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F ederal R eserve Bank o f D allas

D A LL A S, T E X A S 7 5 2 2 2
Circular No. 74-188
July 9, 1974
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 rea su ry bills:
T h e Treasury D epartm ent, b y this public notice, invites tenders for two series of Treasury bills to th e 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 d ate) 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 m ature 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 th ey hold for th e 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 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 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 a t the Treasury Departm ent, W ashington. Each
tender m ust be for a m inim um of $10,000. T enders over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive
tenders the price offered m ust be expressed on th e 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 th e special envelopes which w ill be supplied
b y 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 th e Federal
R eserve Bank of N ew York their positions w ith respect to Governm 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 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 o f 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, follow ing
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 o f the Treasury
expressly reserves th e 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 without 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 th e 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 J u ly 18, 1974.
Cash and exchange tenders w ill receive equal treatment. Cash adjustments w ill be m ade for differences betw een th e par value
o f 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 the am ount o f discount a t which bills
issued hereunder are sold is considered to accrue when the 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 th e taxable year for which the return is made.
Treasury Departm ent Circular No. 418 (current revision) and this notice, prescribe th e term s o f 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 ac co rd a n c e 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 il l 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,
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 15, 1 9 7 4 . T enders m a y
not be e n te re d b y t e le p h o n e .
Yours v e ry tru ly,
P. E. C o ld w e ll
Presid en t

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
T otal A pplied For_________________________________ $3,426,495,000
$2,600,095,000__________________________________ T otal_A ccepted___________________________________$1,900,255,000
Y ield
P rice
Y ield
98.032------------------ 7.785 % ____________________________ H igh_______________________ 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 t h e 1 3 -w eek bills, 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 (


Dated July 18,1974

Maturing January 16,1975

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.


-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 he
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

m ust 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 a tu rity V alue

@ ¥

10,000 $

@ $

15,000 $

@ $

50,000 $

By m aturing bills
held by____________________
Paym ent to be made by.



@ ¥ 100,000 $
c $ 500.000 r


@ $1,000,000 $


Charge our reserve account on p aym ent
D raft enclosed (E ffectu al delivery o f enclosed d r a f t

shall be on la te st day which will p e rm it p r e s e n t s e n *
in o rder to o b ta in irrevocably collected fu nd s on r>n„’
m e n t date)

Delivery Instructions:

Hold in Custody— General Account

(S u b sc rib e r’s full n a m e o r c o rp o 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


O ther.

By(A utho rized official s ig n a tu re an d title)

(F o r th e a ccou nt of, if te n d e r is f o 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 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 a fter 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,
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 T reasury is
m aterial, the tender may be disregarded.
(See reverse for announcement)

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102