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F ederal R eserve Bank 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. 74-96
April 9, 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 ten d e rs for tw o series of T re a su ry b ills to th e a g g reg ate a m o u n t
of $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 A p ril 18, 1974, in th e a m o u n t of
$4,304,200,000, as follow s:
91-D A Y B IL L S ( to m a tu rity d a te ) to b e issued A p ril 18, 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 17, 1974, a n d to m a tu re J u ly 18, 1974 (C U S IP
N o. 912793 U F 1 ) , o rigin ally issued in th e a m o u n t of $1,811,475,000, 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 be d a te d A p ril 18, 1974, a n d to m a tu re O cto ber 17, 1974,
( C U S I P No. 912793 U U 8 ).
T h e bills of b o th series will b e issued o n y d iscou n t basis u n d e r c o m p e titiv e a n d n o n co m p etitiv 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 in terest. 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 nd 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 avings T im e , M o n day , A p ril 15, 1974. T e n d e rs w ill no 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 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 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 ten d e rs be m ad e on th e p rin te d form s a n d fo rw arded in th e special envelopes w hich w ill b e su pp lied
b y F e d e ra l R eserv e B a n k s or B ran ch es on a p p lic atio n therefor.
B a n k in g in stitu tio n s g enerally m ay su b m it te n d e rs for account of cu stom ers p ro v id ed th e n am es of th e cu sto m ers are
set fo rth in such tenders. O th e rs th a n b a nk 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 ow n a c c o u n t
T e n d e rs w ill be received w ith o u t d ep osit from in co rp o ra ted b an ks and tru s t com panies a n d from responsible a n d recognized
d e ale rs in in v e stm 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 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 by 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
t r 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 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 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 a ccep ted bids. O nly
th o se su b m ittin g c o m p e titiv e ten d e rs will b e advised of th e acceptance 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 cc ep t or re je c t a ny or all tenders, 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 ten d e rs for each issue for $200,000 or less w ith o u t sta te d p rice from a ny
one b id d er will be acc ep te d in full a t th e av erage price (in th ree d ecim als) of a ccep ted 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 an k
o n A p ril 18, 1974, in cash o r o th e r im m e d ia tely a v ailab le fu n ds 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 18, 1974. C ash a n d exchange te n d e rs w ill receive eq u al 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 a ccep ted in exchange a n d th e issue p rice of th e new bills.
U n d e r Sections 45 4 ( 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 isco un t a t w hich bills
issued h e re u n d e r are sold is considered to accru e w hen th e bills are sold, re d ee m e d or otherw ise disposed of, a n d th e bills a re
e x clu ded from 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 insurance co m p anies)
issued h e reu n d e r m u st in clud e 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 pu rch ase, 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 em p tio n a t
m a tu r ity d u rin g th e tax ab le y e a r 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 ision ) an d th is notice, p rescrib e th e te rm s of th e T re a su ry bills a n d
go vern th e c on d itio ns of th e ir issue. C opies of th e circu lar m ay be o b ta in e d fro m a n y F e d e ra l R eserv 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 15, 1974. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m o u nt, 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
D u e J u ly 11, 1974
$3,908,395,000_____________
_ T otal A p p lied F or..
$2,500,535,000_____________
T o ta l A c c ep ted __
P ric e
Y ield
97.836_______
-8.561 %_
..H igh.
97.809.__
._8.668%_
..Low_____
97.814______
8 .648% ( 1 ) ________________
..A verage..
( 1 ) T h ese rates are on a bank discount basis. T h e eq u iva len t coupon issue y ie ld s are
th e 26 -w eek bills.

2 6-W eek B ills
D u e O cto ber 10, 1974
__________________$3,451,115,000
_________________ $1,800,450,000
P ric e
Y ield
-9 5 .7 8 5 ____________ 8 .337%
-9 5.74 9_____________8.409%
-9 5.757 _____________8 .393% ( 1 )
8 .9 6 %

for th e 13 -w eek bills and 8 .8 9 % for

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

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated Aprl 18,1974

Maturing October 17,1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
T h e --------------------------------------------- B ran ch
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 $200,000 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

$ ....
$
$
?

Prices should be
expressed on th e
basis of 100, w ith
not more than three
decimal places, e.g.,
99.925. F r a c tio n s
must not be used.

&

@
@

--

tn)

@

$
$
*
$

83^“ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE TH E
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 $_

-@ ?

50.00 0 $ .

$

1 0 0 ,0 0 0

□
□

$_

B y m a tu r in g b ills
held b y---------------------------------------------- -P a y m e n t to be m a d e b y _____________ __

□

C harge our r e ser v e accou n t on p a y m e n t
d a te
| I D r a ft enclosed (E ffectual delivery of enclosed d r a f t

-@ $ 500,00 0 $_

_@ $1,000,000 $.

sh all be on la te st day w hich will 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 o n 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 scrib er’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
cou 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 reasu ry T a x and
L oan A cco u n t

□

O th er_______________________________

By(A u th o rized official s ig n a tu re an d title )

(F o r th e a cco u n t of, if te n d e r is fo r a n o th e r subscrib 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
_— _
—j
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 vest­
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 i s
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