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F ederal Reserve Bank o f Dallas FISCAL AGENT O F THE UNITED STATES D A LL A S. T E X A S 7 5 2 2 2 Circular No. 74-193 July 16, 1974 N E W O FF E R IN G — TREASURY BILLS T o A ll B a n k in g Institutions a n d O thers Co n cerned in th e Eleventh F ed 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, 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 25, 1974, as follows: 91-D A Y B IL L S (to m aturity date) in the am ount o f $2,600,000,000, or thereabouts, representing an additional am ount of bills dated April 25, 1974, and to mature October 24, 1974 (C U S IP No. 912793 U V 6 ), origi nally issued in the am ount of $1,801,490,000, (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 J u ly 25, 1974, and to m ature January 23, 1975, (C U S IP N o. 912793 V S 2 ). T h e bills will be issued for cash and in exchange for Treasury bills m aturing July 2 5 ,1 9 7 4 , outstanding in the am ount of $4,298,755,000, o f 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 $2,558,910,000. T h ese 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 will 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 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 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 aylight Saving T im e, M onday, July 22, 1974. Tenders will not be received at the Treasury Departm ent, W ashington. 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 o f com petitive tenders the price offered m ust be expressed on the basis of 100, with not more than three decim als, 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 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 B ank of N ew York their positions w ith respect to G overnm ent securities and borrowings thereon m ay subm it tenders for account of customers provided the names 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 without 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 be opened at the Federal R eserve Banks and Branches, following which public announcem ent w ill be m ade by th e Treasury Departm ent of the am ount and price range of accepted t ’ds. 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 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 will 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 must be m ade or com pleted at the Federal R eserve Bank on July 25, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing J u ly 25, 1974. Cash and exchange tenders w ill receive equal treatment. Cash adjustm ents will 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 454 ( 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 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 maturity during the taxable year for which the return is made. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s 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 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 be rece iv ed a t this b a n k a n d its b ran ch es a t El Paso, H o uston 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 a v in g T im e, M o n d a y , Ju ly 2 2 , 1 9 7 4 . T en ders m a y n o t b e e n te re d b y t e le p h o n e . Y ours v e ry tru ly, P. E. C o ld w e ll P resident LAST PREVIO US O FF E R IN G O F TREASURY BILLS 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 17, 1974 D u e January 16, 1975 $4,206,005,000 .Total A pplied For_________________________________ $3,266,875,000 $2,600,485,000__________________________________ T otal A ccepted_____________________ $1,900,120,000 Price Y ield Price Y ield 98.083 7.584% ___________________________ H igh _______________________ 96.078____________ 7.758% 98.042 7.746% ____________________________Low_______________________ 95.982____________ 7.948% 98.053 7.702% ( 1 ) ______________________ Average........... .................. 96.018_____________7.876% ( 1 ) ( 1 ) T h e s e ra te s a re on 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 7 . 9 6 % f o r t h e 13-w eek bills, a n d 8 . 3 2 % for th e 2 6 -w e e k bills. ( S e e 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 24, 1974 Dated April 25,1974 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 $200,000 or less from any bidder, without stated price, will be accepted in full at the av erag e price (in three decimals) of accepted competitive bids. 1$ <® $ $ (a) $ 1? COMPETITIVE TENDERS @ Prices should b e expressed on th e basis of 100, w ith not more than th r e e decimal places, e .g . 99.925. F r a c tio n s must not be used. $ $ TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE T H E CLOSING HOUR ARE ACCEPTABLE. Denominations Desired N u m b er of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT M a tu rity Value „@ $ 10,000 $_____________ .@ $ 15,000 $_____________ $ □ □ 50,000_$____________ _@ $ 100,000 $ _ _ By maturing bills held by------------------------------------------- __ Payment to be made by__________ ___ □ Charge our reserve account on paym ent date I 1 Draft enclosed (E ffectual delivery of enclosed d r a f t $ 500,000 $____________ @ $ 1,000,000 $ ____________ shall be on latest day which will p e rm it p re fle n tm e n t in order to o b ta in irrevocably collected funds on p a y m e n t date) Delivery Instructions: □ Hold in Custody— General Account □ Hold in Custody— Investment Ac count □ □ Hold in Custody — Trust 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------------------------------------------ By- (A uthorized official s ig n a tu re and title) ( F o r th e accou nt 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 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 after the closing time specified in the public announcement, comm uni 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 m ake 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, vvho 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 v alu e) 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 ;s material, the tender may be disregarded. (See reverse for announcement)