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federal

R eserve Ba n k 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
C ircu lar No. 74-81
M a rc h 26, 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 ite s ten d e rs fo r tw o series of T re a su ry bills to th e ag greg ate a m o u n t
of $4,300,000,000, or th ere ab o u ts, fo r cash a n d in exchange fo r T re a su ry bills m a tu rin g A pril 4, 1974, in th e a m o u n t of
$4,302,060,000, as follows:
92-D A Y B IL L S ( to m a tu rity d a te ) to b e issued A pril 4, 1974, in th e a m o u n t of $2,500,000,000, or th ere ab o u ts,
re p re se n tin g a n ad d itio n al a m o u n t of b ills d a te d J a n u a ry 3, 1974, a n d to m a tu re J u ly 5, 1974 ( C U S IP
No. 912793 U D 6 ) , origin ally issued in th e a m o u n t of $1,802,505,000, th e a d d itio n a l a n d orig in al bills to be
fre ely interchang eab le.
182-D A Y B IL L S fo r $1,800,000,000, or th ereab o u ts, to be d a te d A p ril 4, 1974, a n d to m a tu re O cto b er 3, 1974,
(C U S I P No. 912793 U S 3 ).
T h e b ills of b o th series w ill b e issued on a d iscou 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 v id ed , a n d a t m a tu rity th eir face a m o u n t will b e p a y ab le w ithout interest. 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 r ity v a lu e ).
T e n d e rs w ill b e received 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 Saving T im e , M o nd ay , A pril 1, 1974. T e n d e rs w ill 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 etitiv 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 be used. I t is u rg ed t h a t ten d e rs b e m ad e on th e p r in te d form s a n d fo rw ard ed in th e special en velo p es w hich will b e su pp lied
b y F e d e ra l R e se rv e B a n k s or B ra n ch e s on a p p lic atio n th erefor.
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 acco un t of cu stom ers p ro v id ed th e n am es of th e c u stom ers are
se t fo rth in such ten d ers. O th ers th a n b a n 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 for th e ir ow n account.
T e n d e rs will be received w ith o u t d ep o sit from in co rp o ra ted b a n k s and tr u s t com panies a n 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 acco m p an ied by 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 b ills a p p lie d for, unless th e te n d e rs a re a ccom p an ied b y a n express g u a ran ty of p a y m e n t by an 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 ho ur, te n d e rs will be op ened a t th e F e d e ra l R eserv e B a n k s a n d B ran ch es, follow ing
w hich p u b lic an n o u n ce m en t will be m ad e by 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
th ose su b m ittin g c o m p e titiv e te n d e rs will b e ad vised of th e acceptance or re je ctio n thereof. 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 o r re je c t a n y or 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 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 o r less w ith o u t sta te d p rice from a n y
one b id d er w ill be a ccep ted in full a t th e averag e p rice ( in th re e d ecim als) of acc ep te d c o m p e titiv e b id s for 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 b id s m u st be m ad e or c o m p leted a t th e F e d e ra l R e se rv e B a n k
on A pril 4, 1974, in cash or o th er im m e d ia tely av ailab le fu n d s or in a like face a m o u n t of T re a su ry bills m atu rin g
A p ril 4, 1974. C ash a n d exchange ten d e rs will receive eq u al trea tm e n t. C ash a d ju s tm e n ts will b e m ad e for differences betw een
th e p a r v alu e of m a tu rin g bills 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 Sections 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 iscount a t w hich bills
issued h e reu n d e r a re sold is co nsidered to accru e w h en th e bills a re sold, re d ee m e d or otherw ise disposed of, a n d th e b ills are
e x cluded from co nsid 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 insurance co m p anies)
issued h e reu n d e r m u st in clu de in his incom e tax retu rn , as o rd in ary gain or loss, th e difference betw 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 urchase, a n d the 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 du rin g th e ta x a b le y e ar 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 re v 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 circ u lar m ay 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, April 1, 1974. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o un t, R a n g e a n d A p p ro x im ate Y ield of A ccep ted T en d e rs
13-W eek B ills
26-W eek B ills
D u e J u n e 27, 1974
D u e S e p te m b e r 26, 1974
$3,394,750,000________________________________ .T o ta l A p p lied F o r_________________________________ $3,333,045,000
$2,500,110,000__________________________________.T o ta l A c c ep ted ___________________________________$1,800,550,000
P ric e
Y ield
P ric e
Y ield
97.932
8 .1 8 1 % __________________
H ig h _____
95.867_____________ 8.175%
97.882
8 .3 7 9 % ___________________________ L ow _______________________ 9 5 .8 3 0 ____________ 8.248%
97.9 02
8 .300% ( 1 ) . . - ________________A verage______________________ 95.839____________ 8 .2 3 1% ( 1 )
( 1 ) T h ese rates are on a bank discount basis. T h e eq u iva le n t coupon issue y ie ld s are 8 .6 0 % for th e 1 3 -w eek bills and 8 .7 1 % 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 ADDITION TO TREASURY BILLS

92 DAYS TO MATURITY
Dated January 3,1974

Maturing July 5,1974

T o: F ed era 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 Grcular 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 f<-om any bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
(a

^

t

<)
n
(a)

$

$
$

@

¥

¥

@

¥

$

C O M PE T IT IV 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 raction s
must not he used.

BSP 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 ¥
<> ¥ 100,000 ¥
a
<> ¥ 500,000 ¥
a

□

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

< ¥
s>
(5) ¥
<> ¥
a

□

C h arge our r e se r v e a ccou n t on p a y m e n t
d a te
I I D r a ft en closed (E ffectual delivery o f enclosed d ra ft

(5) $ i ,000,000 ¥

sh all be on la te st day which w ill p e rm it p re sen tm en t
in ord er to ob tain irrevocably collected fu nds on p a y ­
m e n t date)

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 sc rib e r’s fu ll n a m 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 ­
count

(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
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 th e acco u n t of, if te n d e r is fo r a n o th e r su b sc rib e r)

(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, com munications 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