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FED ER AL RESERVE BANK OF 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, TE X A S 7 5 2 2 2
C ircu la r N o. 74-101
A p ril 16, 1974

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your atten tio n is invited to the following s ta te m e n t giving details of tw o 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 no tice, in v ite s te n d e rs for tw o series of T re a su ry b ills to th e agg reg ate a m o u n t
of $4,300,000,000, or th ere ab 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 25, 1974, in th e a m o u n t of
$4,307,065,000, as follow s:
91-D A Y B IL L S (to m a tu rity d a te ) to be issued A p ril 25, 1974, in th e a m o u n t of $2,500,000,000, or th ere ab o u ts,
re p rese n tin g a n a d d itio n al a m o u n t of bills d a te d Ja n u a ry 24, 1974, a n d to m a tu re J u ly 25, 1974 (C U S IP
No. 912793 U G 9 ), o rig in ally issued in th e a m o u n t of $1,797,650,000, th e a d d itio n a l a n d o rig in al b ills to be
fre ely in terch an g eab le.
182-D A Y B IL L S for $1,800,000,000, o r th ere ab o u ts, to be d a te d A p ril 25, 1974, a n d to m a tu re O ctober 24, 1974,
( C U S IP No. 912793 U V 6 ).
T h e billa of b o th series will be issued 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 v id ed , a n d a t m a tu rity th e ir face a m o u n t will b e p a y ab le w ithou 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 be receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s 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 avings T im e , M o n day , A p ril 22, i9 7 4 . T e n d e rs w ill n o t be receiv ed 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 ov er $10,000 m u st b e in m u ltip le s of $5,000. In th e case of c o 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 o re 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 rged t h a t te n d e rs b e m ad e on th e p rin te d form s an d fo rw ard ed in th e special en velop es w hich w ill b e su p p lied
by F e d e ra l R e se rv e B a n k s or B ran ch es o n a p p lic a tio n th erefor.
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 acco u n t of custom ers p ro v id ed th e n am es of th e custom ers a re
se t fo rth in such tend ers. O th e rs 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 e x ce p t fo r 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 de p o sit from in co rp o ra ted b an k s and tr u s t c o m pan ies a n d from resp o n sib le a n d recognized
d ealers in in v e stm e n t securities. T e n d e rs from o th ers m u st be acco 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 su ry b ills a p p lie d for, u nless 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 of p a y m e n t b y a n in co rp o ra ted b a n k o r
tr u s t com pany.
Im m e d ia te ly a fte r th e closing h ou r, te n d e rs will be o pened a t th e F e d e ra l R e se rv e B a n k s a n d B ran ches, follow ing
w hich p u b lic an 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 ra n g e 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 be adv ised of th e acceptance o r re je ctio n th ereo f. T h e S e c re ta ry 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 o r a ll ten d ers, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e ct shall b e
final. S u b je c t to th ese reservations, n o n co 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 fro m a n y
one b id d e r w ill b e a cc 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 c o m p e titiv e b ids fo r th e re sp e ctiv e
issues. S e ttle m e n t fo r a cc ep te d te n d e rs in acco rdan ce w ith th e b ids m u st b e m ad e o r c o m p le te d a t th e F e d e ra l R e se rv e B a n k
on A p ril 25, 1974, in cash o r o th e r im m e d ia tely a v ailab le fu n d 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 25, 1974. C ash a n d exchange te n d e rs will receive e q u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences b e tw ee n
th e p a r valu e 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 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 n t a t w hich b ills
issued h e re u n d e r a re sold is considered to accrue w hen th e bills a re sold, re d ee m e d o r o th erw ise disposed of, a n d th e bills a re
exclud ed from c o n sid era tio 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 c o m p a n ies)
issued h e reu n d e r m u st includ e in his incom e ta x re tu rn , as o rd in ary gain o r loss, th e difference b e tw ee n th e p rice p a id fo r th e
bills, w h e th e r on original issue or on su b seq u e n t pu rch ase, a n d th e a m o u n t a c tu a lly re ce iv e d e ith e r u p o n sale or 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 su ry D e p a rtm e n t C ircu la r No. 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 of th e T re a su ry b ills a n d
govern th e c o n ditio ns of th e ir issue. C o pies of th e c ircu 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 or B ran ch.

In a c co rd an ce with the a b o v e an 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 bra 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, M o n d a y , April 22, 1974. Tenders
m ay not b e e n te re d by tele p h o n e .
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ou nt, R a n g e a n d A p p ro x im ate Y ield of A c c ep ted T e n d e rs
13-W eek B ills
26-W eek B ills
D u e J u ly 18, 1974
D u e O cto b er 17, 1974
$4,000,700,000_________________________________T o ta l A p p lied F o r _________________________________ $3,551,945,000
$2,500,150,000__________________________________ .T o ta l A c c ep ted ___________________________________$1,802,210,000
P ric e
Y ield
P ric e
Y ield
97.985
7 .9 7 1 % ________________ ____ _____ H ig h ________________________ 95.921____________ 8.068%
97.959
8 .0 7 4 % ___________________________ L ow ________________________ 95.911____________ 8.0 88%
97.965
8 .051 % ( 1 ) ____________________ A v e ra g e ______________________ 95.913____________ 8.084 % ( 1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 8.33% for the 13-week bills and 8.55% for
the 26-week bills.

(See 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

91 DAYS TO MATURITY
Dated January 24,1974

Maturing Ju?y 25,1974

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 bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.

\l

Prices should be
ex pressed on the
----------------------------basis of 100, with
__________________ not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

. .
@

COMPETITIVE TENDERS < $­

It

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Num ber of
piece*

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

M aturity Value

(5) $
<® $

10,000 $15,000 $■

□

<> $ 50,000 $■
5
(5) $ 100,000 $■
<® $ 500,000 $(5) $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 encloaed draft
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

(Subscriber’s full name or corporate title)

□

Hold in Custody— Investment Ac­
count

(Address)

□
□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account
Other___________________________

By-

(Authorized official signature and title)
(For 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 olficer 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 ? 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.
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