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F ederal Reserve Ban k o f Dallas

D A L L A S, T E X A S 7 5 2 2 2
Circular No. 74-182
July 2, 1974
T o A ll B a n k in g Institutions a n d O thers C oncerned
in th e Eleven th 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 e ta ils o f tw o issues o f T rea su ry bills:
T h e Treasury D epartm 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 July 11, 1974, as follows:
91-D A Y B IL L S (to m aturity d ate) in the am ount o f $2,600,000,000, or thereabouts, representing an additional
am ount of bills dated April 11, 1974, and to m ature October 10, 1974 (C U S IP No. 912793 U T 1 ) , origi­
nally issued in the amount o f $1,801,960,000, (a n additional $100,065,000 was issued on June 5, 1 974) 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 No. 912793 V Q 6).
T h e bills w ill be issued for cash and in exchange for Treasury bills m aturing July 11, 1974, outstanding in the am ount 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 o f 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 w ithout 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).
T enders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
D ayligh t Saving T im e, M onday, July 8, 1974. Tenders w ill not be received at the Treasury Departm ent, W ashington. E ach
tender m ust be for a m inim um o f $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, w ith 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 th e special envelopes which w ill be supplied
by Federal R eserve Banks or Branches on application therefor.
Banking institutions and dealers who m ake primary markets in Governm 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 th e 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
by paym ent of 2 percent of the face am ount o f 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 B anks and Branches, follow ing
which public announcem ent w ill be made by the Treasury D epartm ent of the am ount and price range o f accepted bids. Only
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 a ll 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 will be accepted in full at th e 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 o f Treasury bills maturing July 11, 1974.
Cash and exchange tenders w ill receive equal treatm 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 4 5 4 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 th e am ount of discount at 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, 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 between 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 th e return is made.
Treasury D epartm ent Circular No. 41 8 (current revision) and this notice, prescribe th e terms o f the Treasury bills and
govern th e conditions o f their issue. Copies of the circular m ay be obtained from any 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 il l b e re c e iv ed a t this b a n k a n d its b ran ch es a t El P aso,
Houston a n d San A n to n io up to t w e lv e - t h ir t y p .m .. C e n tra l D a y lig h t S a v in g T im e, M o n d a y , Ju ly 8 , 1 9 7 4 . T enders m a y
' o t b e e n te re d b y t e le p h o n e .
Yo urs 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 A ccepted Tenders
13-W eek B ills
26-W eek B ills
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
P rice
Y ield
P rice
Y ield
7.744% ------------------------------------------H igh _______________________ 95.987____________7.982 %
98.0 3 8
7.848% ------------------------------------------ Low ________________________ 95.92 7____________8.101 %
7.808% ( 1 ) ----------------------------------Average______________________ 95.950____________8.055% ( 1 )
( 1 ) T h e s e r a te s a re on a b a n k d is c o u n t basis. T h e e q u iv a le n t c o u p o n issue y ie ld s a r e 8 . 0 7 % f o r th e 1 3 -w eek bills, a n d 8 . 5 1 % for
th e 2 6 -w e e k bills.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated July 11,1974

Maturing January 9,1975

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 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.

NONCOMPETITIVI. 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.










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 t i o n s

must not be used.

Denominations Desired
N um ber of

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account

M atu rity Va]ue

(3) $
(5) $

10,000 $
15,000 $


(5) $ 50,000 $
(3) $ 100,000 $
(3) $ 500,000 $


By m aturing bills
held by-----------------------------Paym ent to be made by_


Charge our reserve account on paym ent
I I D raft enclosed (Effectual delivery of encloipd draf*

(5) $1,000,000 $

shall be on latest day which will pe rm it p r e s e n tm e n t
in order to obtain irrevocably collected fu nd s on p a y ­
m e n t d ate)
j -

Delivery Instructions:

Hold in Custody — General Account

(S u bscrib er’s full nam e o r co rpo ra te title)


Hold in Custody— Investm ent Ac­

(A ddress)


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




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

(F o r the a ccount of, if te n d e r is fo r a n o th e r subscriber)

(A ddress)

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 th e
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since en velo pe
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 th is
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 th e
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, w h 0
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 v a lu e)
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