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F ederal Reserve Bank of Dallas
F IS C A L A G EN T O F T H E U N ITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
C ircular No. 74-207
J u l y 30, 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 the following s ta te m e n t giving details of tw o issues 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, invites te n d e rs for two series of T re a su ry bills to th e agg regate a m o u n t
of $4,500,000,000, or th ereab o u ts, to be issued A ugust 8, 1974, as follows:
91-D A Y B IL L S (to m a tu r ity d a te ) in th e a m o u n t of $2,600,000,000, or th ere ab o u ts, re p rese n tin g a n a d d itio n al
a m o u n t of bills d a te d M a y 9, 1974, a n d to m a tu re N o v e m b er 7, 1974 ( C U S I P No. 912793 U X 2 ) originally
issued in th e a m o u n t of $1,801,315,000, ( a n a d d itio n al $100,065,000 was issued on Ju n e 5, 1 9 7 4 ), th e a d d i­
tio n a l a n d original bills to b e fre ely interch an geable.
182-DA Y B IL L S for $1,900,000,000, o r th ere ab o u ts, to b e d a te d A ugu st 8, 1974, a n d to m a tu re F e b ru a ry 6, 1975
(C U S IP No. 912793 V U 7 ).
T h e ills will b e issued for cash a n d in exchange fo r T re a s u ry bills m a tu rin g A ugust 8, 1974, o u tstan d in g in th e a m o u n t of
$4,303,015,000, of w hich G o v e rn m e n t acco u n ts a n d F e d e ra l R e se rv e B anks, for th em selv es a n d as a g en ts of foreign a n d in te r­
n a tio n a l m o n e ta ry au th o rities, p re se n tly h old $2,566,520,000. T h e se accounts m a y exchange bills th e y hold for th e bills now
b ein g offered a t th e a v erage prices of a cc ep te d ten ders.
T h e bills of b o th series will b e issued on a d isc o u n t 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
provid ed , a n d a t m a tu rity th e ir face a m o u n t w ill b e p a y ab le w ith o u t interest. T h e y w ill b e issued in b e are r form , a n d in booke n try form to d esign ated bidders, in d en o m in a tio 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 received a t F e d e r a 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 rn
D a y lig h t Savin g T im e , M o nd ay, A u gust 5, 1974. T e n d e rs w ill n o t be received a t th e T re a s u ry D e p a rtm e n t, W ashington. 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 over $10,000 m u st be in m u ltip les of $5,000. I n 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 of 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 be used. I t is u rged t h a t te n d e rs be m a d e o n th e p rin te d form s a n d forw ard ed in th e special env elopes w hich w ill b e sup p lied
b y F e d e ra l R e se rv e B a n k s or B ra n ch e s on a p p lic atio n th erefor.
B a n k in g in stitu tio n s a n d d ealers who 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 o rk th e ir p osition s w ith re sp e c t to G o v e rn m en t securities a n d borrow ings th e re o n m a y su b m it ten d e rs
for a cco unt of custo m ers p ro v id ed th e n am es of th e custom ers a re se t fo rth in such tenders. O th e rs w ill n o t be p e rm itte d to
su b m it te n d e rs excep t for th e ir ow n account. T e n d e rs will be received w ith o u t d e p o sit from inco rp o ra ted b a n k s a n d tr u s t
com panies a n d from respo nsible a n d recognized d e ale rs in in v estm e n t securities. T e n d e rs fro m o th ers m u st b e accom p an ied
b y 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 s u ry bills a p p lie d for, u nless th e te n d e rs a re a ccom p an ied b y an express guar­
a n ty of p a y m e n t b y a n in co rp o ra ted b a n k o r tr u s t com pany.
Im m e d ia te ly a f te r th e closing hour, te n d e rs will b e o p en 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, following
w hich p u b lic a n n o u n c e m e n t w ill be m a d e b y th e T re a s u r y D e p a rtm e n t of th e a m o u n t a n d p rice ran ge of a cc ep te d bids. O nly
th ose su b m ittin g c o m p e titiv e te n d e rs will b e advised of th e acc ep ta n ce or re je ctio n th ereof. T h e S e c retary of th e T re a su ry
ex pressly reserves th e rig h t to a c c e p t or re je c t a n y o r all tenders, in w hole or in p a rt, a n d his a ctio n in a n y such re sp e c t shall be
final. S u b je c t to th ese reservations, n o n c o m p e titiv e te n d e rs for each issue for $200,000 o r less w ith o u t sta te d p rice from a n y
one b id d e r w ill b e a cc ep te d in full a t th e averag e p rice ( in th re e d e cim als) of a cc ep te d c o m p e titiv e bids for th e respective
issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e b ids m u st be m a d e or com p le te d a t th e F e d e ra l R e se rv e B a n k
on A ugu st 8, 1974, in cash or o th e r im m e d ia tely a v 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 A u gust 8,
1974. C ash a n d exchange te n d e rs w ill receive equal tre a tm e n t. Cash a d ju s tm e n ts will b e m a d e for differences b e tw ee n th e p a r
value of m a tu rin g bills a cc ep te d in exchange a n d th e issue price of th e new bills.
U n d e r Sections 454 ( b ) a n d 1221 ( 5 ) of th e I n te rn a l R e v e n u e C ode of 1954 th e a m o u n t of d iscou nt a t w hich bills
issued h e re u n d e r are sold is considered to accrue w h e n th e bills a re sold, re d ee m e d o r o therw ise disposed of, a n d th e bills a re
excluded from c o n sideration as c ap ital assets. A ccordingly, th e o w n er of T re a su ry b ills (o th e r th a n life in su rance co m p an ies)
issued h e re u n d e r m u st in clud e in his incom e tax re tu rn , as o rd in a ry gain or loss, th e difference b e tw ee n th e p rice p a id for th e
bills, w h e th e r on original issue o r on su b seq u e n t pu rchase, a n 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 for w hich th e r e tu rn 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 ision) a n d th is notice, p re sc rib e th e te rm s o f th e T r e a s u r y bills a n d
govern th e conditions of th e ir issue. Copies of th e circular m ay b e o b tain 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 a c c orda n ce with the a b o v e a n n o u n c e m e n t, te n d e rs will b e received a t this b a n k a n d its bra nc he s a t El Paso,
Houston a n d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M o n d a y , August 5, 1974. Tenders m a y
not b e e nte re d by te lep hon e.
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m oun t, R a n g e a n d A p p ro x im ate Y ie ld of A ccepted T e n d e rs
13-W eek B ills
26-W eek Bills
D u e O c to b er 31, 1974
D u e J a n u a r y 30, 1975
$3,953,695,000_______________________
______ .T o ta l A p p lie d F o r _________ _________ ______________ $2,883,535,000
$2,600,175,000______________________ _____ ______ T o ta l A ccepted _________ _______________________ $1,900,110,000
P ric e
Y ield
P ric e
Y ield
98.079...........................7 .6 0 0 % __________ ________________ H ig h _______________________ 96.031____________ 7.8 51%
98.032_____________ 7 .7 8 5 % ___________________________ L ow _____________________ * 9 5 . 8 8 8 ____________ 8.1 34%
98.054_____________ 7.6 98% ( 1 ) ______________________A v e rag e_____________________ 95.928____________ 8 .0 5 5 % ( 1 )
( 1 ) T hese rates are on a bank discount basis. T h e equiav lent coupon issue yields are 7 .9 6 % for th e 13-week bills, and 8 .5 1 % for
the 26-w eek 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 TREASURY BILLS

182 DAYS TO MATURITY
Maturing February 6, 1975

Dated August 8, 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.

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.
(n)
<a)

COMPETITIVE TENDERS

(n)

($
W

h
\
h

rn)

@

?
$
$
?
$

._ ...... . .

Prices should be
expressed on the
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
must not be used.

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
, LOSING HOUR ARE ACCEPTABLE.
Denominations Desired

Number of
pieces

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

M aturity V alue

10,000 ?
15,000 $
50,000 $
< $ 100,000 $
®
(3) $ 500,000 $
(a) $
(a) $
(a) $

□

By maturing bills
held by____________________________
Payment to be made by--------------------

□
□

Charge our reserve account on payment
date
]

(5) $1,000,000 $

D r a f t e n c lo se d
(E ffectual delivery of enclosed d r a f t
sh all be on la te st day which w ill p e rm it p re s e n tm e n t
in ord e r to ob ta in irrevocably collected fu n d s on p a y ­
m e n t d ate)

Delivery Instructions:
□

Hold in Custody — General Account

(S u bscriber's full n a m e or c o rp o ra te title)

□

Hold in Custody — Investment Ac­
count

(A ddress)

□
□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account
Other___________________________

By-

(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 su b scriber)

(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, 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 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 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 fo r announcem ent)

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