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F ederal 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
Circular No. 74-86
April 2, 1974

NEW OFFERING — TREASURY BILLS
T All Banking Institutions and Others Concerned
o
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 te n d e rs for two series of T re a su ry b ills to th e ag greg ate 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 fo r T re a su ry bills m a tu rin g A pril 11, 1974, in th e a m o u n t of
$4,307,755,000, as follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to b e issued A pril 11, 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 bills d a te d J a n u a ry 10, 1974, an d to m a tu re J u ly 11, 1974 (C U S I P
No. 912793 U E 4 ) , originally issued in th e a m o u n t of $1,809,540,000, th e a d d itio n al a n d original bills to be
fre ely in terch an geab le.
182-D A Y B IL L S for $1,800,000,000, or th ere ab o u ts, to b e d a te d A p ril 11, 1974, a n d to m a tu re O ctob er 10, 1974,
( C U S I P No. 912793 U T l ) .
T h e bills of b o th series will be issued on a d isco un 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 e ir face a m o u n t will be 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 receiv ed a t F e d e ra l R eserv 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 Savings T im e , M o nd ay , A pril 8, 1974. T e n d e rs w ill n o t b e 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 be used. I t is urged th a t te n d e rs be m ad e on th e p rin te d form s a n d forw ard ed in th e special envelopes w hich w ill b e su pp lied
b y F e d e ra l R e serv e B a n k s or B ran ches on a p p lic a tio n therefor.
B a n k in g in stitu tio n s generally m ay su b m it te n d e rs fo r account of custom ers p ro v id ed th e nam es of th e custo m ers are
se t fo rth in such tenders. 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 te n 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 d ep o sit from in co rp o ra ted ban k s and tr u s t co m pan ies a n d from resp o nsib le a n d recognized
d ealers 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 bills a p p lie d for, unless th e ten d e rs a re a cco 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
tr u s t com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs w ill be op ened a t th e F e d e ra l R e se rv e B ank s a n d B ran ch es, 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 of th e a m o u n t a n d p rice range of acc ep te d bids. O nly
th ose su b m ittin g c o m p e titiv e ten d e rs will be ad vised of th e acceptance or re je ctio n thereof. T h e S e c retary of th e T rea su ry
expressly reserves th e rig h t to acc ep t or re je c t a n y or all tend ers, 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 ct to th ese reservations, n o n co m p etitiv e ten 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 will be acc ep te d in full a t th e av erag e p rice ( in th re e d ecim als) of a ccep ted c o m p e titiv e bids 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 com p leted a t th e F e d e ra l R eserv e B a n k
o n A p ril 11, 1974, in cash or o th er im m e d ia tely av ailab le fu nd s o r in a lik e face a m o u n t of T re a su ry bills m a tu rin g
A pril 11, 1974. C ash a n d exchange ten d e rs will receive eq ual tre a tm e n t. Cash a d ju stm e n ts will be m ad e fo r 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 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 Code of 1954 th e a m o u n t of d isco un 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, red eem ed or otherw ise disposed of, a n d th e bills are
excluded from con sideration 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 surance co m p an ies)
issued h e reu n d e r m u st include in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference betw een th e price 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 rchase, 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 urin g th e tax ab le y e ar for w hich th e re 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 b ills a n d
govern th e con d itio ns 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 eserv e B a n k or B ran ch .

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 8, 1974. Tenders
taay 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 en d e rs
13-W eek B ills
26-W eek B ills
D u e J u ly 5, 1974
D u e O ctob er 3, 1974
$3,716,895,000
.T o ta l A p p lied F o r _________________________________ $3,927,675,000
$2,500,130,000__________________________________ T o ta l A c c ep ted ___________________________________$1,808,255,000
P ric e
Y ie ld
P ric e
Y ield
97.890
8 .2 5 7 % __________________________ H ig h ________________________ 95.869____________ 8.171%
97.856
8 .3 9 0 % __________________________ l o w ________________________ 95.845____________ 8 .219%
97.864
8 .358% ( 1 ) ____________________ .A verage______________________ 95.849____________ 8.211% ( 1 )
( 1 ) T h ese rates are on a b ank discount basis. T h e eq u iv ale n t coupon issue y ie ld s are 8 .6 6 % for th e 13-w eek bills and 8 .6 9 % 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 April 11,1974

Maturing October 10,1974

T o : F e d e r a 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 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 $ 2 0 0 ,0 0 0

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.
^
$
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p

@
@

&

ip

@

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p

$

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

$

@

Prices should be
ex p ressed on th e
basis of 1 0 0 , w ith
not more than three
decimal places, e.g.,
99.925. F r a c tio n s
must not be used.

$

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 alue

@ $

10,000 ?

@ $

15,000 $

@ $

50,000 ?

@ $

100,000 $

□
□

P a y m e n t to b e m ade b y ______________ _

□

@ $ 50 0,000 $

B y m a tu r in g b ills
h eld by________________________________ _

C harge our r e se r v e a cco u n t on p a y m e n t
d ate

| | D r a f t e n c l o s e d (E ffectual delivery of enclosed d r a f t
sh all be on la te st day which w ill p e rm it p re s e n tm e n t
in o rd er to o b tain irrevocably collected fu n d s on p a y .
m e n t d ate)
'

@ ?1 ,000,000 $
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 n am 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
co u n t

(A ddress)

□

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

□

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

□

O th er_______________________________

B y(A uth o rized official s ig n a tu re an 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 scrib 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 in v est­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity valu e)
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