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F ederal Reser ve 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 No. 74-106 A p ril 23, 1974 NEW OFFERING — TREASURY BILLS To All Banking Institutions a n d Others Concerned in th e Eleventh Federal Reserve District: Your attentio n is invited to the following s ta te m e n t 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 n otice, in v ite s te n d e rs fo r two series o f T re a su ry b ills to th e a g gregate a m o u n t of $4,300,000,000, or th ere ab o u ts, to be issued M a y 2, 1974, as follow s: 91-D A Y B IL L S ( to m a tu rity d a te ) 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 b ills d a te d J a n u a r y 31, 1974, a n d to m a tu re A u g u st 1, 1974 (C U S I P No. 912793 U H 7 ) ,o r ig in a lly issued in th e a m o u n t of $1,803,345,000, th e a d d itio n a l a n d o rigin al bills to b e fre ely in terchan 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 M a y 2, 1974, a n d to m a tu re O cto b er 31, 1974 (C U S I P No. 912793 U W 4 ). T h e bills will b e issued fo r cash a n d in exchange fo r T re a su ry b ills m a tu rin g M a y 2, 1974, w hich a re o u tsta n d in g in th e a m o u n t of $4,307,940,000. F e d e ra l R e se rv e B anks, fo r th em selves a n d as a g en ts of foreign m o n e ta ry a u th o ritie s, a n d G o v e rn m en t acco u nts hold $2,278,910,000, w hich m ay b e exchanged fo r th e bills now b ein g offered a t th e av era g e p rices of a cc ep te d tenders. T h e b ills of b o th series will b e issued on a disco 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 prov ided, 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 a b le w itho u t interest. T h e y will be issued in b e a re r form only, a n d in d en 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 r ity v a lu e ). T e n d e rs will be re ce iv e d 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 hour, o n e -th irty p.m ., E a s te rn D a y lig h t S avin g T im e , M o n d ay , A p ril 29, 1974. T e n d e rs w ill n o t b e receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E ach 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 e r $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 o n 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 urg ed t h a t te n d e rs be m a d e on th e p rin te d fo rm s a n d fo rw arded in th e special en v elo p es 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 or B ran ch es o n a p p lic a tio n th erefo r. B a n k in g in stitu tio n s gen erally m a y su b m it te n d e rs fo r acco u nt of c usto m ers p ro v id ed th e na m e s of th e c u sto m ers are se t fo rth in such ten d ers. O th ers 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 fo r th e ir ow n account. T e n d e rs w ill b e received w ith o u t d e p o sit fro m in co rp o ra ted b a n k s and tr u s t co m pan ies a n d fro m resp on sib le a n d recognized d e ale rs in in v e stm e n t securities. T e n d e rs fro m o th e rs m u st b e a cc o 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, 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 tr u s t co m pany. Im m e d ia te ly a fte r th e closing h o ur, te n d e rs w ill be 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 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 ra n g e of a cc ep te d bids. O nly th o se su b m ittin g c o m p e titiv e te n d e rs w ill b e a d v ised o f th e accep tan ce or re je ctio n th ereof. 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 o r re je c t a n y or all ten d ers, in w hole o r 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 reservatio ns, n o n c o m p e titiv e te n d e rs fo r 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 will be a cc ep te d in full a t th e a v 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 bids 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 acco rd an ce w ith th e b id s m u st be 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 M a y 2, 1974, in cash o r o th e r im m e d ia tely av ailab le fu n d s o r in a like face a m o u n t of T re a su ry bills m a tu rin g M a y 2, 1974. C ash a n d exchange te n d e rs w ill receive e q u al tre a tm e n t. C ash a d ju stm e n ts will be m a d e for differences be tw ee n th e p a r v alu e of m a tu rin g b ills a cc ep te d in exchange a n d th e issue price 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 bills issued h e re u n d e r are sold is co nsidered to accrue w hen th e b ills a re sold, re d ee m e d or o th erw ise disposed of, a n d th e bills a re ex cluded fro m co n sid eratio n as c a p ita l a ssets. A ccordingly, th e ow ner of T re a su ry b ills (o th e r th a n life in su ran ce co m p an ies) issued h e re u n d e r m u st include in his incom e ta x re tu rn , as o rd in a ry g ain o r loss, th e difference b e tw ee n th e p rice p a id for th e bills, w h e th e r on original issue or on su b seq u e n t p u 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 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 fo r w hich th e re tu r n is m ade. T re a su ry D e p a rtm e n t C ircu lar No. 41 8 (c u rre n t rev isio n ) a n d th is notice, p re sc rib e th e te rm s o f th e T re a su ry b ills a n d govern th e c o nd ition s of th e ir issue. C opies of th e circ u lar m ay b e 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 acc o 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 b e received a t this b a n k a n d its b ran ch es 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 29, 1974. Tenders m a y 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 o un t, R a n g e a n d A p p ro x im ate Y ie ld o f A c c ep ted T e n d e rs 13-W eek B ills D u e J u ly 25, 1974 $3,433,705,000_________ _____ .. $2,500,075,000_________________ P ric e Y ield 98.043____________ 7 .7 4 2 % _____ 97.976____________ 8 .0 0 7 % _____ 98.014____________ 7 .85 7 % ( 1 ) . ..T otal A p p lied F o r . __T o ta l A c c e p te d —. —H ig h ___ __ Low___ -A v e r a g e - 26-W eek B ills D u e O c to b er 24, 1974 _________________ $2,818,065,000 _________________ $1,800,335,000 P ric e Y ie ld .95.983_________________ 7.946% .9 5 .8 8 7 _________________ 8.1 36 % .95.958_____________ 7.9 95 % ( 1 ) (1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 8.13% for the 13-week bills and 8.45% 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 31,1974 Maturing August 1,1974 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 $______________________________________ JtfOT 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 competitire bids. ; COMPETITIVE TENDERS < $» ; ft> * (n) @ @ @ Prices should be ex p ressed on th e basis of 100, with not more than three decimal places, e.g., 99.925. F ra c tio n s must not be used. $ £ $ $ UST 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 (5) $ <5> $ (5) $ 10,000 $. 15,000 $. 50,000 $- □ □ <a> $ 100,000 $. (a) $ 500,000 $<® $1 ,000,000 $- By maturing bills held by-------------------------------------------Payment to be made by-------------------- □ Charge our reserve account on payment date I I Draft enclosed (Effectual delivery of enclosed draft shall be on latest day which will perm it presentm ent in order to obtain irrevocably collected funds on pafm 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 m ust 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)
@FedFRASER