View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ed er a l R eser ve Ba n k o f Dalla s
F IS C A L A G E N T O F T H E U N IT E D S T A T E S

DALLAS, TE X AS 7 5 2 2 2

C ircu la r No. 74-196
J u l y 18, 1974

NEW OFFERING — TREASURY BILLS

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:

Your attentio n is invited to th e following s ta te m e n t giving details of a n issue of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in vites te n d e rs for $1,800,000,000, or th ere ab o u ts, of 364-day T re a su ry
bills to be d a te d J u ly 30, 1974, a n d to m a tu re J u ly 29, 1975 ( C U S I P No. 912793 W R 3 ) .
T h e bills will be issued for cash a n d in exchange for T re a s u ry bills m a tu rin g J u ly 30, 1974, o u tstan d in g in th e a m o u n t of
$1,804,445,000 of w hich G o v e rn m e n t accoun ts an d F e d e ra l R e se rv e B anks, for th em selv es an d as a g en ts of foreign a n d in te rn a ­
tio n a l m o n e ta ry au tho rities, p re se n tly hold $750,620,000. T h ese accounts m a y exchange bills th e y h old for th e bills now b eing
offered a t th e average p rice of a cc ep te d tenders.
T h e bills w ill b e issued on a d isco unt basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r p rovid ed , a n d a t
m a tu rity th e ir face a m o u n t w ill be p a y ab le w ith o u t in terest. T h e y will be issued in b e are r form , an d in bo o k -e n try form to
d esign ated bidders, a n d in d en o m in atio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu r ity v a lu e ).
T e n d e rs w ill b e receiv ed a t F e d e ra l R e se rv e B a n k s a n d B ra n ch e s u p to th e closing hour, o n e -th irty p.m ., E a s te r n
D a y lig h t Savin g T im e , W ed nesday, J u l y 24, 1974. T e n d e rs w ill n o t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ash in g ­
ton. E a c h te n d e r m u st b e for a m in im u m of $10,000. T e n d e rs o v er $10,000 m u st be in m u ltip le s of $5,000. In th e case of
c o m p e titiv e te n d e rs th e p rice offered m u st b e expressed on th e basis o f 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925.
F ra c tio n s m a y n o t b e used. I t is u rg e d t h a t ten d e rs b e m ad e o n th e p r in te d form s a n d forw arded in th e special envelopes
w hich w ill be su p p lied b y th e F e d e ra l R e se rv e B a n k s or B ra n ch e s o n a p p lic a tio n therefo r.
B a n k in g in stitu tio n s a n d dealers w ho m ak e p rim a ry m a rk e ts in G o v e rn m e n t securities a n d re p o rt daily to th e F e d e ra l
R e se rv e B a n k of N ew Y ork th e ir p ositio ns w ith re sp e ct to G o v e rn m e n t securities a n d borrow ings th e re o n m a y su b m it ten d e rs
for acc o u n t of custom ers p ro v id ed th e n am es of th e custo m ers a re set fo rth in such tenders. O th ers w ill n o t be p e rm itte d to
su b m it te n d e rs ex cept for th e ir own account. T e n d e rs will be received w ith o u t dep o sit from in co rp o ra ted b ank s a n d tr u s t com ­
pa n ie s a n d fro m responsible a n d recognized dealers in in v estm e n t securities. T e n d e rs from o th ers m u st be a ccom p an ied by
p a y m e n t of 2 p e rc e n t of th e face a m o u n t of T re a su ry bills a p p lie d for, unless th e te n d e rs are acco m p an ied b y a n express
g u a ra n ty of p a y m e n t b y a n in co rp o rated b a n k or tr u s t com pany.
Im m e d ia te ly a fte r th e closing hour, te n d e rs w ill be o p e n ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing w hich
p ub lic a n n o u n c e m e n t will be m ad e b y th e T re a s u ry D e p a rtm e n t of th e a m o u n t a n d p rice ra n g e of a c c ep te d bids. O nly those
su b m ittin g c o m p e titiv e te n d e rs w ill be ad v ised of th e a cc ep ta n ce or rejectio n thereof. T h e S e c retary of th e T re a s u ry expressly
reserves th e rig h t to a c c e p t or re je c t a n y or all ten ders, in w hole or in p a rt, a n d his action in a n y such re sp e ct shall b e final.
S u b je c t to th ese reservations, non c o m p e titiv e ten d e rs for $200,000 or less w ith o u t sta te d p rice from a n y one b id d e r w ill be
a cc ep te d in full a t th e average p rice ( i n th re e d e cim als) of a c c ep te d c o m p e titiv e bids. S e ttle m e n t for a cc ep te d te n d e rs in accor­
dance w ith th e bids m u st b e m ad e or c o m p le te d a t th e F e d e ra l R eserv e B a n k on J u l y 30, 1974, in cash or o th e r im m e d ia tely
av ailab le fu n d s or in a like face a m o u n t of T re a su ry bills m a tu rin g J u l y 30, 1974. C ash a n d exchange te n d e rs w ill receive
equal tre a tm e n t. C ash a d ju s tm e n ts w ill be m a d e for differences b etw een th e p a r v alu e of m a tu rin g bills a cc ep te d in exchange
a n d th e issue p rice of th e new bills.
U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v e n u e Code of 1954 th e a m o u n t o f discoun t a t w hich bills
issued h e re u n d e r are sold is considered to accrue w hen th e bills a re sold, re d ee m e d o r otherw ise disposed of, a n d th e bills a re
excluded from c on sideration as cap ital assets. A ccordingly, th e ow ner of T re a s u ry bills (o th e r th a n life insuran ce co m p an ies)
issued h e re u n d e r m u st includ e in his incom e tax re tu rn , as o rd in ary gain or loss, th e difference be tw ee n th e p rice p a id fo r th e
bills, w h e th e r on original issue or on su b seq u e n t purchase, an d th e a m o u n t a ctu a lly received e ith e r u p o n sale o r re d e m p tio n
a t m a tu r ity d u rin g th e tax a b le y e a r fo r w hich th e r e tu r n is m ade.
T re a s u ry D e p a rtm e n t C ircu la r No. 418 (c u r re n t rev isio n ) a n d th is notice, pre sc rib e th e te rm s of th e T re a s u ry bills
a n d govern th e conditions of th e ir issue. C opies of th e circu lar m a y be o b ta in e d from a n y F e d e ra l R e se rv e B a n k o r B ranch.

In acc orda nc e with the a b o v e a n n o u n c e m e n t, ten ders will b e received a t this b a n k a n d its b ra n ch e s a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, W e d n e s d a y , July 24, 1974. Tenders
m a y not b e en te re d by teleph one.
Yours very truly,
P. E. Coldwell
President

(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 FO R TREASURY BILLS

364 DAYS TO MATURITY
Maturing July 29,1975

Dated July 30, 1974
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 the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

JNOT TO EXCEED $200,000

NONCOMPETITIVE TENDER $.

Noncompetitive tenders for $200,000 or less from any one 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 the
(3)
$
$
b asis of 100, w ith
not more than three
(a)
?
decimal places, e.g.,
(a)
?
99.925. F ra c tio n s
must not be used.
$

!

2I51F TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
3
CLOSING HOUR, ARE ACCEPTABLE.
Payment for this issue of bills cannot be made by
Denominations Desired
credit to Treasury Tax and Loan Account
N u m b e r of
Maturity Value
Pieces
METHOD OF PAYMENT

<>
H
(a)
(a)
(a>
(ft)
(a)

$ 10,000
$ 15,000
$ 50,000
$ 100,000
$ 500,000
$1,000,000

$
$
$
$
$
$

□
□
□
□

By maturing bills
held by-------------Payment to be made by.
Charge our reserve account on payment
date
Draft enclosed (Effectual delivery of enclosed draft
shall be on latest day which w ill permit presentment
in order to obtain irrevocably collected funds on pay­
m ent 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
Other___________________________

□

(Subscriber’s full name or corporate title)

(Address)

By-

( Authorized official signature and title)

(F o r the account of, if tender is for another subscriber)

(Address)

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, 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 that 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 trust 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 (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or trust 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