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F e d e r a l r e s e r v e Ba n k o f D a lla s

D A LL A S, T E X A S 7 5 2 2 2
Circular No. 74-181
July 2, 1974
T o All B a n k in g Institutions a n d O thers C oncerned
in th e E leventh F e d 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 eta ils o f tw o issues o f T reasu ry bills:
T h e Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $4,500,000,000, or thereabouts, to be issued July 11, 1974, as follows:
91-D A Y B IL L S (to m aturity date) in the am ount of $2,600,000,000, or thereabouts, representing an additional
am ount of bills dated April 11, 1974, and to mature October 10, 1974 (C U S IP No. 912793 U T 1 ) , origi­
nally issued in the amount of $1,801,960,000, (an additional $100,065,000 was issued on June 5, 1 9 7 4 ), 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 July 11, 1974, and to mature January 9, 1975,
(C U S IP N o. 912793 V Q 6 ).
T h e bills will be issued for cash and in exchange for Treasury bills maturing July 11, 1974, outstanding in the amount of
$4,310,745,000, 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 $2,440,125,000. T hese accounts m ay exchange bills they hold for the bills now
being offered at 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 will 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 will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D aylight Saving T im e, M onday, July 8, 1974. Tenders w ill not be received at the Treasury Departm ent, Washington. Each
tender m ust be for a m inim um of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of com petitive
tenders the price offered m ust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay
not be used. It is urged that tenders be m ade on the printed forms and forwarded in the special envelopes which will be supplied
b y Federal R eserve Banks or Branches on application therefor.
Banking institutions and dealers who m ake primary markets in G overnm ent securities and report daily to the Federal
R eserve Bank of N ew York their positions with respect to G overnm ent securities and borrowings thereon m ay subm it tenders
for account of customers provided the nam es of the customers are set forth in such tenders. Others w ill not be perm itted to
subm it tenders except for their own accounts. Tenders will be received w ithout deposit from incorporated banks and trust
com panies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied
by 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 the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, following
which public announcem ent will be m ade by the Treasury Departm ent of the am ount and price range of accepted bids. Only
those subm itting com petitive tenders w ill 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 with the bids m ust be m ade or com pleted at the Federal R eserve Bank
on July 11, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing July 11, 1974.
Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents will 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 45 4 (b ) and 1221
( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at which bills
issued hereunder are sold is considered to accrue w hen th e bills are sold, redeem ed or otherwise disposed of, and the bills are
excluded from consideration as capital assets. Accordingly, th e 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
maturity during the taxable year for which the return is made.
Treasury Departm ent Circular No. 41 8 (current revision) and this notice, prescribe the term s of the Treasury bills and
govern the conditions of their issue. Copies of th e circular m ay be obtained from any Federal R eserve B ank or Branch.
In acco 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 re c e iv ed a t this b a n k a n d its b ran ch e s a t El Paso,
H o u s to n 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 tra l D a y lig h t S av in g T im e, M o n d a y , Ju ly 8, 1 9 7 4 . Tenders m a y
^ o t 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
Presid en t

Amount, R ange and Approxim ate Y ield of Accepted Tenders
13-W eek B ills
26-W eek Bills
D u e October 3, 1974
D u e January 2, 1975
.T otal A pplied For_________
$2,600,735,000__________________________________ .T otal_A ccep ted___________________________________$1,900,110,000
Y ield
Y ield
7.744% ----------------------------------------- .H igh_______________________ 95.987____________ 7.982%
7.848% ------------------------------------------l o w ________________________ 95.92 7____________ 8.101 %
7.808% ( 1 ) ----------------------------------Average______________________ 95.950____________ 8.055% ( 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 issue y ie ld s a r e S .0 7 % fo r th e 1 3 -w e e k b ills, a n d 8 .5 1 % for
th e 2 6 -w e e k bills.

This publication was digitized and made available(Seethe Federal Reserveform) of Dallas' Historical Library (
by reverse for tender Bank


Maturing October 10,1974

Dated April 11,1974
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 th e
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the am ount
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.

I $ ...




Prices should be
expressed on th e
basis of 100, w ith
not more than th re e
decimal places, e.g.
99.925. F r a c tio n s
m ust not be used.

Denominations Desired
Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
Num ber of
M a tu rity V alue

_@ $
_@ $

10,000 $____________

-@ $

100,000 $_____________

-@ $

500,000 $____________


15,000 $_____________



By m aturing bills
held by---------------------------------------- _
-Paym ent to be made by
_ __
Charge our reserve account on paym ent

I I D r a f t e n c l o s e d (E ffectual delivery of enclosed d rm ft
shall be on la te st day which will p e rm it p r e s e n tm e n t
in ord e r to o bta in irrevocably collected fu n d s on
m e n t d a te )

_@ $1,000,000 $-

Delivery Instructions:

Hold in Custody— General Account


Hold in Custody— Investm ent Ac­
Hold in Custody — T ru st Account
Pledge to secure Treasury Tax and
Loan Account


(S u bscriber's full n am e o r c o rp o ra te title )

(A ddress)


(A uth o rized official s ig n a tu re a n d title)

(F o r th e accou nt of, if te n d e r is f o r a n o th e r subscriber)


1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in m ultiples 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 t h e 1
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 b y 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