View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal r e s e r v e Ba n k o f Dallas
F IS C A L A G E N T O F T H E U NITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2

C ircu la r No. 74-110
A p ril 25, 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 a n issue 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 blic notice, in v ites te n d e rs fo r $1,800,000,000, o r th ere ab o u ts, of 3 64-day T re a su ry
b ills to be d a te d M a y 7, 1974, an d to m a tu re M a y 6, 1975 ( C U S I P No. 912793 V K 9 ).
T h e b ills will b e issued for cash a n d in exchange for T re a su ry bills m a tu rin g M a y 7, 1974, o u tstan d in g in th e a m o u n t of
$1,800,435,000, of w hich G o v e rn m en t acco u nts a n d F e d e ra l R eserv e B an k s, for th em selv es a n d as a g en ts of fo reign a n d in te rn a ­
tio n a l m o n e ta ry au th o ritie s, p re se n tly h o ld $1,094,750,000. T h ese acco u n ts m ay exchange bills th e y hold fo r th e bills now b ein g
offered a t th e a verag e price of a cc ep te d tenders.
T h e bills will b e issued on a d iscou 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 rov 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 ith o u t in te re st. T h e y w ill be issued in b e a re r fo rm 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 will be received a t F e d e ra l R e se rv e B ank 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 av in g T im e , T h u rsd a y , M a y 2, 1974. T e n d e rs will 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 ash in g­
ton. E a c h te n d e r m u st b e for a m in im u m o f $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. I n 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 a y n o t be used. I t is u rg ed t h a t te n d e rs be m ad e on th e p rin te d form s a n d fo rw ard ed in th e special envelopes
w hich w ill be su p p lied b y th e F e d e ra l R e se rv e B a n k s o r B ranch es o n a p p lic a tio n th erefor.
B a n k in g in stitu tio n s g enerally m a y su b m it te n d e rs fo r a cc o u n t of custo m ers p ro v id ed th e n am es of th e cu sto m 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 be p e rm itte d to su b m it ten d e rs e x ce p t for th e ir own account.
T e n d e rs will be receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b an k s a n d tr u s t co m pan ies a n d fro m respo n sible a n d recognized
dealers in in v estm e n t securities. T e n d e rs fro m o th ers m u st b e acco m panied 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, un less th e te n d e rs a re accom p an ied 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 o r
tr u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill b e o p e n ed a t th e F e d e ra l R e se rv e B an k s a n d B ranches, 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 rang e of a cc ep te d bids. O n ly th o se
su b m ittin g c o m p e titiv e te n d e rs will be ad v ised of th e acc ep ta n ce o r 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 o r all ten d e rs, 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 these reserv atio n s, n o n c o m p e titiv e te n d e rs for $200,000 o r less w ith o u t sta te d p rice from a n y one b id d e r w ill be
a cc ep te d in full a t th e a verag e price ( in th re e d e cim als) of a cc ep te d c o m p e titiv e bids. S e ttle m e n t for acc ep te d te n d e rs in accor­
dance w ith th e bids m u st be m ad e or co 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 7, 1974, in cash o r o th e r im m e d ia tely
a v ailab le fun d s or in a like face a m o u n t of T re a s u ry bills m a tu rin g M a y 7, 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 v a lu 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 Sections 454 ( b ) an 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 disco u n t a t w hich bills
issued h e re u n d e r a re sold is considered to accrue w h en th e b ills a re sold, re d ee m e d or otherw ise disposed of, a n d th e bills are
excluded fro m co n sid eratio n as c a p ita l assets. 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 in clud e in his incom e ta x re tu rn , as o rd in a ry gain o r loss, th e difference be 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 p u rchase, an d th e a m o u n t a ctu a lly received 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. 418 ( c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e term s of th e T re a su ry bills
a n d govern th e con d itio ns of th e ir issue. C opies of th e c irc u lar m a y be o b tain e d from a n y F e d e ra l R e se rv e B a n k o r B ranch.

In a cco rd an ce with the a b o v e a n n o u n c e m e n t, tenders will b e received a t this b a n k a n d its b ra nc h e s a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, Thursday, M a y 2, 1974. Tenders
m a y not b e e n te re d by telep h o n e.

Yours very truly,
P. E. Coldwell
President

(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

364 DAYS TO MATURITY
Dated May 7,1974

Maturing May 6,1975

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The___________________________Branch
£1 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 $

.NOT TO EXCEED $200,000

Noncompetitive tenders for $200,000 or less from any one 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
(a)
$
1
?
b asis of 100, w ith
not more than three
$
$
@
decimal places, e.g.,
(a)
1
$
$
99.925. F ra c tio n s
must not be used.
. .
.
.
*
TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

Denominations Desired
Number of
Pieces

-(5)
(5)
_(5)
-<S>
_(5)

$ 10,000
$ 15,000
$ 50,000
? 100,000
$ 500,000
~(® $1 ,000,000

M atu rity V alue

$■
$■

□
□

*
$$.

□

Hold in Custody — General Account

□

Hold in Custody — Investment Ac­
count

□

Hold in Custody — Trust Account

□

Pledge to secure Treasury Tax and
Loan Account

□

Charge our reserve account on payment
date

I 1 D r a f t e n c l o s e d (Effectual delivery of enclosed d raft
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:
□

By maturing bills
held by____________________________
Payment to be made by_____________

Other___________________________

(Subscriber’s full name or corporate title)
(Address)

By.
(Authorized official signature and title)
(F o r 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 th a t 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 (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