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FED E R AL RESERVE B AN K 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. 74-102 A p ril 16, 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 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 notice, in v ite s te n d e rs fo r tw o series of T re a su ry bills to th e agg reg ate a m o u n t of $4,300,000,000, o r th ere ab o u ts, fo r cash a n d in exchange for T re a su ry bills m a tu rin g A pril 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 re se n tin g a n a d d itio n a l a m o u n t of b ills 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 I P 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 original b ills to be fre ely in terch an g eab le. 182-D A Y B IL L S fo r $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 bills 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 pro 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 ith o u t in te re st. T h e y w ill b e 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 rity 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 e se rv e B a n k s an d B ra n ch e s u p to th e closing h our, o n e -th irty p.m ., E a s te rn D a y lig h t Savings T im e , M o n day , A pril 22, 1974. 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 o v er $10,000 m ust b e in m u ltip le s of $5,000. I n 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 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 be m ad e o n th e p rin te d form s a n d fo rw ard ed in th e special envelopes w hich w ill b e su p p lied b y F e d e ra l R e se rv e B a n k s o r B ra n ch e s on a p p lic a tio n th erefo r. 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 for accoun t of c u stom ers p ro v id ed th e n am es of th e cu sto m ers a re set fo rth in such tend ers. O th e rs th a n b a n k in g in stitu tio n s w ill 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 account. T e n d e rs w ill be receiv ed w ith o u t de p o sit fro m in co rp o ra ted b an k s and tr u s t com p anies a n d from resp onsible a n d recognized d ealers in in v e stm e n t securities. T e n d e rs fro m o th ers m u st b e a cco 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 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 or tru s t com pany. Im m e d ia te ly a fte r th e closing h ou r, ten d e rs will b e o p en ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranch es, follow ing w hich p u b lic an 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 ra n g e o f a cc ep te d bids. O nly tho se su b m ittin g c o m p e titiv e ten d e rs will be advised of th e acceptan ce or re je ctio 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 n y o r a ll ten d ers, in w hole o r 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 co m p e titiv e te n d e rs for each issue for $200,000 or less w ith o u t sta te d p rice fro m any one b id d e r w ill be a cc ep te d in full a t th e average p rice (in th re e d e cim als) of a cc ep te d c o m p e titiv e b id s fo r th e re sp e ctiv e issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e bids m u st b e 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 o n 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 p ril 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 will be m ad e fo r differences b etw een 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 Sectio ns 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 iscou nt a t w hich bills issued h e re u n d e r a re sold is con sidered to accru e w h en th e bills a re sold, re d ee m e d o r o therw ise disposed of, a n d th e b ills a re excluded from c o n sid eratio n as c a p ita l a ssets. 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 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 g ain or 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 er on original issue or on su b seq u e n t p urchase, a n d th e a m o u n t a ctu a lly re ce iv e d e ith e r u p o n sale o r re d e m p tio n a t m a tu rity d u rin g th e ta x a b le y e a r 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 ircu la r No. 418 (c u rre n t rev 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 co n d itio n s of th e ir issue. C opies of th e c irc 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 acco rd a n c e with the a b o v e a n n o u n c e m e n t, te n d e rs will be received a t this b a n k a n d its bran c h es a t El Paso, H ouston 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 te le p h o n e . Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS A m oun t, R a n g e a n d A p p ro x im ate Y ield of A ccep ted T e n d e rs 13-W eek B ills D u e J u ly 18, 1974 $4,000,700,000_________________ $2,500,150,000_________________ P ric e Y ield 97.985____________ 7 .9 7 1 % _____ 97.959____________ 8 .0 7 4 % _____ 97.965_____ ____8.0 51% ( 1 ) . _______ T o ta l A p p lied For.. ________ T o ta l A c c ep ted __ - H i g h ______ __ Low______ -A verage_____ 26-W eek B ills D u e O c to b er 17, 1974 _________________ $3,551,945,000 _________________ $1,802,210,000 P ric e Y ield .95.921__________ j*—-8.068% 95.911_____________ 8.0 88% -95.913_____________ 8.08 4% (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 TREASURY BILLS 182 DAYS TO MATURITY Dated April 25,1974 Maturing October 24,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The---------------------------------------- Branch £3 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 a t the rate indicated. NONCOMPETITIVE TENDER $____________________________________ _NOT 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. Prices should be expressed on the basis of 100, with not more than three decimal places, e.g., 99.925. F ractio n s must not be used. (t r\ ------ VW---- COMPETITIVE TENDERS $ $ $ A ... @ _ (O $ $ £ $ . I ^ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired Num ber of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT M aturity Value $ 10,000 $_ $ 15.000 $. $ 50.000 $. □ $ 100,000 $_ $ 500,000 $_ □ □ By maturing bills held by-------------------------------------------Payment to be made by-------------------- Charge our reserve account on payment date | | Draft enclosed (Effectual delivery of enclosed draft $1,000,000 $. 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 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 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)
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