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F ederal R eserve Bank o f Dallas

Circular No. 74-217
August 6, 1974


To A ll B a n k in g Institutions a n d O thers Co n cerned
in th e E leventh 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 Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
of $4,800,000,000, or thereabouts, to be issued August 15, 1974, as follows:
91-D A Y B IL L S (to m aturity date) in the am ount of $2,800,000,000, or thereabouts, representing an additional
am ount of bills dated M ay 16, 1974, and to mature N ovem ber 14, 1974 (C U S IP No. 912793 U Y O ), originally
issued in the am ount of $1,902,325,000, the additional and original bills to be freely interchangeable.
182-D A Y B IL L S for $2,000,000,000, or thereabouts, to be dated August 15, 1974, and to mature February 13, 1975
(C U S IP No. 912793 V V 5 ).
T he bills will be issued for cash and in exchange for Treasury bills maturing August 15, 1974, outstanding in the amount
of $4,400,755,000, o f which G overnm ent accounts and Federal Reserve Banks, for them selves and as agents of foreign and inter­
national monetary authorities, presently hold $2,672,075,000. 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 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, and in bookentry form to designated bidders, in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity
v alu e).
Tenders will 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, August 12, 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 m ust 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 more than three decimals, e.g., 99.925. Fractions m ay
not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied
by Federal R eserve Banks or Branches on application therefor.
Banking institutions and dealers who make primary markets in G overnm ent securities and report daily to the Federal
R eserve Bank 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 will not be perm itted to
subm it tenders except for their own account. Tenders will be received w ithout deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accompanied
by paym ent of 2 percent of the face amount of Treasury bills applied for, unless th e 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 will be made by the Treasury D epartm ent of the amount 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 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 w ith the bids m ust be m ade or com pleted at the Federal Reserve Bank
on August 15, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing August 15,
1974. Cash and exchange tenders will 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 of discount at 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 income tax return, as ordinary gain or loss, the difference between the price paid for the
bills, whether on original issue or on subsequent purchase, and the amount 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 ith 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 rece iv ed a t this b a n k a n d its b ran ch es a t ElPaso,
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 , A u g u s t 12, 1 9 7 4 . Tenders m a y
not be e n te re d b y te le p h o n e .
Yours v e ry truly,
P. E. C o ld w e ll

Amount, Range and Approxim ate Y ield of Accepted Tenders
13-W eek B ills
26-W eek B ills
D u e Novem ber 7, 1974
D ue February 6, 1975
.Total A pplied For_________________________________ $4,595,255,000
T otal_A ccepted___________________________________$2,000,875,000
P rice
Y ield
Y ield
98.091-------------------- 7.552% _____________________
H ig h _________________ 95.637____________ 8.630%
97.813--------------------8 .652% ___________________________ Low_______________________ 95.601____________ 8.701%
97.850-------------------- 8.505% ( 1 ) _____________________ A verage_____________________ 95.622____________ 8.660% ( 1 )
( 1 ) T h e s e r a t e s a re o n a b a n k d is c o u n t b asis. T h e e q u i v a le n t c o u p o n issue y ie ld s a r e 8 . 8 1 % fo r t h e 1 3 -w eek b ills, a n d 9 . 1 8 % fo r
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 (


Dated May 16,1974

Maturing November 14, 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 a t the rate indicated.

NONCOMPETITIVE TENDER $___________ __ ______________________


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 be
expressed on th e
basis of 100, with
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
m ust not be used.

Denominations Desired
N u m b e r of

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

Maturity Value

(5) 9
<® $
(S) 9

10,000 $
15,000 $


50,000 $
100,000 $
& $
(a) $ 500,000 $
(a) $1:,000,000 9


By maturing bills
held by______________________________
Payment to be made by______________
Charge our reserve account on payment

I | D r a f t e n clo se d

(Effectual delivery of enclosed draft

shall be on la te st day which will p e rm it p re s e n tm e n t
in o rd e r to ob ta in irrevocably collected fun ds on p a y ­
m e n t date)

Delivery Instructions:

Hold in Custody — General Account

(S u bscrib er’s fu ll n am e o r corp orate title)


Hold in Custody — Investment Ac­

(A ddress)


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




(A uthorized official s ig n a tu re an d title)
(F o r th e account of, if te n d e r is fo 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 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, 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 willbe 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 byan 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 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 m ay be disregarded.
(See reverse for announcement)

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