The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ed e r a l R eser ve Ba n k o f D allas FISCAL AGENT OF THE UNITED STATES D A LLA S, TE X A S 7 5 2 2 2 Circular No. 74-220 August 13, 1974 NEW O FF E R IN G — TREASURY BILLS To A ll B a n k in g Institutions a n d O thers C oncerned in th e E leventh 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 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 22, 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 23, 1974, and to mature Novem ber 21, 1974 (C U S IP No. 912793 U Z 7 ), originally issued in the am ount of $1,900,870,000, 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 22, 1974, and to mature February 20, 1975 (C U S IP No. 912793 V W 3 ). T h e bills w ill be issued for cash and in exchange for Treasury bills maturing August 2 2, 1974, outstanding in the amount of $4,401,785,000, of 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 $2,622,970,000. 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 a lu 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 19, 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 m ade 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 m ake 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 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 will not be perm itted to subm it tenders except for their own account. 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. 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 will be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. 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 m ust be m ade or com pleted at the Federal R eserve Bank on August 22, 1974, in cash or other im m ediately available funds or in a like face am ount of Treasury bills maturing August 22, 1974. Cash and exchange tenders will receive equal treatment. Cash adjustments w ill 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 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 terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal R eserve Bank or Branch. In a c co rd an ce 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 received a t this b a n k a n d its bran ch es 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 aving T im e, M o n d a y , A u g u s t 19, 1 9 7 4 . Tenders m a y not be en 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 President LAST PREVIOUS 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 N ovem ber 14, 1974 D u e February 13, 1975 $4,260,410,000 T otal A pplied For_________________________________ $3,647,115,000 $2,800,935,000__________________________________ T otal_Accepted___________________________________$2,000,680,000 Price Y ield Price Y ield 97.806 8.680% __________________________ H ig h _______________________ 95.614____________ 8.676% 97.777-------------------- 8.794% ----------------------------------------- Low________________________ 95.586____________ 8.731% 97.785 8.763% ( 1 ) — ___________ Average______________ 95.592____________ 8.719% ( 1 ) ( 1 ) T h e s e r a t e s a r e on a b a n k d is c o u n t basis. T h e e q u iv a le n t cou p o n issue y ie ld s a r e 9 . 0 9 % fo r th e 1 3 -w eek bills, a n d 9 .2 5 % fo r th 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 (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Maturing November 21,1974 Dated May 23,1974 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The_________________________ Branch El Paso 79999 Houston 77001 San Antonio 78295 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of 0* public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the arno'J! shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and a t the rate indicate • 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 price (in three decimals) of accepted competitive bids. COMPETITIVE TENDERS $ $ $ @ @ (n) $ f @ $ . average Prices should be exp ressed on tbe basis of 100, wit not more than three decimal places, e.g99.925. Fractions m ust not be used- ZST TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR ARE ACCEPTABLE. Denominations Desired N u m ber of pieces Payment for this issue of bills cannot be made by credit to Treasury Tax and Loan Account METHOD OF PAYMENT M atu rity Value -<®$ 10,000 $.<a f 15,000 $- □ □ 50,000 $-<a> f 100,000 $_<5> $ 500,000 $<® $L,000,000 $-(® $ □ □ □ □ □ Hold in Custody — Investm ent Ac count Hold in Custody — T ru st Account Pledge to secure Treasury Tax and Loan Account Charge our reserve account on paymeDt date D raft enclosed (Effectual delivery o f enclosed shall be on la te st day which will p e rm it present1** . in o rd e r to ob tain irrevocably collected funds on V m e n t date) Delivery Instructions: □ Hold in Custody — General Account □ By m aturing bills held by................................................... - .. Paym ent to be made by_ (S ubscriber’s full nam e o r co rp orate title) (A ddress) By(A uthorized official s ig n a tu re and title) (F o r th e account of, if te n de r is fo r a n o th e r subscriber) Other---------------------------------------(A ddress) IMPORTANT of 1. No tender for less than $10,000 will be considered and each tender over $10,000 must be for an amount in multipleS $5,000 (m aturity value). .g 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of a United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envebd received with this legend will not be opened until after the closing time specified in the public announcement, c o n vtld8 o cations relating to other m atters should not be enclosed. Envelopes for submitting tenders may be obtained from 1 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 ^ Liio has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, w should sign in the form “--------------------------------------- , a copartnership, by___________________I ______________ a member of the firm.” ^ 5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in inV,^e) ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity v.a an of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by incorporated bank or tru st company. jg 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury ’ material, the tender may be disregarded. (See reverse for announcement)
@FedFRASER