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F ederal R eserve Ba nk o f D allas
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 la r No. 74-89
M a rc h 28, 1974

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d O thers Concerned
in the Eleventh Federal Reserve District:

Your atten tio n is invited to the following sta 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 pu b lic notice, in v ites te n d e rs for $1,800,000,000, or th ere ab o u ts, of 364-day T re a su ry
bills for cash a n d in exchange for T re a su ry bills m a tu rin g A pril 9, 1974, in th e a m o u n t of $1,801,775,000. T h e bills of
th is series will be d a te d A p ril 9, 1974, a n d will m a tu re A pril 8, 1975 (C U S IP No. 912793 V J 2 ) .
T h e bills will be issued on a disco u n t basis u n d e r co 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 o u 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 atio 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 se rv e B anks 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 aving T im e , W ednesday, A p ril 3, 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 ashing­
ton. 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 over $10,000 m u st b e in m u ltip le s of $5,000. In th e case of
co m p e titiv e ten 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 not be used. I t is urg ed th a t ten d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special envelopes
w hich will be su p p lied b y th e F e d e ra l R eserv e B an k s o r B ran ch es on a p p lic a tio n therefor.
B a n k in g in stitu tio n s g en erally m ay su b m it te n d e rs fo r a cc o u n t of custom ers p ro v id ed th e n am es of th e custo m ers a re
set fo rth in such ten ders. O th e rs th a n b an k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs e x ce p t for th e ir own account.
T e n d e rs will be receiv ed w ith o u t d e p o sit from in co rp o rated b an k s an d tr u s t com p an ies a n d from resp onsible a n d recognized
dealers in in v e stm e n t securities. T e n d e rs from o th ers m u st be accom panied 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 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 by 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 fte 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 an k s a n d B ran ches, follow ing w hich
pu b lic a n n o u n ce m en t w ill 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 range of acc ep te d bids. O nly those
su b m ittin g co m p e titiv e te n d e rs will be ad vised of th e acc ep ta n ce o r 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 c c e p t or re je c t a n y or all ten d ers, in whole or in p a rt, an d his actio n in an 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 $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r will be
acc ep te d in full a t th e av erag e p rice (in th re e d e cim als) of a cc ep te d co m p e titiv e bids. S e ttle m e n t for acc ep te d te n d e rs in accor­
dance w ith th e bids m u st be m ad e or co m p le te d a t th e F e d e ral R eserv e B a n k on A pril 9, 1974, in cash or o th e r im m e d ia tely
av ailab le fu nds or in a like face a m o u n t of T re a su ry bills m a tu rin g A p ril 9, 1974. C ash a n d exchange te n d e rs w ill receive
eq ual tre a tm e n t. C ash a d ju s tm e n ts will be m ad e for differences b e tw ee n th e p a r valu 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 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 discou nt a t w hich bills
issued h e re u n d e r are sold is consid ered 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 from c o n sid eratio n as c ap ita l assets. A ccordingly, th e ow ner of T re a su ry bills (o th e r th a n life insu rance co m p an ies)
issued h e re u n d e r m u st in clude in his incom e tax re tu rn , as o rd in ary gain or loss, th e d ifference b e tw ee n 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 purchase, and th e a m o u n t a c tu a lly received e ith e r u p o n sale or re d em 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 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, pre sc rib e th e te rm s of th e T re a su ry bills
a n d govern th e conditio ns of th e ir issue. C opies of th e c ircu lar m a y 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 acco rd a n c e with the a b o v e an n o u n c e m e n t, te nders will be received a t this b a n k a n d its bran c h es a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, W e d n e s d a y , April 3, 1974. Tenders
m a y not b e en te re d by telephone.

Yours very truly,
P. E. Coldwell
President

(S e e rev erse for te n d e r fo rm )

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

TENDER FOR TREASURY BILLS

364 DAYS TO MATURITY
Maturing April 8,1975

Dated April 9,1974
To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The__________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(Date)

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.

NONCOMPETITIVE TENDER $.

JNOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
I $-------------------------@---------------- $------------------------------Prices should be
ex pressed on th e
b asis of 100, w ith
COMPETITIVE TENDERS/$
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.
-------------------------------------- 1
2 3 ^ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

Denominations Desired
Number of
Pieces

_______@
______ @
______ @
______ @
______ @
______ <g>

M aturity Value

$ 10,000
$ 15,000
$ 50,000
$ 100,000
$ 500,000
$1,000,000

?_
$.
$_
$.
$_____________
$_____________

□
□
□
□

By maturing bills
held by____________________________
Payment to be made by_____________
Charge our reserve account on payment
date
Draft enclosed (Effectual delivery of enclosed d raft

shall be on latest day which will perm it presentm ent
in order to obtain irrevocably collected funds on pay­
m ent date)

Delivery Instructions:
□

Hold in Custody — General Account

□

Hold in Custody — Investment Ac­
count

□

Hold in Custody — Trust Account

□

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 for 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, communi­
cations relating to other m atters 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 (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 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