ailab le fun d s
on M a rc h 29, 1974. A n y qualified d e p o sita ry will be p e rm itte d to m ak e s e ttle m e n t b y c re d it in its T re a su ry T a x a n d L oan
acc o u n t for T re a su ry b ills a llo tte d to it fo r itself a n d its custom ers.
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 C ode of 1954 th e a m o u n t of d isco u nt a t w hich b ills issued
h e re u n d e r a re sold is co nsid ered to accru e w hen th e bills a re sold, re d ee m e d or o th erw ise disposed of, a n d th e bills a re excluded
from co n sid eratio n as c a p ita l assets. A ccordingly, th e ow ner of T re a su ry b ills ( o th e r th a n life insuran ce c o m p a n ies) issued h e re ­
u n d e r m u st in clu de in his incom e tax re tu rn , as o rd in a ry gain or loss, th e difference b e tw ee n th e p rice p a id for th e bills, w h e th er
on orig in al issue or on su b seq u e n t p urch ase, 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 a r for w hich th e r e tu rn is m ade.
T re a s u ry D e p a rtm e n t C ircu la r N o. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s o f th e T re a su ry b ills a n d
g overn th e con d itio ns of th e ir issue. C opies of th e circ u lar m a y be 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 a c c o rd a n c e with th e a b o v e a n n o u n c e m e n t, te n d e rs 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, Tuesday, March 26, 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

(See reverse side for tender form)

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

This issue of Treasury bills will be accepted at face value in payment of income taxes due
on June 15,1974

TENDER FOR ADDITION TO TREASURY BILLS
TAX ANTICIPATION SERIES
Dated November 30, 1973

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The---------------------------------------- Branch
El Paso 79999

Maturing June 21,1974

84 DAYS TO MATURITY

Houston 77001

_____

San Antonio 78295

Date

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public announcement, as shown on reverse side, as 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 $500,000
Noncompetitive tenders for $500,000 or less from any one bidder, without stated price, will be accepted in full at the aver­
age price (in three decimals) of accepted competitive bids.
/7is

/ <
6

s

%

COMPETITIVE TENDERS < $

$
$
^

-

«

()
a
@
()
a

Prices should be
expressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
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.
Denominations Desired

N um ber of
P ie c e s

M atu rity

METHOD OF PAYMENT
Value*

□

<® $
<® $

50,000 $
<> ? 100,000 $
5
(a $ 500,000 $

By charge to our Treasury Tax and Loan Account

□

10,000 $
15,000 *

Payment to be made by.......................................................

$

(5) $ i ,000,000

(Name of Bank)
□
□

%

Hold in Custody — General Account

□

Hold in Custody — Investment Ac­
count

□

Hold in Custody — Trust Account

□

By draft enclosed (effectual delivery of enclosed draft
shall be on latest day which will permit presentment in
order to obtain irrevocably collected funds on payment
date).

We certify that we, as well as our customers, if any, listed
hereon have agreed not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other dis­
position of any bills bid for under this offering at a specific rate
or price, until after one-thirty p.m., Eastern Daylight Saving
Time, Tuesday, March 26. 1974.

Delivery Instructions:
□

By charge to our reserve account on payment date.

Pledge to secure Treasury Tax and
Loan Account
Other___________________________

□

(Subscriber’s full name or corporate title)
(Address)

By_

(Authorized official signature and title)
(F o r the account of, if tender is fo r 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, communications
relating to other m atters should not be enclosed. Envelopes for submitting tenders may be requested 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 tru st 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.
fi. 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