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F ederal R eserve Bank o f D allas
FISCAL AGENT OF THE UNITED STATES

D A L L A S, T E X A S 7 5 2 2 2
Circular No. 74-130
May 14, 1974
N E W O F F E R IN G — TREASURY BILLS
To A ll B a n k in g Institutions a n d O thers C oncerned
in th e E leven th F ed e ra l Reserve District:
Y o u r a tte n tio n is in v ite d to th e fo llo w in g s ta te m e n t g iv in g d e ta ils o f tw o issues o f T rea su ry bills:
T h e Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount
of $4,500,000,000, or thereabouts, to be issued M ay 23, 1974, as follows:
91-D A Y B IL L S (to m aturity d ate) in th e am ount o f $2,600,000,000, or thereabouts, representing an additional
am ount of bills dated February 21, 1974, and to mature August 22, 1974 (C U S IP No. 912793 U L 8 ), originally
issued in the am ount of $1,797,450,000, the additional and original bills to be freely interchangeable.
182-D A Y B IL L S for $1,900,000,000, or thereabouts, to be dated M ay 23, 1974, and to m ature N ovem ber 21, 1974
(C U S IP No. 912793 U Z 7 ).
'
T h e bills w ill be issued for cash and in exchange for Treasury bills m aturing M ay 23, 1974, outstanding in the am ount of
$4,303,185,000, of which G overnm ent accounts and Federal R eserve Banks, for them selves and as agents of foreign and inter­
national m onetary authorities, presently hold $2,456,205,000. T hese accounts m ay exchange bills they hold for the bills now
being offered a t the average prices of accepted tenders.
T h e bills of both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount w ill be payable without interest. T h ey w ill be issued in bearer form only, and in
denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ).
Tenders w ill be received at Federal R eserve Banks and Branches up to th e closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, M onday, M ay 20, 1974. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 m ust be in m ultiples o f $5,000. In the case of com petitive
tenders the price offered m ust be expressed on the basis of 100, with not m ore than three decim als, e.g., 99.925. Fractions m ay
not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied
b y Federal R eserve B anks or Branches on application therefor.
Banking institutions and dealers who m ake primary markets in G overnm ent securities and report daily to th e Federal
R eserve B ank of N ew York their positions w ith respect to G overnm ent securities and borrowings thereon m ay subm it tenders
for account of customers provided the nam es of the custom ers are set forth in such tenders. Others w ill not be perm itted to
subm it tenders except for their own accounts. Tenders w ill be received w ithout deposit from incorporated banks and trust
com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied
b y paym ent of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guar­
anty of paym ent by an incorporated bank or trust company.
Im m ediately after th e closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, following
which public announcem ent w ill be m ade b y th e Treasury D epartm ent of the am ount and price range of accepted bids. O nly
those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any
one bidder w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids for the respective
issues. Settlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted at the Federal R eserve Bank
on M ay 23, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing M ay 23, 1974.
Cash and exchange tenders w ill receive equal trea tm en t Cash adjustm ents w ill be m ade for differences betw een the par value
of maturing bills accepted in exchange and the issue price of the new bills
Under Sections 454 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount a t which bills
issued hereunder are sold is considered to accrue when th e bills are sold, redeem ed or otherwise disposed of, and the bills are
excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies)
issued hereunder m ust include in his incom e tax return, as ordinary gain or loss, the difference betw een the price paid for the
bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at
m aturity during the taxable year for which the return is made.
Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s o f th e Treasury bills and
govern the conditions of their issue. Copies o f th e circular m ay be obtained from an y Federal R eserve Bank or Branch.
In a c co rd an ce w ith th e a b o v e a n n o u n c e m e n t, ten d ers w ill b e rece iv ed a t this b a n k a n d its b ran ch es a t El Paso,
Houston a n d San A n to n io up to t w e lv e - th ir t y p .m .. C e n tral D a y lig h t S aving T im e, M o n d a y , M a y 2 0 , 1 9 7 4 . Tenders m a y
not b e e n te re d b y te le p h o n e .
Yours v e ry tru ly,
P. E. C o ld w e ll
P resident

LAST PREVIOUS O F F E R IN G O F TREASURY BILLS
Amount, R ange and Approxim ate Y ield of A ccepted Tenders
13-W eek B ills
26-W eek B ills
D u e August 15, 1974
D u e Novem ber 14, 1974
$3,669,090,000
.T otal A pplied For_________________________________ $3,224,365,000
$2,600,150,000__________________________________ .T otal A ccep ted__________________________________ $1,900,185,000
P rice
Y ield
Price
Y ield
98.000
7.912% ____________________________High.________
95.973_____________ 7.965%
97.955
8.090% ___________________________ Low________________________ 95.911
8.088%
97.972
8.023% ( 1 ) ______________________Average______________________ 95.940____________ 8.031% ( 1 )
( 1 ) T h e s e r a t e s a r e o n a b a n k d is c o u n t b asis. T h e e q u i v a le n t c o u p o n issu e y ie ld s a r e 8 . 3 0 % fo r t h e 1 3 -w eek b ills a n d 8 . 4 9 % for
t h e 2 6 -w e e k bills.

This publication was digitized and made available (S ee reverse forReserve form) of Dallas' Historical Library (FedHistory@dal.frb.org)
by the Federal tender Bank

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated May 23,1974

Maturing November 21,1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ Branch
El Paso 79999 Houston 77001

San Antonio 78295

(D ate)

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

-S -

-¥ -

COMPETITIVE TENDERS

-¥ -¥ _@ _

-¥ -

1TENDERS 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

(5) ¥
(5) $

By aturing bills
□ heldmby_____________________

10,000 ¥
15,000 ¥

□

(5) ¥ 50,000 ¥
(5) ¥ 100,000 ¥
(5) ¥ 500,000 ¥
< $1,000,000 ¥
©

Paym ent to be made by.

□ Charge our reserve account on paym ent
date
□
D r a f t e n c l o s e d (E ffectual delivery of enclosed d r a f t
shall be on latest day which will p e rm it p re s e n tm e n t
in ord er to obtain irrevocably collected funds on p a y ­
m e n t date)

Delivery Instructions:
□

Hold in Custody — General Account

(S u bscrib er’s full n am e or c o rp o ra te title)

□

Hold in Custody— Investm ent Ac­
count

(A ddress)

□
□

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

□

Other__________________________

By-

(A u th orized official sig n a tu re a n d title)

(F o r the a ccount 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, b y -------------------------------------------------------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