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F ederal R eserve Bank of D allas F I S C A L A G E N T O F T H E U N IT E D S T A T E S D A LL A S, T E X A S 7 5 2 2 2 Circular No. 74-187 July 9, 1974 N E W O FF E R IN G — TREASURY BILLS To A ll B a n k in g Institutions a n d O thers Co n cerned in th e E leven 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 reasu ry bills: T h e Treasury D epartm ent, b y 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 J u ly 18, 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 18, 1974, and to mature October 17, 1974 (C U S IP No. 912793 U U 8 ) , origi nally issued in the am ount of $1,804,175,000, (a n 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 18, 1974, and to mature January 16, 1975, (C U S IP No. 912793 V R 4 ). T h e bills will be issued for cash and in exchange for Treasury bills m aturing July 18, 1974, outstanding in the am ount of $4,314,475,000, of which G overnm ent accounts and Federal Reserve Banks, for them selves and as agents of foreign and inter national m onetary authorities, presently hold $2,373,975,000. 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 w ill be payable w ithout interest. T h ey will 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 va lu e). Tenders 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 15, 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 m ore 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 w ill be supplied by Federal R eserve B anks 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 Governm ent securities and borrowings thereon m ay subm it tender! for account of customers provided the nam es of the customers are set forth in such tenders. Others will 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. 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 will oe opened at the Federal R eserve Banks and Branches, following which public announcem ent will be made by the Treasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T he 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 18, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing July 18, 1974. Cash and exchange tenders will receive equal treatment. Cash adjustm ents w ill be made 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 th e Internal R evenue Code of 1954 the 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, 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 terms of the Treasury bills and govern the conditions of 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 it h th e a b o v e a n n o u n c e m e n t, ten d ers w ill be rece iv ed a t this b a n k a n d its b ran ch e s 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 tra l D a y lig h t S av in g T im e, M o n d a y , J u ly 1 5 , 1 9 7 4 . T en ders m a y hot be e n te re d b y te le p h o n e . Y ours v e ry truly, P. E. C o ld w e ll P resident LAST PREVIO US O FF E R IN G O F TREASURY BILLS Amount, Range and Approxim ate Y ield of A ccepted Tenders 13-W eek B ills 26-W eek B ills D u e October 10, 1974 D u e January 9, 1975 $4,012,980,000 ____________________________ T otal A pplied For_____________ _________________ $3,426,495,000 $2,600,095,000. _____________________________ T otal A ccepted______________ _________________ $1,900,255,000 Price Y ield P rice Y ield 98.032_____________ 7.785% _____ ..High.. 95.753____________ 8.401% 97.990_____________ 7.952% _____ ..Low— _________________ 95.689____________ 8.527% 98.005_____________ 7.892% ( 1 ) .. ..Average-------------------------------- 95.713____________ 8.480% (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 iv a le n t c o u p o n issue y ie ld s a r e 8 . 1 6 % fo r th e 1 3 -w eek h ills, a n d 8 . 9 8 % fo r t h 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 (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing October 17, 1974 Dated April 18,1974 To Federal Reserve Bank, Station E, 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. 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. (ft (fh (a) @ $ COMPETITIVE TENDERS $ 1$ $ $ $ $ ? $ .............................. ... Prices should be expressed on t h 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 must not be used. tSsT TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E 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 Maturity Value (5) ? (5) ? (5) ? 10,000 $ 15,000 $ □ By m aturing bills held by-------------------------------------------Paym ent to be made by_ □ 50,000 ? @ ? 100,000 $ (S) $ 500,000 ? O $l;,000,000 $ □ Charge our reserve account on p aym ent date ( I D raft enclosed (E ffectual delivery of enclosed d r a f t shall be on latest day which will p e rm it p r e s e n tm e n t in order to o b tain irrevocably collected fu nd s on p a y m e n t d a te ) Delivery Instructions: □ Hold in Custody — General Account □ Hold in Custody — Investm ent Ac count □ □ Hold in Custody — T rust Account Pledge to secure Treasury Tax and Loan Account □ (S ub sc rib e r’s full n am e o r c o rp o ra te title) (A ddress) Other----------------------------------------- Rv (A uthorized official sig n a tu re an 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) 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, com muni 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 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 in v e st 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 T reasu ry js material, the tender may be disregarded. (See reverse for announcement)