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F ederal

reserve

Bank

of

Dallas

F I S C A L A G E N T O F T H E U NITED S T A T E S

DALLAS, TEXAS 75222

C ircu la r N o. 74-139
M a y 22, 1974

NEW OFFERING — TREASURY BILLS

To All B a n k in g Institutions a n d O th e r s C o n c e r n e d
in th e E lev en th F e d e r a l R e serv e District:

Y our a t t e n t i o n is in v ited to t h e f o llo w in g s t a t e m e n t g ivin g d e t a i l s o f a n iss u e of T re a s u ry bills:
T h e T re a s u 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 $1,800,000,000, o r th ere ab o u ts, of 36 4-day T re a su ry
bills to be d a te d J u n e 4, 1974, an d to m a tu re J u n e 3, 1975 ( C U S IP No. 912793 V L 7 ).
T h e b ills 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 J u n e 4, 1974, o u tstan d in g in th e a m o u n t of
$1,800,840,000, of w hich G o v e rn m en t acco un ts a n d F e d e ra l R e se rv e B anks, for th em selv es a n d as a g ents of fo reign a n d in te rn a ­
tio n al m o n e ta ry a u th o ritie s, p re se n tly hold $1,024,495,000. T h esa accou n ts m a y exchange bills th e y hold for th e bills now being
o ffered a t th e a v erag e p rice of a cc ep te d tenders.
T h e bills 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 o n c o m p e titiv e b id d in g as h e re in a fte r p ro 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 a b le w ith o u t in te re st. T h e y w ill be 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 r ity v a lu e ).
T e n d e rs will b e received a t F e d e ra l R e se rv e B an k s a n d B ra n ch e s u p to th e closing ho ur, 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 , W edn esd ay , M a y 29, 1974. T e n d e rs will n o t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashin g ­
ton. E a c 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 o v 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 b e expressed o n th e basis o f 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 a y n o t b e used. I t is u rg e d t h a t te n d e rs b e m a d e o n th e p rin te d form s a n d fo rw a rd ed in th e special envelopes
w hich will 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 ra n ch e s o n 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 a y su b m it te n d e rs fo r acc o u n t of c usto 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 ten ders. O th e rs th a n b a n k in g in stitu tio n s 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 account.
T e n d e rs w ill be re ce iv e d w ith o u t d e p o sit fro m in co rp o ra ted b a n k s a n d tr u s t c om pan ies a n d fro m respo n sib le a n d recognized
d ealers in in v e s tm e n t securities. T e n d e rs from o th ers m u st b e acco 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 bills a p p lie d for, un less th e te n d e rs a re acco 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 f te r th e closing h o ur, 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 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 w ill b e 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 ran 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 will b e a d v ised of th e a cc ep ta n ce o r rejectio n th ereof. T h e S e c retary of th e T re a su ry expressly
reserv es 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 e rs, in w hole or 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 reserv ation 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 fro m a n y o ne b id d e r w ill be
a cc ep te d in full a t th e a v erage 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 fo r a cc ep te d te n d e rs in accor­
dan ce w ith th e bids m u st b e m ad e or c o m p le te d a t th e F e d e ra l R eserv e B a n k on J u n e 4, 1974, in cash or o th e r im m e d ia tely
av 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 J u n e 4, 1974. C ash a n d exchange te n d e rs will receive
eq ual 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 va lu 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 S ections 454 ( b ) a n d 1221 ( 5 ) o f th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t of d isco u nt a t w hich b ills
issued h e re u n d e r a re sold is considered to accru e 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 a re
excluded fro m c o n sid era tio 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 c o m p a n 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 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 e r on orig in al issue or on su b seq u e n t p urch ase, and th e a m o u n t a ctu a lly receiv ed e ith e r up 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 r e tu rn is m ade.
T re a s u ry D e p a rtm e n t C ircu la r N o. 418 (c u rre n t re v 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 bills
a n d govern th e con d itio ns of th e ir issue. C opies of th e circu lar m a y b e o b tain e d fro m a n y F e d e ra l R eserv e B a n k o r B ranch.

In a c c o r d a n c e w ith t h e a b o v e a n n o u n c e m e n t , te n d e r s will b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P a so ,
H o u sto n a n d S an A n to n io up to tw e l v e - t h i r t y p .m ., C e n tr a l D a y lig h t S a v in g Time, W e d n e s d a y , M a y 2 9, 197 4. T e n d e rs
m ay not be entered by telephone.

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 June 4,1974

Maturing June 3,1975

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.

NONCOM PETITIVE TENDER $.

JSTOT 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
exp ressed on th e
$­
b a sis of 100, w ith
CO M PETITIVE TENDERS^ $.
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.
_<§>_

J

V

S
-

Sggp 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
N u m b e r of
Pieces

M a tu rity V alue

m
(5)
(5)
(5)
(5)
(5)

$ 10,000
$ 15,000
$ 50,000
$ 100,000
$ 500,000
,
$1:000,000

$
$
$
$
$
$

□
□
□

Hold in Custody — General Account

□

Hold in Custody —■Investment Account

□

Charge our reserve account on payment
date

I I D r a f t e n c l o s e d (E ffectual delivery o f enclosed d r a f t
sh all be on la te st day w hich will p e rm it p re sen tm en t
in o rd e r to o b ta in irrevocably collected fu n d s on p a y ­
m e n t date)

Delivery Instructions:
□

By maturing bills
held by___________________________
Payment to be made by_

Hold in Custody — Trust Account

□

Pledge to secure Treasury Tax and
Loan Account

□

(S u b sc rib e r’s fu ll n am e o r c o rp o ra te title)

(A dd ress)

By.

Other_________________________

(Authorized official signature and title)
( F o r th e a cc o u n t o f, if te n d e r is fo r a n o th e r su b scrib er)

(A d d ress)

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 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