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F ederal Reserve Bank o f Dallas
F IS C A L A G E N T O F T H E U N ITE D S T A T E S

DALLAS, TEXAS 7 5 2 2 2
Circular No. 74-221
August 13, 1974
N E W O FF E R IN G — TREASURY BILLS

\li .

°n k in g Institutions a n d O thers C oncerned
ln *he Eleventh F e d e ra l Reserve District:
y
Ur attentio 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:
of tu oThe Treasury Departm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount
'4,800,000,000, or thereabouts, to be issued August 22, 1974, as follows:
91-DA Y B IL L S (to m aturity date) in the am ount of $2,800,000,000, or thereabouts, representing an additional
amount 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-DAY 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 N o. 912793 V W 3 ).
of $4 4 ^ e
* will be issued for cash and in exchange for Treasury bills maturing August 2 2, 1974, outstanding in the amount
j^.. ’401,785,000, of which G overnm ent accounts and Federal R eserve Banks, for them selves and as agents of foreign and interbein0113^ monetary authorities, presently hold $2,622,970,000. T hese accounts m ay exchange bills they hold for the bills now
8 offered at the average prices of accepted tenders.
pr . The bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
*nt
’ an(i at m aturity their face amount w ill be payable without interest. T h ey will be issued in bearer form, and in bookvalue)l0rm t0 ‘M ig r a te d bidders, in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity
Q r Tenders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
te \ l*>ht Saving T im e, Monday, August 19, 1974. T enders will not be received at the Treasury Departm ent, Washington. Each
t6n(jer must 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
not ^rs the price offered m ust be expressed on the basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions m ay
by p e ,used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which w ill be supplied
eueral R eserve Banks or Branches on application therefor.
Re
i n k i n g institutions and dealers who m ake primary markets in G overnm ent securities and report daily to the Federal
f0r rve Bank of N ew York their positions with respect to Governm ent securities and borrowings thereon m ay subm it tenders
Slli a ;count of customers provided the names of the custom ers are set forth in such tenders. Others w ill not be perm itted to
<
C
orr 11 tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust
by"*r”,n'e> and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied
antv t nent
2 percent of the face am ount of Treasury bills applied for, unless the tenders are accom panied by an express guar01 Payment by an incorporated bank or trust company.
vybi-L ^mm ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, following
thos Pablir announcem ent will be m ade by the Treasury D epartm ent of the amount and price range of accepted bids. Only
ejpj6 sa Emitting com petitive tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury
fina[6s% 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
One v. ° iecf to these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any
issue ld„
der Wl" be accepted in full a t the average price (in three decim als) of accepted com petitive bids for the respective
on aS' Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank
l974UpUs*
1974, in cash or other im m ediately available funds or in a like face amount of Treasury bills maturing August 22,
valti ? sb and exchange tenders will receive equal treatment. Cash adjustments will he m ade for differences between the par
6 °* maturing bills accepted in exchange and the issue price of the new bills.
issue" ^ nder Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the amount of discount at which bills
ex,.] hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are
>ssue ?
^
rom consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies)
bills i 6reunder m ust include in his incom e tax return, as ordinary gain or loss, the difference between the price paid for the
lUat^ . ether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at
n ty during the taxable year for which the return is made.
govei Treasury Departm ent Circular N o. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and
11
1
1 dle conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch.
1
itt0n<<CCorc)Qnce 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 b e received a t this b a n k a n d its b ranches a t El Paso,
be ° nc* S ° n A n to n io up to t w e lv e -th ir ty p .m .. C entral 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
e,uered b y te le p h o n e .
Yours v e ry tru ly,
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 Accepted 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
-Total A pplied For_________________________________ $3,647,115,000
$2,800,935,000__________________________________ T otal Accepted__________________________________ $2,000,680,000
^rice
Y ield
Price
Y ield
97.806
8.680% __________________________ H igh_______________________ 95.614___________*8.676%
^ ■2 7 7 -------------------- 8.794% ___________________________Low_______________________ 95.586____________ 8.731%
97.785
8.763% ( 1 ) _____________________ Average______________________95.592____________ 8.719% ( 1 )
^„Thl's<‘ r a te s a r e 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 9 . 0 9 % fo r t h e 13-w eek b ills, a n d 9 . 2 5 % f o r
2 6 -w eek bills.

(S ee 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 20,1975

Dated August 22,1974
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 $________________________

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.

zw,

COMPETITIVE TENDERS

¥
$
¥

«

()
a
()
a
()
a

$
¥
¥
¥

@

... ..

Prices should be
ex p ressed on th e
basis of 100, w ith
not more than three
decimal places, e.g.,
99.925. F ra c tio n s
m ust not be used.

IfW TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
’

CLOSING HOUR ARE ACCEPTABLE.

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

Denominations Desired
N u m ber of
pieces

M a tu rity V alue

¥ 10,000 $_
<> $ 15.000 $_
a
<> ¥ 50.000 $­
a
.<> $ 1 0 0 , 0 0 0 $ _
a
-0) ¥ 500,000 $_
-<
®¥i

□
□
□

Charge our reserve account on paym ent
date
[ [ D raft enclosed (Effectual delivery of enclosed d r a f t
sh all be on la te st day which will p e rm it p re s e 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 — Investm ent Ac­
count
Hold in Custody — T rust Account
Pledge to secure Treasury Tax and
Loan Account
Other-----------------------------------------

By m aturing bills
held by____________________________
Paym ent to be made by_____________

(S u bscrib er's full n a m e or corpo rate 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 d e r is f o r a n o th e r sub 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 conditionaltender will be rejected.
4. If a corporation makes the tender, the form should be
signed by an officer
ofle 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 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 may be disregarded.
(See reverse for announcement)

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