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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
C ircu lar N o. 74-125
M a y 7, 1974

NEW OFFERING — TREASURY BILLS
To All Banking Institutions and Others Concerned
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, inv ites ten d ers for tw o series of T re a su ry bills to th e agg regate a m o u n t
of $4,500,000,000, or th ereab o u ts, to be issued M a y 16, 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 $2,600,000,000, or th ereab ou 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 F e b ru a ry 14, 1974, a n d to m a tu re A u g ust 15, 1974 ( C U S IP No. 912793 U K 0 ) , origin ally
issued in th e a m o u n t of $1,799,305,000, th e a d d itio n al a n d original bills to b e freely in terch an g eab le.
182-D A Y B IL L S for $1,900,000,000, or th ere ab o u ts, to be d a te d M a y 16, 1974, a n d to m a tu re N o v em b er 14, 1974
(C U S I P No. 912793 U Y 0 ).
T h e bills will be issued for cash a n d in exchange for T re a su ry bills m a tu rin g M a y 16, 1974, o u tstan d in g in th e a m o u n t of
$4,303,280,000, of w hich G o v e rn m en t accounts a n d F e d e ra l R e serv e B anks, fo r th em selv es a n d as ag en ts of foreign a n d in te r­
n a tio n a l m o n e ta ry a u th o ritie s, p re se n tly h o ld $2,518,280,000. T h ese accounts m a y exchange bills th e y ho ld fo r th e b ills now
b ein g offered a t th e av erage p rices of a cc ep te d ten ders.
T h e b ills of b o th series will b e issued on a d isco un t basis u n d e r c o m p e titiv e a n d n on co m p etitiv e b id d in g as h e re in a fte r
p ro vided, a n d a t m a tu rity th e ir face a m o u n t w ill be p a y a b le w ith o u t in terest. T h e y w ill be issued in b e a re r fo rm only, a n d in
den 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 w ill b e received a t F e d e ra l R e se rv e B a n k s a n d B ran ches 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 Savin g T im e , M onday, M a y 13, 1974. T e n d e rs w ill n o 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 b e for a m in im u m of $10,000. T e n d e rs over $10,000 m u st be in m u ltip les of $5,000. In th e case of c o m p e titiv e
ten 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 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 u rged th a t ten d e rs be m ad e on th e p rin te d form s a n d forw arded in th e special envelopes w hich will b e su p p lied
b y F e d e ra l R e se rv e B an k s or B ranch es on a p p lic atio n th erefor.
B a n k in g in stitu tio n s a n d d ealers who m ak e p rim a ry m ark e ts in G o v e rn m en t secu rities a n d re p o rt d aily to th e F e d e ra l
R eserv e B a n k of N ew Y o rk th e ir positio ns w ith re sp e ct to G o v e rn m en t securities a n d borrow ings th e re o n m a y su b m it te n d e rs
for acco u nt of custom ers p ro v id ed th e n am es of th e custom ers a re set fo rth in such tenders. O thers w ill 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 accounts. T e n d e rs w ill be receiv ed w ith o u t d ep o sit from in co rp o ra ted b an k s a n d tr u s t
com panies a n d fro m responsible a n d recognized d ealers in in v estm e n t securities. T e n d e rs from o th ers m u st be a cco m pan 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 bills a p p lie d for, unless th e te n d e rs are accom pan ied b y a n express g uar­
a 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 com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs will b e o p e n 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
which 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 price range of acc ep te d bids. O nly
those su b m ittin g c o m p e titiv e ten d e rs will be ad vised of th e a ccep tan ce o r 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 or a ll tend ers, in w hole or in p a rt, a n d his action in a n y such re sp e ct shall be
final. S u b je ct to these reservations, n o n c o 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 from a n y
one b id d e r w ill be acc ep te d in full a t th e av erag e p rice (in th re e d ecim als) of acc ep te d c o m p e titiv e bids for th e respective
issues. S e ttle m e n t for acc ep te d ten d e rs in accordance w ith th e bid s m u st be m ad e or com p leted a t th e F e d e ra l R e serv e B a n k
on M a y 16, 1974, in cash or o th er im m e d ia tely a v ailab le fu n d s or 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 16, 1974.
Cash a n d exchange ten d e rs w ill receive equal tre a tm e n t. C ash a d ju stm e n ts will be m ad e for differences b etw een th e p a r v alu e
of m a tu rin g b ills acc ep te d in exchange a n d th e issue p ric e of th e new bills
U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R ev en u e C ode of 1954 th e a m o u n t of d iscou n t a t w hich bills
issued h e re u n d e r a re sold is considered to accrue w hen th e bills are sold, re d ee m e d or otherw ise disposed of, a n d th e bills are
excluded from c o n sid eratio 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 in su ran ce co m p an ies)
issued h e reu n d e r m u st in clude in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference b etw een th e p rice p a id for th e
bills, w h e th er on original issue or on su b seq u e n t purchase, a n 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 ab le y e ar for 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 rev 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 co nd itio n s of th e ir issue. Copies of th e c irc u lar m ay be o b tain e d fro m a n y F e d e ra l R e serv e B a n k or 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, May 13, 1974. Tenders
may not be entered by telephone.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ount, R a n g e a n d A p p ro x im ate Y ie ld of A ccepted T e n d e rs
13-W eek B ills
D u e A u gu st 8, 1974
$4,044,800,000_________________
$2,500,785,000_________________
P ric e
Y ield
9 7.737____________ 8 .9 5 3 % _____
97.707____________ 9 .0 7 1 % _____
97.716____________ 9.0 3 6% ( 1 ) .

26-W eek B ills
D u e N o v e m b er 7, 1974
________________ $3,468,095,000
..T o tal A p p lied Fo r..
________________ $1,800,005,000
—.T o ta l A c c ep ted —
P ric e
Y ield
..95.477___________ „8.947%
..High..
..95.439___________ .9 .022%
-Low_.
__9.006% ( 1 )
..Avera ge_____________________ 95.447_.

( 1 ) T h ese rates are on a b ank discount basis. T h e eq u iv a le n t coupon issue yie ld s are 9 .3 8 % for th e 13 -w eek b ills and 9 .5 7 % for
t h e 2 6 -w eek bills.

(S e e 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 May 16,1974

Maturing November 14,1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(D a te )

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.

(n)

I$
l$-

COMPETITIVE TENDERS

$
$

$

_
.

$

(a)
(ri)
@

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

$
$
$
$

flgir3 TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
N um ber 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 alue

@ $
@$

10,000 $
15,000 $

□

By m aturing bills
held by____________________________
Payment to be made by_____________ _

□

50,000 $
@ $ 100,000 $
@ $ 500,000 $
@ $1 ,000,000 $
@ $

□

Charge our reserve account on paym ent
date
I ! D raft enclosed (E ffectual delivery of enclosed d r a f t
shall be on la te st day which will p e rm it p re s e n tm e n t
in o rder to ob tain irrevocably collected fu n d s on p a y ­
m e n t d ate)

Delivery Instructions:
□

Hold in Custody — General Account

(S ub scrib er's full na m e o r corp o ra te title)

□

Hold in Custody — Investm ent Ac­
count

(A d dress)

□
□

Hold in Custody — T rust Account
Pledge to secure Treasury Tax and
Loan Account

□

Other__________________________

By-

(A uthorized official s ig n a tu re and title)

( F o r th e acco un t of, if te n d e r is f o r a n o th e r subscriber)

(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 (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 tru st 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